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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Alexandra - Another to abandon UK manufacturing

May 2003

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Alexandra, the largest supplier of workwear clothing in the UK, is yet another company which has abandoned its UK manufacturing base because costs have become too high relative to the competition.  But its transition to outsourcing its stock requirements from low cost Morocco and the Far East  was fraught with difficulties. Alexandra's  antiquated  IT systems and procedures weren't  up to the task, while a number of key personnel in product procurement walked out, problems which culminated in profit falling sharply in the financial year ended January 2002.  However, management has fixed these issues remarkably quickly and prospects now look their best for some time.   Alexandrasupplies professio ...

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