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TWST: Let’s start with a quick introduction and then just bring us up to speed with recent developments at French Connection (London: FCCN.L)?

Mr. Williams: French Connection was founded over 30 years ago by an entrepreneur called Stephen Marks who remains our Chairman and Chief Executive. Over the last 10 years we have developed a robust wholesale and retail fashion concept. We have two major brands within the group; French Connection and Nicole Farhi. The majority of the group is French Connection though, and turnover is split roughly 50% in retail and 50% in wholesale. Our retail business is based predominantly in the UK where we have over 70 locations and we also have 24 stores in America and three stand-alone stores in Canada. On the wholesale side, again it is predominantly in the UK and Europe with an element in the Far East, but we do also have a significant business in the US.

TWST: Is there a specific regional strategy to the 24 stores in the US?

Mr. Williams: We have two main clusters of stores in the New York/New Jersey/Boston area and then there is another cluster in Los Angeles/San Francisco/Las Vegas. On top of that we have a number of other stores dotted around the country. What we are looking to do going forward is to fill in some of those clusters, so, for example, we have recently opened a second store in Washington in Pentagon City Mall on the outskirts of the city. Over the next few years we will be looking to build clusters of stores around places like Washington and Chicago. In Chicago we only have one store at the moment, but we would like to have a couple of stores there over the next couple of years. So, as we develop our retail portfolio within America, we will be trying to build on these clusters because it is easier to manage and it is more economical to advertise and increase public awareness of the brand by targeting certain areas, rather than going for the coast-to-coast approach.

TWST: What is the game plan for the next 12 to 24 months?

Mr. Williams: We have a consistent business that works extremely well, so what we want to do is continue development of that successful formula. The key areas in the UK are that we aim to continue to grow our retail trading space at an average of 15% a year and on the wholesale side we are looking to grow our business with existing customers, especially the department stores, and expand our franchise network. The US is a big opportunity for us. When we bought out our joint venture partner two years ago, we had 24 stores and we said at that time we wanted to double the number of stores over a three to five year period. Now, the difficulties in US retailing has meant that in the last two years we have opened a couple of stores and closed a couple of stores but not seen any real growth in the portfolio. However, the recent improvement in our retail trading has given us the confidence to return to expansion and we have just opened one new store in Washington. Subject to the business continuing to grow as it has been and the properties being available at sensible prices, the wheels are back on the expansion track and, again, we would like to double the number of stores in five years. Another big opportunity for us is the US wholesale business. It's been difficult with the department stores in America being very cautious in their buying. We haven't lost any customers; they have just bought considerably less than they were buying. But we have had very good sales in the department stores for last winter and currently we are having very good sales, especially in places like Bloomingdale’s on 59th Street. On the ladieswear, it has been very strong. So we are hoping to see a return to growth in the US wholesale in the second half of the new financial year and a continuation over the next couple of years. Although it won't bounce straight back up again, we see that as a big opportunity to grow the business. Another area we are looking to expand over the next few years is licensing. The licensing income has grown considerably over the last couple of years and that is predominantly through UK-based licensing agreements. What we are looking to do is to take the existing licensed products around the world. Obviously America is a considerable market and we are looking to do it there and to that end we agreed a license with Zirh Skin Nutrition, a subsidiary of Shiseido, and they will be launching a range of FCUK fragrance products in North America and mainland Europe in September this year. This will provide a double benefit for us; obviously, it is important in that we will generate income from it but also they have a big commitment to marketing and advertising our brand at a time when it will really help our business in America.