French Connection parent company records improved profitability in 2024

MIP Holdings Ltd, the company formed for the acquisition of French Connection Group, has released its financial statements for the year ended June 30, 2024. For the year under review, the company reported a profit before taxation of 1.6 million pounds, a notable increase from 0.3 million pounds in the previous year. The Group's adjusted profit before taxation also rose to 5.1 million pounds from 3.4 million pounds in 2023.

The company said in a filing that the result was achieved despite a decrease in turnover to 108 million pounds, primarily driven by sales to UK/Europe and North America wholesale customers. Gross profit, however, saw an increase to 38.2 million pounds, with a margin of 35.4 percent. Other operating income, largely from royalty income on licensed products, also grew to 7.4 million pounds.

A key development highlighted in the report is the successful refinancing of existing external loans on June 27, 2025. The previous working capital facility of 21.2 million pounds with Gordon Brothers International LLC and Aurelius Finance Company Limited was fully settled and replaced by a new facility with HSBC UK Bank plc. This new arrangement comprises a 10 million pounds term loan, a 7.5 million pounds trade facility, and a 7.5 million pounds invoice discounting facility, with 19 million pounds in funding received from HSBC. This refinancing is secured over the Group's assets in the UK, US, and Canada.

The Directors anticipate a continued competitive business environment but express confidence in the Group's financial position and its ability to manage identified risks. They believe the Group is well-positioned to maintain and build on its current standing, with a focus on long-term sustainability and profitability.