Frasers Group half year profits rise
Sports Direct owner Frasers Group has seen its half year pre-tax profit rise by 17.6% to £106.1 million.
The uplift was largely driven by strong trading in its stores after lockdown, growth in online sales, new Flannels stores and continued operating efficiencies.
However, group revenue declined by 7.4% to £1.9 billion in the six months ending 25 October as revenue at the group’s UK sports retail division decreased by 9.8% after the business was hit by temporary store closures due to Covid-19.
In contrast, revenue in the group’s premium lifestyle division, which includes Flannels and House of Fraser, climbed by 4.8%.
In a statement, Frasers said the successful reopening of its stores in England on 2 December combined with a continuing strong online performance has led it to raise the bottom end of its full year guidance. The group now expects to achieve a 20% to 30% improvement in full year underlying EBITDA.
Frasers Group chairman David Daly said: “Fortunately the Frasers Group is a strong business built on solid foundations. We can weather most of the storms faced this calendar year, however much of the UK high street, which was already suffering before Covid-19, won’t survive unless the Government addresses the out-of-date business rates regime which is due to return come April 2021.”
