Last checked at 10 Oct 2022 07:00
10 October 2022
Leeds Group plc
(the "Company")
Trading Update
Further to the announcement of 29 April 2022 and despite the easing of Covid-19 restrictions, consumer confidence has been further affected by the conflict in Ukraine.
As a result, the continuing uncertainty in global markets remains and the impact on the German economy has deepened. Local management have reviewed the options available to both its trading companies, Hemmers-Itex Textil Import Export GmbH ('Hemmers') and Hemmers subsidiary Stoff-Ideen-KMR GmbH ('KMR'), to ensure the Company is able to meet its ongoing challenges.
KMR has continued to make losses in the current financial year and, following an independent review, Hemmers management have decided that the KMR business is unsustainable and has today placed KMR into an insolvency process. During this process, the insolvency administrator will control and operate KMR to realise its assets in order to pay any outstanding creditors.
The Hemmers management and Leeds Group directors are committed to ensuring that Hemmers returns to profitability and confirm that sales for the current year are in line with their expectations.
For the year ended 31 May 2021, audited revenue for KMR accounted for £5,344,000 which made up approximately 16 per cent. of the Company's overall revenue, whilst Hemmers revenue accounted for £27,669,000 (approximately 84 per cent. of the Company's overall revenue in the same year).
This announcement contains inside information for the purposes of UK Market Abuse Regulation and has been arranged for release by Jan G Holmstrom, Chairman.
Enquiries:
Leeds Group plc Dawn Henderson | Tel: 01937 547877 |
Cairn Financial Advisers LLP Nominated Adviser Liam Murray / Sandy Jamieson | Tel: 020 7213 0880 |