Annual Financial Report
May 29 2009 - 10:20AM
UK Regulatory
TIDMAXN
RNS Number : 0650T
Alexon Group PLC
29 May 2009
29 May 2009
Alexon Group plc (the Company)
Annual Financial Report - DTR 6.3.5 Disclosure
Following the release on 22 April 2009 of the Company's preliminary
results announcement for the year ended 31 January 2009 (the
'Preliminary Announcement'), the Company announces that its annual report and
accounts for the year ended 31 January 2009 (the 'Annual Report and Accounts'),
notice of Annual General Meeting for 2009 (the 'Notice of AGM') and form of
proxy ('the Proxy Form') for use at the Annual General Meeting of the Company
are being issued to shareholders today.
The Annual General Meeting of the Company is to be held on 7 July 2009 at the
Company's registered office, 40-48 Guildford Street, Luton, LU1 2PB Copies of
the Annual Report and Accounts and the Notice of AGM are available on the
Investor Relations page of the Company's website www.alexon.co.uk
Copies of the Annual Report and Accounts, the Notice of AGM and the Proxy Form
are also being submitted to the UK Listing Authority and will shortly
be available for inspection at the UK Listing Authority Viewing Facility located
at:
Financial Services Authority
25 The North Colonnade
Canary
Wharf
London
E14 5HS
Robin Piggott
Company Secretary
Compliance with Disclosure and Transparency Rule 6.3.5 - Extracts from
the Annual Report and Accounts
The information below, which is extracted from the 2009 Annual Report
and Accounts, is included solely for the purpose of complying with DTR 6.3.5
and the requirements it imposes on issuers as to how to make public annual
financial reports. It should be read in conjunction with the Company's
Preliminary Announcement issued on 22 April 2009. Together these constitute
the material required by DTR 6.3.5 to be communicated to the media in unedited
full text through a Regulatory Information Service. This material is not a
substitute for reading the full 2009 Annual Report and Accounts. Page numbers
and cross-references in the extracted information below refer to page
numbers and cross-references in the 2009 Annual Report and Accounts.
The information contained in this announcement and in the Preliminary
Announcement does not constitute the Group's statutory accounts as defined in
section 240 of the Companies Act 1985 but is derived from those accounts. The
statutory accounts for the year ended 31 January 2009 have been approved by the
Board and will be delivered to the Registrar of Companies following the
Company's Annual General Meeting which will be held on 7 July 2009. On 22 April
2009, the group announced its draft unaudited financial statements for the 53
weeks ending 31 January 2009. The auditors have subsequently reported on those
accounts and there are no changes, save that the Basis of Preparation in Note 1
to the accounts has been amended and is reproduced in full in Appendix D below
Appendix A - Directors' Responsibility Statement
The following statement
is extracted from page 11 of the 2009 Annual Report and Accounts and is repeated
here for the purposes of Disclosure and Transparency Rule 6.3.5 to comply with
Disclosure and Transparency Rule 6.3. This statement relates solely to the 2009
Annual Report and Accounts and is not connected to the extracted information set
out in this announcement or the Preliminary Announcement.
The Directors confirm to the best of their knowledge:
* The directors are responsible for preparing the Annual Report, the Directors'
Remuneration Report and the financial statements in accordance with applicable
law and regulations.
Company law requires the directors to prepare financial statements for each
financial year. Under that law the directors have prepared the Group and parent
company financial statements in accordance with International Financial
Reporting Standards as adopted by the European Union. The financial statements
are required by law to give a true and fair view of the state of affairs of the
Group and the parent company and of the profit or loss of the Group for that
period.
In preparing those financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state that the financial statements comply with International Financial
Reporting Standards as adopted by the European Union; and
- prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Group will continue in
business, in
which case there should be supporting assumptions or qualifications as
necessary.
The directors confirm that they have complied with the above requirements in
preparing the financial statements.
The directors are responsible for keeping proper accounting records that
disclose with reasonable accuracy at any time the financial position of the
Company and the Group and to enable them to ensure that the financial statements
and the Directors' Remuneration Report comply with the Companies Act 1985, and,
as regards the Group financial statements, Article 4 of the IAS Regulation. They
are also responsible for safeguarding the assets of the Company and the Group
and hence for taking reasonable steps for the prevention and detection of fraud
and other irregularities.
* The Annual Report includes a fair review of the development and performance
of the business and the financial position of the Group and the
Parent Company, together with a description or the principal risks and
uncertainties that they face. As already announced, and subsequent to 31 January
2009, Epcoscan Limited, trading as Bay Trading, was put into Administration on
27 April 2009.
Appendix B - Principal Risks and Uncertainties
The principal risks and uncertainties relating to the Company are set out page 7
of the 2009 Annual Report and Accounts. The following is extracted in full and
unedited from the 2009 Annual Report and Accounts:
* The Group is exposed to the risks of the economic downturn in the UK which has
led to reduced consumer demand and reduced income.
The UK high street is a highly competitive environment and the Group also faces
competition from the increasing popularity of purchasing via the internet.
The success of the Group is dependent on its ability to provide quality designs
and fashions and to anticipate and respond to changing consumer taste and
fashion trends. Product design and selection is therefore key to retaining
market share and generating revenue, particularly in periods in which consumer
confidence is negatively affected.
The Group has a number of short leasehold premises which are subject to regular
rent reviews. Significant increases in rents could affect the economic viability
of individual units.
Appendix C - Directors' interests
There has been no change to the
description of the Directors' interests in shares set out on page 7 of the 2009
Annual Report and Accounts since 22 April 2009.
Appendix D - Note 1 Basis of Preparation
* These financial statements are prepared under the historical cost convention,
except as disclosed in the accounting policies below, and in accordance with
International Financial Reporting Standards and IFRIC interpretations endorsed
by the European Union and with those parts of the Companies Act, 1985 applicable
to companies reporting under IFRS.
On 27 April 2009 the Company withdrew financial support from its wholly owned
subsidiary undertaking, Epcoscan Limited ("Epcoscan"), which operated the Bay
Trading business, in response to being notified that credit insurance was being
withdrawn from all the Group's suppliers. Epcoscan was subsequently placed into
administration on 27 April 2009, with Deloitte LLP appointed as administrators.
The Company ceased to control Epcoscan from that date. In accordance with IAS
10, this has been treated as a nonadjusting post balance sheet event. The
amounts included in these consolidated financial statements for the period ended
31 January 2009 in respect of Epcoscan and the estimated gain arising as a
result of this company being placed into administration, which will be recorded
in the consolidated financial statements for the period ending 30 January 2010,
are set out in Note 27 to the financial statements.
Because Epcoscan has been unable to meet its debts as they fell due, the Group
in the form that existed at the balance sheet date of 31 January 2009 has not
continued as a going concern. However, the placing of Epcoscan into
administration removes a loss making operation, which significantly improves the
forecast cash position of the continuing group and reduces the level of risk in
respect of future cash flows. The Group is left with the Alexon Brands business
which has been, and continues to be, profitable and cash generative.
In light of the difficult UK retail environment, the withdrawal of credit
insurance from the Group's suppliers and the administration of Epcoscan, the
directors have carefully considered the working capital requirements of the
Group for a period exceeding one year from the date these financial statements
are approved.
The Company has recently secured a multi option overdraft and letter of credit
facility of GBP12 million from Barclays Bank plc which has a renewal date in May
2010. These facilities are secured by way of a floating charge over the assets
of the Group. Although this facility is repayable on demand by the bank, the
Company has received confirmation from the bank, subsequent to the withdrawal of
credit insurance and the administration of Epcoscan, that it does not expect to
withdraw this facility in the foreseeable future.
The Alexon Brands business has been, and continues to be, profitable and cash
generative. The directors have prepared a detailed forecast of future cash
flows, which has been updated to reflect recent trading, the latest expected
trends in like for like sales and the impact of the withdrawal of credit
insurance from suppliers. These projections demonstrate that the continuing
group (excluding Epcoscan) is able to operate within its banking facilities for
the foreseeable future. Consequently, the directors have prepared the Group and
Company financial statements on a going concern basis.
Appendix E - Related party transactions
During the period the ultimate parent company, Alexon Group plc, made net
interest payments of GBP0.1 million in relation to loans with other group
companies.
Redhead Coaching Limited, a Company owned by Mr R. Redhead, a nonexecutive
director, was paid GBP1,500 for consultancy services during the period. The
amount paid to Redhead Coaching Limited represented normal market rates.
There are no other related party transactions for the period ending 31 January
2009 other than key management compensation which is disclosed in note 10.
Enquiries:
Robin Piggott
Alexon Group plc
Company Secretary
01582-723131
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACSEASSNAFLNEFE
Alexon (LSE:AXN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Alexon (LSE:AXN)
Historical Stock Chart
From Jul 2023 to Jul 2024
