French Connection Group (LSE:FCCN) PLC posted much-reduced losses in the last interim results for outgoing chairman and chief executive, the retailer’s founder Stephen Marks.
In the six-month period ending 31 July, revenue dropped 21% to £40mln compared to 2019, after reducing its store portfolio and temporarily closing shops due to COVID-19 restrictions.
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The weak performance was partly offset by strong trading in the wholesale and e-commerce arms.
Underlying loss came in at £900,000 from £3.6mln in 2019 as costs were much lower following the permanent closure of stores. In fact, overheads were down to £15mln from £27mln two years ago thanks to restructuring and a focus on cost-savings, as well as government help during the pandemic.
"I am pleased that the improvement in business we saw in the early part of the period has continued throughout the first half of the financial year. Wholesale in both the UK and the US has performed well, with a good outcome to the Summer season,” said Marks.
“Over the last five years, French Connection has made significant progress in its plans to rationalise the size of its store portfolio and to return the group to profitability. The board has concluded that the offer being made by MIP Holdings Ltd is fair and reasonable and recommends that all shareholders accept. Following completion of the transaction, I will retire from French Connection. This is an appropriate time for me to step back from the business that I founded in 1972”.
Shares were flat at 29.03p on Tuesday morning.