French Connection Group PLC ("French Connection", "the Group") announces results for the first six months of the financial year and outlines the initiatives implemented in order to improve the performance of the retail business.
Highlights
• Revenue of £96.0 million (2011: £102.8 million)
• Loss before tax of £(6.3) million (2011: profit of £0.7 million)
• Closing net cash of £21.2 million (2011: £30.9 million)
• Broad-ranging initiatives underway to improve the retail business
Commenting on this announcement, Stephen Marks, Chairman and Chief Executive of French Connection said:
"The last six months have continued to be very difficult for French Connection's UK/Europe retail business which has had an impact on the Group results for the period.
We have completed our extensive review of the retail business and have implemented a set of detailed initiatives across a broad number of fronts designed to improve the performance of the retail division and the business in general.
The operational focus of the initiatives is on improving our store operations, developing our product offering and improving merchandise management. In addition we have strengthened our senior management team and will continue to target the disposal of loss making stores. We are confident that these actions will produce a growing positive impact on our trading performance over the next two financial years.
We recognise that the route to sustained recovery is likely to take some time but we are committed to building on French Connection's core strengths; our highly recognised and well-regarded brand, our long history of producing desirable, fashion forward products, our proven sourcing ability and the commitment and passion of our staff."
