AGM and Interim Management Statement (9274J)
07 Juillet 2011 - 8:00AM
UK Regulatory
TIDMAXN
RNS Number : 9274J
Alexon Group PLC
07 July 2011
7(th) July 2011
ALEXON GROUP plc
AGM and Interim Management Statement
At its Annual General Meeting to be held later today, Alexon
Group plc ("Alexon" or the "Group") will make the following interim
management statement for the period from 30(th) January 2011 to
7(th) July 2011.
Performance
As anticipated, trading conditions remained challenging for the
UK retail industry. Group like-for-like sales for the 22 weeks to
2(nd) July 2011 were up 0.9%. This period incorporates a difficult
start to the high summer sale reflecting lower footfall in June but
is a creditable performance given the current market environment.
Margins are slightly down, reflecting earlier promotional
activity.
In terms of relative brand performance, Kaliko, Alexon and
Eastex outperformed during the period as their Spring/Summer
collections were well received by both the fashion industry and
consumers. Strong trading on these brands helped offset negatives
on Dash and Minuet. Dash continued to be impacted by cotton raw
material inflation which is now easing slightly. Ann Harvey
remained broadly flat but with some very encouraging signs from
their new casual development. Performance amongst our department
store concessions was polarised, with the best performances being
delivered from those store groups with established web platforms
and an active marketing stance.
Initial intake of Autumn 2011 product is working well across all
brands with positive like-for-like sales and faster stock turn than
last year. We are pleased to have maintained a solid concession
outlet base this year with some new high quality space being
offered for Spring 2012.
Our multichannel strategy continues to progress exceptionally
well, with total online sales for the period up 115% with strong
trading through our partner concession websites as well as our own
platforms. Catalogue sales on Eastex and Dash, though still small,
exceeded our initial expectations and we will continue to grow this
channel for the more classic brands.
Our new business and refurbishment programme, whilst limited by
the need to conserve cash in the current climate, has delivered
good sales and margin uplift. We continue to reshape our property
portfolio and to make progress with the proposed sale of our two
former warehouses in Milton Keynes and Cardiff.
Despite the good progress made during the period, given the
on-going challenging trading conditions and the recent pause in
investment, we expect performance for the current year to be
impacted.
Turnaround
We continued to make progress with our turnaround strategy
during the period, which focuses on restructuring our store
portfolio; continuing to develop our brand propositions including
the roll out of new retail environments, the further acceleration
of our e-commerce business and a much needed systems overhaul. We
commenced our systems improvement, during the period with the
installation of a new warehousing system.
However, as announced at the time of the Group's preliminary
results on 28(th) April 2011, the combination of challenging market
conditions and the reduction in revenues as a result of the
December trading losses has impacted the Group's ability to invest
in the turnaround strategy. Accordingly, the Group is actively
exploring options for a more appropriate capital structure which
will firstly reduce the debt in the business and secondly enable
the Group to invest in the next stages of the turnaround plan. Such
investment would be targeted towards the Group's systems
infrastructure and would take account of what is expected to remain
a difficult economic and retail environment in the near term.
Enquiries:
Alexon Group plc 01582 723131
Jane McNally, Chief Executive Officer
John Boyle, Group Finance Director and Company Secretary
Brunswick Group LLP 020 7404 5959
Simon Sporborg / Zoe Bird
This information is provided by RNS
The company news service from the London Stock Exchange
END
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