Alexon covenant issue resolved as performance improves
27 January 2011 10:10
Alexon Group has said today that like-for-like sales rose an "encouraging" 13.3% in the five weeks to January 22nd, as trading recovered well following the extreme weather conditions in December. During this period early spring ranges performed positively. However, cumulative like-for-like sales were down 1.1% for the 25-week period (compared with -4.7% for the 20 weeks to December 18th 2010).
The group added that it had resolved a possible breach of one of its banking covenants that it announced in December. Net borrowings are now expected to be approximately £9.2 million and "well within the group's current facilities".
In a statement, the group said: "Looking ahead, we are encouraged by both the positive initial reaction to our Spring/Summer 2011 ranges and by the strong performance of our e-commerce business via our own platforms and through partner websites. Our strategic investment initiatives continue to progress well.
"Whilst the 2011 economic outlook will remain challenging, we are confident that we are well placed in our recovery to continue to make good progress in the year ahead."
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