Alexon Group has reported a pre-tax loss before exceptional items of £900,000 in its full year results but said it has laid the foundations for to accelerate its turnaround plan.
For the year ending January 30, the fashion retailer – which operates Ann Harvey, Eastex and Dash fascias – reported turnover down 13.6% at £153.4m, and like-for-like sales are down 14.6%. The pre-tax loss of £0.9m is against a profit of £10.8m the previous year. The exceptional items amounted to £13.4m primarily comprising onerous lease provisions.
Chief executive Jane McNally said: “This has, without doubt, been a difficult year for the UK retail industry and for the Alexon group in particular. Our performance was impacted not only by the challenging environment but by the impact of poor product legacy and onerous leases.
“Despite this, I am pleased to report that the group made strong and sustained progress throughout the year as management focused on turning around the business, securing its target market and positioning it for future growth. We have now addressed the group’s onerous property leases and secured the funding for investment in the business, which will enable us to accelerate our turnaround plan and have laid the foundation from which to develop.”
For the 11 weeks ending April 17, like-for-likes were down 4%, in line with management expectations.
During the year the retailer established its turnaround plan, improved buying processes and eliminated excess stock. It also focused on cost management.
Since the year end it has raised £18.5m to fund the property reorganisation and investment in stores and concessions.