TIDMAXN
RNS Number : 9075Z
Alexon Group PLC
30 September 2009
?
ALEXON GROUP PLC
("Alexon" or "the Company")
Half year results for the 26 weeks ended 1 August 2009
Alexon Group plc, the ladies clothing retailer that owns six womenswear brands,
announces its results for the 26 weeks ended 1 August 2009.
Financial highlights
· Turnover down 11% at GBP77.7m (2008: GBP87.0m), like-for-like sales down 12.6%
· Gross margin down 1.9%
· Profit before tax and exceptional items of GBP0.9m (2008: GBP6.9m)
· Loss before tax of GBP8.1m (2008: profit of GBP6.9m) including exceptional
items of GBP9.0m
· Total profit for the period, after tax, exceptional items and discontinued
operations of GBP4.5 million (2008: profit of GBP3.2 million)
· Loss per share from continuing operations of 13.2p (2008: earnings per share
of 10.7p)
· Earnings per share from total operations of 10.1p (2008: earnings per share of
7.2p)
· Net debt of GBP1.4m (31 January 2009: cash of GBP5.3m) after a net cash out
flow of GBP6.7m, of which GBP4.1m arose from discontinued operations
· No interim dividend is proposed to conserve cash (2008: 1.0 pence per share)
Strategic and operational highlights
· Short term actions completed
o Further strengthening of the management team and operational structures
o Improved buying and minimised excess aged stock
o Clearer direction on brand and product design
· Good progress on medium term priorities
o New brand identities developed for Ann Harvey, Kaliko, Alexon and Minuet
o 24 concession outlet refits completed in House of Fraser stores
o New Ann Harvey store format launched on Oxford Street
o Successfully driving multi channel routes to market
o New product initiatives launched
· In line with the current economic climate cash management, capital
expenditure, working capital and operating costs continue to be
rigorously monitored and controlled
Commenting on the results, Jane McNally, Chief Executive, said:
"The first half has been difficult for Alexon but we have delivered results in
line with expectations. The groundwork is being put in place by the new
executive team to support a sustained revitalisation of our established brand
portfolio in the medium term.
Trading since the half year has been challenging. This is mainly as a result of
our planned strategy to have less sale activity and partly due to the tough
retail environment. This backdrop of non-comparable intense sale activity last
year has resulted in like for like sales being lower than the first half.
However, we believe that overall performance is stabilising and is being aided
by additional benefits of some of our recent initiatives including the new store
and concession refits as well as increased space. There have also been some
encouraging early signs from within the new Autumn/Winter ranges, particularly
for those brands whose turnaround is more advanced.
We remain fully confident that the Alexon brands are uniquely positioned to
capture a broad customer base in a growing sector. As such there is great
potential for future profit growth."
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 | |
+-------------------------------------------------------------------------+-------------------------------+
Overview
The first half has remained challenging for Alexon but the intense focus on
restructuring since Jane McNally's appointment last year has continued. It will
take time for the turnaround to be achieved in this environment but the Board
remains confident that there are sound foundations for future growth over the
medium and long term.
Alexon has delivered results in line with expectations and has achieved this
despite the tough retail environment, the recent administration of Bay Trading
and being in the initial stages of a turnaround plan. Pre-tax profit from
continuing operations, before exceptional items, for the 26 weeks ended 1 August
2009 was GBP0.9 million (2008: GBP6.9 million). The total profit for the period,
after tax, exceptional items and discontinued operations, was GBP4.5 million
(2008: profit of GBP3.2 million). Sales were 11% lower than the prior year with
like-for-like sales down 12.6%, with gross margins down 1.9 % on the prior year.
Earnings per share from total operations was 10.1p (2008: earnings per share of
7.2p) and no interim dividend is proposed (2008: 1.0 pence per share).
As indicated in our June 2009 Interim Management Statement, trading performance
and margins were impacted in the short term as Summer 2009 sale dates were
brought forward in line with our key competitors. Dash performed well in the
first half recording positive like for like sales growth while Eastex remained
consistent and performed in line with the market. Alex & Co, Minuet, Kaliko and
Ann Harvey cleared the Spring 2009 legacy ranges well albeit at some cost to
margin.
Overall concession outlet numbers grew by 14 in the half to 1,017 helped by
openings on Dash and Eastex. Lease hold shops traded in the half increased by
five to 85 shops due to the re-opening of leases returning to the group as a
result of the Administration of Bay Trading. Liability for a further 30 leases
remains and these will be disposed of or re-opened under Alexon formats as
appropriate.
Bay Trading
On the 24 April 2009 we announced that we were undergoing a restructuring of the
Group and that Deloitte LLP had been appointed as administrators to Epcoscan
Limited, Alexon's subsidiary which traded as Bay Trading.
This was a source of great regret but the withdrawal of supplier credit
insurance coupled with extremely difficult market conditions gave the Board no
real alternative in order to secure the future of the wider Group. Clear
communication of our long-term strategy has resulted in a very supportive
approach from suppliers who have largely returned to normal trading terms.
In addition there are no issues with host department stores as a consequence of
the administration. It is anticipated that GBP1.3m will be received in the
second half of the financial year from amounts secured against the assets of Bay
Trading. GBP1m of this is in repayment of the 30 April 2009 payroll paid by
Alexon to Bay Trading employees immediately following the appointment of the
administrator on 27 April 2009, in order to facilitate a sale of the business.
Bay Trading was, operationally, largely stand alone from Alexon. The few areas
of operational overlap have been dealt with successfully. On the returning of
leases there has been an orderly process with appropriate fascias being
identified and the re-opening programme underway. The Group has a liability for
33 ex Bay Trading leases with an average lease length of four years. Of the 33
leases, nine will re-open under Alexon Brands fascias this year, five are due to
expire within 12 months and two have been assigned to new tenants. Options for
the remaining leases are currently under consideration.
Update on strategy
Since the arrival of Jane McNally as Chief Executive Officer in June 2008 a
detailed review of the business has been undertaken. Jane identified a number of
issues within the business, in particular: a weakened brand identity in four of
the six brands; an operational structure and legacy leases that are not aligned
to the forward strategy; a lack of investment and best practice in many areas;
and a depleted management team in an increasingly competitive market.
However, the Board believes there is an exciting opportunity to build on the
strong heritage of the Alexon Brands; improving the benefits of a diversified
brand portfolio, exploiting a growing demographic audience across the portfolio
and capitalising on a solid model with low fixed costs.
Priorities for the business have been split into immediate, medium term and
longer term. These are:
Immediate - strengthen the management team and operational structures; improve
buying and minimise excess aged stock; and clearer direction on brand and
product design.
Medium term - new branding and product development for key brands; communicate
change to customers; enhance multi-channel opportunities including on-line sales
channels; drive more business through host stores; reduce costs and put property
portfolio on a sound footing; and review and upgrade management information
systems.
Long term - revive all brands to growth and profitability; sustainable re-fit
programme; and reposition and enhance stand-alone store portfolio.
As stated in the 2009 Annual Report, the immediate priorities have largely been
completed. There has been continued action on these such as strengthening the
teams across the business, improving staff scheduling and changing the business
culture.
In addition there has been good progress on the medium term priorities. New
brand identities have been identified for Ann Harvey, Kaliko, Alexon and Minuet;
we have completed 24 concession outlet refits in House of Fraser stores; we have
launched a new Ann Harvey store format with a flagship one in Oxford Street
store opening; we are successfully driving multi channel routes to market; and
there is a renewed focus on new product initiatives. Dash performed well in the
first half recording positive like for like sales growth while Eastex remained
consistent and performed in line with the market.
Balance Sheet
The group ended the half with net debt of GBP1.4m (31 January 2009: cash of
GBP5.3m) after a net cash out flow of GBP4.1m relating to discontinued
activities, principally connected with Bay Trading and the subsequent
administration. It is anticipated that GBP1.3m will be received in the second
half of the financial year from amounts secured against the assets of Bay
Trading.
Stock levels for the Alexon Brands were 8% below the prior year at the period
end, with residual stocks being successfully cleared. Capital expenditure in the
first half was GBP0.7m, mainly concession openings and refits of shops returning
under guarantee.
In line with the current economic climate capital expenditure, working capital
and operating costs continue to be rigorously monitored and controlled.
Note: The consolidated balance sheet at 31 January 2009 and 26 July 2008
includes the assets and liabilities of Epcoscan Limited (t/a Bay Trading).
Dividend
The Board has decided not to declare an interim dividend to conserve cash (2008:
1p per ordinary share).
Outlets
A breakdown of outlets as at 1st August 2009 is as follows:-
+-------------------+-------------------+-------------------+-------------------+-------------------+
| | UK Shops | UK Concessions | European | Total Outlets |
| | | | Concessions | |
+-------------------+-------------------+-------------------+-------------------+-------------------+
| Open | 85 | 880 | 137 | 1,102 |
+-------------------+-------------------+-------------------+-------------------+-------------------+
| Closed stores | 30 | | | 30 |
+-------------------+-------------------+-------------------+-------------------+-------------------+
| Total | 115 | 880 | 137 | 1,132 |
+-------------------+-------------------+-------------------+-------------------+-------------------+
| | | | | |
+-------------------+-------------------+-------------------+-------------------+-------------------+
Principal Risks and uncertainties
The principal risks and uncertainties facing the Group over the remainder of
the financial year are contained within note 16 to the financial statements.
Current Trading and Outlook
Trading since the half year has been challenging. This is mainly as a result of
our planned strategy to have less sale activity and partly due to the tough
retail environment. This backdrop of non-comparable intense sale activity last
year has resulted in like for like sales being lower than the first half.
However, we believe that overall performance is stabilising and is being aided
by additional benefits of some of our recent initiatives including the new store
and concession refits as well as increased space. There have also been some
encouraging early signs from within the new Autumn/Winter ranges, particularly
for those brands whose turnaround is more advanced.
We remain fully confident that the Alexon brands are uniquely positioned to
capture a broad customer base in a growing sector. As such there is great
potential for future profit growth.
CONSOLIDATED INCOME STATEMENT
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| | | Unaudited 26 weeks to | Unaudited 26 weeks to 26 July | Audited 53 weeks to 31 |
| | | 1 August 2009 | 2008 | January 2009 (restated) |
| | | | (restated) | |
+----------------------------------+------+--------------------------------------+--------------------------------------+---------------------------------------+
| | | Pre- | Exceptional | Total | Pre- | Exceptional | Total | Pre- | Exceptional | Total |
| | | exceptional | items (see | | exceptional | items (see | | exceptional | items | |
| | | items | note 4) | | items | note 4) | | items | | |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| | | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| | | | | | | | | | | |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| Revenue - continuing operations | | 77,681 | - | 77,681 | 87,017 | - | 87,017 | 177,593 | - | 177,593 |
| | | | | | | | | | | |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| Cost of sales | | (70,115) | (8,257) | (78,372) | (74,343) | - | (74,343) | (152,945) | (7,463) | (160,408) |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| | | | | | | | | | | |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| Gross profit/(loss) - continuing | | 7,566 | (8,257) | (691) | 12,674 | - | 12,674 | 24,648 | (7,463) | 17,185 |
| operations | | | | | | | | | | |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| Administrative expenses | | (3,245) | (773) | (4,018) | (3,019) | - | (3,019) | (6,869) | (1,052) | (7,921) |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| Distribution costs | | (3,214) | - | (3,214) | (3,046) | - | (3,046) | (7,433) | - | (7,433) |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| | | | | | | | | | | |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| Operating profit/(loss) - | | 1,107 | (9,030) | (7,923) | 6,609 | - | 6,609 | 10,346 | (8,515) | 1,831 |
| continuing operations | | | | | | | | | | |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| Finance income | | 95 | | 95 | 312 | - | 312 | 510 | - | 510 |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| Finance expense | | (295) | - | (295) | (53) | - | (53) | (85) | - | (85) |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| | | | | | | | | | | |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| Profit/(loss) before taxation | | 907 | (9,030) | (8,123) | 6,868 | - | 6,868 | 10,771 | (8,515) | 2,256 |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| Income tax (expense)/credit | | (466) | 2,714 | 2,248 | (2,096) | - | (2,096) | (1,423) | 1,034 | (389) |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| | | | | | | | | | | |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| Profit/(loss) for the financial | | 441 | (6,316) | (5,875) | 4,772 | - | 4,772 | 9,348 | (7,481) | 1,867 |
| period from continuing | | | | | | | | | | |
| operations attributable to | | | | | | | | | | |
| equity holders of the Company | | | | | | | | | | |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| Profit/(loss) from discontinued | | - | 10,408 | 10,408 | - | (1,540) | (1,540) | - | (29,983) | (29,983) |
| operations | | | | | | | | | | |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| | | | | | | | | | | |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
| Profit/(loss) for the financial | | 441 | 4,092 | 4,533 | 4,772 | (1,540) | 3,232 | 9,348 | (37,464) | (28,116) |
| period attributable to equity | | | | | | | | | | |
| holders of the Company | | | | | | | | | | |
+----------------------------------+------+-------------+-------------+----------+-------------+-------------+----------+-------------+-------------+-----------+
CONSOLIDATED INCOME STATEMENT - (Cont.)
+----------------------+------------+------+--------------------+----------+--------------------+--------+----------------------+--------+
| | Unaudited 26 weeks to | Unaudited 26 weeks to 26 | Audited 53 weeks to 31 |
| | 1 August 2009 | July 2008 | January 2009 (restated) |
| | | (restated) | |
+------------------------------------------+-------------------------------+-----------------------------+-------------------------------+
| (Losses)/earnings per share from | | | | | | |
| continuing operations attributable to | | | | | | |
| equity holders of the Company during the | | | | | | |
| period | | | | | | |
+------------------------------------------+--------------------+----------+--------------------+--------+----------------------+--------+
| Basic and diluted | 6 | 6 | | (13.15)p | |10.68p | | 4.18p |
+----------------------+------------+------+--------------------+----------+--------------------+--------+----------------------+--------+
+----------------------+------------+------+--------------------+---------+--------------------+---------+----------------------+----------+
| Earnings/(losses) per share from | | | | | | |
| discontinued operations attributable to | | | | | | |
| equity holders of the Company during the | | | | | | |
| period | | | | | | |
+------------------------------------------+--------------------+---------+--------------------+---------+----------------------+----------+
| Basic and diluted | | 6 | | 23.29p | | (3.45)p | | (67.10)p |
+----------------------+------------+------+--------------------+---------+--------------------+---------+----------------------+----------+
| | | | | | | | | |
+----------------------+------------+------+--------------------+---------+--------------------+---------+----------------------+----------+
| Earnings/(losses) per share from total | | | | | | |
| operations attributable to equity | | | | | | |
| holders of the Company during the period | | | | | | |
+------------------------------------------+--------------------+---------+--------------------+---------+----------------------+----------+
| Basic and diluted | | 6 | | 10.14p | | 7.23p | | (62.92)p |
+----------------------+------------+------+--------------------+---------+--------------------+---------+----------------------+----------+
STATEMENT OF COMPREHENSIVE INCOME
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| | Unaudited | Unaudited | Audited |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| | 26 weeks to | 26 weeks to | 53 weeks to |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| | 1 August 2009 | 26 July 2008 | 31 January 2009 |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| | GBP000s | GBP000s | GBP000s |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| | | | |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| | | | |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| Profit/(loss) for the period | 4,533 | 3,232 | (28,116) |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| Actuarial gain/(loss) arising in defined benefit pension | 1,352 | (1,057) | (2,508) |
| scheme, net of tax | | | |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| (Loss)/gain on cash flow hedges, net of tax | (4,399) | (174) | 3,820 |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| | | | |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| | | | |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| Total comprehensive income/(expense) for the period | 1,486 | 2,001 | (26,804) |
| attributable to equity holders of the Company | | | |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| | | | |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| | | | |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| A statement of changes in equity can be found in note 14. | | | |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
| | | | |
+------------------------------------------------------------+-------------------+-----------------+---------------------+
CONSOLIDATED BALANCE SHEET
+-----------------------------------+--------+----------+-------------+-------
-----+---+------------+-------------+-------------+---+-----------+------------
+------------+
| | |
Unaudited as at | | Unaudited as at | |
Audited as at
|
+-----------------------------------+--------+-----------------------------
--------+---+----------------------------------------+---+---------------------
=---------------+
| | |
1 August 2009 | | 26 July 2008 | |
31 January 2009
|
+-----------------------------------+--------+-----------------------------
--------+---+----------------------------------------+---+---------------------
=---------------+
| | Note | GBP000s |
GBP000s | | GBP000s | GBP000s | |
GBP000s | GBP000s
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Non-current assets | | |
| | | | |
|
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Goodwill | 7 | - |
| | 11,867 | | |
- |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Property, plant and equipment | 7 | 5,115 |
| | 7,405 | | |
6,298 |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Deferred tax | | 3,889 |
| | 1,705 | | |
679 |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Pension assets | 9 | - |
| | 304 | | |
- |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| | | |
9,004 | | | 21,281 | |
| 6,977
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Current assets | | |
| | | | |
|
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Inventory | | 25,691 |
| | 34,076 | | |
29,856 |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Trade and other receivables | | 16,353 |
| | 18,702 | | |
17,705 |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Derivative financial instruments | | - |
| | 48 | | |
4,809 |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Current tax recoverable | | - |
| | - | | |
581 |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Cash and cash equivalents | | - |
| | 5,026 | | |
5,284 |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| | | |
42,044 | | | 57,852 | |
| 58,235
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| | | |
| | | | |
|
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Current liabilities | | |
| | | | |
|
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Trade and other payables | | (19,008) |
| | (32,115) | | |
(30,311) |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Derivative financial instruments | | (1,193) |
| | - | | |
- |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Short term borrowings | | (1,351) |
| | (312) | | |
- |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Current tax payable | | (614) |
| | (1,200) | | |
- |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| | | |
(22,166) | | | (33,627) | |
| (30,311)
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| | | |
| | | | |
|
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Net current assets | | |
19,878 | | | 24,225 | |
| 27,924
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| | | |
| | | | |
|
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Non-current liabilities | | |
| | | | |
|
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Long term provisions | 10 | (20,285) |
| | (8,514) | | |
(25,712) |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Accruals and deferred income | |
(265) | | | (727) | | |
(444) |
|
+-----------------------------------+--------+------------------------+----
--------+---+------------+-------------+-----------------+-----------+---------
=---------------+
| Pension liabilities | 9 | (2,238) |
| | (2,405) | | |
(4,137) |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Total non-current liabilities | | |
(22,788) | | | (11,646) | |
| (30,293)
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| | | |
| | | | |
|
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Net assets | | |
6,094 | | | 33,860 | |
| 4,608
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| | | |
| | | | |
|
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Equity attributable to equity | | |
| | | | |
| |
| holders of the Company | |
| | | |
| | |
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Share capital | 8 | |
5,689 | | | 10,902 | |
| 5,689
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Share premium | 8 | 8 |
22,066 | | | 22,066 | |
| 22,066
|
+-----------------------------------+--------+----------+------------------
--------+---+------------+---------------------------+---+---------------------
=--+------------+
| Capital redemption reserve | |
| 20,215 | | | 15,002 | |
| 20,215
|
+-----------------------------------+--------+------------------------+----
--------+---+------------+-------------+-----------------+-----------+---------
=---------------+
| Cash flow hedge reserve | |
| (594) | | | (32) | |
| 5,515
|
+-----------------------------------+--------+------------------------+----
--------+---+------------+-------------+-----------------+-----------+---------
=---------------+
| Retained earnings | |
| (41,282) | | | (14,078) | |
| (48,877)
|
+-----------------------------------+--------+------------------------+----
--------+---+------------+-------------+-----------------+-----------+---------
=---------------+
| | |
| | | | | |
|
|
+-----------------------------------+--------+------------------------+----
--------+---+------------+-------------+-----------------+-----------+---------
=---------------+
| Total equity | 14 |
| 6,094 | | | 33,860 | |
| 4,608
|
+-----------------------------------+--------+----------+-------------+----
--------+---+------------+-------------+-------------+---+-----------+---------
---+------------+
CONSOLIDATED CASH FLOW STATEMENT
+---------------------------------+---------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| | | Unaudited | | | Unaudited | | | Audited |
+---------------------------------+----------------------------------------+-----------------------+---+----------+--------------+---+----------+------------+
| | | 26 weeks to | | 26 weeks to | | 53 weeks to |
+---------------------------------+----------------------------------------+-----------------------+---+-------------------------+---+-----------------------+
| | Note | 1 August 2009 | | 26 July 2008 | | 31 January 2009 |
+---------------------------------+----------------------------------------+-----------------------+---+-------------------------+---+-----------------------+
| | | | | | | (restated) | | | (restated) |
+---------------------------------+----------------------------------------+----------+------------+---+----------+--------------+---+----------+------------+
| | | GBP000s | GBP000s | | GBP000s | GBP000s | | GBP000s | GBP000s |
+---------------------------------+----------------------------------------+----------+------------+---+----------+--------------+---+----------+------------+
| Cash flow from operating activities | | | | | | | | |
+--------------------------------------------------------------------------+----------+------------+---+----------+--------------+---+----------+------------+
| Cash (used)/generated from continuing operations | 13 | (4,273) | | | 4,143 | | | 12,850 | |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| Interest received (continuing operations) | 95 | | | 316 | | | 498 | |
+--------------------------------------------------------------------------+----------+------------+---+----------+--------------+---+----------+------------+
| Interest paid (continuing operations) | | (22) | | | (34) | | | (56) | |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| Tax received (continuing operations) | 1,741 | | | 1,887 | | | 873 | |
+--------------------------------------------------------------------------+----------+------------+---+----------+--------------+---+----------+------------+
| Cash used in discontinued operations | 13 | (4,025) | | | (2,653) | | | (7,104) | |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| | | | | | | | | | |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| Net cash generated from operating activities | | (6,484) | | | 3,659 | | | 7,061 |
+--------------------------------------------------------------------------+----------+------------+---+----------+--------------+---+----------+------------+
| Investing activities | | | | | | | | |
+--------------------------------------------------------------------------+----------+------------+---+----------+--------------+---+----------+------------+
| Disposal of subsidiary undertaking | 623 | | | (586) | | | (1,601) | |
+--------------------------------------------------------------------------+----------+------------+---+----------+--------------+---+----------+------------+
| Purchase of property, plant and equipment (continuing operations) | (708) | | | (613) | | | (1,420) | |
+--------------------------------------------------------------------------+----------+------------+---+----------+--------------+---+----------+------------+
| Purchase of property, plant and equipment (discontinued operations) | (99) | | | (425) | | | (1,008) | |
+--------------------------------------------------------------------------+----------+------------+---+----------+--------------+---+----------+------------+
| Proceeds/(costs) of disposals of property, plant and equipment | 33 | | | (46) | | | 32 | |
| (continuing operations) | | | | | | | | |
+--------------------------------------------------------------------------+----------+------------+---+----------+--------------+---+----------+------------+
| Proceeds/(costs) of disposals of property, plant and equipment | - | | | 12 | | | (46) | |
| (discontinued operations) | | | | | | | | |
+--------------------------------------------------------------------------+----------+------------+---+----------+--------------+---+----------+------------+
| Net cash used in investing activities | | | (151) | | | (1,658) | | | (4,043) |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| | | | | | | | | | |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| Financing activities | | | | | | | | | |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| Costs arising from the issue of shares | | - | | | (123) | | | (123) | |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| Dividends paid to Companys shareholders | | - | | | (2,681) | | | (3,128) | |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| | | | | | | | | | |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| Net cash used in financing activities | | | - | | | (2,804) | | | (3,251) |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| | | | | | | | | | |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| Net decrease in cash and cash equivalents | | | (6,635) | | | (803) | | | (233) |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| | | | | | | | | | |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| Cash and cash equivalents at the beginning of the period | | | 5,284 | | | 5,517 | | | 5,517 |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| | | | | | | | | | |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| Cash and cash equivalents at the end of the period | | | (1,351) | | | 4,714 | | | 5,284 |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| | | | | | | | | | |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| Included in cash and cash equivalents on the balance sheet | | | - | | | 5,026 | | | 5,284 |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| Included in short term borrowings on the balance sheet | | | (1,351) | | | (312) | | | - |
+-------------------------------------------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
| | | | (1,351) | | | 4,714 | | | 5,284 |
+---------------------------------+---------------------------------+------+----------+------------+---+----------+--------------+---+----------+------------+
1 General information
The Company is a limited liability company incorporated and domiciled in the UK.
The address of its registered office is 40-48 Guildford Street, Luton, LU1 2PB.
The Company has its primary listing on the London Stock Exchange.
This condensed consolidated financial information for the 26 weeks to 1 August
2009 was approved for issue on 29 September 2009.
This condensed consolidated interim financial information does not comprise
statutory accounts within the meaning of Section 240 of the Companies Act 1985.
Statutory accounts for the 53 weeks ended 31 January 2009 were approved by the
Board of Directors on 29 May 2009 and delivered to the Registrar of Companies.
The report of the auditors on those accounts was unqualified, containing an
emphasis of matter paragraph concerning the placing into administration
subsequent to the year end of the Group's material subsidiary undertaking,
Epcoscan Limited, which operated the Bay Trading business and did not contain
any statement under Section 237 of the Companies Act 1985.
2 Basis of preparation
This condensed consolidated financial information for the 26 weeks ended 1
August 2009 has been prepared in accordance with the Disclosure and Transparency
Rules of the Financial Services Authority and with IAS 34, 'Interim financial
reporting' as adopted by the European Union. The condensed consolidated
financial report should be read in conjunction with the annual financial
statements for the 53 weeks ended 31 January 2009, which have been prepared in
accordance with IFRSs as adopted by the European Union.
On 24 April 2009 the Group withdrew financial support from its wholly owned
subsidiary undertaking, Epcoscan Limited, which operated the Bay Trading
business, in response to being notified that credit insurance was being
withdrawn from all the Group's suppliers. Epcoscan Limited was subsequently
placed into administration on 27 April 2009, with Deloitte LLP appointed as
administrators. The Group ceased to control Epcoscan Limited from that date.
3 Accounting policies
The accounting policies adopted are consistent with those of the annual
financial statements for the 53 weeks ended 31 January 2009, as described in
those annual financial statements.
Taxes on income in the interim periods are accrued using the tax rate that would
be applicable to expected total annual earnings.
Restatement of prior year information
In accordance with IFRS 5, 'Non-current assets held for sale and discontinued
operations', comparative information for the 26 weeks to 26 July 2008 and the 53
weeks to 31 January 2009 relating to discontinued operations has been restated
in the income statement and statement of cash flows.
4 Exceptional Items
Continuing operations
The following exceptional costs were incurred by the Group during the period in
relation to continuing operations.
+-------------------------------------------------------------------------------------+-----------------+
| | 26 weeks to |
| | 1 August 2009 |
+-------------------------------------------------------------------------------------+-----------------+
| | GBP000s |
+-------------------------------------------------------------------------------------+-----------------+
| Provision for onerous lease commitments (see note 10) | 8,257 |
+-------------------------------------------------------------------------------------+-----------------+
| Costs arising from the administration of Epcoscan Limited | 773 |
+-------------------------------------------------------------------------------------+-----------------+
| | 9,030 |
+-------------------------------------------------------------------------------------+-----------------+
As a result of Epcoscan Limited being placed into administration, a number of
leases returned to the Group under lease guarantee arrangements. These leases
are considered to be onerous and consequently an increase of GBP6.3 million has
been recorded in the onerous lease provision.
Onerous lease provisions are made in respect of those leases which are
considered onerous on the basis that the stores to which they relate are
expected to generate net cash outflows over the remaining lease term. The
provision is calculated as the lower of the estimated cost of exiting the lease
and the cumulative losses expected to be incurred over the remainder of the
lease term, unless it is considered highly unlikely that the lease could be
terminated for a one-off payment in which case the provision is based on
estimated future losses. The provision in respect of existing leases has been
re-assessed at 1 August and this has resulted in an increase in the provision of
GBP2 million and a corresponding charge to the income statement.
Discontinued operations
The profit/(loss) for the period included in discontinued operations is analysed
below:
+-----------------------------------------------------------------------+-----------------+---+----------------+
| | 26 weeks to | | 26 weeks to |
| | 1 August 2009 | | 26 July 2008 |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| | GBP000s | | GBP000s |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Operating loss | | | |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Revenue | 12,339 | | 36,102 |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Expenses | (17,223) | | (37,476) |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Operating loss | (4,884) | | (1,374) |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Net finance income | 2 | | - |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Loss before taxation | (4,882) | | (1,374) |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Tax on operating loss | - | | 420 |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Loss after taxation | (4,882) | | (954) |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Profit/(loss) on disposal | | | |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Net liabilities of subsidiary company disposed | 13,990 | | - |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Proceeds/(costs) of disposal | 1,300 | | (586) |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Total profit/(loss) from discontinued operations | 10,408 | | (1,540) |
+-----------------------------------------------------------------------+-----------------+---+----------------+
5 Segmental information
Since the administration of Epcoscan Limited on 27 April 2009 the Group has only
one continuing business segment, Alexon Brands, and therefore no segmental
information is given.
6 Earnings per share
Continuing operations
The calculation of basic earnings per ordinary share is based on losses from
continuing operations of GBP5,875,000 (2008: profits of GBP4,772,000) and on
44,686,680 ordinary shares (2008: 44,686,680) being the weighted average number
of ordinary shares in issue.
+---+----------------------+-------------+-----------------+----------+---+------------+-----------------+-----------+
| | | 26 weeks to1 August 2009 | | 26 weeks to 26 July 2008 (restated) |
+---+----------------------+------------------------------------------+---+------------------------------------------+
| | | Losses | Weighted | Per | | Earnings | Weighted | Per share |
| | | (GBP) | average | share | | (GBP) | average | |
+---+----------------------+-------------+-----------------+----------+---+------------+-----------------+-----------+
| | | | number of | pence | | | number of | pence |
| | | | shares | | | | shares | |
+---+----------------------+-------------+-----------------+----------+---+------------+-----------------+-----------+
| | | | | | | | | |
+---+----------------------+-------------+-----------------+----------+---+------------+-----------------+-----------+
| Basic (losses)/earnings | (5,875,000) | 44,686,680 | (13.15) | | 4,772,000 | 44,686,680 | 10.68 |
+---+----------------------+-------------+-----------------+----------+---+------------+-----------------+-----------+
Discontinued operations
The calculation of basic earnings per ordinary share is based on profits from
discontinued operations of GBP10,408,000 (2008: losses of GBP1,540,000) and on
44,686,680 (2008: 44,686,680) ordinary shares being the weighted average number
of ordinary shares in issue.
+---+----------------------+---------------+-----------------+----------+---+--------------+-----------------+----------+
| | | 26 weeks to 1 August 2009 | | 26 weeks to 26 July 2008 (restated) |
+---+----------------------+--------------------------------------------+---+-------------------------------------------+
| | | Earnings | Weighted | Per | | Losses (GBP) | Weighted | Per |
| | | (GBP) | average | share | | | average | share |
+---+----------------------+---------------+-----------------+----------+---+--------------+-----------------+----------+
| | | | number of | pence | | | number of | pence |
| | | | shares | | | | shares | |
+---+----------------------+---------------+-----------------+----------+---+--------------+-----------------+----------+
| Basic earnings/(losses) | 10,408,000 | 44,686,680 | 23.29 | | (1,540,000) | 44,686,680 | (3.45) |
+---+----------------------+---------------+-----------------+----------+---+--------------+-----------------+----------+
Total operations
The calculation of basic earnings per ordinary share is based on profits from
total operations of GBP4,533,000 (2008: GBP3,232,000) and on 44,686,680 (2008:
44,686,680) ordinary shares being the weighted average number of ordinary shares
in issue.
+-------------------------+-------------+----------------+------------+---+-----------+-------------------+------------+-+
| | 26 weeks to 1 August 2009 | | 26 weeks to 26 July 2008 |
+-------------------------+-------------------------------------------+---+----------------------------------------------+
| | | Weighted | Per share | | | Weighted average | Per share | |
| | | average | | | | | | |
+-------------------------+-------------+----------------+------------+---+-----------+-------------------+------------+-+
| | Earnings | number of | pence | | Earnings | number of shares | pence | |
| | (GBP) | shares | | | (GBP) | | | |
+-------------------------+-------------+----------------+------------+---+-----------+-------------------+------------+-+
| Basic earnings | 4,533,000 | 44,686,680 | 10.14 | | 3,232,000 | 44,686,680 | 7.23 | |
+-------------------------+-------------+----------------+------------+---+-----------+-------------------+------------+-+
7 Property, plant and equipment and goodwill
+-------------------------------------------------------------------------+-----------------+----+------------+
| | Property, plant | | Goodwill |
| | and equipment | | |
+-------------------------------------------------------------------------+-----------------+----+------------+
| | GBP000s | | GBP000s |
+-------------------------------------------------------------------------+-----------------+----+------------+
| 26 weeks ended 1 August 2009 | | | |
+-------------------------------------------------------------------------+-----------------+----+------------+
| | | | |
+-------------------------------------------------------------------------+-----------------+----+------------+
| Opening net book amount 31 January 2009 | 6,298 | | - |
+-------------------------------------------------------------------------+-----------------+----+------------+
| | | | |
+-------------------------------------------------------------------------+-----------------+----+------------+
| Additions | 807 | | - |
+-------------------------------------------------------------------------+-----------------+----+------------+
| Disposals | (64) | | - |
+-------------------------------------------------------------------------+-----------------+----+------------+
| Disposal of subsidiary undertaking | (1,161) | | - |
+-------------------------------------------------------------------------+-----------------+----+------------+
| Depreciation, mortization, impairment and other movements | (765) | | - |
+-------------------------------------------------------------------------+-----------------+----+------------+
| | | | |
+-------------------------------------------------------------------------+-----------------+----+------------+
| Closing net book amount 1 August 2009 | 5,115 | | - |
+-------------------------------------------------------------------------+-----------------+----+------------+
| | | | |
+-------------------------------------------------------------------------+-----------------+----+------------+
| 26 weeks ended 26 July 2008 | | | |
+-------------------------------------------------------------------------+-----------------+----+------------+
| Opening net book amount 26 January 2008 | 7,419 | | 11,867 |
+-------------------------------------------------------------------------+-----------------+----+------------+
| | | | |
+-------------------------------------------------------------------------+-----------------+----+------------+
| Additions | 1,038 | | - |
+-------------------------------------------------------------------------+-----------------+----+------------+
| Disposals | (44) | | - |
+-------------------------------------------------------------------------+-----------------+----+------------+
| Depreciation, mortization, impairment and other movements | (1,008) | | - |
+-------------------------------------------------------------------------+-----------------+----+------------+
| | | | |
+-------------------------------------------------------------------------+-----------------+----+------------+
| Closing net book amount 26 July 2008 | 7,405 | | 11,867 |
+-------------------------------------------------------------------------+-----------------+----+------------+
8 Share capital
+-------------------+---+-----------------------------------+--------------------+---+------------------+-------------+---+------------------------+-------------------+---+----------+
| | | Ordinary 12.5p | | Deferred 10p shares | | Deferred 30p | | Share |
| | | shares | | | | shares | | premium |
+-------------------+---+--------------------------------------------------------+---+--------------------------------+---+--------------------------------------------+---+----------+
| | | No of | GBP000's | | No of | GBP000's | | No of | GBP000's | | GBP000's |
| | | shares | | | shares | | | shares | | | |
+-------------------+---+-----------------------------------+--------------------+---+------------------+-------------+---+------------------------+-------------------+---+----------+
| | | | | | | | | | | | |
+-------------------+---+-----------------------------------+--------------------+---+------------------+-------------+---+------------------------+-------------------+---+----------+
| Opening balance | | 45,511,768 | 5,689 | | 166,086 | 17 | | 17,319,778 | 5,196 | | 22,189 |
| at 26 January | | | | | | | | | | | |
| 2008 | | | | | | | | | | | |
+-------------------+---+-----------------------------------+--------------------+---+------------------+-------------+---+------------------------+-------------------+---+----------+
| | | | | | | | | | | | |
+-------------------+---+-----------------------------------+--------------------+---+------------------+-------------+---+------------------------+-------------------+---+----------+
| Costs associated | | | | | | | | | | | (123) |
| with the issue of | | - | - | | - | - | | - | - | | |
| redeemable | | | | | | | | | | | |
| preference shares | | | | | | | | | | | |
+-------------------+---+-----------------------------------+--------------------+---+------------------+-------------+---+------------------------+-------------------+---+----------+
| | | | | | | | | | | | |
+-------------------+---+-----------------------------------+--------------------+---+------------------+-------------+---+------------------------+-------------------+---+----------+
| At 26 July 2008 | | 45,511,768 | 5,689 | | 166,086 | 17 | | 17,319,778 | 5,196 | | 22,066 |
+-------------------+---+-----------------------------------+--------------------+---+------------------+-------------+---+------------------------+-------------------+---+----------+
| | | | | | | | | | | | |
+-------------------+---+-----------------------------------+--------------------+---+------------------+-------------+---+------------------------+-------------------+---+----------+
| Balance at 31 | | 45,511,768 | 5,689 | | - | - | | - | - | | 22,066 |
| January 2009 and | | | | | | | | | | | |
| 1 August 2009 | | | | | | | | | | | |
+-------------------+---+-----------------------------------+--------------------+---+------------------+-------------+---+------------------------+-------------------+---+----------+
9 Retirement benefit plans
The amounts recognised in the income statement were as follows:
+-----------------------------------------------------------------------+-----------------+---+----------------+
| | 26 weeks to | | 26 weeks to |
| | 1 August 2009 | | 26 July 2008 |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| | GBP000s | | GBP000s |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| | | | |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Current service cost | (120) | | (257) |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Interest cost | (1,016) | | (1,304) |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Expected return on plan assets | 774 | | 1,300 |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| | (362) | | (261) |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| | | | |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| The amounts recognised in the balance sheet were as follows: | | | |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| | As at | | As at |
| | 1 August 2009 | | 26 July 2008 |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| | GBP000s | | GBP000s |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| | | | |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Present value of scheme liabilities | (30,673) | | (43,428) |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Fair value of scheme assets | 28,435 | | 41,327 |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| | | | |
+-----------------------------------------------------------------------+-----------------+---+----------------+
| Liability in the balance sheet | (2,238) | | (2,101) |
+-----------------------------------------------------------------------+-----------------+---+----------------+
10 Provision for liabilities and charges
+-----------------------------------------------------------+---+--------+----
=--+------+---+--------------------+
| 26 weeks ended 1 August
2009 | | | | | | Property |
|
| | | |
| | provisions
|
+-----------------------------------------------------------+---+--------+-
=-----+------+---+--------------------+
| Opening net book
amount at 31 January 2009 | | | | | | 25,712
|
+-----------------------------------------------------------+---+--------+-
=-----+------+---+--------------------+
| Charged to the income
statement | | | | | | 8,257
|
+-----------------------------------------------------------+---+--------+-
=-----+------+---+--------------------+
| Disposal of
subsidiary undertaking | | | | | |
(12,792)
|
+-----------------------------------------------------------+---+--------+-
=-----+------+---+--------------------+
| Utilised during the
period | | | | | | (892)
|
+-----------------------------------------------------------+---+--------+-
=-----+------+---+--------------------+
| Closing net book
amount at 1 August 2009 | | | | | | 20,285
|
+-----------------------------------------------------------+---+--------+-
=-----+------+---+--------------------+
+--------------------------------------------+--------------+---+--------+--------+------+---+--------------------+
| | | | | | | | |
+--------------------------------------------+--------------+---+--------+--------+------+---+--------------------+
| 26 weeks ended 26 July 2008 | | | | | | | GBP000s |
+--------------------------------------------+--------------+---+--------+--------+------+---+--------------------+
| Opening net book amount at 26 January 2008 | | | | | | | 11,478 |
+--------------------------------------------+--------------+---+--------+--------+------+---+--------------------+
| Credited to the income statement | | | | | | | (144) |
+--------------------------------------------+--------------+---+--------+--------+------+---+--------------------+
| Utilised during the period | | | | | | | (2,820) |
+--------------------------------------------+--------------+---+--------+--------+------+---+--------------------+
| Closing net book amount at 26 July 2008 | | | | | | | 8,514 |
+--------------------------------------------+--------------+---+--------+--------+------+---+--------------------+
11 Income taxes
Income tax expense is recognised based on management's best estimate of the
weighted average annual income tax rate expected for the full financial year. It
is anticipated that the Group will make a pre-tax loss, after exceptional items
for the 52 weeks ending 30 January 2010. The tax credit recognised in the income
statement in these financial statements reflects the establishment of a deferred
tax asset in respect of the losses incurred to 1 August 2009. These losses are
expected to be utilised against profits arising after 1 August 2009.
12 Dividends
No dividends were paid in the period (2008: 6p, amounting to GBP2,681,000) in
respect of the 53 weeks ending 31 January 2009.
The board has decided not to declare an interim dividend in respect of the 52
weeks ending 30 January 2010.
13 Reconciliation of operating profit to net cash inflow from operating
activities
+------------------------------------------+------+---+----------------+---+------------------+-----+-------------------+
| | | | 26 weeks to | | 26 weeks to | | 53 weeks to |
+------------------------------------------+------+---+----------------+---+------------------+-----+-------------------+
| | | | 1 August 2009 | | 26 July | | 31 January |
| | | | | | 2008 (restated) | | 2009 (restated) |
+------------------------------------------+------+---+----------------+---+------------------+-----+-------------------+
| | | | GBP000s | | GBP000s | | GBP000s |
+------------------------------------------+------+---+----------------+---+------------------+-----+-------------------+
| Cash generated from continuing operations: | | | | | |
+-----------------------------------------------------+----------------+---+------------------+-----+-------------------+
| Operating (loss)/profit - continuing operations | | (7,923) | | 6,609 | | 1,831 |
+-------------------------------------------------+---+----------------+---+------------------+-----+-------------------+
| Adjustments for: | | | | | | | |
+------------------------------------------+------+---+----------------+---+------------------+-----+-------------------+
| Depreciation | | | 552 | | 591 | | 1,196 |
+------------------------------------------+------+---+----------------+---+------------------+-----+-------------------+
| Impairment of property, plant and | | | - | | - | | 506 |
| equipment | | | | | | | |
+------------------------------------------+------+---+----------------+---+------------------+-----+-------------------+
| Loss on disposal of property, plant and equipment | 31 | | 19 | | 87 |
+-----------------------------------------------------+----------------+---+------------------+-----+-------------------+
| Net adjustment in respect of retirement benefit | | (263) | | (218) | | (218) |
| obligations | | | | | | |
+-------------------------------------------------+---+----------------+---+------------------+-----+-------------------+
| Changes in working capital: | | | | | | | |
+------------------------------------------+------+---+----------------+---+------------------+-----+-------------------+
| (Increase)/decrease in trade and other | | (3,158) | | 1,294 | | 2,546 |
| receivables | | | | | | |
+-------------------------------------------------+---+----------------+---+------------------+-----+-------------------+
| Decrease in inventories | | | 1,226 | | 960 | | 1,893 |
+------------------------------------------+------+---+----------------+---+------------------+-----+-------------------+
| Decrease in trade and other payables | | (2,070) | | (2,022) | | (1,218) |
+-------------------------------------------------+---+----------------+---+------------------+-----+-------------------+
| Increase/(decrease) in long term provisions, | 7,332 | | (3,090) | | 6,227 |
| accruals and deferred income | | | | | |
+-----------------------------------------------------+----------------+---+------------------+-----+-------------------+
| Cash (used)/generated from continuing | | (4,273) | | 4,143 | | 12,850 |
| operations | | | | | | |
+------------------------------------------+------+---+----------------+---+------------------+-----+-------------------+
13 Reconciliation of operating profit to net cash inflow from operating
activities (continued)
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| | 26 weeks to | | 26 weeks to | | 53 weeks to |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| | 1 August | | 26 July | | 31 January |
| | 2009 | | 2008 (restated) | | 2009 (restated) |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| | GBP000s | | GBP000s | | GBP000s |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Cash used in discontinued operations: | | | | | |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Operating loss - discontinued operations | (4,884) | | (1,374) | | (29,960) |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Adjustments for: | | | | | |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Depreciation | 213 | | 417 | | 845 |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Impairment of property, plant and equipment | - | | - | | 759 |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Impairment of goodwill | - | | - | | 11,867 |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Loss on disposal of property, plant and equipment | - | | 59 | | 170 |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Changes in working capital: | | | | | |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Decrease/(increase) in trade and other receivables | 1,578 | | (448) | | 312 |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| (Increase)/decrease in inventories | (2,107) | | (1,713) | | 1,574 |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Increase/(decrease) in trade and other payables | 1,173 | | 406 | | (1,389) |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Increase in long term provisions, accruals and | - | | - | | 8,698 |
| deferred income | | | | | |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Cash used in discontinued operations | (4,027) | | (2,653) | | (7,124) |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| | | | | | |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Interest received | 3 | | - | | 11 |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Interest paid | (1) | | - | | (25) |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Tax received | - | | - | | 34 |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| | | | | | |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
| Cash flows from operating activities - | (4,025) | | (2,653) | | (7,104) |
| discontinued operations | | | | | |
+----------------------------------------------------+--------------+---+------------------+----+-------------------+
14 Statement of changes in equity
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| | 26 weeks to | | 26 weeks to | | 53 weeks to |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| | 1 August 2009 | | 26 July 2008 | | 31 January 2009 |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| | GBP000s | | GBP000s | | GBP000s |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| | | | | | |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| Profit/(loss) attributable to equity | 4,533 | | 3,232 | | (28,116) |
| shareholders | | | | | |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| Dividends paid to Companys shareholders | - | | (2,681) | | (3,128) |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| Actuarial gain/(loss) arising in defined benefit | 1,878 | | (1,468) | | (3,483) |
| pension scheme | | | | | |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| Tax on items taken directly to equity | 1,184 | | 479 | | (510) |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| (Losses)/gains on cash flow hedges | (6,109) | | (242) | | 5,305 |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| Costs associated with the issue of redeemable | - | | (123) | | (123) |
| preference shares | | | | | |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| | | | | | |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| Increase/(decrease) in total equity | 1,486 | | (803) | | (30,055) |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| Total equity at the beginning of the period | 4,608 | | 34,663 | | 34,663 |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| | | | | | |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
| Total equity at the end of the period | 6,094 | | 33,860 | | 4,608 |
+--------------------------------------------------+-----------------+---+----------------+-----+-----------------+
The loss on cash flow hedges in the period of GBP6.1 million represents the
movement between the unrealised gain of GBP5.5 million recorded
at 31
January 2009 and the unrealised loss at 1 August 2009 of GBP0.6 million. The
unrealised gain or loss at each balance sheet date arises
from the
comparison of the average exchange rate of outstanding forward currency
contracts with the prevailing exchange rate at the time
of measurement.
15 Related party transactions
There are no related party transactions for the 26 weeks to 1 August 2009.
16 Principal risks and uncertainties
The Group is exposed to the risks of the economic downturn in the UK which has
lead to reduced consumer demand and reduced income.
The UK high street is a highly competitive environment and the Group also
faces competition from the increasing popularity of purchasing
via the
internet.
The success of the Group is dependent on its ability to provide quality
designs and fashions and to anticipate and respond to changing
consumer
taste and fashion trends. Product design and selection is therefore key to
retaining market share and generating revenue,
particularly in periods in
which consumer confidence is negatively affected.
The Group has a number of short leasehold premises which are subject to
regular rent reviews. Significant increases in rents could affect
the
economic viability of individual units.
The Group meets its day to day working capital requirements through an
overdraft facility which is repayable on demand and is renewable
on 31 May
2010. The Group's forecasts and projections show that the Group will be able to
operate within the facility for the foreseeable
future subject to meeting
management forecasts and subject to the risks and uncertainties listed above.
Statement of directors responsibilities
The directors confirm that this condensed consolidated interim financial
information has been prepared in accordance with IAS 34 as
adopted by the
European Union and that the interim management report includes a fair review of
the information required by DTR 4.2.7
and DTR 4.2.8, namely:
i. an indication
of important events that have occurred during the first 26 weeks and their
impact on the condensed set of financial statements, and a description of the
principal risks and uncertainties for the remaining 26 weeks of the financial
period; and
ii. material
related-party transactions in the first 26 weeks and any material changes in the
related-party transactions described in the last annual report.
The directors of Alexon Group plc are listed in the 2009 Annual Report.
By order of the Board
+-----------------------------------------------------+--------------------------------------------------------------+
| J. McNally | R. Piggott |
+-----------------------------------------------------+--------------------------------------------------------------+
| Chief Executive | Group Finance Director and Company Secretary |
+-----------------------------------------------------+--------------------------------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UKOBRKNRKUAR
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