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Mike Ashley's Frasers Group delivers bumper profit surge

Daily Mail logo Daily Mail 21/07/2022 Jane Denton For Thisismoney

Sport's Direct's parent firm Frasers Group expects its profits to come in higher next year after seeing its 2022 earnings beat forecasts.

For the next financial year, the retail group expects its adjusted pre-tax profit to come in at between £450million to £500million. 

This compares to Frasers' adjusted annual pre-tax profit for the year ending 24 April of £344.8million, against a loss of £39.9million in the previous year.  

Upbeat: Sport's Direct's parent firm Frasers Group has revealed it expects its profits to come in higher next year © Provided by This Is Money Upbeat: Sport's Direct's parent firm Frasers Group has revealed it expects its profits to come in higher next year

Frasers' shares rose sharply today and were up 23.3 per cent to 925p in early morning trading, having risen over 50 per cent in the last year. 

On House of Fraser, the group said: 'It should be noted that despite year on year trading improvements in the House of Fraser business, business rates in their current form continue to be a significant and disproportionate cost to House of Fraser.'

The retail giant also warned that challenges with supply chains and the increased cost of living 'could have an impact on business potential'.

Frasers made fresh calls for the Government to overhaul 'a fundamentally flawed business rates system'.

It came as the group revealed that revenues swelled by 30.9 per cent to £4.75billion for the year, as it was boosted by the reopening of stores following pandemic restrictions.

Boss Michael Murray said: 'We are alive to the challenging economic conditions at present, with inflationary pressures and supply-chain disruption causing challenges for many businesses operating in the retail sector.'

Murray, who is the husband of Mike Ashley's daughter, took over the helm from the founder in May when Ashley stepped back into an executive director role.


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The group said no final dividend will be payable in relation to the latest fiscal year.

New boss: Michael Murray took over the helm at Frasers from Mike Ashley in May © Provided by This Is Money New boss: Michael Murray took over the helm at Frasers from Mike Ashley in May

It added: 'Our share buyback programme has continued which is a demonstration of our commitment to shareholder returns, our confidence in the Company and the strategy for future growth.'

Murray said: 'I am really proud of the record performance we’ve announced today.

'It’s clear that our elevation strategy is working and we are building incredible momentum with new store openings, digital capabilities and deeper brand partnerships across all of our divisions.

'We’ve got the right strategy, team and determination to keep driving our business from strength to strength.'

Last month, Frasers snapped up a 28.7 per cent holding in MySale, sending shares in the Australian-based fashion marketplace up 20 per cent.

London-listed MySale, which as of Wednesday's close had a market capitalisation of just £11million, connects global buyers and sellers to Australian and New Zealand e-commerce sites.

Frasers said its investment created an opportunity for a strategic partnership where its end of line products could be sold.

'This pipeline will be further enhanced by the benefits of counter seasonality between the European and Australian climates,' it added.

Ashley has a history of taking strategic stakes in other retailers.

Earlier in the year, Frasers bolstered its maximum exposure to German fashion brand Hugo Boss to $937million.

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