Loss narrows after French Connection gathers pace

0 Firm has been helped by higher licensing revenues and a ‘reduced loss’ in its core retail division French Connection says it has made “significant steps” in returning to profit after strong wholesale operations helped half-year losses shrink by nearly 30 per cent.

The company yesterday reported pre-tax losses of £5.7 million for the six months to 31 July, compared with a loss of £7.9m a year earlier thanks to higher licensing revenues, a “reduced loss” in its retail division and better performance from its wholesale business.

The retailer said those improvements were achieved during a “traditionally low point in the year” for profitability and despite challenging conditions in the UK, Europe and the US.

“We have definitely seen momentum build in the first half of the new financial year with improvements across all the divisions despite difficult trading conditions,” chairman and chief executive Stephen Marks said.

Revenue across the group dipped 1.6 per cent to £68.1m, and fell even further when stripped of currency effects.