AXD Alexandra

 

TIDMAXD 
 
RNS Number : 9128L 
Alexandra PLC 
14 May 2010 
 

                                 Alexandra PLC 
                          ("Alexandra" or "the Group") 
 
                                 Trading Update 
 
 
In the fourteen months to 31 March 2010 the Group generated revenue of 
approximately GBP72 million (twelve months to 31 January 2009: GBP74.7 million). 
Revenue has been impacted by the economic downturn which has resulted in a very 
challenging and competitive environment with both existing and potential 
customers delaying expenditure and seeking lower prices. In addition, the 
reduced revenues, exposure to the strength of the US dollar and the delivery of 
lower margin contracts won in previous years all contributed to a fall in the 
gross margin from the position reported for the six months to 31 July 2009. 
 
The impact of lower revenue and gross margin was partially mitigated by reduced 
overheads following a significant reorganisation and cost reduction programme 
within the Group. However, some key proposed actions have not yet been 
undertaken due to the financial constraints imposed on the Group. 
 
The Group has continued to incur significant exceptional professional fees 
associated with the refinancing and restructuring of the Group. 
 
The Board continues to drive change at the Group and has undertaken a 
restructuring of the sales/customer service and supply chain elements of the 
Group which has contributed to improved customer retention.  In addition GBP2.3 
million of new business has been won so far in 2010. 
The Group's marketing capability has been enhanced and new branding was launched 
at an industry show in April. Sales of redundant stock since 31 July 2009 have 
exceeded GBP1.6 million and additional sales are in the pipeline. Further 
initiatives in relation to training, property and the Group's supply chain are 
being planned. 
Although the trading performance in the fourteen months to 31 March 2010 was 
disappointing, the Board believes that provided the planned equity fundraising 
is completed the Group will be well placed to implement the further initiatives 
referred to above and to seek to capitalise on the opportunities that exist 
within its market. 
This Trading Update has been prepared solely in compliance with the Disclosure 
Rules and Transparency Rules of the UK Financial Services Authority and is not 
audited. Statements in this Trading Update reflect the knowledge and information 
available at the time of its preparation. Certain statements included or 
incorporated by reference within this Trading Update may constitute 
"forward-looking statements" in respect of the Group's operations, performance, 
prospects and/or financial condition. By their nature, forward looking 
statements involve a number of risks, uncertainties and assumptions and actual 
results or events may differ materially from those expressed or implied by those 
statements. Accordingly, no assurance can be given that any particular 
expectation will be met and reliance should not be placed on any forward-looking 
statement. Additionally, forward-looking statements regarding past trends or 
activities should not be taken as a representation that such trends or 
activities will continue in the future. No responsibility or obligation is 
accepted to update or revise any forward-looking statement resulting from new 
information, future events or otherwise. Nothing in this Trading Update should 
be construed as a profit forecast. This Trading Update does not constitute or 
form part of any offer or invitation to sell, or any solicitation of any offer 
to purchase any shares in the Company, nor shall it or any part of it or the 
fact of its distribution form the basis of, or be relied on in connection with, 
any contract or commitment or investment decisions relating thereto, nor does it 
constitute a recommendation regarding the shares of the Company. Past 
performance cannot be relied upon as a guide to future performance. 
                                    -Ends- 
 
 
 Enquiries: 
+------------------------------+------------------------------+ 
| Alexandra plc                | 01454 876 003                | 
| Tim Gifford, CEO             |                              | 
+------------------------------+------------------------------+ 
| Arden Partners plc           | 020 7614 5900                | 
| Richard Day, Fred Walsh      |                              | 
+------------------------------+------------------------------+ 
|                              |                              | 
+------------------------------+------------------------------+ 
| Evolution Securities         | 020 7071 4300                | 
| Tim Worlledge, Adam Lloyd    |                              | 
+------------------------------+------------------------------+ 
|                              |                              | 
+------------------------------+------------------------------+ 
| Pelham Bell Pottinger        | 020 7337 1521                | 
| Charles Goodwin              |                              | 
+------------------------------+------------------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 TSTAJMRTMBJBBRM 
 

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