French Connection forecasts FY pre-tax profit raises £1.4

16 Aug '05

3 min read

London based fashion company French Connection Group announced transition to international financial reporting standards.

Overview
- A paper summarising the impact of change to International Financial Reporting Standards is published today.
- The financial statements for the year-ended 31 January 2005 prepared under UK GAAP reported a profit before tax and amortisation of goodwill amounting to £33.0m. Under IFRS it is expected that the restated profit before tax for the same year will amount to £33.7m, an increase of £0.7m.
- Profit on ordinary activities before taxation is expected to increase by £1.4m to £33.7m.
- On the same basis adjusted earnings per share will increase from 24.0p to 24.3p.
- Net assets at 31 January 2005 are expected to increase by £1.5m to £120.3m.
- There is no impact on the underlying business.

French Connection Group PLC will adopt International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) for all future reporting of financial performance. The new standards differ from the previous accounting and reporting policies (“UK GAAP”) adopted by the Group and this statement explains the impact of the changes on the financial reports of the Group.

The changes represent accounting and reporting changes only and do not affect the strategy or operations of the business.

The change applies to all financial reporting for accounting periods beginning on or after 1 January 2005 and consequently the Group's interim report for the six-month period ended 31 July 2005 and the full year results for the period ending 31 January 2006 will both be presented under IFRS. The comparative data within those reports will be restated in accordance with IFRS.

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