Blog: Leonie BarrieEleksen on the block

Leonie Barrie | 16 October 2007

Executives at smart fabrics and textile touchpad maker Eleksen Group Plc have been warning for several months that funding levels were running critically low. But even so, the revelation that administrators are now trying to sell the business has come as something of a shock.

Eleksen is one of the most commercially advanced UK-based companies in the smart textiles field – which is itself one of the most exciting markets to emerge in recent years. The company specialises in touch-sensitive textiles to control equipment for electronic entertainment, particularly iPods, and has raised its profile by teaming up with companies from M&S to Ermenegildo Zegna to take its vision to the mainstream apparel market.

But such innovations don’t come cheap. Massive investment is needed to expand production capacities, develop new technologies and broaden the company’s customer base in the US and Far East.

The financials speak for themselves. In 2006, which was Eleksen’s first year as a public company, sales soared by 167% to GBP3.5m. But the warning signs were already there, with the costs of achieving its listing, coupled with heavy investments in personnel, widening full-year losses to GBP4.22m from GBP2.73m.

And last month the firm’s interim results showed a wider loss of GBP3.21m (US$6.6m), as revenues tumbled 68% to GBP581,000 from GBP1.8m.
 
The Administrators are now inviting offers for the business and its assets, but warn “the existing business requires substantial working capital to further develop its brands and broaden its market.”

Smart fabric maker Eleksen for sale as funding runs out


BLOG

Industry welcoming move to renegotiate NAFTA

The US textile industry has welcomed President Donald Trump's decision to renegotiate NAFTA, saying it is in America's national interest to modernise the trade agreement....

BLOG

Cutting edge technology defining apparel industry

Cutting-edge textile processing products including a new technology for dyeing yarns in a more sustainable manner and a digitalised sewing machine set up via a touchscreen or app, were among the most ...

BLOG

Ethiopia apparel and textile industry making massive gains

just-style's editor Leonie Barrie recently visited Ethiopia to see for herself the massive developments taking place to elevate this East African nation into a compelling new garment and textile sourc...

BLOG

Collaboration remains a challenge

Collaboration between retailers, brands and their suppliers is a mission critical element in developing a slicker and more cost-effective supply chain. But in an increasingly complex fashion environme...

just-style homepage



Forgot your password?