TIDMFCCN
RNS Number : 5151F
French Connection Group PLC
10 March 2020
10 March 2020
FRENCH CONNECTION GROUP PLC
Preliminary Results for the year ended 31 January 2020
French Connection Group PLC ("French Connection" or "the Group")
today announces results for its financial year ended 31 January
2020.
Highlights:
-- Group revenue of GBP119.9m (2019: GBP135.3m), down 11.4%
(down (11.1%) CCY) being impacted by the planned closure of stores
and the difficult retail trading environment in the UK
-- Underlying loss(2) of GBP(2.9)m compared to a restated(4)
underlying profit of GBP0.8m in the comparative period
-- Wholesale revenue down 4.8% ((4.6%) CCY) although up 15.7% (16.1% CCY) in North America
-- Decline in LFL sales in UK/Europe of 2.5% (2019: down 6.8%)
reflecting poor UK retail trading conditions on the High Street
generally in the second half of the year
-- Planned closure of non-contributing stores has continued with
11 stores and three outlets closed in the period
-- Underlying composite gross margin of 38.3% (2019: 42.3%) due
to the increased proportion of Wholesale in the mix together with
additional import duty in the US and reduced FX benefit
-- Closure of the China and Hong Kong joint venture during the
year contributing GBP(0.5)m loss
-- Closing cash of GBP8.1m (2019: GBP16.2m)
Commenting on the results, Stephen Marks, Chairman and Chief
Executive said:
"The performance this year has not been as anticipated and we
are not being assisted by the continued difficult trading
conditions in the UK and potential uncertainty due to the COVID-19
coronavirus. I am however, pleased with the continued good
performance of the wholesale business in the USA and we have good
forward order banks in the UK to be delivered during the first half
of the year. The initial reaction to the winter ranges has been
positive, particularly at our recent New York Fashion Show.
We believe the trading landscape in the UK is unlikely to
improve in the short term and this has a potential impact on both
the retail and wholesale businesses. Against this background we are
working hard to ensure we are operating as efficiently and cost
effectively as possible while working closely with all our trading
partners to maximise business with them."
Notes:
Key performance indicators for the 52 week trading period are
outlined below:
FY20 FY19(4) Var %
Total Group revenue (GBPm) 119.9 135.3 (11.4%)
----- ------- --------
Total Retail revenue (GBPm) 46.7 58.4 (20.0%)
----- ------- --------
Total Wholesale revenue (GBPm) 73.2 76.9 (4.8%)
----- ------- --------
Underlying (loss)/profit (GBPm) (2.9) 0.8
----- ------- --------
Retail LFL(1) (%) -2.5 -6.8
----- ------- --------
Stock (GBPm) 26.8 28.4 (5.6%)
----- ------- --------
Average UK/Europe Retail Space (sq.ft. '000s) 143.7 165.6 (13.2%)
----- ------- --------
Average Group Retail Space (sq.ft. '000s) 154.0 178.2 (13.6%)
----- ------- --------
Number of stores/concessions:
----- ------- --------
- Operated 81 96 (15.6%)
----- ------- --------
- Franchised, Licensed & JV 173 195 (11.3%)
----- ------- --------
Underlying gross margin (%) 38.3 42.3 (400bps)
----- ------- --------
Net cash position (GBPm) 8.1 16.2 (50.0%)
----- ------- --------
Notes:
1. LFL or "Like-for-Like" sales growth is defined as the year-on-year
sales growth for owned stores and concessions open more than
one year, including ecommerce revenues, removing the impact
of closed stores and reported in constant currency.
2. Underlying Operating result excludes adjusting items (Note 6)
and discontinued operations (Note 3).
3. Constant Currency (CCY) is calculated by translating the year
ending January 2020 at 2019 rates to remove the impact
of exchange rate fluctuations.
4. The comparative information has been restated to show the discontinued
operations separately from the continued operations. See discontinued
operations Note 3.
The Directors believe these measures are best reflective of how
the business is managed and are informative to shareholders in
understanding the performance of the business.
Neil Williams
+44 (0) 20 7036
Enquiries: Lee Williams French Connection 7207
+44 (0) 20 3012
Tom Buchanan Paternoster Communications 0241
---------------- --------------------------------------------- ------------------
CHAIRMAN'S STATEMENT
After making further progress during the first half of the year,
the overall result for the financial year is disappointing.
Performance during the second half has been considerably worse than
expected, particularly during the fourth quarter in the UK,
reflecting the continued difficult trading conditions and a shift
in the phasing of wholesale deliveries to customers into the New
Year. Encouragingly however, the strong sales growth we have seen
recently in the USA wholesale business continued, helped by another
excellent sell through at the major department stores, although
this was adversely impacted by the additional import duties
imposed.
The underlying loss for the year was GBP2.9m (2019: profit of
GBP0.8m), reflecting the poor result in the UK, which was partially
offset by the improvement in the USA and despite the significant
cost of the additional import duties imposed there since the
beginning of September.
As announced at the end of January, the strategic review and
formal sale process have been brought to a conclusion and going
forward we will continue to focus on the following key areas:
-- 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
-- pursuit of other areas of potential cost savings
Wholesale
Revenue decreased by 4.8% in the year (-4.6% CCY). The strong
growth that we saw last year in North America has continued, with
good progress being made with all the department stores, especially
Bloomingdales and Nordstrom, who saw further improved sell through
and increased overall volumes. In addition we had the launch of the
fcuk capsule collection with Urban Outfitters. In UK/Europe however
sales reduced due to a combination of the difficult market
conditions through the second half of the year resulting in
considerably lower in season orders being received, together with a
change of the phasing of new summer season deliveries when compared
to last year.
Gross margins at 30.2% were 2.3% down on last year reflecting
the additional import duties incurred in the USA during the second
half of the year and a lower level of foreign exchange gains than
in the previous year in the UK. In response to the decrease in
revenue, costs were tightly controlled and were reduced by 3.1%
(2.8% CCY) (exc. IFRS 16). Overall this has resulted in a 23%
reduction in underlying operating result to GBP11.7m excluding IFRS
16 adjustments.
Retail
Predominantly due to the continued store closure programme with
a further 18 locations closed during the year (11 stores, 3 outlets
and 4 concessions), overall revenue decreased by 20.0% (-19.7%
CCY). This also included a reduction in like for like sales of 2.5%
for UK/Europe, despite having been 1.4% up at the half year.
Included in the closures was our store in Oxford Street in May and
in response to this we opened the new concept Duke Street Studios
store nearby to maintain a West End presence. As anticipated,
negotiations on individual properties in general have become
considerably more favourable, and while not always enough to ensure
we remain in the store, certain locations have continued to be
traded given the improved economics. This is likely to continue
although the number of leases coming to the end or with a break
clause, reduces considerably over the next couple of years leaving
less opportunity for renegotiation. We currently expect 2 further
locations to close this year. The average lease length of the
remaining UK/Europe stores is 2.5 years (2019: 2.3 years).
Gross margin was 51.0%, down from 55.1% last year. This reflects
increased markdowns in the second half of the year to assist stock
clearance, the lower level of foreign exchange gains compared to
the previous year and the increased proportion of sales through the
outlet stores at lower margins. Underlying overheads fell by 5.5%
reflecting the rent renegotiations achieved during the year
partially offset by some inflationary pressures particularly on
staff costs. Overall underlying operating result for the year
decreased by GBP1.3m excluding IFRS 16 adjustments.
Within retail, overall revenue for ecommerce was slightly down
on last year, reflecting the general trading environment but also
the changes in team that have been made during the year both in the
UK and USA. In addition in the USA there was a conscious move to
reduce the level of promotional periods which again impacted sales
volumes. We did start to see some benefits of the improvements we
have made feed through particularly on personalisation and in the
social media channels towards the end of the second half of the
year. We intend to build on this as we go forward. The ecommerce
business both with our own site and through third party customer
platforms will play a significant part in the growth of the
business in the future.
CHAIRMAN'S STATEMENT
Licensing
Licensing income for the year was GBP5.5m compared to GBP5.8m
last year. This reflects overall a steady performance with DFS
again growing but offset by the closure of our bag licensee in
North America. We have new ladies footwear, kidswear and hosiery
licences commencing deliveries in North America in the second half
of the year.
Operating expenses, adjusted for store closures and currency
movements, were slightly down on the year with inflationary
pressures especially from staff costs. These were offset by rent
renegotiations and group wide cost saving initiatives including a
restructure within the retail head office.
The Group ended the year with a cash position of GBP8.1m (2019:
GBP16.2m), reflecting the trading losses, payments to exit stores
during the year and capital expenditure on stores and IT
infrastructure. The Board have decided that there will be no
dividend payable for the year.
The performance this year has not been as anticipated and we are
not being assisted by the continued difficult trading conditions in
the UK and also uncertainty as to the impact of COVID-19
coronavirus, both due to the spread of the infection to further
territories and the potential impact on our supply chain. We are
monitoring this situation closely and will take whatever actions
are necessary to manage any delays that may arise.
I am however, pleased with the continued good performance of the
wholesale business in the USA and we have good forward order banks
in the UK to be delivered during the first half of the year.
Initial reaction to the winter ranges has been good. The consistent
performance of the licensing business will continue and will be
strengthened by the new collections. The trading landscape in the
UK is unlikely to improve in the short term and this has a
potential impact on both the retail and wholesale businesses.
Against this background we are working hard to ensure we are
operating as efficiently and cost effectively as possible while
working closely with all our trading partners to maximise business
with them.
All our staff have worked hard over the year in testing
conditions and for this I thank them. We have a lot to do to return
the business to the positive progress we had been making prior to
this year but I am confident we are well positioned to achieve
this.
Stephen Marks
Chairman and Chief Executive
Notes:
1. Underlying Operating result excludes adjusting items (Note 6)
and discontinued operations (Note 3)
2. LFL or "Like-for-Like" sales growth is defined as the
year-on-year sales growth for owned stores and concessions open
more than one year, including ecommerce revenues, removing the
impact of closed stores and reported in constant currency.
3. Constant Currency (CCY) is calculated by translating the year
ending January 2020 at 2019 rates to remove the impact of exchange
rate fluctuations.
4. Underlying overheads consist of LFL store overheads.
5. Adjusting items include provisions for bad debts, store
closure and dilapidation costs, impairment provisions and other
professional fees
6. Continuing operations exclude the discontinued results from
the disposed Hong Kong & China joint ventures.
The Directors believe these measures are best reflective of how
the business is managed and are informative to shareholders in
understanding the performance of the business.
FINANCIAL REVIEW
Overall financial performance
Although the first half of the financial year saw an improvement
in underlying profitability, the second half of the year has proved
to be particularly challenging. A tough economic climate,
particularly in the UK, provided headwinds that impacted on our
ability to build on the improvement in the first six months.
Underlying result(1) for the full year to January 2020 was a loss
of GBP(2.9)m compared to an underlying profit of GBP0.8m in the
comparative period. The underlying result excludes adjusting items
and discontinued operations.
Adjusting items(4) of GBP4.4m (2019: GBP9.4m) in the year relate
to non-recurring expenses including bad debts, impairment and
dilapidation provisions and professional fees relating to the
conclusion of the strategic review, as announced in January.
Further information is provided in Note 6 to the Group accounts.
Discontinued operations in the current year relate to the cessation
of our joint venture operation in Asia. The closure of all of our
fourteen joint venture stores in China and Hong Kong was completed
in the second half of the financial year and generated a total loss
of GBP(0.5)m. The joint venture trading result has been
re-presented within discontinued operations in the comparative
year.
The current reporting period is inclusive of the implementation
of IFRS 16 which has resulted in presentational changes to the
Income Statement, Statement of Financial Position and Cash Flow. In
addition, the underlying result on a like-for-like basis has
benefitted from the adoption of IFRS 16 'modified retrospective'
approach as illustrated in Note 10 'Impact of application of IFRS
16'. The like-for-like underlying result for the year, adjusted to
exclude the impact of IFRS 16, is a loss of GBP(4.5)m (2019:
restated profit of GBP0.8m).
Including adjusting items and discontinued operations, the Group
reported a total loss for the year of GBP(7.8)m (2019:
GBP0.0m).
Revenue
Group revenue from continuing operations of GBP119.9m decreased
by 11.4% (11.1% at constant currency(2)) (2019: GBP135.3m).
Wholesale revenue grew in North America but contracted in UK/Europe
due to shipment timing, resulting in an overall decline of 4.8%
(4.6% at constant currency). Retail sales decreased by 20.0% (19.7%
at constant currency) reflecting a reduced store portfolio reducing
average operated space by 13.6% with net fifteen store/concession
closures in the year as well as UK/Europe retail like-for-like
sales(3) decline of 2.5%.
Gross margin
Composite Group gross margin at 38.3% was 400bps lower than the
prior period (2019: 42.3%) impacted by higher input prices
including increased tariffs imposed by the US on imports from
China, less favourable FX variances and the larger proportion of
retail outlet sales and relatively fixed overheads as we continue
to close full-price stores.
Wholesale
Group wholesale revenue from continuing operations of GBP73.2m
was 4.8% (4.6% at constant currency) lower than the prior period
(2019: GBP76.9m). Strong continued growth of 15.7% was generated
from the core department store business in North America. However,
this was offset by a decline in UK/Europe revenue of 18.0% due to
reduction in clearance sales and change in phasing of year-end
Spring product despatches. The Rest of the World wholesale business
contracted impacted by the closure of our joint venture partners in
Asia.
Group wholesale gross margin deteriorated to 30.2% (2019: 32.5%)
due to increased input prices as a result of continuing weak
Sterling throughout the year and increased tariffs on Chinese
imports imposed by the US.
The decline in overall wholesale sales and a softer margin
resulted in a profitability decrease in underlying profit for the
year to GBP13.2m (2019: GBP15.2m). Excluding the impact of IFRS 16,
adjusted underlying wholesale profit was GBP11.7m (GBP15.2m).
FINANCIAL REVIEW
Retail
Group retail revenue from continuing operations of GBP46.7m was
20.0% lower than the comparative period (2019: GBP58.4m) due to the
continuing targeted reduction in the store portfolio and 2.5%
decline in UK/Europe like-for-like sales. During the year, we
closed fourteen non-contributing stores and four concessions, with
another two concessions opening. Our Oxford Street store closed in
the first half of the year but to maintain a Central London
presence, we opened a new concept store nearby in Duke Street,
called The Studio. Total operated locations at the year-end was 81
(2019: 96) reflecting a 26% reduction in total selling space.
Disappointingly, total ecommerce revenue also contracted by 8.1%
across our websites. However, ecommerce still increased penetration
of total Group retail sales, growing to 24.2% (2019: 21.1%). Mobile
phone transactions as a proportion of ecommerce traffic also
increased to 63.8% of all online transactions (2019: 56.8%)
reflecting the continued focus and development of our CRM
capability and targeted social media advertising.
The overall retail performance in the year was a marginal
improvement in the underlying result to a loss of GBP(10.0)m (2019:
GBP(10.3)m). Excluding the impact of IFRS 16, adjusted underlying
retail loss was GBP(11.6)m (2019: GBP(10.3)m).
We continue to review the Group retail portfolio and
opportunities available to renegotiate or terminate leases.
However, we also continue to experience upward cost pressures from
a combination of both rates and wages.
Geographical analysis
The continued strong performance in the North America wholesale
business has contributed to the increase in North America share of
Group revenue to 33.9% (2019: 27.2%) and the corresponding decrease
in UK/Europe share to 64.7% (2019: 70.7%). The closure of the Asian
joint ventures has resulted in fall in Rest of the World revenue to
1.4% (2019: 2.1%).
Underlying operating result from North America has improved to
GBP5.5m (2019: GBP3.7m) as a result of the continued wholesale
growth. UK/Europe underlying result has generated a loss of
GBP(1.6)m (2019: profit of GBP2.1m) due to contracting wholesale
and retail revenues. Rest of the World underlying loss increased to
GBP(0.8)m (2019: GBP(0.6)m).
Licensing income
Global licensing of GBP5.5m (2019: GBP5.8m) was generated in the
year. DFS continues to increase its licensing revenues with range
expansion during the year. However, some of the UK historic
licensing income has contracted in the year as a direct result of
the challenging UK economic climate and the North America shoe
licence closure.
Operating expenses
Total Group operating expenses, excluding adjusting items, of
GBP52.8m (2019: GBP62.2m) were 15.1% lower than the prior period
primarily due to store closure savings and a focus on cost
control.
Total operating expenses including adjusting items were GBP57.2m
(2019: GBP71.6m).
Adjusting items
Adjusting items of GBP4.4m (2019: GBP9.4m) have been recognised
in the period relating to non-recurring items including bad debt
provisions relating to wholesale export customers of GBP1.0m, store
closure and dilapidation costs of GBP1.6m, right of use and fixed
asset impairments of GBP1.4m and professional fees of GBP0.4m with
regards to the conclusion of the strategic review.
Discontinued operations
The Group closed its joint venture operations in Asia in the
second half of the year. The closure of all of our fourteen stores
in China and Hong Kong generated a total loss of GBP(0.5)m. The
joint venture trading result has disclosed within discontinued
operations.
The prior year trading loss of the joint ventures of GBP(0.7)m
has been re-presented within discontinued operations in the Income
Statement and consolidated with the prior year profit from disposal
of our subsidiary, Toast (Mail Order) Limited, generated a total
comparative discontinued operations profit of GBP8.6m.
FINANCIAL REVIEW
Balance sheet
The Group balance sheet at 31 January 2020 remains strong with
net assets of GBP29.1m (2019: GBP46.2m) including closing cash of
GBP8.1m (2019: GBP16.2m) and no bank borrowings. Opening net assets
at 1 February 2019 have been reduced by GBP8.3m following the
implementation of IFRS 16 (see Note 10 'Impact of application of
IFRS 16').
Inventory levels reduced to GBP26.8m (2019: GBP28.4m) due to the
reduction in wholesale sales and the timing of Spring shipments.
Similarly, trade and other receivables have decreased to GBP19.5m
(2019: GBP24.1m) as a result of contracting wholesale revenues and
increased provisions. Trade and other payables have reduced to
GBP19.2m (GBP25.4m) reflecting the reduction in the retail
portfolio.
Following the implementation of IFRS 16, the balance sheet at
the year-end now includes a right of use asset of GBP17.9m and
related lease liabilities of GBP30.0m relating to future discounted
lease rentals.
Cash flow
The trading operations of the Group generated cash of GBP5.7m
(2019: GBP(3.1)m outflow) reflecting the new cash flow presentation
under IFRS 16. However, on a like-for-like presentational basis,
excluding the impact of IFRS 16, adjusting items and discontinued
operations in both the current and prior years, the Group consumed
cash of GBP(5.7)m in the year (2019: GBP(2.6)m). The increase in
cash consumption reflects the decrease in underlying profitability
in the year tempered by tighter control of working capital.
Cash outflows from investing activities of GBP2.2m include
capital expenditure of GBP1.1m (2019: GBP0.8m) relating to IT
costs, investment in upgrading the ecommerce CRM platform and
retail improvements including the shopfit of the new London store.
Store closure costs of GBP1.1m (2019: GBP0.9m) have been incurred
in the period relating to the closure of fourteen stores.
We continue to target the closure of non-contributing stores and
expect to close more in the current year. Prior year cash inflow
from investing activities of GBP10.0m included the funds received
from the disposal of the subsidiary, Toast (Mail Order) Limited.
Cash outflows from financing activities of GBP(11.4)m in the
current year relate to IFRS 16 lease liability rental payments and
interest.
IFRS 16
The Group has implemented IFRS 16 'Leases' for the accounting
year-ended 31 January 2020. The Group has adopted the 'modified
retrospective' method and accordingly the comparative 2019 results
under this methodology have not been restated on transition at 1
February 2019.
In summary, IFRS 16 aligns the presentation of leased assets
more closely to owned assets resulting in historic operating leases
being brought onto the Balance Sheet and part of what was
previously reported as operating lease costs being recorded as a
finance interest expense. Historic operating lease expenses are to
be replaced by depreciation and interest.
The depreciation of the right-of-use asset will be charged on a
straight line basis whilst the interest charged on the outstanding
lease liability will be front-loaded and higher in the earlier
years decreasing over the life of the lease. However, the total
expense recognised in the Income Statement over the life of the
lease will be unaffected by the new standard.
A right-of-use asset and lease liability have been presented on
the Balance Sheet with the lease liability recognised at the
present value of future lease payments. The right-of-use asset has
been matched in value to the lease liability at inception subject
to any rent-free or lease inducements. However, the respective
assets and liabilities have been charged/(credited) independently
over the life of the lease.
The adoption of the standard has had no impact on the daily
operations or cash flows of the Group. However, there has been a
material impact on the presentation of the financial statements
including the Income Statement, Balance Sheet and Cash Flow
Statement.
More details are available in Note 10 'Impact of application of
IFRS 16'.
Taxation
The total Group tax charge for the year of GBPNil (2019: GBPNil)
represents tax payable on current profits generated in Hong Kong
and the US offset by historic losses. The Group has unused tax
trading losses with a potential value of GBP15.3m, of which
GBP13.6m has not been recognised in these financial statements.
These tax losses can be utilised when the Group returns to
profitability.
FINANCIAL REVIEW
Dividends
The Board of Directors remain of the view that the business is
best served by retaining current cash reserves to support the
turnaround of the business, and therefore do not recommend the
payment of a dividend. The Board intend to keep the shareholder
distribution policy under close review during the year.
Market capitalisation
It is noted that as at the financial year-end 31 January 2020,
the net assets of the Group of GBP29.1m are in excess of the
Company's market capitalisation. However, the Directors believe,
based on the latest budget and long range plan, the current market
price undervalues the future forecast profitability of the business
and that the net asset position of the Group is a fairer
representation. In accordance with accounting standards, the
Company acknowledges that current market capitalisation is a
potential indicator of impairment. A subsequent impairment review
of the Group's net assets has been performed in the year with
resulting right of use asset and tangible fixed asset
impairments.
Going concern
Having reviewed the cash forecasts and the sources of cash
funding available to the Group, the Board has concluded that it is
appropriate to prepare the Group financial statements on a going
concern basis. Furthermore, the Group has additional levers
available to manage cash including reducing discretionary spend
such as Capex, accelerating the liquidation of older season stock
and bringing forward wholesale customer payments where deemed
appropriate. We have also post year-end, subject to a due diligence
review, secured a three year credit line facility of approximately
GBP10m.
Brexit
The long term implications and full economic impact remain
unclear. The Group considers the principal risk factors to be
macro-economic uncertainty leading to a downturn in the UK economy,
trading restrictions leading to friction at the borders, the
imposition of tariffs, further exchange rate volatility and other
recruitment concerns. Tariff increases or trading restrictions are
mitigated through the Group's suppliers predominantly being located
outside of the EU. The potential fall in the value of Sterling and
further exchange rate volatility following Brexit is partly
mitigated within the Group due to the proportion of our business
which is transacted in US$ and Euros. This leads to a relatively
large natural hedge. For the remainder we hedge in advance. The
likely contraction in the labour market is considered a minor risk
to the Group, with no senior positions currently held by non-UK EU
citizens and minimal disruption to retail staffing. The Group has
communicated across the organisation the steps and procedures
required to assist any EU citizens to take advantage of the EU
Settlement Scheme to remain in the UK following any transition
period. The Board will continue to monitor Brexit developments and
assess the potential impact on the business when there is greater
certainty and clarity over potential outcomes.
COVID-19 Coronavirus
The impact following the recent emergence of the global
coronavirus is still unknown. We have engaged with employees to
provide further information as we receive it and have also put in
place materials to try and reduce the spread. To offset the impact
of periods of self-isolation we have enabled all office based
colleagues to be able to work from home, should the need arise. We
are reviewing the impact that this may have on our supply chains
for Winter products coming from the Far East but do not know for
sure just yet how this will play out. A major concern is that the
outbreak leads to further reductions in footfall on the High
Street, though with our reduced exposure to pure retail, we are
less exposed than others. We will continue to monitor the situation
closely.
Lee Williams
Chief Financial Officer
Notes:
1. Underlying Operating result excludes adjusting items and discontinued operations.
2. Constant Currency (CCY) is calculated by translating the year
ending January 2020 and January 2019 at a consistent rate to remove
the impact of exchange rate fluctuations.
3. LFL or "Like-for-Like" sales growth is defined as the
year-on-year sales growth for owned stores and concessions open
more than one year, including ecommerce revenues, removing the
impact of closed stores and reported in constant currency.
4. Adjusting items include provisions for bad debts, store
closure and dilapidation costs, impairment provisions and other
professional fees.
5. Continuing operations exclude the discontinued results from
the disposed Hong Kong and China joint ventures (Note 3).
The Directors believe these measures are best reflective of how
the business is managed and are informative to shareholders in
understanding the performance of the business.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 January 2020
Restated*
Year ended 31 January Year ended 31 January
2020 2019
Adjusting Adjusting
Before items Before items
adjusting and discontinued adjusting and discontinued
items operations** Total items operations** Total
Note GBPm GBPm GBPm GBPm GBPm GBPm
---------------------------- ---- ----------- ------------------ ------- ----------- ------------------ -------
Continuing operations
Revenue 2 119.9 - 119.9 135.3 - 135.3
Cost of sales (74.0) - (74.0) (78.1) - (78.1)
---------------------------- ---- ----------- ------------------ ------- ----------- ------------------ -------
Gross profit 2 45.9 - 45.9 57.2 - 57.2
Operating expenses (52.8) (4.4) (57.2) (62.2) (9.4) (71.6)
Other operating income 5 5.5 - 5.5 5.8 - 5.8
Finance expense (1.5) - (1.5) - - -
---------------------------- ---- ----------- ------------------ ------- ----------- ------------------ -------
(Loss)/profit before
taxation 6 (2.9) (4.4) (7.3) 0.8 (9.4) (8.6)
Taxation - - - - - -
---------------------------- ---- ----------- ------------------ ------- ----------- ------------------ -------
(Loss)/profit for the
year from continuing
operations (2.9) (4.4) (7.3) 0.8 (9.4) (8.6)
---------------------------- ---- ----------- ------------------ ------- ----------- ------------------ -------
Discontinued operations
(Loss)/profit from
discontinued
operations, net of tax 3 - (0.5) (0.5) - 8.6 8.6
---------------------------- ---- ----------- ------------------ ------- ----------- ------------------ -------
(Loss)/profit for the
year (2.9) (4.9) (7.8) 0.8 (0.8) -
---------------------------- ---- ----------- ------------------ ------- ----------- ------------------ -------
* The comparative statement has been restated re-presenting
discontinued operations and continuing operations.
** Adjusting items (Note 6). Discontinued operations (Note
3).
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 January 2020
(continued)
Restated*
2020 2019
Note GBPm GBPm
---------------------------------------------------- ------- -------- ----------
(Loss)/profit for the year (7.8) -
Other comprehensive income
Items that are or may be reclassified subsequently
to profit or loss
Currency translation differences for overseas
operations (0.1) 0.5
Currency translation differences on foreign
currency loans, net of tax (0.2) (0.2)
Recycling of translation differences due to (0.7) -
disposal of discontinued operation
Effective portion of changes in fair value
of cash flow hedges - 0.1
Other comprehensive income for the year,
net of tax (1.0) 0.4
---------------------------------------------------- ------- -------- ----------
Total comprehensive income for the year (8.8) 0.4
(Loss)/profit attributable to:
Equity holders of the Company (7.9) 0.1
Non-controlling interests 0.1 (0.1)
(Loss)/profit for the year (7.8) -
Total comprehensive income attributable
to:
Equity holders of the Company (8.9) 0.5
Non-controlling interests 0.1 (0.1)
Total income and expense recognised for
the year (8.8) 0.4
(Losses)/earnings per share
Basic and diluted (losses)/earnings per
share 8 (8.2)p 0.1p
Continuing operations
Basic and diluted losses per share 8 (7.7)p (8.9)p
Discontinued operations
Basic and diluted (losses)/earnings per
share 8 (0.5)p 9.0p
* The comparative statement has been restated re-presenting
continuing and discontinued operations (Note 3).
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 January 2020
2020 2019
Note GBPm GBPm
------------------------------------- -------- ------ ------
Assets
Non-current assets
Intangible assets 0.2 0.2
Property, plant and equipment 2.0 2.5
Right-of-use asset 17.9 -
Investments in joint ventures - 1.8
Deferred tax assets 4.5 4.3
Total non-current assets 24.6 8.8
Current assets
Inventories 26.8 28.4
Trade and other receivables 19.5 24.1
Cash and cash equivalents 9 8.1 16.2
Total current assets 54.4 68.7
Total assets 79.0 77.5
Non-current liabilities
Lease liabilities 20.9 -
Provisions 0.3 3.5
Total non-current liabilities 21.2 3.5
Current liabilities
Trade and other payables 19.2 25.4
Lease liabilities 9.1 -
Provisions 0.4 2.4
Total current liabilities 28.7 27.8
Total liabilities 49.9 31.3
Net assets 29.1 46.2
Equity
Called-up share capital 1.0 1.0
Share premium account 9.8 9.8
Translation reserve 6.4 7.4
Retained earnings 11.8 28.0
Total equity attributable to equity holders
of the Company 29.0 46.2
Non-controlling interests 0.1 -
Total equity 29.1 46.2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Non-controlling
Share Share Hedging Translation Retained interests Total
capital premium reserve reserve earnings Total GBPm equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
----------------- --------- ---------- ---------- ------------- ---------- -------- ---------------- ---------
Balance at 31
January
2018 1.0 9.6 (0.1) 7.1 27.9 45.5 1.2 46.7
Profit/(loss)
for the
year ended 31
January
2019 0.1 0.1 (0.1) -
Other
comprehensive
income
Currency
translation
differences
for
overseas
operations 0.5 0.5 0.5
Currency
translation
differences
on foreign
currency
loans,
net of tax (0.2) (0.2) (0.2)
Effective
portion of
changes
in fair
value of cash
flow hedges 0.1 0.1 0.1
Transactions
with owners
recorded
directly in
equity
Share options
exercised 0.2 0.2 0.2
Transactions
with
non-controlling
interests,
recorded
directly
in equity
Dividends (0.5) (0.5)
Disposal of
discontinued
operation (0.6) (0.6)
Balance at 31
January
2019, as
previously
reported 1.0 9.8 - 7.4 28.0 46.2 - 46.2
Impact of change
in accounting
policy of IFRS
16 (Note
10) (8.3) (8.3) (8.3)
Adjusted balance
at 1
February 2019 1.0 9.8 - 7.4 19.7 37.9 - 37.9
(Loss)/profit
for the
year ended 31
January
2020 (7.9) (7.9) 0.1 (7.8)
Other
comprehensive
income
Currency
translation
differences
for
overseas
operations (0.1) (0.1) (0.1)
Currency
translation
differences
on foreign
currency
loans,
net of tax (0.2) (0.2) (0.2)
Disposal of
discontinued
operation (Note
3) (0.7) (0.7) (0.7)
Balance at 31
January
2020 1.0 9.8 - 6.4 11.8 29.0 0.1 29.1
Share capital and premium reserve
Share capital is the nominal value of shares issued. Share
premium represents the difference between the market price and
nominal.
Hedging reserve
The hedging reserve comprises the effective portion of the
cumulative net change in the fair value of cash flow hedging
instruments related to hedged transactions that have not yet
occurred.
Translation reserve
The translation reserve comprises foreign currency differences
arising from the translation of the financial statements of foreign
operations as well as from the translation of foreign currency
loans. The translation reserve carried forward is net of GBP0.2m
(2019: GBP0.4m) deferred tax.
Retained earnings
Earnings available for distribution to shareholders under the
Companies Act 2006.
CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended 31 January 2020
2020 2019
Note GBPm GBPm
--------------------------------------------------- ------ ------ -----
Operating activities
(Loss)/profit for the period (7.8) -
Adjustments for:
Depreciation of property, plant and equipment 1.2 1.2
Depreciation of right-of-use asset 6.6 -
Share of loss of joint ventures 3 0.5 0.7
Finance expense 1.5 -
Profit on sale of subsidiary 3 - (9.7)
Adjusting items 6 4.4 9.4
Income tax credit - (0.1)
Operating cash flows before changes in working
capital and provisions 6.4 1.5
Decrease in inventories 1.6 0.4
Decrease/(increase) in trade and other receivables 2.7 (2.0)
(Decrease) in trade and other payables (5.0) (3.0)
Cash flows from operations 5.7 (3.1)
Income tax (paid)/received (0.1) 0.2
Cash flows from operating activities 5.6 (2.9)
Investing activities
Investment in joint ventures - -
Acquisition of property, plant and equipment (1.1) (0.8)
Disposal of subsidiary 3 - 11.7
Net costs from store closures (1.1) (0.9)
Cash flows from investing activities (2.2) 10.0
Financing activities
Payment of lease liabilities (9.9) -
Interest paid (1.5) -
Proceeds from exercise of share options - 0.2
Dividends paid 7 - (0.5)
Cash flows from financing activities (11.4) (0.3)
Net (decrease)/increase in cash and cash
equivalents (8.0) 6.8
Cash and cash equivalents at 1 February 16.2 9.5
Exchange rate fluctuations on cash held (0.1) (0.1)
Cash and cash equivalents at 31 January 9 8.1 16.2
NOTES
1 Basis of preparation
Consolidated financial statements and accounting policies
The preliminary announcement for the year ended 31 January 2020
has been prepared in accordance with International Accounting
Standards and International Financial Reporting Standards as
adopted by the European Union (EU) at 31 January 2020. The annual
financial information presented in the preliminary announcement for
the year ended 31 January 2020 is based on, and is consistent with,
that in the Group's unaudited Financial Statements for the year
ended 31 January 2020, and those Financial Statements will be
delivered to the Registrar of Companies following the Company's
Annual General Meeting.
These consolidated financial statements have been prepared using
the historical cost convention, modified for certain items carried
at fair value, as stated in the accounting policies.
Statutory accounts
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 31 January 2020 or
2019. The financial information for 31 January 2019 is derived from
the statutory accounts for 2019 which have been delivered to the
Registrar of Companies. The auditor has reported on the 2019
accounts; their report was (i) unqualified, (ii) did not include a
reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report and (iii) did not
contain a statement under section 498 (2) or (3) of the Companies
Act 2006.
The statutory accounts for 2020 will be finalised on the basis
of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of
Companies and made available for viewing and download from the
Group's website at www.frenchconnection.com in due course. The
Annual Report will be circulated in printed form to shareholders in
the second week of April 2019.
NOTES
2 Operating segments
Segment revenue and results
Restated*
2020 2019
Income Statement GBPm GBPm
-------------------------------------------- -------- ----------
Revenue
Retail 46.7 58.4
Wholesale 73.2 76.9
Group revenue 119.9 135.3
Gross profit 45.9 57.2
Retail 51.0% 55.1%
Wholesale 30.2% 32.5%
Group gross margin 38.3% 42.3%
Underlying operating (loss)/profit
Retail (10.0) (10.3)
Wholesale 13.2 15.2
Licence income 5.5 5.8
Common and Group overheads (10.1) (9.9)
Finance expense (1.5) -
Underlying Group operating (loss)/profit** (2.9) 0.8
Underlying operating margin
Retail (21.4)% (17.6)%
Wholesale 18.0% 19.8%
Underlying Group operating margin (2.4)% 0.6%
Geographical information
Restated*
2020 2019
GBPm GBPm
--------------------------------------------- ------- ----------
Revenue
UK/Europe 64.7% 70.7%
North America 33.9% 27.2%
Rest of the World 1.4% 2.1%
Divisional operating (loss)/profit
UK/Europe (1.6) 2.1
North America 5.5 3.7
Rest of the World (0.8) (0.6)
Group overheads and finance income (6.0) (4.4)
Underlying Group operating (loss)/profit)** (2.9) 0.8
* comparative results have been restated reflecting the
re-presentation of continuing and discontinued operations
**excludes adjusting items (Note 6) and discontinued operations
(Note 3)#
NOTES
3 Discontinued operations
The Group closed its entire joint venture operation in Asia
during the current financial year. The closure of all of the eleven
retail stores in China was completed by October 2019 and similarly
the closure of all of the three retail stores in Hong Kong was
completed by August 2019. This division was not classified as
discontinued operations in the prior year and the comparative
statement of comprehensive income has been restated to highlight
the discontinued operations separately from continuing operations.
The closure of the Asian joint venture operation generated a total
loss in the current year of GBP(0.5)m (2019: GBP(0.7)m).
In the prior year, on 30 April 2018, French Connection Group PLC
together with the 25% interest minority shareholders, sold the
entire issued share capital of Toast (Mail Order) Limited to
Bestseller United A/S for gross proceeds of GBP23.3 million,
comprising consideration of GBP21.3 million and a pre-completion
dividend of GBP2.0 million. After the payment of management exit
awards and transaction costs, the Group received net proceeds of
GBP13.2m comprising cash of GBP11.7m and GBP1.5m dividend (75%
share) utilised to pay down intercompany debt.
At 30 April 2018, the Toast subsidiary comprised net assets of
GBP2.1 million, of which French Connection Group PLC directly owned
GBP1.5 million being 75% of the net assets. Further, French
Connection will support the transition of the Toast business into
new ownership by providing support office functions and other
transitional services for up to two years at no cost to the
Purchaser. GBP0.4 million has been provided in relation to these
future costs. Transactional costs of GBP1.1 million comprising
legal and other advisory fees have been expensed by French
Connection Group PLC as part of the profit on disposal. The
transaction has generated a total profit on sale of GBP9.7 million
in the prior year. Inclusive of operating loss of GBP(0.4)m, the
sale of the Toast subsidiary generated a total profit in the
comparative year of GBP9.3m.
Year Year
ended ended
31 Jan 31 Jan
2020 2019
Results of discontinued operations GBPm GBPm
-------------------------------------------- ------- -------
Revenue - 3.3
Expenses - (3.8)
Share of loss of joint ventures, net of tax (0.4) (0.7)
Currency translation differences 0.7 -
Results from operating activities before
tax 0.3 (1.2)
Taxation - 0.1
Results from operating activities, net of
tax 0.3 (1.1)
(Loss)/profit on disposal of discontinued
operations (0.8) 9.7
-------------------------------------------- ------- -------
Effect on (loss)/profit for the period (0.5) 8.6
-------------------------------------------- ------- -------
NOTES
4 Revenue and gross margin
Continuing Discontinued Consolidated
operations operations* operations
2020 2019 2020 2019 2020 2019
Sale of goods GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 119.9 135.3 - 3.3 119.9 138.6
Gross margin 45.9 57.2 - 2.4 45.9 59.6
The revenue from external customers is derived from the sale of
clothing and accessories.
* see discontinued operations (Note 3).
5 Other operating income
2020 2019
GBPm GBPm
------------------ ------ ------
Licensing income 5.5 5.8
6 (Loss)/profit before taxation
Year Year
ended ended
31 Jan 31 Jan
2020 2019
Reconciliation of loss before tax to underlying GBPm GBPm
operating (loss)/profit
-------------------------------------------------- ------- -------
Loss/(profit) before tax (7.8) -
Adjusting items:
Provisions for bad debts and bad debt write-offs 1.0 2.8
Fixed asset impairments 0.4 -
Right of use asset impairment 1.0 -
Onerous lease provision - 5.2
Store disposal and dilapidation costs 1.6 1.4
Other professional fees 0.4 -
4.4 9.4
-------------------------------------------------- ------- -------
Discontinued operations (Note 3) 0.5 (8.6)
Underlying operating (loss)/profit (2.9) 0.8
-------------------------------------------------- ------- -------
Provisions for bad debts, net of VAT recoverable, of GBP1.0m
have been expensed in the period relating to unpaid contractual
debt due from wholesale export customers. Prior year charge of
GBP2.8m related to unpaid debt from our Indian licensing partner
and a UK concession partner in administration.
Right of use asset impairment of GBP1.0m (2019: onerous lease
provision of GBP5.2m) has been expensed relating to UK stores
whereby the future contractual obligation costs exceed the economic
benefits forecast to be received. Current year charge of GBP0.9m
(2019: GBP0.7m) has been expensed in the period relating to store
closure costs. Provisions for store disposal and dilapidation costs
of GBP0.7m (2019: GBP0.7m) have been recognised in the period.
Other professional fees in the current year of GBP0.4m (2019:
GBPNil) relate to fees incurred in relation to the conclusion of
the strategic review.
NOTES
7 Dividends - equity
The Board is proposing that no dividend should be paid for the
year (2019: GBPNil). Dividends of GBPNil were paid during the year
to the minority shareholders of a subsidiary undertaking of the
Group (2019: GBP0.5m).
8 (Losses)/earnings per share
Basic and diluted (losses)/earnings per share are calculated on
96,612,634 (2019: 96,404,508) shares being the weighted average
number of ordinary shares during the year.
Basic and diluted losses per share of (8.2) pence per share
(2019: earnings of 0.1 pence) is based on losses of GBP(7.9)m
(2019: profit of GBP0.1m) attributable to equity shareholders.
On continuing operations the basic losses per share of (7.7)
pence per share (2019: (8.9) pence) is based on losses of GBP(7.4)m
(2019: GBP(8.6)m) relating to continuing operations.
On discontinued operations the basic losses per share of (0.5)
pence per share (2019: earnings of 9.0 pence) is based on losses of
GBP(0.5)m (2019: profits of GBP8.7m) relating to discontinued
operations.
The reconciliation from basic and diluted (losses)/earnings per
share to adjusted losses per share is as follows:
2020 2019
2020 pence 2019 pence
GBPm per share GBPm* per share*
------------------------------------- -------- ----------- -------- ------------
(Loss)/profit attributable
to equity shareholders (7.9) (8.2)p 0.1 0.1p
Adjusting items (Note 6) 4.4 4.6p 9.4 9.7p
Discontinued operations (Note
3) 0.5 0.5p (8.6) (8.9)p
Adjusted (loss)/profit attributable
to equity shareholders (3.0) (3.1)p 0.9 0.9p
The adjusted losses per share relates to the underlying
operations and in the opinion of the Directors, gives a better
measure of the Group's underlying performance than the basic losses
per share.
* The comparative has been restated reflecting the
re-presentation of discontinued operations in the prior year Income
Statement.
9 Cash and cash equivalents
2020 2019
GBPm GBPm
------------------------------------------ ------ ------
Cash and cash equivalents in the balance
sheet and cash flow 8.1 16.2
NOTES
10 Impact of application of IFRS 16
i) Transition
At the date of transition, 1 February 2019, the Group has
adopted the 'modified retrospective' approach and has accordingly
reviewed significant individual leases on a lease-by-lease basis.
For these respective leases, the Group has recalculated the
'right-of-use' assets from lease commencement date as if IFRS 16
'fully retrospective' method had been adopted. For all other leases
previously classified as operating leases, a corresponding
'right-of-use' asset has been matched at an amount equal to the
lease liability for the remaining lease payments discounted using
the incremental borrowing rate as at the transition date.
The Group has a portfolio of leased properties, including stores
and warehouses, in addition to leased vehicles. At 31 January 2019,
the Group lease commitment with regards to future lease commitments
under non-cancellable operating leases, as reported in the Annual
Report for the year ended 31 January 2019, (Note 26 to the Group
Accounts 'Commitments') was GBP45.2m.
Furthermore, onerous lease provisions of GBP5.2m* and net
working capital assets/liabilities of GBP0.8m** as at 31 January
2019 have been reclassified on the Balance Sheet within
right-of-use assets and equity reserves on transition at 1 February
2019.
The impact to the financial statements upon the adoption of IFRS
16, with regards to the above lease portfolio, is as follows:
a) Right-of-use asset
The Group has recognised a 'right-of-use' asset of GBP24.2m,
(net of reclassification of onerous lease provisions and working
capital adjustments (rent payments in advance or arrears at
transition date)).
The Group has elected not to recognise right-of-use assets and
lease liabilities for short term leases and leases of low-value
assets. Payments associated with those assets will be recognised as
an expense on a straight-line basis. Turnover rents are outside the
scope of IFRS 16 and therefore continue to be expensed as
incurred.
Group
Right-of-use asset GBPm
-------------------------------------------------------------- -------
Right-of-use asset (asset = liability) 15.4
Right-of-use asset recalculated, on lease-by-lease
basis 13.1
Right-of-use asset recalculated on a 'modified retrospective'
approach 28.5
Onerous lease provision* (5.2)
Working capital adjustments** 0.9
Right-of-use asset at 1 February 2019 24.2
-------------------------------------------------------------- -------
* reclassification from current and non-current liabilities on
the balance sheet as at 31 January 2019
** reclassification from current assets and current liabilities
on the balance sheet as at 31 January 2019
NOTES
10 Impact of application of IFRS 16 (continued)
b) Lease liabilities
The Group has recognised a total lease liability of GBP38.5m,
being the discounted present value of the lease commitment as at 31
January 2019.
The Group has used a portfolio approach to determine a single
discount rate for the portfolio of leases within each separate
geographical operating segment reported. The Group believes that
this approach would not differ materially from calculating discount
rates for each individual lease. The discount rates have been
determined using local borrowing rates in each geographic
territory. The discount rate applied for each geographical segment
ranges from 4% to 6%.
Group
Lease liabilities GBPm
---------------------------------------------------- ------
Total lease commitments as at 31 January 2019
(per Note 26 to the 2019 Annual Report) 45.2
Short term leases and low value assets excluded and
other timing adjustments (2.1)
Lease commitment (undiscounted) 43.1
Interest (4.6)
Lease liabilities discounted at 1 February 2019 38.5
---------------------------------------------------- ------
c) Reserves
Reserves adjustment GBPm
--------------------------------------------------- -----
Right-of-use asset recalculated, on lease-by-lease
basis 10.0
Working capital adjustments** (1.7)
Adjustment to retained earnings at 1 February
2019 8.3
--------------------------------------------------- -----
** reclassification from current assets and current liabilities
on the balance sheet as at 31 January 2019
Ii) Current accounting period
The impact of the adoption of IFRS 16 is as follows:
Consolidated Statement of Comprehensive Income
-- Operating expenses include depreciation of the right-of-use
asset, replacing the lease expense that was previously charged to
the Income Statement
-- Finance expense includes the interest charge on the outstanding lease liabilities
-- Earnings/(losses) per share is adversely impacted in the
earlier years of adoption due to the combination of depreciation
and interest expensed to the Income Statement being higher than the
previous charge due to the front-loading of the respective interest
charge.
NOTES
10 Impact of application of IFRS 16 (continued)
Adjusted
Underlying IFRS 16 underlying
result impact result
Reconciliation of underlying result 2020 2020 2020
before tax to underlying result GBPm GBPm GBPm
pre-IFRS 16
-------------------------------------- ------------ --------- -----------
Revenue 119.9 - 119.9
Gross profit 45.9 (1.4) 44.5
Operating expenses (52.8) (1.7) (54.5)
Other operating income 5.5 - 5.5
Finance expense (1.5) 1.5 -
Underlying operating loss (2.9) (1.6) (4.5)
-------------------------------------- ------------ --------- -----------
Consolidated Statement of Financial Position
-- Non-current assets include a 'right-of-use' asset,
representing the value of the lease liabilities at IFRS 16
inception, adjusted for any rent-free or lease inducements. In
addition, in accordance with the 'modified retrospective' approach
applied, on a 'lease by lease' basis, significant individual lease
'right-of-use' assets have been recalculated as if IFRS 16 'fully
retrospective' method had been adopted. The 'right-of-use' asset is
net of the onerous lease provision brought forward at the previous
financial year-end that was previously disclosed within current and
non-current liabilities.
-- Current and non-current liabilities include 'Lease
liabilities' representing the net present value of future lease
payments due within one year and after more than one year
respectively.
-- Provisions within current and non-current liabilities
included 'onerous lease' provision for the comparative financial
year-ended 31 January 2019. The onerous lease provision is now
netted off against the 'right-of-use' asset reported within
non-current assets.
Consolidated Statement of Cash Flows
The adoption of IFRS 16 has no impact on actual cash flows.
However, the presentation of the Cash Flow Statement is changed as
follows:
i) Operating activities
-- Add-back adjustment for 'right-of-use' asset depreciation
representing straight-line amortisation of the 'right-of-use'
asset
-- Finance expense add-back adjustment includes the interest
charged on the outstanding lease liability. The interest expense
will be front-loaded and higher in the earlier years decreasing
over the life of the lease.
ii) Financing activities
-- Payment of lease liabilities reported representing the
'capital' element of the cash lease payments within the reporting
period
-- Interest paid relates to 'financing' element of the actual
cash lease payments during the period
NOTES
11 Retail locations
31 January 2020 31 January 2019
Locations sq ft Locations sq ft
----------------------------------------- ---------- -------- ---------- --------
Operated locations
UK/Europe
French Connection Stores 31 79,768 43 120,469
French Connection/Great
Plains Concessions 45 40,418 47 43,214
YMC Stores 3 1,805 3 1,805
79 121,991 93 165,488
North America
French Connection
US Stores 2 9,102 2 9,102
French Connection
Canada Stores - - 1 2,350
2 9,102 3 11,452
Total operated locations 81 131,093 96 176,940
French Connection licensed and
franchised
UK/Europe 2 2,553 4 4,142
North America 1 2,346 1 2,346
Middle East 7 11,678 10 15,686
Australia 148 75,013 140 72,553
Hong Kong - - 3 3,378
China - - 11 16,614
India - - 7 3,710
Other 15 11,446 19 14,242
Total licensed and franchised
locations 173 103,036 195 132,671
Total branded locations 254 234,129 291 309,611
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
FR MZGGFLLMGGZM
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March 10, 2020 03:00 ET (07:00 GMT)
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