Fashion group Alexon increased its operating profit before exceptionals to £10.5 million in the year to January 26, 2008, from £9.9 million the previous year.

Gross margin was also ahead 1.5 per cent. Total sales fell from£271.2 million to£262 million and group like-for-like sales at Alexon slid 5.6 per cent.

Alexon, which owns businesses including Bay Trading, Alex and Co and Ann Harvey, sold its menswear business – including its Envy chain – for£1 last month with a loss of£15.1 million for that division over the year before tax.

Alexon chief executive John Osborn said: "The disposal of menswear eliminates ongoing losses associated with this division and enables us to concentrate on our core womenswear business. While the outcome for the year will be affected by the overall trading climate, the business is well-placed to continue its recovery."

Bay Trading made an operating profit of£1.1 million for the year and opened 13 shops in the period. Like-for-like sales for the brand fell 7 per cent. The group said that Eastex and Dash performed strongly and that it hoped strengthened buying and design teams at both Kaliko and Ann Harvey would have a positive impact in the year ahead.

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