TEXTILE firm Leeds Group has announced an annual loss in what it described as "difficult trading conditions".
The Leeds-based group made a pre-tax loss of £24,000 in the year to September 30, compared to a £522,000 profit in 2008.
It said that profits at its German-based Hemmers-Itex division had sunk to £38,000 from £586,000.
Chairman Ewen Wigley saidADVERTISEMENT: "The difficult economic climate in the European countries that Hemmers-Itex sells into has continued during 2009.
"The management at Hemmers-Itex have already taken a number of steps to reduce costs and improve margins, and will continue to seek changes so that their costs are more aligned to the current sales levels."
He added that sales for the first two months of the year have been steady.
Group revenues increased by 16.9 per cent to £25.7m, partly
as a result of increased sales by the group's trading subsidiaries, but chiefly as a result of translating 2009 revenue at a sterling exchange rate considerably weaker than last year.
The German Hemmers-Itex subsidiary is engaged in the import, warehousing and wholesaling of fabrics.
This year was the first full year of operations for its Chinese subsidiary, Chinoh-Tex.
Mr Wigley says: "To have recorded modest growth in a year of depressed aggregate demand for fabric means we have increased market share, and are well positioned for when consumption increases."
