Fashion chain French Connection has said that its recovery plan is “on track” after announcing a third half-year of improved financial performance in a row, with gains made in both its retail and wholesale divisions.

In the six-month period to July 31st, the company reported a reduced pre-tax loss of £3.9 million (Compared to a loss £6.1 million in 2013) in line with expectations. Commenting on the results, Stephen Marks, chairman and chief executive said: "I'm pleased to report a further positive step forward as we rebuild value in our business. The initiatives we put in place to drive a turnaround in our trading continue to deliver an improvement in performance. Whilst costs will continue to be managed tightly, we are cautiously investing in growth opportunities, trialling new store formats and developing our international business.

"It's particularly encouraging to see the positive momentum continuing to be reflected in the wholesale forward order book where Winter 14 is up on last year and initial Spring 15 orders are strong.

"Given the very competitive market place and tougher like-for-like comparatives in the period, we remain cautious about the second half where, as ever, we are dependent on the very important Christmas trading period. We expect the results for the full year to be in line with market expectations, setting the Group up for further progress as our initiatives continue to gain traction."