FCCN.L Regulatory News (FCCN)

16 May 2007 07:04

French Connection Group PLC16 May 2007 FRENCH CONNECTION GROUP PLC Interim Management Statement 16 May 2007 French Connection Group plc is today publishing its first Interim ManagementStatement as required by the revised Listing Authority disclosure rules. TheBoard continues to believe that, as reported on 14 March 2007, there is goodevidence to indicate that we are at the start of a new phase in our businesscycle. In the thirteen weeks since the beginning of the financial year, sales for theUK/Europe retail division have grown by 5% in total and 3% on a like-for-likebasis with the French Connection ranges continuing to perform well anddelivering sales slightly above plan. The much smaller Toast business howeverhas been very disappointing with a consequent impact on the reported salesgrowth. The achieved margin for the same period is a little ahead of last yearas a result of the increase in full-price sales. In our wholesale business in UK/Europe, improving rates of sale in ourcustomers' stores has resulted in improved in-season orders for our Spring/Summer 2007 ranges although, as expected, the in-season orders have not made upfor the shortfall in forward orders for the season. The forward orders for theAutumn/Winter 2007 season are mostly complete and are 2% below the level offorward orders achieved last year, after allowing for the 4% of business whichhas been affected by the transfer of some franchises and department storecustomers into the retail division. The retail business in North America has also seen improvement. Turnover hasincreased by 6% in total and 7% on a like-for-like basis in the thirteen weekperiod, partially supported by sales discounts. In our North America wholesalebusiness orders for Autumn/Winter 2007 are well ahead of this time last yearwhile Spring/Summer 2007 orders are lower than last year mainly due to theone-off contract previously reported which has not been repeated. Other divisions in the business are trading in-line with expectations. Our balance sheet remains strong with £33.5 million of net cash at the end ofApril 2007 (2006: £36.6 million). There have been no other significant changesin the position of the company over the period since the publication of thereport and accounts for the year ended 31 January 2007. Overall, we are pleased with the performance of the French Connection ranges inour retail business and we believe that in an extremely competitive market it isthe strength of the design of our ranges which is driving the improvement in ourbusiness. Enquiries: Neil Williams/Roy Naismith French Connection +44(0)20 7036 7063Tom Buchanan/Lucie Anne Brailsford Brunswick +44(0)20 7404 5959 This information is provided by RNS The company news service from the London Stock Exchange