Leeds Group PLC (LON:LDSG) on Friday said its annual profits almost halved due to difficult trading conditions, increased competition and a negative currency impact.
The importer, seller and distributor of fabric reported a profit before tax of £0.88mln in the year to the end of May compared to £1.5mln a year earlier. Sales edged up 1% to £41.54bn but the company said the Euro-denominated parent company loan to its German subsidiary resulted in a small currency loss compared to a £0.3mln gain a year ago.
No dividend
As such, the company said it would not propose a dividend payment.
“The board considers there are still potential growth opportunities for Hemmers, Chinoh-Tex and KMR despite a competitive environment and given the steps taken to improve efficiencies, the directors believe that we are well placed to return to previous profit levels for the Group,” Leeds Group’s chairman Jan Holmstrom said in a statement.
“At this early point in the current financial year, sales and profit are in line with the expectations of the board,” he added.