FCCN French Connection Group Plc

TIDMFCCN

RNS Number : 4975B

French Connection Group PLC

31 January 2020

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION WILL BE CONSIDERED TO BE IN THE PUBLIC DOMAIN.

For immediate release

31 January 2020

French Connection Group plc ("French Connection" or the "Company")

Conclusion of Strategic Review, End of Formal Sale Process & Pre-Close Trading Update

In October 2018 the board of French Connection (the "Board") announced that it was in the process of reviewing all strategic options in order to deliver maximum value for its shareholders (the "Strategic Review"). Alongside several potential strategic options, the Strategic Review included the consideration of all types of corporate and brand transactions, including seeking offers for the Company pursuant to a formal sale process in accordance with the City Code on Takeovers and Mergers (the "Code") (the "Formal Sale Process").

Conclusion of Strategic Review

After completing the review, the Company has concluded that it will now focus on completing its turnaround and build on the progress made in recent years, in particular through the following actions:

-- further right sizing of the store portfolio while renegotiating the cost base of the ongoing stores;

-- close collaboration with the key wholesale customers to continue growing the business particularly in the US;

-- increased investment in the online platform to enhance the customer experience and improve conversion, coupled with additional spend on marketing to drive traffic;

-- development of the range of license arrangements to seek to increase the product categories available while expanding the current businesses; and

   --    pursuit of other areas of potential cost savings. 

End of Formal Sale process

Having completed its strategic review, the Board of French Connection therefore announces that the Company is no longer in a formal sales process pursuant to the Code. As such, the Company has ceased to be in an "offer period" as defined in the Code. The disclosure requirements pursuant to Rule 8 of the Code are no longer applicable.

Pre-Close Trading Update for the current financial year

The Company will announce its preliminary results for the year ending 31 January 2020 on 10 March. Reflecting the continued challenging trading conditions on the UK High Street, the Board currently expects the result to be a loss before taxation of between GBP1m and GBP2m. UK trading in both the Retail and Wholesale businesses has been more difficult during the second half of the year, especially during the fourth quarter.

Enquiries:

 
 French Connection plc 
  Neil Williams, Chief Operating Officer            +44 (0) 20 7036 7206 
 
   Numis (Financial Adviser and Corporate Broker 
   to the Company) 
   Stuart Ord 
   Ollie Steele                                       +44 (0) 207 260 1000 
 Paternoster Communications 
  Tom Buchanan 
  Catriona Woolner-Winders                          +44 (0) 203 012 0241 
 

This announcement contains certain "forward--looking statements" regarding the business strategy or plans for future operations of the Company and its subsidiaries. All statements other than statements of historical fact included in this announcement may be forward--looking statements. Forward--looking statements also often use words such as "will", "seek", "expect", "pursuit", "intend", "anticipate" and words of a similar meaning. By their nature, forward--looking statements involve risk and uncertainty that could cause actual results to differ materially from those suggested by them. Much of the risk and uncertainty relates to factors that are beyond the companies' abilities to control or estimate precisely, such as future market conditions and the behaviours of other market participants, and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. None of the Company, its subsidiaries or any of their respective directors assume any obligation to, and do not intend to, revise or update these forward--looking statements, except as required pursuant to applicable law or regulations.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

STRSDSFASESSESF

(END) Dow Jones Newswires

January 31, 2020 02:00 ET (07:00 GMT)

French Connection (LSE:FCCN)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024

French Connection (LSE:FCCN)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024