UPDATE 1-Alexon LFL sales up, says resolves covenant issue

* Says 5-week same-store sales up 13.3 pct

* Says resolves EBITDAR covenant issue with bank (Adds details)

Jan 27 (Reuters) - British womenswear retailer Alexon's (AXN.L) same-store sales for the five weeks to Jan. 22 rose 13.3 percent, as its trading recovered following harsh weather in December, and the company said it resolved a possible breach of one of its banking covenants.

Last month, the company said it was in talks with its bank over a possible consequential technical EBITDAR covenant infringement. [ID:nLDE6BK09H]

"The technical EBITDAR covenant infringement outlined in the announcement on Dec. 21 has been resolved, with the agreement of the bank to reset the relevant test at the year end," the company said in a statement.

Net borrowings at the year-end are expected to be about 9.2 million pounds ($14.64 million) and well within the group's current facilities, it said.

The company, whose brands include Alexon, Ann Harvey and Dash, said it expected a pretax profit of 700,000 to 1 million pounds for the year ending Jan. 29.

Analysts on an average were expecting a pretax profit of 1.9 million pounds, according to Thomson Reuters I/B/E/S.

Alexon shares, which have fallen 20 percent since the company in December said its full-year profit will fall short by up to 1.5 million pounds on sales decline, closed at 12 pence on Wednesday on the London Stock Exchange. ($1=.6282 Pound) (Reporting by Tresa Sherin Morera in Bangalore; Editing by Roshni Menon)