Trading Statement (3260Y)
21 December 2010 - 6:00PM
UK Regulatory
TIDMAXN
RNS Number : 3260Y
Alexon Group PLC
21 December 2010
Alexon Group plc
Trading Update
21 December 2010
Alexon Group plc ("Alexon" or the "Group"), the womenswear
clothing retailer, today announces that the recent extreme weather
conditions in the UK is impacting sales performance during an
important trading period for the Group.
Like-for-like sales for the three weeks from 23 November 2011 to
18 December 2010 are down 19.9% bringing the year to date
like-for-like sales decline to 4.7%. The Board expects this to
impact profit expectations for the year ending 29 January 2011 by
up to GBP1.5m. The Group has informed the Bank of the current
trading situation. Whilst net borrowings remain comfortably within
the Group's current facilities, the Group has commenced a dialogue
in respect of one possible consequential technical EBITDAR covenant
infringement. The Bank's response has been constructive and
supportive.
The Group's customer base for its largest brands is
predominantly an older demographic and as such, severe weather such
as the recent snow and freezing temperatures has a disproportionate
effect on sales. Furthermore, given our regional distribution model
and the particularly severe weather in certain parts of the UK, a
number of stores have been forced to close for several days. In
each of the last three weeks, between 40 and 60 of the Group's
outlets have been closed.
Whilst the impact of the severe weather is disappointing, the
Group continues to make good progress with the strategic
initiatives, including store refurbishments, the streamlining of
its logistics function and the replacement of its legacy systems.
In particular, the Group is successfully building its multi-channel
capabilities, through further developing its online and mail order
partnerships .Looking ahead this strategy will help mitigate the
impact poor weather conditions has on our business. Online trading
during the period, for example, has hit record highs for us up 129%
for the three weeks to 19 December 2010. Accordingly we remain
confident in the medium and long term prospects for the
business.
-- ENDS--
For further information, please contact:
Alexon Group Plc
Jane McNally, Chief Executive
John Boyle, Finance Director 01582 723131
Brunswick Group
Simon Sporborg
Zoe Bird 020 7404 5959
This information is provided by RNS
The company news service from the London Stock Exchange
END
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