Leeds Group PLC Trading Update (2534C)

TIDMLDSG

RNS Number : 2534C

Leeds Group PLC

10 October 2022

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 GBP5,344,000 which made up approximately 16 per cent. of the Company's overall revenue, whilst Hemmers revenue accounted for GBP27,669,000 (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                 Tel: [phone] 
  Dawn Henderson 
 Cairn Financial Advisers LLP    Tel: [phone] 
  Nominated Adviser 
  Liam Murray / Sandy Jamieson 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTEAKEPELXAFFA

(END) Dow Jones Newswires

October 10, 2022 02:00 ET (06:00 GMT)