Leeds Group, a textile wholesaler operating in Germany and mainland Europe, is currently confronting ongoing obstacles that are impeding its efforts to turn around its business. The company continues to struggle due to various factors such as the lingering effects of the Covid-19 pandemic, the war in Ukraine, rising inflation, and increased interest rates. These conditions have greatly impacted consumer confidence and have resulted in low profit margins within the commodity sector.

However, despite these challenges, Leeds Group remains steadfast in its commitment to restoring profitability to its core German trading subsidiary, Hemmers. The textile markets in Germany and other European countries are still experiencing significant difficulties. From a financial standpoint, the company’s overall revenue for all operations decreased to £27.8 million from £29.6 million in the previous year’s results. Nevertheless, Hemmers managed to achieve a slight increase in sales, from £24 million to £24.23 million.

In a positive turn of events, the group was able to reduce its operating loss to £509,000, a significant improvement from the previous year’s loss of £2.99 million. This improvement includes an impairment charge of £1.66 million. Furthermore, the pre-tax loss also decreased to £893,000 from the previous year’s loss of £3,245,000. Although there was an increase in interest charges, rising to £384,000 from £255,000 in the previous year, the overall trend demonstrates progress in the company’s efforts.

Looking ahead, the management team is committed to evaluating the cost base and realigning it with the reduced sales levels. They will also actively seek out opportunities to enhance Hemmers’ competitiveness and streamline operations wherever possible. The directors are fully dedicated to exploring all available options that can maximize shareholder value and propel Leeds Group towards success.

Despite the challenging circumstances faced by Leeds Group, the company remains determined to recover and overcome the obstacles hindering its progress. By focusing on restoring profitability and implementing necessary cost adjustments, Leeds Group aims to navigate the difficult market conditions successfully and emerge as a resilient and prosperous entity in the future.

Useful Links:
ABC News: Financial Markets Affected by Ukraine Invasion Fears
World Economic Forum: Global Inflation Challenges and Opportunities