Alexon 2005 profits drop

The Alexon Group announced 2005 operating profits of £19.7 million, down from £29.4 million in 2004. The women's wear, men's wear and shoe retailer said turnover was down to £413.6 million from £424.4 million the previous year. Llike-for-like sales dropped 1.4 percent, while gross margins remained largely stable.

Thanks to a strong cash position the group was able to buy back 1.1 million shares last year and a further 1.2 million shares this year.

"As we were anticipating another tough year, our emphasis will continue to be on product innovation and cost control," said chief executive John Osborn. "We are confident that the steps already taken in Dolcis and Menswear will improve the performance of both Divisions and that Bay Trading and Alexon Brands can make further progress."

Dolcis and Menswear was the company's weakest performers with losses of £0.7 million and £2.6 million respectively, while Bay Trading's performance improved significantly from 2004.

Other factors contributing to the decline in profits were stepped up spending, the loss of the Alexon's business with the former Allders Group, and a slow start of the new high street brand Mandolin.

Alexon's portfolio of brands includes Dolcis, Alex & Co, Eastex, Dash, Ann Harvey, Kaliko and Bay Trading Company.