Latest Financial Results
Full-Year Results for the year ended 31 January 2012
14 March 2012
Results highlights:
- Revenue up 5% to £215.4 million (2011: £205.0 million*)
- Profit before tax of £5.0 million (2011: £7.3 million*)
- Adjusted Earnings Per Share of 4.7 pence (2011: 7.5 pence*)
- Group Earnings Per Share of 5.5 pence (2011: loss of (2.4) pence)
- Closing net cash of £34.2 million (2011: £34.1 million) and no debt
- Final dividend proposed of 1.0p giving 1.6p for the full year (2011: 1.5p)
Stephen Marks, Chairman and Chief Executive of French Connection said:
"During the past year our wholesale, international and licensing businesses have performed well, however, in the most difficult Winter season I have seen in all the years I have been in business, our UK retail division has been very disappointing and this has had a significant effect on our results for the year.
The French Connection brand has demonstrated its core strength through some good performances globally. The UK/Europe wholesale channel achieved a 17% increase in revenue over last year and we are pleased to have generated an operating profit of £3.3 million in North America, a significant improvement over previous years. Our licensees in Asia and Australia continue to perform well and our Joint Ventures in Hong Kong and China have both achieved strong growth in like-for-like sales. We will see further expansion of our international operations in the coming year. Further, brand licensing income grew strongly, increasing by 47% to £8.5 million from £5.8 million last year.
In the light of the performance of the UK retail division we are reviewing our retail operations in order to improve sales and margin in this core business. We are very aware that there will be no quick solutions and that changes we make will take time to have an impact. We are working very hard on improving the performance of the retail stores, although clearly the state of the UK economy is not helping the position.
We have demonstrated our ability to produce fashionable, wearable products over the last 40 years and will continue to do so. With the help of the review of operations, a strong balance sheet and our global brand, we will return the business to the level of profitability we feel the Group deserves."
Notes
* The comparative figures reflect the core continuing operations of the Group excluding the trading results of closed and discontinued operations (including the Nicole Farhi business and certain US retail stores which were sold or closed by 31 January 2011).
Download
Annual Report for the year ended 31 January 2012 (.pdf 2.7MB)
Preliminary Results year ended 31 January 2012 (.pdf 174k)
Annual Results Presentation 31 January 2012 (.pdf 1.3MB)
