Leeds Group's profit increases amid challenging conditions

Fabrics wholesaler Leeds Group on Monday reported growth in profit before tax despite a reduction in revenue for the first half of its fiscal year.

For the six-month period ended 30 November 2018, profit before tax reached £1.17m, an 86% increase on the same period the year before, though revenue fell to £21.9m from £22.2m as sales struggled at Hemmers due to decreased demand in its main markets.

Though sales decreased by 15% to €19.7m at the subsidiary, profit before interest remained largely unchanged at €1m following the introduction of an ongoing cost cutting exercise that will continue in to the second half of the year with the objective of ensuring that profitability is maintained at a similar level to last year.

Cash and cash equivalents stood at £1.1m at the end of the period, down from £1.3m at the same point the year before.

Chairman Jan Holmstrom said: "The board continues to believe that the result for the full year will be at a higher level to last year despite the challenging market conditions. The group have implemented a number of cost reduction and efficiency plans throughout to ensure cost bases are reduced in accordance to the current market conditions to ensure the companies remain profitable."

Leeds Group's shares were unchanged at 27.00p at 0929 GMT.