Leeds Group PLC AGM Statement (4757M)
13 October 2016 - 9:27PM
UK Regulatory
TIDMLDSG
RNS Number : 4757M
Leeds Group PLC
13 October 2016
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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