Last checked at 13 Oct 2015 12:00
13 October 2015
Leeds Group plc
(the "Company")
AGM Statement
At today's Annual General Meeting, Jan Holmstrom, Non-Executive Chairman, will make the following statement:
"We have now completed four months of the current financial year and I am pleased to say that the trading performance of both Hemmers-Itex and ChinohTex has been satisfactory and is in line with the Board's expectations. Demand remains strong, especially from retailers, and our range of children's fabrics are selling particularly well in this sector. Our online sales systems are now fully operational.
In December 2014, Hemmers acquired a 50% joint venture interest in KMR, a retail chain of fabric and haberdashery stores, and in the last few weeks KMR has concluded negotiations to open a new store in Berlin that is expected to open for business in the first quarter of 2016.
Hemmers-Itex's continued growth in sales volumes has resulted in the need to increase the capacity of our Nordhorn facility. The Directors have authorised an expansion plan that will deliver a significant increase in warehousing capacity, an enlarged and improved showroom and sales area, and space in which we shall install new equipment that will enable us to meet the double folding requirements of our customers entirely from our own resource without resorting, as at present, to more costly outsourcing. We anticipate the total cost of this project, including the cost of the double folding machines, to be in the order of €3.5 million, with a scheduled project completion date before our financial year end on 31 May 2016.
In view of the investment in KMR and the current capital expenditure programme in Nordhorn, 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
Malcolm Wilson - 07801 224618
Cairn Financial Advisers LLP
Tony Rawlinson / Avi Robinson - 020 7148 7900