Leeds Group Profit Falls On Forex Losses, Costs

Leeds Group PLC (LDSG.LN) said Monday that it recorded a fall in pretax profit for the first half of 2018 due to currency losses and higher expenses.

The fabrics wholesaler said it posted a pretax profit of 628,000 pounds ($870,571) in the six months ended Nov. 30, down from GBP1.1 million in the year-earlier period. Revenue rose 5% to GBP22.2 million, from GBP21.1 million in the first half of fiscal 2017.

The company was hit by currency losses of GBP34,000 during the first half, while its results were boosted by currency gains of GBP392,000 in the prior-year period, it said.

Leeds said it is confident that its underlying results for the full year will be better than in the year earlier, backed by a strong order book at its Germany-based subsidiary Hemmers, despite what it called a "disappointing" first half.

Shares at 0832 GMT were down 6.8% at 34.50 pence.

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