Last checked at 13 Oct 2016 11:27
13 October 2016
Leeds Group plc
AGM Statement
At today's Annual General Meeting, Jan G. Holmstrom, Non-Executive Chairman, will make the following statement:
"Having completed four months of the current financial year, sales volumes are below expectations which we attribute, at least in part, to the unseasonably warm weather throughout Europe depressing retail demand. In addition, sales in ChinohTex have been held back by large scale factory closures around the Shanghai area ordered by the Chinese authorities to improve air quality in the run up to the recent G20 Summit. Nevertheless, profits are above our expectations, aided by currency exchange gains.
The expansion of the Hemmers facility at Nordhorn is now completed and in full use. The project was completed close to budget in terms of both cost and timeframe, and we should now begin to reap the benefits of saving the cost of rented warehouse space, increased sales opportunities from a much enlarged showroom, and the ability to bring in-house the double folding of fabrics that has been out-sourced in the past.
In December 2014, Hemmers acquired a 50% joint venture interest in KMR, a retail chain of 14 fabric and haberdashery stores. Two more stores were opened in the last financial year, and in the first four months of the current financial year the total has been brought to 19 stores by the opening of shops in Berlin, Leipzig and Chemnitz. There will be further significant investment by KMR during the year of both a capital and revenue nature as modern EDP systems are introduced as a prerequisite for further profitable growth.
In view of the high levels of recent and continuing investment in our business, the Board does not recommend the payment of a dividend. It remains the long term intention of the Board to seek further opportunities to maximise the value of the Group to the benefit of all shareholders by identifying appropriate investments that strengthen the Group."
Enquiries:
Leeds Group plc Cairn Financial Advisers LLP
Malcolm Wilson - 07801 224618 Tony Rawlinson / Liam Murray - 020 7148 7900