French Connection Group on Tuesday reported a bigger full-year loss, citing disappointing sales of its spring and summer collections in a fiercely competitive British fashion market. The company said it would not recommend a dividend as it plans instead to preserve cash for its long-running turnaround programme.

French Connection’s shares fell as much as 11 per cent to their lowest in more than two months.

Known in the 1990s for its FCUK logo, French Connection has closed dozens of stores since embarking on a major programme to restore its ebbing popularity on the high street. Chairman Stephen Marks said in a statement that the company’s full-year performance had been disappointing due to “the very poor first half” but that sales had improved during the second half and into the new financial year.

French Connection said its underlying operating loss widened to £4.7 million for the year ended Jan. 31 from 0.8 million pounds a year earlier. Revenue fell 8 per cent to £164.2 million. Retail revenue from stores around the world, which accounted for more than half of total sales, fell 10.6 per cent. The company, which closed 13 stores in the last financial year, also said it had appointed Lee Williams as finance director, effective April 4th.

Reuters