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Frasers flies as profits impress despite lower sales

Published 18/07/2024, 08:55
© Reuters Frasers flies as profits impress despite lower sales
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Proactive Investors - Shares in Mike Ashley's Frasers Group PLC jumped almost 10% after it reported annual profit growth near the top end of its guidance, though revenues shrank.

Adjusted profit before tax of £544.8 million was reported for the year to 28 April, with the Sports Direct (LON:FRAS) and Flannels owner having previously guided to a range of £500-550 million.

For the new financial year to April 2025, the FTSE 100-listed group said it expects adjusted profit to grow to somewhere between £575 million and £625 million.

For the year past, reported profit before tax from continuing operations fell 20.5% to £507 million, though, as revenue fell 0.9% to £5.5 billion.

Retail revenue fell 1.3%, as the old core UK sports retail business saw sales fall 3.3% and sales from its newer Premium Lifestyle chains fell 1.2%, offset by a 3.3% improvement in international retail.

Chief executive Michael Murray, son-in-law of Ashley, said it "has been a break-out year for building Frasers' future growth", pointing to "significant progress with our Elevation Strategy", establishing partnerships with new brands and investing operational efficiencies in warehouse automation and digital infrastructure, which he expects to "yield a tangible impact as early as FY25".

The shares rose 9.6% to 900.20p in early trading.

Read more on Proactive Investors UK

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