Interim Management Statement


 

TIDMAXD 
 
RNS Number : 3464E 
Alexandra PLC 
18 December 2009 
 
18 December 2009? 
Alexandra PLC 
("Alexandra" or "the Company") 
Interim Management Statement 
 
 
In accordance with the UK Listing Authority's Disclosure and Transparency rules, 
Alexandra plc, one of Europe's leading workplace clothing suppliers, issues its 
interim management statement for the third quarter of the financial year to 31 
January 2010. 
 
 
Trading update 
 
 
In the Company's Interim Results statement released on 30 September 2009, the 
Board stated that revenue was 17% below the same period last year. Alexandra now 
reports that there has been no further decline and turnover for the nine months 
ended 31 October 2009 was again down approximately 17% on the same period last 
year. Moreover, monthly sales increased significantly in September and again in 
October, as management's new implemented strategies and initiatives started to 
take effect. Turnover in November was at a similar level to October, with both 
months in line with management's targets. 
 
 
The impact on EBITDA of the lower turnover has been mitigated by proactive 
management, and a significant reorganisation and cost reduction programme, 
which has resulted in a decrease in overheads of over 17% compared to last year. 
Nonetheless current indications are that profit before tax and exceptional items 
for the full year is likely to be below management's expectations. 
 
 
Following the write-downs of redundant inventory previously announced, the 
disposal of redundant lines is in line with management's expectations and has 
helped to limit the Company's borrowings, as has improved management of old 
debts. 
 
 
Operations update 
 
 
The change management programme designed to better align the Company's 
operations to deliver a focussed service offering is now approximately two 
thirds complete and, as indicated above, there has been a significant reduction 
in overheads as well as some improvement to revenue in recent months and, more 
significantly, good progress in winning new contracts. Having addressed the 
matter of excess overheads, the management is working hard to improve the 
top-line with good quality, profitable long term contracts whilst, at the same 
time, addressing the funding structure of the Company. 
 
 
Banking Update 
As indicated in the announcement on 12 November 2009 the Board is pursuing all 
options to put in place an appropriate funding and capital structure for the 
longer term. Constructive discussions with the Company's bankers are still 
ongoing. Although the Company's bank facilities remain repayable on demand and 
the next formal review date is now 31 January 2010 the Board has every reason to 
believe they will be extended whilst it endeavours to secure other funding for 
the Company. 
 
 
 
Outlook 
 
 
Looking ahead, the Company is continuing to submit tenders for new contracts, 
and further initiatives are being planned through Alexandra's revitalised sales, 
marketing activities and improved levels of customer service. In recent weeks 
new contracts with an annual value of approximately GBP4.2 million have been 
won, the benefit of which will be felt over the next three years. 
 
 
The Board remains cautiously optimistic about Alexandra's prospects and its 
ability to exit from the current economic climate stronger and more able to 
build on its market leading position. The current priority is to establish an 
appropriate funding and capital structure to facilitate this. 
Once the current distractions referred to above have been resolved and with the 
new management team fully focused on the imperatives of securing further new 
business and negotiating margin enhancing supply arrangements, the Board firmly 
believes that Alexandra will be able to further capitalise on the significant 
opportunities that exist in a fragmented industry which has been damaged by the 
worldwide economic difficulties. 
18 December 2009 
 
 
 
 
Enquiries: 
Alexandra plc                               01454 876003 
Tim Gifford, CEO 
Elaine New, FD 
 
 
Arden Partners plc                        020 7398 1632 
Richard Day, Fred Walsh 
 
 
Winningtons Financial                    0117 920 0092 or 07768 807631 
Paul Vann 
 
 
 
 
Dealing Disclosure Requirements 
Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any 
person is, or becomes, "interested" (directly or indirectly) in 1% or more of 
any class of "relevant securities" of the Company, all "dealings" in any 
"relevant securities" of the Company (including by means of an option in respect 
of, or a derivative referenced to, any such "relevant securities") must be 
publicly disclosed by no later than 3.30 pm (London time) on the London business 
day following the date of the relevant transaction. This requirement will 
continue until the date on which the offer becomes, or is declared, 
unconditional as to acceptances, lapses or is otherwise withdrawn or on which 
the "offer period" otherwise ends. If two or more persons act together pursuant 
to an agreement or understanding, whether formal or informal, to acquire an 
"interest" in "relevant securities" of the Company, they will be deemed to be a 
single person for the purpose of Rule 8.3. 
Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant 
securities" of the Company by the offeror or the offeree company, or by any of 
their respective "associates", must be disclosed by no later than 12.00 noon 
(London time) on the London business day following the date of the relevant 
transaction. 
A disclosure table, giving details of the companies in whose "relevant 
securities" "dealings" should be disclosed, and the number of such securities in 
issue, can be found on the Takeover Panel's website at 
www.thetakeoverpanel.org.uk. 
"Interests in securities" arise, in summary, when a person has long economic 
exposure, whether conditional or absolute, to changes in the price of 
securities. In particular, a person will be treated as having an "interest" by 
virtue of the ownership or control of securities, or by virtue of any option in 
respect of, or derivative referenced to, securities. 
Terms in quotation marks are defined in the Code, which can also be found on the 
Panel's website. If you are in any doubt as to whether or not you are required 
to disclose a "dealing" under Rule 8, you should consult the Panel. 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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