Womenswear retailer Alexon said it is on track with its turnaround plans, despite posting a £900,000 pre-tax loss for the year to January 30, against a profit of £10.8m the previous year.
Alexon, which owns the Ann Harvey, Eastex, Dash, Kaliko, Minuet and Alex & Co fascias, reported that total sales over the year fell 13.6% to £153.4m, with like-for-like sales down 14.6%. Gross margin was also down 1.9% as a result of heavy discounting.
Alexon has seen improvement since the year end and said its like-for-like sales for the 11 weeks to April 17 were down 4%. The retailer said all its brands were performing in line with expectations apart from Alex & Co. The retailer exited 37 unsuitable leases during the year.
Seymour Pierce analyst Freddie George said: “On our forecasts the company is expected to make a small profit in 2010/11 of £1m and £4m in the following year.”
Natalia Marisova, analyst at Alexon’s house broker Investec, said: “Property portfolio negotiations are on track and we believe the business is on a stronger footing to meet its strategic goals and improve operating efficiency.”