REG - Leeds Group PLC - Final Results

LeedsAnnouncement

12/11/2019 07:05

RNS Number : 0393T
Leeds Group PLC
12 November 2019
 


Issued on behalf of Leeds Group plc                                                                                                
Date: 12 November 2019
 
 
Leeds Group plc
("Leeds Group" or "the Group")
Final Results for the year ended 31 May 2019
 
 
Leeds Group reports the final results of the Group for the year to 31 May 2019.
 
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (MAR) and has been arranged for release by Jan G Holmstrom, Chairman.
 
 
Enquiries:
Leeds Group plc                                                                   Cairn Financial Advisers LLP
Dawn Henderson - 07747 777055                                        Tony Rawlinson / Liam Murray - 020 7213 0880
 
 
Chairman's Statement
 
It has been an extremely difficult and disappointing year for the Group. Trading conditions have continued to be challenging with increased competition creating pressure on gross margins within both the wholesale and retail textile markets. Hemmers-Itex Textile Import Export GmbH ('Hemmers'), the main trading subsidiary, has been affected by the deterioration in both its German and external markets.
 
On 5th July 2018, an additional investment was made in Stoff-Ideen-KMR Gmbh ('KMR') so that the company became a wholly owned subsidiary rather than a joint venture arrangement. KMR has a limited number of retail shops in Germany and the directors had hoped that with full control of the business and synergies with Hemmers, that the company would contribute to increased profits for the Group.  As the retail market in Germany has deteriorated, KMR has also been affected with sales falling during the year with no positive result contribution. 
 
During the year the directors have therefore undertaken a further strategic review of all trading businesses within the Group.  The directors see the need to further concentrate on the Group's core business, Hemmers, and have implemented plans and cost cutting measures to ensure that the company is in a good position both to face the current challenging market conditions and to respond to any improvement. A decision has been made to close Chinoh-Tex Ltd ('Chinoh-Tex'), the Chinese subsidiary of Hemmers, as it is not generating adequate profits despite recent actions taken to reduce costs.  A number of measures have been implemented in KMR to further improve efficiencies and reduce the cost base, such as implementation of new IT systems and changes to how shops are staffed and managed. Management will closely monitor the performance of the KMR retail outlets and take the necessary actions to ensure satisfactory levels of profit are achieved in each.
 
Trading conditions remain challenging and it will be a difficult year again in 2020, as it will take time for the decisions taken this year to fully translate into improved results. Given the steps that have been taken during the year to improve efficiencies which will reduce the cost level further and enable the Group to compete with a more aggressive sales strategy to regain lost market share, the directors do believe the Group will return to acceptable levels of profit in the forthcoming years, partly because of the potential for consolidation in the market as we expect some competitors to exit the market.
 
On behalf of shareholders, I want to thank the management and staff of Hemmers, Chinoh-Tex and KMR who have all continued to work tirelessly in very difficult conditions.
 
 
Jan G Holmstrom
Chairman
11 November 2019
 
Finance and Operating Review
 
Group result
 
Group revenue in the year was £41,271,000 (2018: £41,538,000). Despite including KMR as a wholly owned subsidiary for eleven months of the year, sales are slightly lower than last year.  Market conditions for all trading subsidiaries have been challenging and all companies have faced intense competition both domestically and internationally.
 
The Group's operating loss of £1,022,000 includes a goodwill impairment charge of £982,000. (2018: profit £1,152,000).  Overheads were higher than expected and action has now been taken to realign those overheads to the reduced turnover levels.  The goodwill that arose when the Group acquired Hemmers in 1999 amounting to £982,000 has been provided for in the year as an impairment and shown as an exceptional item. Therefore, the Group loss before tax this year is £1,250,000 (2018: profit £885,000).
 
The tax charge in the year was £43,000 (2018: £340,000).  Loss per share was 4.7p (2018: earnings per share 2.0p).
 
Hemmers 
 
This German-based business is engaged in the import, warehousing and wholesaling of fabrics.
 
Sales for the year were significantly lower than last year at £30,939,000 (2018: £38,299,000).  The market in Germany has fallen considerably during the year and Hemmers has also come under increased price pressure from competitors.  The gross margin percentage decreased slightly to 21.0% (2018: 22.1%) and that, together with the lower level of sales volume, has resulted in a fall in gross profit.  Despite a 6% reduction in overhead expenditure, the pre-tax profit reduced to £239,000 (2018: £1,123,000).  A strategic sales review coupled with a comprehensive cost review was undertaken during the financial year to ensure the cost base for Hemmers is aligned to the current market conditions. Hemmers is focused on growing its business domestically and internationally in both its wholesale and retail markets with a more aggressive sales strategy.   Hemmers will thereby be in a better position to compete in the marketplace next year to regain lost market share, but it will take some time for the new strategies to be fully recognised.
 
Hemmers bank debt, net of cash, decreased in the year to £4,197,000 (2018: £4,963,000). This bank debt is secured on the assets of Hemmers.
 
KMR
 
On 5th July 2018, KMR became a wholly owned subsidiary within the Group. Prior to that the Group owned 50% of KMR and it was therefore accounted for as a joint venture. Up to that date, the Group's share of the post-tax loss of KMR in the year was £34,000 (2018: £107,000) and that amount is shown separately on the face of the profit and loss account. From the date of acquisition, KMR has been fully consolidated into the Group accounts.
 
KMR is a retail business trading in Germany. KMR's operating performance since acquisition has been well below expectations.  Sales for the company for the whole year were lower than last year at £8,656,000 (2018: £9,343,000).    The German retail market has fallen considerably during the year and therefore KMR sales have fallen also. 
 
Costs were too high for the level of trading resulting in an increased loss for the year of £554,000 (2018: loss of £210,000). The integration and efficiencies expected at the start of the financial year have not yet been delivered and further actions have been taken to resolve the situation. Improved working efficiencies have been implemented including the introduction of new working patterns which should ensure that KMR achieves a breakeven position next year.
 
Chinoh-Tex
 
Chinoh-Tex is a textile trading subsidiary of Hemmers. It is based in Shanghai and has been trading for eleven years. It purchases fabric from Chinese suppliers and in 2019 sold to customers in 52 countries. 43% of sales were made to EU countries (2018: 43%). External sales revenue was considerably lower this year £2,366,000 (2018: £3,239,000).  Gross margins, however, improved to 19% (2018: 15%). In line with the cost review undertaken, overhead spending was reduced as compared to last year £251,000 (2018: £388,000).  Thus, despite the reduced level of sales Chinoh-Tex's result for the year was a pre-tax profit of £31,000 (2018: loss £86,000). 
 
Chinoh-Tex has provided valuable assistance to its European parent with the purchasing, inspection and shipping of material. However internal sales revenue this year, based on arms-length prices, amounted to just £204,000 (2018: £556,000). With Chinoh-Tex also facing increased competition and decreasing sales as more customers choose to deal directly with the manufacturers in China, the directors have decided to cease trading effective 28 August 2019 with the liquidation completed by 31 December 2019.  This will enable Hemmers management to entirely focus on developing the Hemmers and KMR businesses.
 
Fixed Assets
 
Capital additions in the year amounted to £550,000 (2018: £400,000).  The net book amount of tangible fixed assets in the Consolidated Statement of Financial Position is £9,543,000 (2018: £8,319,000). The acquisition of KMR increased fixed assets by £1,307,000, of which £864,000 related to freehold land and buildings.  
 
Working Capital
 
Working capital which comprises inventories, trade and other receivables, and trade and other payables increased in the year by £1,031,000 (2018: decreased £345,000).  This is due mainly to the acquisition of KMR as KMR had working capital of £1,761,000 at the date of acquisition. There were no major changes to the working capital requirements for the Group during the year. The Group continues to monitor its working capital requirements within its current banking facilities.
 
Net Asset Value
 
Net assets decreased in the year by £1,247,000 as follows:




 


Net assets
£000


Per share
pence




 


 


 




At 31 May 2018
(restated based on shares in issue at 31 May 2019)


18,988


69.4




Loss after tax


(1,293)


  (4.7)




Purchase of treasury shares


(9)


    -




Translation differences


55


0.2




 


 


 




At 31 May 2019


17,741


64.9




 
Debt Profile
 
The funding policy of the Group continues to be to match its funding requirement in trading subsidiaries in a cost-effective fashion with an appropriate combination of short and longer-term debt. Property investments have been financed partly by long term loans at fixed interest rates between 1.05% and 4.07%.  Working capital finance, when required, is via short term loans of three months currently attracting interest at rates of between 1.25% and 2.5%. Bank debt in the subsidiaries is secured by charges on inventories, receivables and property and is without recourse to the Parent Company.
 
Impairment reviews
 
In accordance with IAS 36, an annual impairment review was carried out for each cash-generating subsidiary to which goodwill is allocated.  Based on this review the directors considered that the goodwill of £982,000 arising on the acquisition of Hemmers in 1999 was impaired and thus the goodwill was written off in the financial statements.
 
Principal risks and uncertainties
 
The Board has identified the main categories of business risk in relation to the Group's strategic aims and objectives, and has considered reasonable steps to prevent, mitigate and manage these risks.  The principal risks identified are as follows:
 
Funding risk
 
The Group has a combination of short-term borrowing facilities and longer-term loan agreements secured on Group properties. The Group remains dependent upon the support of these funders and there is a risk that failure in a particular company to meet banking covenants could have implications for the Group. Borrowing facilities are monitored regularly and the facilities agreed are more than needed for the Group's requirements.  The Group has close working relationships with their current funders but believe alternative banking funders could be secured if required.
 
Market risk
 
There is always the ongoing threat of reduced market demand.  This has been seen this year and the Group continues to strive to combat the reduced demand by looking at other markets both domestically and internationally and looking at expanding its product ranges for example introducing home furnishing products.
 
The commercial risks of operating in the highly competitive European fabric market are limited by the fact that Hemmers has a wide range of suppliers, and no customer accounts for more than 5% of revenues.
 
Foreign exchange risk
 
Most fabric purchased by Hemmers is paid for in US dollars, while the Euro is the principal currency in which Hemmers sells its product. The Euro/dollar rate is of greater significance to Leeds Group than the strength of Sterling. The Hemmers management continue to manage this transactional currency risk by a combination of forward exchange contracts with reputable banks and sales price increases where necessary.
 
Brexit
 
Following the UK referendum result in favour of leaving the European Union ("EU"), the economic environment has become much more uncertain. This uncertainty has continued as the UK looks to secure an acceptable deal and the revised date of 31 October 2019 to leave the EU has been extended. The threat of no deal creates even more uncertainty as does the continual deadline extensions.  However, the business of Leeds Group is conducted entirely by subsidiaries incorporated in Germany or China, and their exports to the UK account for approximately 3% only of Group revenue. For this reason, the Directors do not believe that a material risk to Leeds Group will arise from the terms on which the UK will, in the future, have access to EU markets, and vice versa. Leeds Group has loans denominated in euros which do carry a currency risk and may be affected by Brexit, however, the directors do not believe the impact would have a material effect on the Group's results as the subsidiary trades in Euros and the directors consider this provides a natural hedge.
 
The currency markets in particular, dislike the current air of uncertainty surrounding the current negotiations with regard to the UK leaving the EU and sterling has weakened since the UK announced it was leaving the EU. This benefits Leeds Group since, as the pound weakens, the value of the revenues, profits and net assets of foreign subsidiaries are increased in sterling terms. This effect has been seen in both this year's and last year's trading and Statement of Financial Position.
 
 
Jan G Holmstrom
Chairman
11 November 2019
 
Consolidated Statement of Comprehensive Income
for the year ended 31 May 2019
 




 


Year ended
31 May 2019
£000


Year ended
31 May 2018
£000




 
Revenue


 
41,271


 
41,538




 
Cost of sales


 
(32,254)


 
(32,526)




 
Gross profit


 
9,017


 
9,012




 
Distribution costs


 
(3,424)


 
(2,722)
 




Impairment of goodwill
Administrative costs


(982)
(5,644)


       -
(5,188)




Administrative costs


(6,626)


(5,188)




 


 


 




Other income


11


50




 
Operating (loss)/profit


 
(1,022)


 
1,152




 
Finance expense


 
(194)


 
(160)




 


 


 




Share of post-tax loss of joint venture


(34)


(107)




 
(Loss)/profit before tax


 
(1,250)


 
885




 
Tax charge


 
(43)


 
(340)




 
(Loss)/profit for the year attributable to the equity holders of the Parent Company


 
 
(1,293)


 
 
545




 
Other comprehensive income


 


 




Translation differences on foreign operations


55


141




 
Other comprehensive income for the year


55


141




 


 


 




Total comprehensive (loss)/income for the year attributable to the equity holders of the Parent Company


 
 
(1,238)


 
 
686




 
The results shown in the consolidated statement of comprehensive income derive wholly from continuing operations. There is no tax effect relating to other comprehensive income for the year.
 
Amounts included in other comprehensive income may be reclassified subsequently as profit or loss.
 
(Loss)/Earnings per share attributable to the equity holders of the Company
 




 


 


Year ended
31 May 2019
 


Year ended
31 May 2018
 




 


 


 


 




Basic and diluted (loss)/earnings per share (pence)


 


(4.7p)


2.0p


 



 
 
 
 
 
 
 
 



 
Consolidated Statement of Financial Position
at 31 May 2019
 




Company number 00067863


 
31 May 2019
£000


 


 
31 May 2018
 £000




Assets


 


 


 




Non-current assets


 


 


 




Property, plant and equipment


8,534


 


7,755




Investment property


1,009


 


564




Goodwill


72


 


1,057




Investment in joint venture


-


 


734




 


 


 


 




Total non-current assets


9,615


 


10,110




 


 


 


 




Current assets


 


 


 




Inventories


11,760


 


9,621




Trade and other receivables


4,382


 


6,252




Corporation tax recoverable


733


 


386




Cash and cash equivalents


1,065


 


572




 


 


 


 




Total current assets


17,940


 


16,831




 


 


 


 




Total assets


27,555


 


26,941




 


 


 


 




Liabilities


 


 


 




Non-current liabilities


 


 


 




Loans and borrowings


(2,289)


 


(3,708)




Deferred tax


-


 


(277)




 


 


 


 




Total non-current liabilities


(2,289)


 


(3,985)




 


 


 


 




Current liabilities


 


 


 




Trade and other payables


(2,770)


 


(2,619)




Loans and borrowings


(4,655)


 


(1,349)




Provisions


(100)


 


-




 


 


 


 




Total current liabilities


(7,525)


 


(3,968)




 


 


 


 




Total liabilities


(9,814)


 


(7,953)




 


 


 


 




TOTAL NET ASSETS


17,741


 


18,988




 




Capital and reserves attributable to
equity holders of the Company


 


 


 




Share capital


3,792


 


3,792




Capital redemption reserve


600


 


600




Treasury share reserve


(807)


 


(798)




Foreign exchange reserve


2,545


 


2,490




Retained earnings


11,611


 


12,904




 


 


 


 




TOTAL EQUITY


17,741


 


18,988




 
The financial statements were approved and authorised for issue by the Board of directors on 11 November 2019 and were signed on behalf of the Board by:-
 
 
Jan G Holmstrom
Chairman
Consolidated Cash Flow Statement
for the year ended 31 May 2019
 




 


Year ended
31 May 2019
£000


Year ended
31 May 2018
   £000




Cash flows from operating activities


 


 




(Loss)/profit for the year


(1,293)


545




Adjustments for:


 


 




Depreciation of property, plant and equipment


668


586




Depreciation of investment property


16


19




Amortisation of intangible assets


7


6




Finance expense


194


160




Impairment of goodwill


982


-




Net goodwill arising on acquisition


(7)


-




Movement in fair value of derivatives


-


(48)




Gain on sale of property, plant and equipment


(5)


-




Share of post-tax loss of joint venture


34


107




Tax charge


43


340




 


 


 




Cash flows from operating activities before
changes in working capital and provisions


 
639


 
1,715




 


 


 




Decrease in inventories


441


597




Decrease in trade and other receivables


140


583




Increase/(decrease) in trade and other payables


450


(835)




 


 


 




Cash generated from operating activities


1,670


2,060




Income taxes paid


(430)


(411)




 


 


 




Net cash flows from operating activities


1,240


1,649




 


 


 




Investing activities


 


 




Purchase of property, plant and equipment


(550)


(400)




Purchase of subsidiary net of debt


75


-




Proceeds from the sale of fixed assets


6


-




 


 


 




Net cash used in investing activities


(469)


(400)




 


 


 




Financing activities


 


 




Purchase of treasury shares


(9)


-




Bank borrowings repaid


(1,358)


(2,102)




Bank borrowings drawn down


1,287


-




Bank interest paid


(194)


(160)




 


 


 




Net cash used in financing activities


(274)


(2,262)




 


 


 




Net increase/(decrease) in cash and cash equivalents


497


(1,013)




 


 


 




Translation (loss)/gain on cash and cash equivalents


(4)


18




 


 


 




Cash and cash equivalents at the beginning of the year


572


1,567




 


 


 




Cash and cash equivalents at the end of the year


1,065


572




 
 
Consolidated Statement of Changes in Equity
for the year ended 31 May 2019
 




 
 
 


Share capital
   
£000


Capital redemption reserve
£000


Treasury share reserve
£000


Foreign exchange reserve
        £000


Retained earnings
 
£000


Total equity
 
£000




 
At 31 May 2017


 
3,792


 
600


 
(798)


 
2,349


 
12,359


 
18,302




 
Profit for the year


 
-


 
-


 
-


 
-


 
545


 
545




Other comprehensive income


-


-


-


141


-


141




 
Total comprehensive income


 
-


 
-


 
-


 
141


 
545


 
686




 
At 31 May 2018


 
3,792


 
600


 
(798)


 
2,490


 
12,904


 
18,988




 
Loss for the year


 
-


 
-


 
-


 
-


 
(1,293)


 
(1,293)




Other comprehensive income


-


-


-


55


-


55




 
Total comprehensive income/(loss)


 
 
-


 
 
-


 
 
-


 
 
55


 
 
(1,293)


 
 
(1,238)




 
Transaction with Shareholders:
Purchase of treasury shares


 
 
-


 
 
-


 
 
(9)


 
 
-


 
 
-


 
 
(9)
 




 
At 31 May 2019


 
3,792


 
600


 
(807)


 
2,545


 
11,611


 
17,741




 
The following describes the nature and purpose of each reserve within equity:
               




Reserve


Description and purpose




 
Share capital


 
The nominal value of issued ordinary shares in the Company.




 
Capital redemption reserve


 
Amounts transferred from share capital on redemption of issued shares.




 
Treasury share reserve


 
Cost of own shares held in treasury.




 
Foreign exchange reserve


 
Gains/losses arising on retranslation of the net assets of overseas operations into sterling.




 
Retained earnings


 
Cumulative net gains/losses recognised in the consolidated statement of comprehensive income after deducting the cost of cancelled treasury shares.




   
Notes
 
1.         This announcement has been prepared using the recognition and measurement principles of International Financial Reporting Standards as adopted by the European Union.
 
2.       The Directors do not recommend the payment of a dividend in 2019 (2018: £nil).
 
3.         The directors have considered the carrying value of the goodwill arising on the acquisition of Hemmers in 1999. They have concluded that there is an impairment of the goodwill and thus the goodwill amounting to £982,000 has been provided for in the accounts.
 
4.         Acquisition of KMR
 
On 5 July 2018 Hemmers became 100% owners of KMR following the buyout of our joint venture partner. KMR is a retailer of fabric and haberdashery, operating shops located throughout Germany. The consideration was €500,000 (£440,000) comprising €250,000 (£220,000) paid in cash and the balance being three shops at a value of €250,000 (£220,000). Hemmers invested a further €370,000 (£326,000) in the company during the period.
 
The joint venture investment was accounted for in the consolidated financial statements of Leeds Group using the equity accounting method and at 5 July 2019, was held at a carrying value of £697,000.
 
Accounting for the step acquisition of KMR requires the directors to fair value the original 50% joint venture investment, with the resulting loss debited to the profit and loss in administrative costs as follows:
 




 


€000


£000




 


 


 


 




As at 5 July 2018:


 


 


 




Fair value share of original joint venture


650


572


 




Carrying value of investment in consolidated financial statements


792


697


 




 


 


 


 




Loss on fair valuing of joint venture investment


142


125


 



 
 
 
 
 



 
Upon obtaining 100% control of the KMR entity, the cost of the investment for the purposes of determining the goodwill is calculated as follows:
 




 


€000


£000




 


 


 


 




Fair value share of original 50% joint venture


650


572


 




Fair value of the consideration paid to obtain control


500


440


 




 


 


 


 




Cost of investment


1,150


1,012


 



 
 
 
 
 



 
   The net assets of the newly acquired subsidiary are as follows:
 




 


€000


£000




 


 


 


 




Fair value of net assets as at 5 July 2018:


 


 


 




Fixed assets


1,485


1,307


 




Stock


3,138


2,762


 




Cash


335


295


 




Debtors


259


228


 




Creditors


(1,731)


(1,524)


 




Loans


(2,186)


(1,924)


 




 


 


 


 




Fair value of assets acquired


1,300


1,144


 



 
 
 
 
 



 
The directors consider that the book values of the new assets acquired approximate to the fair value of the new assets and that there are no separately identifiable intangible assets.
 
Goodwill on consolidation is calculated as follows:




 


€000


£000




 


 


 


 




Cost of investment


1,150


1,012


 




Fair value of net assets acquired


1,300


1,144


 




 


 


 


 




Negative goodwill arising on consolidation


150


132


 



 
 
 
 
 



 
This negative goodwill is credited to the profit and loss in administrative costs.
 
The cash flow effect of the step acquisition is as follows:
 




 


€000


             £000




 


 


 


 




Cash


335


295


 




Cost of purchase


(250)


(220)


 




 


 


 


 




Net cash effect


85


75


 



 
 
 
 
 



 
The amounts of revenue and profit before tax included in the consolidated statement of comprehensive income in respect of KMR's trading since the acquisition date are shown in note 6.         
 
5.         (Loss)/Earnings per share




 
Since there are no outstanding share options, there is no difference between basic and diluted earnings per share.


Year ended
31 May 2019  


Year ended
31 May 2018




 


 


 




Numerator


 


 




(Loss)/profit for the year from continuing operations, being the earnings used in earnings per share


 
£(1,293,000)


 
£545,000




 


 


 




Denominator


 


 




Weighted average number of shares used in earnings per share (excluding treasury shares)


 
27,330,788


 
27,350,843




 


 


 




Basic and diluted (loss)/earnings per share


    (4.7p)


     2.0p




 
6.            Segmental information
 




Year ended
31 May 2019


Hemmers
     
      £000


KMR
 
£000


Chinoh-Tex
£000


Inter segmental
£000


Total Hemmers
£000


Parent Company
£000


Goodwill
Impairment
    £000


Total
Group
£000




 


 


 


 


 


 


 


 


 




External revenue


30,939


7,966


2,366


-


41,271


-


-


  41,271




Inter-segmental revenue


1,852


-


204


 (2,056)


-


-


-


-




Cost of sales


(25,911)


(6,092)


(2,093)


1,842


(32,254)


-


-


(32,254)




 


 


 


 


 


 


 


 


 




Gross profit/(loss)


6,880


1,874


477


(214)


9,017


-


-


9,017




Distribution costs


(2,027)


(1,202)


(195)


-


(3,424)


-


-


(3,424)




Admin expenses


(4,231)


(1,119)


(251)


193


(5,408)


(236)


(982)


(6,626)




Other income


11


-


-


-


11


-


-


11




 


 


 


 


 


 


 


 


 




Operating profit/(loss)


633


(447)


31


(21)


196


(236)


(982)


(1,022)




Finance expense


(155)


(39)


-


-


(194)


-


-


(194)




Internal interest


(239)


-


-


-


(239)


239


-


-




Share of JV loss


(34)


-


-


-


(34)


-


-


(34)




 


 


 


 


 


 


 


 


 




Profit/(loss) before tax


205


(486)


31


(21)


(271)


3


    (982)


(1,250)




 




At 31 May 2019


Hemmers
          
 £000


KMR
 
£000


Chinoh-Tex
£000


Inter segmental
£000


Total Hemmers
£000


Parent Company
£000


Total
Group
£000




 


 


 


 


 


 


 


 




Total assets


22,330


4,609


838


(331)


27,446


109


    27,555




 


 


 


 


 


 


 


 




Total liabilities


(10,130)


(2,450)


(195)


-


(12,775)


2,961


 (9,814)




 


 


 


 


 


 


 


 




Total net assets


12,200


2,159


643


(331)


14,671


3,070


   17,741




 




Year ended
31 May 2018


Hemmers
      
 £000


Chinoh-
Tex
£000


Inter segmental
£000


Total Hemmers
£000


Parent Company
£000


Total
Group
£000




 


 


 


 


 


 


 




External revenue


38,299


3,239


-


41,538


-


  41,538




Inter-segmental revenue


1


556


(557)


-


-


-




Cost of sales


(29,839)


(3,231)


544


(32,526)


-


(32,526)




 


 


 


 


 


 


 




Gross profit/(loss)


8,461


564


(13)


9,012


-


9,012




Distribution costs


(2,460)


(262)


-


(2,722)


-


(2,722)




Admin expenses


(4,530)


(388)


-


(4,918)


(270)


(5,188)




Other income


50


-


-


50


-


50
 




Operating profit/(loss)


1,521


(86)


(13)


1,422


(270)


1,152




Finance expense


(160)


-


-


(160)


-


(160)




Internal interest


(238)


-


-


(238)


238


-




Share of JV profit


(107)


-


-


(107)


-


(107)




 


 


 


 


 


 


 




Profit/(loss) before tax


1,016


(86)


(13)


917


(32)


885




 




At 31 May 2018


Hemmers 
 
£000


Chinoh-
Tex
£000


Inter segmental
£000


Total Hemmers
£000


Parent Company
£000


Goodwill
      
 £000


Total
Group
£000




 


 


 


 


 


 


 


 




Total assets


24,386


1,463


(37)


25,812


149


980


   26,941




 


 


 


 


 


 


 


 




Total liabilities


(10,189)


(414)


-


(10,603)


2,927


 (277)


 (7,953)




 


 


 


 


 


 


 


 




Total net assets


14,197


1,049


(37)


15,209


3,076


703


   18,988




 
7.         The financial information set out above does not constitute the company's statutory accounts for 2019 or 2018.
 
            Statutory accounts for the years ended 31 May 2019 and 31 May 2018 have been reported on by the Independent Auditors. 
 
          The Independent Auditor's Report on the Annual Report and Financial Statements for both 2019 and 2018 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
 
          Statutory accounts for the year ended 31 May 2018 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 May 2019 will be delivered to the Registrar in due course. The Annual Report, giving notice of the Annual General Meeting, will be sent to shareholders shortly.  Further copies will be available from the Company's Registered Office, Old Mills, Whitehall Grove, Drighlington, Bradford, BD11 1BY or from the Group's website, www.leedsgroup.plc.uk.




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END
 
 
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