Heavy losses expected as sales unravel at Alexon

ALEXON, the group behind the Bay Trading and Kaliko fashion chains, yesterday warned trading had become "increasingly challenging" as it posted an 11 per cent slide in sales and weaker margins.

Stockbroker Panmure Gordon said it expected Alexon to report losses for this year and "the foreseeable future". The shortfall in the current financial year to January is likely to top £2.8 million, analysts noted.

Panmure estimated that like-for-like sales fell 13 per cent in October and November, leading to the 11 per cent decline for the 17 weeks to 22 November.

"We also expect no dividends, which leaves cash as the prime support for the shares and conservation will be the key to the share price," the broker added.

Alexon said the current trading figures were "slightly below" its expectations, but it stressed the outcome for the full year was still dependent on the festive trading period.