Interim Management Statement

 

TIDMAXN 
 
RNS Number : 0050U 
Alexon Group PLC 
17 June 2009 
 
17 June 2009 
 
ALEXON GROUP plc 
 
 
 Interim Management Statement 
 
 
Alexon Group plc today announces its Interim Management Statement for the 19 
weeks to 13 June 2009. 
 
Trading conditions remained challenging over the period as the economic climate 
and consumer confidence remained poor. Reflecting this, our like-for-like sales 
for the 17 weeks to 13 June 2009 declined by 10.5% (-12.0% including two weeks 
of extreme weather conditions at the start of February). Due to an increased 
level of promotional activity, margins experienced a small negative impact over 
the period. 
 
Performance was mixed across the brand portfolio. Eastex and Dash continued to 
trade well with their successful formulae and through the introduction of more 
accessory ranges and new business avenues. Specialist petite brand Minuet traded 
respectably over the period and has successfully launched a transactional 
website. Ann Harvey had a very difficult start to the Spring season after 
suffering from a stock to sales imbalance following major sourcing change and 
old stock clearance. We are, however, seeing a gradual improvement in sales on a 
week-by-week basis as the new ranges start [taking shape/being launched] and 
online sales continue to build. Kaliko and Alex & Co performed poorly over the 
period as they continued to suffer from the overhang of trading legacy ranges. A 
revised strategic approach has been planned for both Kaliko and Alex & Co. for 
Autumn/Winter 09 ranges. 
 
We have continued to tightly focus on restructuring the business to establish 
sound foundations for future growth. Our turnaround strategy, which over the 
longer term aims to revive all brands to growth and profitability, is 
progressing well. We are pleased to report that the appointment of a new senior 
management team is now complete and is beginning to successfully translate into 
organisational efficiencies throughout the business. 
 
The administration of Epcoscan Limited on 27th April 2009, although an extremely 
difficult decision for the Board, helps provide the business with much greater 
financial certainty and will allow management to focus solely on the turnaround 
of the core Alexon brands.  The group's Annual Financial Report published on 
29th May 2009, removed the material uncertainty which had been mentioned in our 
preliminary statement around Bay Trading after its subsequent administration. 
The impact of Epcoscan's administration on rest of the business, and in 
particular the supply chain, was minimal and short-lived. The group continues to 
operate comfortably within its banking facilities. 
 
Looking ahead, the Board anticipates that the intensely competitive retail 
environment will continue for the foreseeable future. Trading performance and 
margins are likely to be impacted in the short term, particularly as Summer 2009 
sale dates are brought forward in line with our key competitors. 
We anticipate, however, that our investments in improving range differentiation 
and enhanced product values, combined with incremental new business 
opportunities during Autumn, will partially offset the impact of a very 
challenging retail environment, which is encouraging for the future. 
 
Enquiries: 
 
+-------------------------------------------------------------+----------------------------------------+ 
| Alexon Group plc                                            |    01582 723131                        | 
| Jane McNally, Chief Executive Officer                       |                                        | 
| Robin Piggott, Group Finance Director and Company Secretary |                                        | 
|                                                             |                                        | 
+-------------------------------------------------------------+----------------------------------------+ 
| Brunswick Group LLP                                         |    020 7404 5959                       | 
| Simon Sporborg / James Olley / Zoe Bird                     |                                        | 
|                                                             |                                        | 
+-------------------------------------------------------------+----------------------------------------+ 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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