Presentation for the 6 months to 31 July 2014 (.pdf)
6 months to 31 July 2014 (.pdf)
Interim Results for the 6 month period ended 31 July 2014
"Business strengthened, performance improved, focusing on growth opportunities"
French Connection Group PLC ("French Connection", "the Group") today announces interim results for the 6 month period ended 31 July 2014.
- Third sequential half-year of improved financial performance
- Improvement in both the retail and wholesale divisions, increased licence revenue and lower operating expenses
- Reduced loss before taxation of £3.9m (2013: loss £6.1m) in line with expectations
- Total Group revenue of £84.0m, down 6.6% reflecting planned store closures and exchange rate movements
- Underlying UK/Europe retail LFLs up 6.0% (+1.1% on a reported basis) driving a stronger UK/Europe gross margin (+200 bps) due to higher full price sales
- Net cash of £19.4m and no debt (2013: £22.3m)
Commenting on the results, Stephen Marks, Chairman and Chief Executive said:
"I'm pleased to report a further positive step forward as we rebuild value in our business. The initiatives we put in place to drive a turnaround in our trading continue to deliver an improvement in performance. Whilst costs will continue to be managed tightly, we are cautiously investing in growth opportunities, trialling new store formats and developing our international business.
It's particularly encouraging to see the positive momentum continuing to be reflected in the wholesale forward order book where Winter 14 is up on last year and initial Spring 15 orders are strong.
Given the very competitive market place and tougher LFL comparatives in the period, we remain cautious about the second half where, as ever, we are dependent on the very important Christmas trading period. We expect the results for the full year to be in line with market expectations, setting the Group up for further progress as our initiatives continue to gain traction."
Adam Castleton/Neil Williams French Connection +44(0)20 7036 7063
Brian Hudspith/Emma Burdett Maitland +44(0)20 7379 5151