Exchange rate errors hit Alexandra profits
A bespoke uniform-maker to the Queen has been rocked by accounting problems which saw a quarter of its profits wiped out
Alexandra is
releasing its results today in the wake of the issues, which were caused by
exchange
rate errors.
The Main List company admitted last week that company profits would be hit by
25%.
In a statement to the city the company said: ‘Alexandra when finalising its
results for the year ended 31 January 2008, discovered stock had been
incorrectly valued during the year. As a result of this accounting discrepancy,
profit for the year will be approximately 25% lower than expected. This had no
impact on cash.’
Alexandra was granted a Royal Warrant in 2002 but also caters for corporate
clients offering the design and provision of bespoke work clothing. The company
manufactures a large slice of its products abroad and is invoiced in dollars,
but errors were made in the conversions, a source said.
The company found fame last year after being picked as lead consultants for
the ‘Undress the Nation’ campaign fronted by fashion experts Trinny and
Susannah, but the accounting issue has put it back into the spotlight for
different reasons.
Alexandra is headed up by ICAEW qualified accountant Julian Budd who joined
as finance director in 1988 before being appointed as chief executive 10 years
later.
Current FD Ken Gibbs joined Alexandra as corporate planning director in 2004
but was handed control of the finances within three months of his appointment.
Alexandra said that as a consequence of the review of this situation, the
FTSE small cap company, audited by Smith & Williamson Solomon Hare, would
announce its financial results for the year ended 31 January 2008 today.
The company said: ‘The board is confident this issue is confined to 2007/08
and will not impact
the current year, where trading and cash flow in the first quarter has been
encouraging.’
Alexandra made no further comment at the time of going to press.