French Connection Share Discussion Threads

[simso] 12/8/2019 11:44

Good post paduardo.

FCCN achieved "Break Even" last year, but that included a £10.2m Loss from Retail. The Wholesale part made £15.2m and is growing strongly, while Licencing income was £5.8m. Central Costs £10.2m, and a JV made -£0.6m...so all in all Break-Even.

The key is to reduce and eventually lose that Retail Loss of £10.2m ...as a profitable business lies underneath! Using their own Store Locator, hxxps://www.frenchconnection.com/store-locator.htm I try and keep tabs on closure progress.

At the last year end, I think they had 31 Full Price High Street Stores, 6 Home Stores, 11 Factory Outlets, 3 YMC's, 47 Concessions (nearly all House of Fraser) and the Internet. I am certain that almost all the Retail Loss is in those 31 High Street Stores. The House of Fraser's are small Concessions with 6 month notice periods, the Internet has no large fixed costs, the Outlets' leases are more flexible and with high Retailer demand, so FCCN could probably get out if they wanted to. To eradicate the £10.2m Retail Loss, we are largely at the mercy of the Lease Expiry profile of those 31 FP sites. At the last Prelims in March, they confirmed the average Lease Length is 2.3 years. Since Year End, I can see from Store Locator that closures have occurred in Oxford Street, Cambridge, Canterbury, Oxford...plus the two Canadian Stores in Montreal and Newmarket.

For a current Market Cap of £35m...the net Current Assets alone are £41m, and that includes £17m of Cash. I hope for £2m-£3m PBT this year, as the benefit of those closures come through, and also the Full Year Equivalent benefit of the stores which closed last year. I sit happily in this, buying more on extreme weakness, recognising that value will out...either through the steady progress of closing loss makers, or more quickly if a bid is agreed.

[multiplural] 08/8/2019 21:04

Add to that that Mike Ashley paid app 43p for most of his holding, and probably would like to buy rest if possible.

[kinwah] 28/7/2019 13:12

It was never going to be a quick deal for various reasons. I definitely think Marks is ready to sell but the retail background is awful. Mike Ashley speaks for all other shareholders when he says the process is taking too long.It will be done by the end of the year - just hope the price is a premium to the current share price.

[18bt] 28/6/2019 12:50

But it is taking the most ridiculous amount of time - is it Marks holding out for an unrealistic deal?

[irishlass2] 28/6/2019 07:46

RNS out. It means that at least something is happening and talks haven't collapsed.

[niggle] 25/6/2019 11:54

Something has happened and as usual, shareholders are left in the dark.

[tiswas] 21/6/2019 09:18

So, an 8 month sales process - so far. How can the DD process take so long for a company of this size and where is the obligation to report the state of play? Surely offers are on the table by now or bidders have walked?

[tiswas] 07/6/2019 14:09

Something leaked?

[jay083] 06/6/2019 13:09

gets a mention on ft alphaville

[gdjs100] 06/6/2019 10:16

Yes - looks like this is the last one, although the FDL offer has lapsed.

[kinwah] 06/6/2019 09:59

Am I right in thinking that this is the last of the Mike Ashley investments still waiting for him to do something? DEB bust, GOAL suspended and mandatory bids for FDL and GAME. Even the Magpies are close to being sold. I therefore expect something to happen next week or I'll be suggesting he's taking things easy.

[irishlass2] 22/5/2019 12:51

Looks like the AGM has attracted a few buyers.

[kinwah] 21/5/2019 21:53

Anyone going to the AGM tomorrow?

[tiswas] 25/4/2019 17:48

How long can this take? You assume all interested parties went to DD some time ago and then its just down to price. But after 6 months you would think both parties know by now whether they want to sell/buy?

Otherwise just put us out of our misery!

[irishlass2] 18/4/2019 09:10

On the uptrend and looking good for a takeover.

[shabbadabbadoo2] 13/3/2019 00:12

Move all the retail into another company ready to cva it if required.

[zoolook] 12/3/2019 08:26

Good to see a return to a small profit.

Regarding the strategic review the statement also says that alongside a potential sale they are considering all types of corporate and brand transactions. Presumably this is some sort of break up of the business. Anyone care to speculate how this might pan out if an outright sale isn’t achieved?

[yupawiese2010] 10/2/2019 13:57

Paul Scott talks with with Graham Neary in the latest podcast, discussion in respect of FCCN starts at 36 min in.

[tiswas] 04/2/2019 10:56

Has there been a worse time in the last 20 years to sell a business like this?

Ok, it has a brand name which may or may not be worth something but is Marks really going to sell at this level? Does anyone really want it?

I was originally hoping for circa 75p but I am beginning to think that potential suitors might see it as more trouble than it is worth.

[jonbirdy] 20/1/2019 21:45

If they come to nothing or something then they will announce it, at some point.

The for sale sign is up, so there’ll be an outcome one way or other.

In March 2018 they noted in their annual results that they had received an unsolicited approach from a US buyer in 2017. (FCCN incurred costs so had to say why).

This time it’s different as they announced to the market that they had potential buyers. Dunno what takeover panel rules say about FCCN’s duty to disclose if an interested party walks away.

[williamgtheobald] 14/1/2019 13:47

Guessing the lack of news, the four potential buyers have now fizzled out?