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Profits fall at textile firm Leeds Group
Source: yorkshirepost Date: 2009-05-25
TEXTILE specialist Leeds Group today said challenging trading conditions dented profits.
The Leeds-based company said half year pre-tax profits fell to £134,000 from £315,000 a year ago, despite revenue rising to £13.3m from £11.3m a year earlier.
"The challenging economic climate in which the group operates led to reduced margins and resulted in the decrease in profitability," said chairman Ewen Wigley.
The group's Germany-based Hemmers-Itex fabric division continued to maximise efficiency and reduce cost. Its newly established Chinese subsidiary is already helping profits and has a "promising future".
However, the group warned its outlook is uncertain.
"Given the general expectation that the European economies are unlikely to improve in the short term, the outlook for the remainder of the financial year is likely to remain challenging," said Mr Wigley.
"The challenging economic climate in which the group operates led to reduced margins and resulted in the decrease in profitability," said chairman Ewen Wigley.
The group's Germany-based Hemmers-Itex fabric division continued to maximise efficiency and reduce cost. Its newly established Chinese subsidiary is already helping profits and has a "promising future".
However, the group warned its outlook is uncertain.
"Given the general expectation that the European economies are unlikely to improve in the short term, the outlook for the remainder of the financial year is likely to remain challenging," said Mr Wigley.
