5th Jan 2017 08:03
LONDON (Alliance News) - Fabric and haberdashery wholesaler Leeds Group PLC on Thursday said its pretax profit rose slightly in the first half of its financial year thanks to the translation effect of the weaker sterling.
Leeds posted revenue of GBP21.1 million for the six months ended November 30, up from GBP18.5 million a year earlier, but said the 14% sales growth comprised a fall of 2.7% in sales at constant exchange rates, "disguised by the translation effect of weaker sterling". The translation effect increased reported sales by 17%.
Leeds posted a pretax profit of GBP1.1 million for the period, up from GBP1.0 million a year earlier.
The group said, in euro terms, revenue in its Hemmers unit in Germany fell by 2.9% to EUR22.5 million from EUR23.2 million, due to reduced sales into the wholesale sector caused in part by an inability to keep up with demand for double folded items. However, the group said it has now addressed this by expanding its facilities in Nordhorn, in Germany.
Leeds said its ChinohTex unit in China's revenue and pretax profit figures for the period were "little changed from last year", and said the division was continuing "to perform invaluable work in support of its European parent operation".
Leeds said it was not proposing an interim dividend, in order to maximise funds available for future investment.
Leeds added it was "cautiously optimistic for further growth" in its second half.
By Hannah Boland; [email protected]; @Hannaheboland
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