Workplace clothing supplier Alexandra PLC (LSE: AXD) said it remains cautiously optimistic of its prospects as it reported a 13 percent drop in first quarter sales, which is in line with expectations as the comparative period had seen a major customer roll-out and the current economic situation is causing a squeeze on costs.
In an interim management statement for the first quarter to the end of April 2009, the group said it has, however, continued to win new business.
Pretax profit is broadly in line with last year despite the lower turnover, benefiting from action taken in the second half of last year.
Due to ongoing pricing pressures, the board is focused on achieving further benefits and continues to review the structure of the group in light of the challenging market conditions, it said.
The process of recruiting a new CEO is continuing and a further announcement will be made on this in due course. In addition, the directors intend to strengthen the executive board through the appointment of a sales and marketing director.
“Looking further ahead, it is difficult to forecast the state of the market place in these changing times. The group is negotiating several potential new contracts and plan further initiatives through our revitalised sales and marketing activities,” Alexandra added.