French Connection Group PLC Preliminary Results (pdf)
Financial Year 2013 Presentation (pdf)
Preliminary Results for the year ended 31 January 2013
French Connection Group PLC (“French Connection”, “the Group”) today announces results for its latest financial year ended 31 January 2013 that are in line with market expectations. The Group is currently implementing significant changes that are designed to restore the business to profitability.
Results are as follows:
- Revenue down 8% to £197.3 million (2012: £215.4 million)
- Underlying* loss before tax of £(7.2) million (2012: profit of £4.6 million)
- Closing net cash of £28.5 million (2012: £34.2 million) and no debt
- Strong progress in implementing improvement initiatives
Commenting on this announcement, Stephen Marks, Chairman and Chief Executive of French Connection said:
After a difficult trading year, I am pleased that many of the initiatives we have taken in order to provide a new impetus to sales growth are beginning to show interesting results. While it is still early days, we see some good progress, and I am pleased there is some momentum in the business.
The significant changes we have already and will continue to make will help us to improve our financial performance in this most difficult and competitive of markets. Although it is very early days in the new year, we have seen a better performance in UK retail, and we expect this to build as the year progresses.
We are managing the business tightly in order to increase full-price sales volumes, limit discounting, manage inventory levels, control cash and build confidence with our customers.
We have demonstrated our ability to produce fashionable, wearable products over the last 40 years and will continue to do so with a new and talented design team. With the help of the broad range of improvements in our business, a strong balance sheet and our global brand strength, we will return the business to profitability.
* Underlying loss is adjusted to exclude the costs of disposal and closure of retail stores (£1.3 million) and the impairment of goodwill (£2.0 million).
Stephen Marks/Neil Williams/Roy Naismith - French Connection +44(0)20 7036 7063
Tom Buchanan/Charlie Simon - Maitland +44(0)20 7379 5151