Trading Statement - Quarter 1

Leeds Group PLC
24 January 2000



LEEDS GROUP PLC
TRADING STATEMENT  -  QUARTER 1,  1999-2000



At today's Annual General Meeting (24 January 2000), Robert Wade, Chairman of
Leeds Group PLC told shareholders:

Trading in the current financial year has started as expected with profits in
Q1 in line with the same period last year.  Business conditions remain
difficult, particularly in the more traditional textile sectors, with the
trend to offshore manufacturing adversely affecting demand for domestically
produced goods.  Our service orientated businesses (ie  leasing and
distribution) are enjoying more favourable trading conditions.

On 23 December 1999, we announced that we had completed the acquisition of a
German trading and distribution company, Hemmers GmbH.  Hemmers is a privately
owned business based on the Dutch/German border, whose principal activity is
the import of printed fabrics from the Far East and distribution to a variety
of wholesalers throughout Northern Europe.  The activities complement those of
Itex, our own Dutch based import and distribution business, and the
acquisition fits into the Group's new strategy of expanding this activity
across Europe.

We are extremely pleased to complete this acquisition, as it constitutes a key
building block in our strategic plan.

The size of our traditional textile base is being realigned to our
expectations of demand.  In addition, we are expanding the scope of our
European import/distribution division and of Leeds Leasing, as both of these
subsidiaries offer further opportunities for growth.




Enquiries:
Robert Wade
Chairman
Leeds Group PLC
Tel: [phone]