Downturn continues through second half for Leeds Group

Fabric importing specialist Leeds Group said in an update on Friday that the industry downturn it described in January had continued through the second half of its financial year.

The AIM-traded firm said in its interim statement in January that the Covid-19 pandemic was impacting its activities, with revenues in both of its trading companies - Hemmers/Itex Textil Import Export and Stoff Ideen KMR - “significantly” reduced in the first half on a year-on-year basis.

It said on Friday that the trend had continued in the second half, despite the easing of Covid-19 restrictions, with consumer confidence further affected by the ongoing war in Ukraine and its impact on domestic expenditures.

“As indicated in the interim statement announcement, management has taken steps to reduce costs to reflect reduced activity levels and these efforts will continue,” the board said in its statement.

“The company does not expect the German government to provide any further financial support schemes as Germany is no longer in a lockdown situation.

“Management is currently undertaking an operational review of both businesses to assess what further actions need to be taken to return the company to profit.”