The UK’s biggest workplace uniforms firm said revenues had been dented as companies hit by recession cut back on hiring.
Bristol-based Alexandra, whose customers include fast food giant McDonald’s, Wembley Stadium and the NHS, said revenues had fallen 13% in the three months to April 30.
The bleak economic climate has seen lower order levels from small businesses, while major clients had been drawing down stock levels more slowly, Alexandra said.
The firm was also hit by tougher comparisons due to a major customer roll-out a year earlier, but added that pre-tax profits were broadly in line with last year.
This came after an action plan to cope with last year’s slump in the pound, as the firm buys more than 95% of its garments from overseas in dollars.
Alexandra has slashed overheads – including 60 redundancies – reduced stock, negotiated higher prices with customers and driven better deals from suppliers.
The firm also said it was in talks over several new potential contracts, but warned the main focus of trading this year would be on controlling costs.
It added: “Looking further ahead, it is difficult to forecast the state of the marketplace in these challenging times.”
Arden analyst Ben Thefaut edged his estimates for pre-tax profits for the year to January 2010 down to £3 million following the update. The company posted profits of £4 million for the previous year in May.
But Mr Thefaut added: “We do not anticipate a similar rate of (revenue) decline for the full year.”
Source: The Press Association, United Kingdom, June 19, 2009
