Leeds Group issues second profit warning amid increased competition
By Duncan Ferris
Date: Friday 17 May 2019
(Sharecast News) - Leeds Group warned on Friday that it now expects its performance in the year ended 31 May to fall "significantly below" last year, as its subsidiaries have faced increased competition.
The textiles importer had warned that trading in the second half of the year had been "challenging" back in March, when it warned that profit before tax was now expected to be below prior expectations of an increase over the year before and stated on Friday that market conditions have deteriorated even further since the last warning.
In the last financial year, Leeds Group achieved a profit before tax of £0.9m and sales of £41.5m, but now expects to fall short of repeating these results.
Working capital remains adequate, but subsidiaries have faced intensified competition in a reduced market.
Consequently, AIM traded company said each trading subsidiary has been told to implement new cost reductions and efficiency savings, which will not have an effect on the current years trading result, with the objective of returning the group to acceptable profit levels in the next financial year.
Leeds Group's shares were up 11.11% at 25.00p at 1344 BST.
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