French Connection Investors - FCCN

French Connection Investors - FCCN

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Stock Name Stock Symbol Market Stock Type
French Connection Group Plc FCCN London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.025 0.13% 19.00 16:35:18
Open Price Low Price High Price Close Price Previous Close
19.85 19.85 19.85 19.00 18.975
more quote information »
Industry Sector

Top Investor Posts

matthewbrandon105: Brokers are dropping the price, which in turn, is forcing the individual investors to sell so that they can fill up the large orders for the big dogs
matthewbrandon105: Just sit tight and wait, I don't understand why people are panic selling. There are two companies looking to purchase French Connection and a few private investors buying up thousands of shares. It takes time to mull over offers and bids. Wait!
daagolme2020: This link has the 2020 AGM s being on 20/05/2020 hxxps:// The French Connection Website still displays the AGM as TBC hxxps:// Does anyone know if the date has been confirmed?
davydoo: lack of scrutiny on another retailing related investor
davydoo: Suspect the share price is going nowhere until they’ve managed to sell their remaining 5% Or at least 2% more to get them off the publicity they may fear as being an investor in another retail business that may fail
lomcovaks: Joules, Paul covered the HoF situation in his daily small cap report of the 14th August. hxxps:// I know he occasionally reads these boards so I do hope that he won't mind my copy and pasting the relevant section here for the interest of members who may not subscribe to the Stockopedia article. It's free and a wonderful resource for investors:- French Connection (LON:FCCN) Share price: 48.1p (+0.4%) No. of shares: 96 million Market cap: £46 million A brief comment from me on the situation re French Connection (LON:FCCN) and its exposure to House of Fraser. This has been a known issue for some time, for people who understand the business. FCCN has concessions (a store within a store) in department stores, including House of Fraser. These are typically small operations, with minimal staff and little stock. The way concessions work is that all sales are "banked" through House of Fraser's EPoS system. HoF then sits on the money for, I am told, about 2.5 months. As HoF has been on the brink of going bust for some time, it was worth working out the potential liability to FCCN. Thankfully, a retail FD friend of mine worked out the figures some time ago. He reckoned there was a potential bad debt to FCCN of about £2m (probably less), if/when HoF went bust. Since HoF went into Administration, then that crystallises the loss for FCCN and other concessions. Mike Ashley would not be paying those debts as part of his acquisition, as pre-Administration trade payables are unsecured creditors, hence usually are paid nothing in this type of insolvency. How is the £2m estimated bad debt for FCCN worked out? Estimated 40 concession sites within HoF stores. Estimated annual turnover per concession of £200k Giving £8m estimated annual revenues for FCCN from its HoF concessions. Assume the bad debt is perhaps 3 months takings, arriving at an estimate of £2m bad debt for FCCN. That's not material, since FCCN has a market cap about £46m, and has substantial net cash - so it can afford to write off a £2m bad debt without any consequences. FCCN will also have to write-off fixtures & fittings related to its HoF concessions, or at least the ones that are to be closed. This again will not be material, and is non-cash, so not a problem. The inventories within HoF stores remain FCCN's property, and if necessary can be moved to other FCCN sites, so there should not be any write-offs relating to inventories. Going forwards, this might prove a nice opportunity for FCCN to accelerate the reduction of its heavily loss-making retail division. So I feel that, once the dust has settled, the market might actually see this as a positive. To reiterate, the sooner the FCCN retail stores are closed, the better, as they lose money hand over fist! The value in the business is the profitable wholesale & brand licensing divisions. It amazes me that this is so obvious, yet "the market" seems oblivious to it. There was a takeover approach last year, which must have been serious, since the board apparently spent several months assessing it & allowed the potential acquirer to do due diligence. It's only a matter of time before the business is sold, because the founder/chairman is into his 70's now, and must be looking for an eventual exit (otherwise he wouldn't have engaged with the potential acquirer last year). I've worked out that FCCN has several stores which are literally black holes for cash, in terms of losses. The leases on these should soon expire. That means that profitability should make a step change upwards. That's what's interesting about this cash-rich company. The brand is still very valuable, and I'm hoping for an eventual payout here of 100-200p, on a trade sale. This special situation is certainly one for patient investors only! I'll be insufferable when the payday does finally come, lol! The recent share price softness, presumably on worries over HoF, looks overdone to me, so if it goes much lower, I'll be topping up. But it's already one of my biggest long positions, so maybe it's not wise to tie up too much cash in this one? I imagine there is likely to be an RNS from FCCN very soon, detailing the cash losses due to HoF insolvency. It should also give us some detail on the non-cash write-offs (e.g. F&F), plus an update on what's happening going forwards. I imagine this is likely to say that some HoF concessions will continue, but some will be closed. They'll obviously only keep the profitable ones, and this is a nice opportunity for FCCN to re-negotiate terms with Mike Ashley, on a take it or leave it basis (giving him a taste of his own medicine!). Therefore FCCN should emerge with a more profitable concessions operation after this process has been completed. Hence I'm rather looking at this as glass half full, rather than glass half empty.
kenmitch: Take broker buy/sell or whatever advice with a pinch of salt. They are wrong more often than right. Anyway investors can’t ADD without buying, so it is meaningless. Ditto upgrades from sell to reduce. Paul Scott comment is far more useful than broker advice.
jaykaytee: Maybe its to do with that institional investor who want changes on the BOD..? Just guessing...
tmfmayn: Some words of advice for those attending the agm. I have attended two FCCN agms and the board plays the same trick each time... when the formal part of the meeting is finished, the board stand up and don't offer questions from the floor. The ops director and finance director then head towards the private investors, while Marks makes quickly his escape. If you wish to speak to Marks, then bear that in mind. I wonder if anyone from Gatemore will appear, as they have complained about not being able to speak to Marks. He ought to be there tomorrow.
srpactive: French Connection break-up spat: Investors lose patience with struggling fashion brand By City & Finance Reporter for the Daily Mail Published: 22:29, 14 March 2017 | Updated: 22:29, 14 March 2017 e-mail View comments Gatemore Capital has called for French Connection to be split up Gatemore Capital has called for French Connection to be split up A row over the future of French Connection has intensified with investors calling for the fashion brand to be broken up. Gatemore Capital – which owns an 8 per cent stake – had been pushing for a shake-up which would include French Connection boss Stephen Marks relinquishing his joint role of chief executive and chairman. But after it posted a fifth consecutive year of losses, Gatemore lost patience and called for it to be split up completely. RELATED ARTICLES Previous 1 Next Food price rises are the new normal warns Ocado as grocers... UK's economic growth 'will remain well below par' as... Share this article Share Liad Meidar, chief investment officer at Gatemore, accused the board of making a 'mockery' of modern corporate governance after Marks refused to split his roles. But Marks said the firm was moving in the 'right direction'. Overall revenue fell 6.7 per cent to £153.2million, but like-for-like sales jumped 4.4 per cent.
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