Trading Statement

Leeds Group PLC
25 September 2003


Issued by Leeds Group plc                                For Immediate Release



Date: 25 September 2003 




                        Leeds Group plc ('Leeds Group')

                               Trading Statement





The Board of Leeds Group is disappointed to announce that its subsidiary Leeds
Leasing has experienced trading difficulties with a long-standing supplier from
which it has acquired assets to rent. Leeds Leasing has recourse arrangements
with the supplier in the event of default by lessees, but the Board are of the
opinion that the present financial position of the supplier makes it unlikely
that recourse debts, either current or future, will be collectible. In the light
of this situation, Leeds Leasing will this month make an exceptional bad debt
provision of £600,000.


Growth in the lease book during the second half has been a little less than had
been anticipated, with the effect that the underlying performance of Leeds
Leasing has fallen slightly behind the Board's expectation. This, together with
the exceptional provision, is expected to lead to the contribution of Leeds
Leasing to the pre-tax profit of Leeds Group for the year ending 30 September
2003 being broadly neutral.


The underlying profitability of the Group as a whole before this exceptional
provision remains in line with the expectations of the Board, with the small
shortfall in Leeds Leasing being offset by satisfactory performance at the
Group's other operating division, Hemmers-Itex, and by reduced central costs.



Enquiries:

Leeds Group plc                                 Citigate Dewe Rogerson Ltd
Malcolm Wilson, Group Managing Director         Fiona Tooley
Tel: [phone]                              Tel: [phone]

Dawn Bowler, Group Finance Director             KPMG Corporate Finance
Tel: [phone]                              Bob Bigley
                                                Tel: [phone]







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