Growth Company Investor recommended Alexandra, the supplier of corporate uniforms and work wear to the likes of First Group, Vodafone and Transco, at 162.5p earlier this year.

And led by chief executive Julian Budd, the Bristol-headquartered company, which sources 95% of its garments overseas, stitched up a 20.6% profits push to �2.7m for the half to July, with growth powered by earlier acquisitions Prima Corporate Wear and de Baer. There was 13.7% growth at the top line to over �40.7m, boosted by acquisitions, and investors were treated to a 10.5% improvement in the half-time pay out at 2.1p.

Though margin gains exceeded City forecasts – thanks to savvier product sourcing and supply chain efficiencies – Alexandra disappointed with slower than expected rates of organic growth, which Budd attributed to the integration process eating into more management time than expected. Due to the temporary lull in organic growth rates, house broker Evolution has pegged back its full year turnover forecast from �85.7m to �83.5m, and its pre-tax estimate from �6.9m to �6.6m, giving earnings of 13.6p, which places the shares on a modest forward p/e of 11.4 with a prospective yield of 4%.

Gearing levels, which rose following the debt-funded acquisitions, should reduce in the second half, and the group looks better placed now to deliver profitable growth in tough markets, with the full benefits of integration set to shine through at the bottom line.

If you bought on our advice, now is not the time to sell the shares, which reached 178.5p in the wake of our recommendation. Alexandra is a well-managed group with good underlying earnings, offers investors a solid yield, and also has longer-term ambitions on the Continent, with consolidation of the UK market now ‘largely complete’. Add.