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Leeds Group shares rally as group swings to profit

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Leeds Group shares jumped 37.84% on Friday as the group share a trading update for the six months ended 30 November 2020.

Even though the pandemic continues to have impacts, sales in the first six months of the financial year were higher than expected. Sales at Hemmers jumped to £15.59m (2019: £14,52) and KMR sales climbed to £4,35m (2019: £4.07m).

In the second half of the year, tighter restrictions led to the closure of stores although online business is continuing.

Leeds Group made a pre-tax profit of £735,000, which is compared to the 2019 loss of £712,000.

“The effect of prior year cost cutting measures is now evident with a reduction in costs. Management is focused on aligning the business with sales demand and competing in markets where it can make acceptable margins,” said the group.

“Hemmers and KMR management will work hard to manage the situation and reduce all costs as far as possible given the reduced level of trading and both companies should benefit from any government financial support provided.”

Leeds Group are trading +48.11% at 27,40 (1040GMT).