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Wensum battens down the hatches
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06/10/2008
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A search for a white knight seemed to be on the cards as corporate clothing manufacturer, The Wensum Company today (6 October) announced half year losses as it battened down the hatches in the light of economic uncertainty.
In the statement accompanying the accounts, chairman Stuart Lyons concluded: “The directors continue to discuss with other parties opportunities to improve the group's critical mass and profitability.”
Wensum announced revenues for the 27-week period ended 2 August had risen to £3.4 million (2007: £3.0 m). However, this gain was achieved at a significant cost in gross margins, which were under considerable pressure due to market conditions and competitive forces, while operating costs increased. The group incurred a loss on continuing operations of £18,000 (2007: profit £202,000).
The company said that having regard to the trading performance and the current uncertainties in global financial markets, it believed it was in the best interests of the company to conserve cash within the group and consequently declared a reduced interim dividend for shareholders.
In the short-term, it said, there was a risk of a slow-down in business activity in the corporatewear sector. Margins would remain under pressure, and it would take time for the necessary cost savings to work through.
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Author
Ken Hurst
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