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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Alexon Grp. | LSE:AXN | London | Ordinary Share | GB00B28Y7M80 | ORD 12.5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 2.825 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:3321D
Alexon Group PLC
27 September 2004
For Immediate Release 27 September 2004
ALEXON GROUP PLC
Interim Results for the 26 weeks ended 31 July 2004
Alexon Group plc, the leading retailer of ladieswear, menswear and shoes,
announces Interim Results for the 26 weeks ended 31 July, 2004.
Key Points
* Operating profit* of #11.2m (2003: #11.1m before exceptionals);
* Turnover increased 5% to #197.9m (2003: #188.6m);
* Improved gross margins offset 1% fall in like-for-like sales;
* Earnings per share, before goodwill amortisation increased 7.8% to
13.52p (2003: 12.54p before exceptionals);
* Interim dividend declared of 2.83p (2003: 2.33p), an increase of
21.4%.
* Share buyback of 1.25m shares for #4.4m completed
* Operating profit is before goodwill amortisation
John Osborn, Chief Executive, commented:
"Alexon has produced a creditable result in a challenging trading period. After
a tough August, there has been an improvement in sales over the last two weeks,
reflecting the onset of more autumnal weather. We look forward to sound progress
in the second half."
For further information:
Alexon Group 020 7678 8000 (today) & 01582 723131 (thereafter)
John Osborn, Chief Executive
Robin Piggott, Finance Director
Buchanan Communications 020 7466 5000
Richard Darby/Eleanor Williamson
CHIEF EXECUTIVE'S REPORT
Results
Overall sales increased by 5% and although like-for-like sales were 1% down on
the prior year, this was offset by slightly higher gross margins. Group
operating profit (before goodwill amortisation) for the first half of the year
of #11.2 million was 1% up on the equivalent figure of #11.1 million (before
charging factory closure costs of #1.0m in 2003). Operating profit after
goodwill amortisation was #10.0 million compared with #9.0 million last year.
Alexon Brands
Alexon Brands put in a solid performance, with operating profit increasing to
#10.3 million from #10.0 million in 2003. Whilst like-for-like sales were flat,
gross margins were assisted by a weaker dollar and lower manufacturing costs
resulting from the closure of our South Wales factory in April 2003. The
strongest performances came from Eastex, which is geared to the older customer
and is particularly resilient in a tougher retail climate, and Alex & Co the
younger, more contemporary sub-brand of Alexon which has proved so successful
that it is replacing the Alexon brand from Autumn 2004 onwards.
Dolcis
Dolcis had a good half with operating profits increasing by #0.3 to #0.9m and
like-for-like sales up 2% on the prior year. Gross margins were slightly lower
in the half largely due to weaker sales of summerwear. The division continued
to benefit from a broader product range and additional concessions in Bay and
Envy.
Style
Style made an operating loss of #0.3m in the half compared to breakeven in 2003.
Like-for-like sales were 1% up on the prior year, with gross margins slightly
lower. Whilst the menswear performance in Envy was satisfactory, womenswear had
a disappointing half. The concessions business continued to benefit from strong
trading and the opening of 14 new concessions in Debenhams, bringing the total
to 58.
Bay Trading
Bay made an operating profit of #0.4m against #0.6m last year, with a fall in
like for like sales of 6% being offset by stronger margins. Whilst the division
suffered from unhelpful weather, which hit jerseywear sales, more work needs to
be done in order to strengthen the design content and appeal of the ranges.
Outlets
Given below is a breakdown of outlets as at 31st July 2004, showing a net
increase of 28 outlets in the half.
UK UK European
Shops Concessions Concessions Total
Alexon Brands 80 816 131 1,027
Dolcis 64 128 5 197
Style 57 79 1 137
Bay Trading 148 62 11 221
Total 349 1,085 148 1,582
Current Trading
August proved to be a tough month with wet weather adversely affecting the
clearance of summer stock across all divisions. There has however been an
improvement in sales over the last two weeks, particularly in our department
store business, reflecting the onset of more autumnal weather.
Shareholder Returns
It is pleasing to note that adjusted earnings per share has increased by 7.8% to
13.52p. 1.25 million ordinary 10p shares were purchased for cancellation in the
first half for an aggregate sum of #4.4 million. It is the Board's intention to
make further share repurchases as and when appropriate.
The Board is declaring an interim dividend of 2.83p per Ordinary Share (2003 =
2.33p) payable on 26th November 2004 to shareholders on the register on 5th
November 2004.
John Osborn
Chief Executive
CONSOLIDATED PROFIT & LOSS ACCOUNT
Unaudited Unaudited Audited
26 weeks to 26 weeks to 53 weeks to
Note 31 July 2004 26 July 2003 31 January 2004
#000's #000's #000's
(restated)
Turnover - continuing operations 1 197,944 188,596 416,429
Cost of sales (174,593) (166,368) (358,404)
Gross profit 23,351 22,228 58,025
Administrative expenses
before goodwill amortisation (5,617) (5,584) (10,501)
goodwill amortisation (1,200) (1,200) (2,400)
(6,817) (6,784) (12,901)
Distribution costs (6,485) (6,475) (15,956)
Operating profit before goodwill amortisation 11,249 10,169 ** 31,568 **
Goodwill amortisation (1,200) (1,200) (2,400)
Operating profit - continuing operations 1 10,049 8,969 29,168
Net interest (payable)/receivable (6) 74 220
Profit on ordinary activities before taxation 10,043 9,043 29,388
Tax on profit on ordinary activities (3,215) (3,077) (7,224)
Profit for the financial period 6,828 5,966 22,164
Ordinary dividend (1,678) (1,399) (4,468)
Non-equity preference dividend - (631) (943)
Retained profit for the financial period 5,150 3,936 16,753
Earnings per share : basic 2 11.50 p 8.97 p 35.53 p
diluted 11.20 p 8.79 p 34.20 p
adjusted * 13.52 p 10.99 p 39.54 p
*Excludes goodwill amortisation.
**Operating profit for the 26 weeks to 26 July 2003 and 53 weeks to 31 January
2004 includes a one-off cost of #984,000 arising from the closure of the
manufacturing facility in South Wales. Operating profit excluding this one-off
charge was #11,153,000 and #32,552,000 respectively.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Unaudited Unaudited Audited
26 weeks to 26 weeks to 53 weeks to
31 July 2004 26 July 2003 31 January 2004
#000's #000's #000's
(restated)
Profit for the financial period 6,828 5,966 22,164
Total recognised gains for the period 6,828 5,966 22,164
Prior year adjustment (see note 3) 407 - (438)
Corporation tax related to prior year adjustment (122) - 131
Total gains recognised since last annual report 7,113 5,966 21,857
CONSOLIDATED BALANCE SHEET
Unaudited as at Unaudited Audited as at
31 July as at 26 31 January
2004 July 2003 2004
Note (restated) (restated)
#000's #000's #000's #000's #000's #000's
Fixed assets
Intangible assets 35,974 38,374 37,174
Tangible assets 19,859 20,766 20,572
55,833 59,140 57,746
Current assets
Stock 60,973 58,171 56,771
Debtors 26,846 27,714 26,072
Investments - short term deposits - 11,000 -
Cash at bank and in hand 4,902 1,830 2,728
92,721 98,715 85,571
Creditors falling due within one year (52,663) (52,237) (48,407)
Net current assets 40,058 46,478 37,164
Total assets less current liabilities 95,891 105,618 94,910
Creditors falling due after more than one - (3) -
year
Provisions for liabilities and charges (3,241) (3,543) (3,286)
Net assets 92,650 102,072 91,624
Capital and reserves
Called up share capital 6,114 8,226 6,116
Share premium account 3 37,109 32,916 32,916
Capital redemption reserve 3 2,716 481 2,591
Profit and loss account 3 46,711 60,449 50,001
Equity shareholders' funds 92,633 81,525 91,607
Non-equity shareholders' funds 17 20,547 17
Total shareholders' funds 92,650 102,072 91,624
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
26 weeks to 26 weeks to 53 weeks to
Note 31 July 26 July 31 January
2004 2003 2004
#000's #000's #000's #000's #000's #000's
Net cash inflow from operating
activities 4 10,293 9,088 33,714
Returns on investments and
servicing of finance
Interest received 117 202 418
Interest paid (157) (97) (261)
Interest element of payments
finance lease (2) (29) (30)
Non-equity dividends paid - (631) (1,364)
(42) (555) (1,237)
Taxation
Corporation tax paid (2,448) (3,901) (8,898)
Capital expenditure
Purchase of tangible fixed
assets (2,057) (2,179) (5,165)
(Costs of disposal)/receipts
from sales of tangible fixed assets (20) 19 248
(2,077) (2,160) (4,917)
Equity dividends paid (3,064) (2,771) (4,173)
Net cash inflow before
management of
liquid resources and financing 2,662 (299) 14,489
Management of liquid resources
(Increase)/decrease in short
term deposits
- (1,000) 10,000
Financing
Proceeds from the issue of 825 1,171 374
shares
Purchase of own shares (4,950) (670) (22,411)
Repayment of loan notes (548) (52) (131)
Capital element of payments
finance lease (73) (222) (403)
(Decrease)/increase in cash 6 (2,084) (1,072) 1,918
Notes to the financial statements
1 Turnover and operating profit comprise:
Turnover Operating profit/(loss)
26 weeks to 26 weeks to 26 weeks to 26 weeks to
31 July 2004 26 July 2003 31 July 2004 26 July 2003
#000's #000's #000's #000's
Alexon Brands 96,356 92,371 10,312 9,954
Dolcis 33,260 31,549 864 587
Bay Trading 40,419 40,104 385 604
Style 27,909 24,572 (312) 8
197,944 188,596 11,249 11,153
Exceptional items - (984)
Operating profit before goodwill amortisation 11,249 10,169
Goodwill amortisation (1,200) (1,200)
Operating profit 10,049 8,969
Exceptional items arising in the 26 weeks to 26 July 2003 comprise the costs of
closing the manufacturing facility in South Wales.
2 The calculation of basic earnings per share is based on profits of
#6,828,000 (2003 : #5,335,000) after deducting preference dividends, and on
59,369,061 ordinary shares ( 2003 : 59,442,907) being the weighted average
number of ordinary shares in issue.
The earnings figure for adjusted earnings per share excludes goodwill
amortisation. The adjusted numbers have been provided in order that the effect
of goodwill amortisation on reported earnings can be fully appreciated.
In calculating diluted earnings per share the weighted average number of
ordinary shares in issue is adjusted to assume the exercise of all dilutory
share options granted to directors and key employees.
Reconciliations of the earnings and weighted average number of shares are set
out below.
26 weeks to 31 July 2004 26 weeks to 26 July 2003
Earnings (#) Weighted Per Earnings (#) Weighted Per share
average share average pence
pence
number of number of
shares shares
Adjusted earnings 8,028,000 59,369,061 13.52 6,535,000 59,442,907 10.99
Goodwill
amortisation (1,200,000) - (2.02) 1,200,000) - (2.02)
Basic earnings 6,828,000 59,369,061 11.50 5,335,000 59,442,907 8.97
Effect of dilutive
securities :
options - 1,576,718 (0.30) - 1,228,372 (0.18)
Diluted earnings 6,828,000 60,945,779 11.20 5,335,000 60,671,279 8.79
Share Capital
premium redemption Profit and
account reserve loss account
#000's #000's #000's
3 Reserves
Reserves at the beginning of the period as previously 32,916 2,591 52,852
stated
Prior year adjustment for UITF 38 and UITF 17 - - (2,851)
Reserves at the beginning of the period as restated 32,916 2,591 50,001
Arising on share issues 4,193 - (3,491)
Arising on share repurchase - 125 (4,949)
Profit for the period - - 5,150
Reserves at the end of the period 37,109 2,716 46,711
The profit and loss account reduction arising on the issue of shares reflects
the difference between shares issued to the Employee Benefit Trust at market
price and the subscription price of share options exercised by employees.
Prior year adjustment
The prior year adjustment relates to the implementation of UITF 38 Accounting
for ESOP Trusts, the amendments to UITF 17 Employee Share Schemes, and the
associated tax effect. An analysis of the prior year adjustment is given below :
2004
#000's
Reverse UITF 13 charges to opening shareholders' funds 295
Reverse UITF 13 credit to prior year (31 January 2004) profit and loss account (10)
285
UITF 38 change in presentation of cost of shares held by ESOP Trust (3,136)
(2,851)
The amendments to UITF 17 do not impact the financial statements as all share
options are granted at market price.
The prior year adjustment of #438,000 made in the 53 weeks ending 31 January
2004 relates to the implementation of FRS 5 Application Note G and the
associated tax effect.
Unaudited Unaudited Audited
26 weeks to 26 weeks to 53 weeks to
31 July 2004 26 July 2003 31 January 2004
#000's #000's #000's
(restated)
4 Reconciliation of operating profit to net cash
inflow from operating activities
Operating profit 10,049 8,969 29,168
Depreciation 2,683 2,547 5,582
Amortisation of goodwill 1,200 1,200 2,400
Loss/(profit) on disposal of tangible fixed 107 38 (46)
assets
Increase in stock (4,202) (8,020) (6,620)
(Increase)/decrease in debtors (774) 784 1,402
Increase in creditors 1,275 3,632 2,147
Decrease in provisions (45) (62) (319)
10,293 9,088 33,714
5 Analysis of net (debt)/funds
Cash 4,902 1,830 2,728
Overdrafts (5,568) (3,394) (1,302)
Loan notes - (635) (556)
Finance leases (3) (257) (76)
Short term deposits - 11,000 -
(669) 8,544 794
6 Reconciliation of movement in cash to
movement in net (debt)/funds
(Decrease)/increase in cash (2,084) (1,072) 1,918
Repayment of loan notes 548 52 131
Repayment of finance leases 73 222 403
Increase/(decrease) in liquid resources - 1,000 (10,000)
Movement in the period (1,463) 202 (7,548)
Net funds at the beginning of the period 794 8,342 8,342
Closing net (debt)/funds (669) 8,544 794
7 The accounts for the 26 weeks to 31 July 2004 have not been audited, nor
have the accounts for the equivalent period in 2003. These interim financial
statements do not constitute statutory accounts. The results for the 53 weeks
ended 31 January 2004 are extracts from the group accounts for that period which
have been delivered to the Registrar of Companies and on which the auditors gave
an unqualified opinion which did not contain a statement under Section 237 (2),
(3), or (4) of the Companies Act 1985. The results for the 53 weeks ending 31
January 2004 have been restated for the prior year adjustments disclosed in note
3.
8 This statement is being posted to shareholders and copies will be
available to members of the public at the registered office at 40 - 48 Guildford
Street, Luton, LU1 2PB.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR USANRSARKUAR
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