The boss of a once famous textile business today told how it has withdrawn from the industry and redefined itself in an effort to survive.

Just a decade ago, the Yeadon-based Leeds Group Plc employed about 1,800 people and turned over more than £65 million per year.

But, speaking as the company reported end of year profits of £1.1 million yesterday, managing director Malcolm Wilson revealed how the company has now been transformed into primarily a leasing business funding assets into the catering and leisure industries. He said the move had been vital to ensure the AIM-listed firm's survival as the impact of cheap imported textiles took its toll.

Leeds Group Plc's century-long association with textile manufacturing came to an end this year with the sale of its Italian Nemesis subsidiary.

Since joining the firm four years ago, Mr Wilson has spearheaded a drive to refocus on the Leeds Leasing side of the business.

In the last four years, Leeds Group has sold or shut down 13 textile manufacturing companies while growing its leasing business.

Its business is now split between fabric distribution - importing materials from the Far East through its German Hemmers-Itex subsidiary - and financial leasing.

"We are left with the two businesses that we have looking forward and we are looking for a period of stability and the chance to reward our shareholders for their patience," said Mr Wilson. "Now we need to make sure that the group gets bigger, quicker."

Mr Wilson, who yesterday revealed turnover was now £25 million, said he was confident the company had a profitable future in its new form.

"It has been very difficult and some of the businesses have been sold to management teams who have continued to run them and I am pleased to see that most of them are doing very well," he said. "However, some we had to close, and that's a very unpleasant thing to have to do."