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Frasers Group PLC on Thursday reported ‘record results’ with a surge in pretax profit and a revenue rise in its financial year, following several key acquisitions.
Frasers, which owns House of Fraser, Sports Direct and Flannels retail chains, said in its financial year ended April 30 that reported pretax profit was £660.7 million, a 97% increase from £335.6 million the year before. Frasers said it was pleased to report a ‘record set of results’ in line with guidance.
Revenue was up 14% at £5.57 billion, from £4.81 billion year-on-year. Frasers said this was due to the fact that financial 2023 had a 53rd week and due to the acquisitions undertaken in the year.
The company advanced several strategic acquisitions, acquiring Sportmaster in Denmark to further its European footprint; Gieves and and Hawkes, Arma Living and the Premium Brands portfolio of JD Sports Fashion PLC in its Premium Lifestyle division; the Mall Shopping Centre in Luton and Overgate Centre in Dundee; and a joint venture in Indonesia.
‘We have a clear and structured acquisition platform to unlock new capabilities and drive growth opportunities across areas of our ecosystem,’ Frasers said.
Reported basic earnings per share were 106.1 pence, doubled from 52.9p the year prior.
Cash inflow from operating activities before working capital was up 11% at £875.6 million, from £786.8 million.
Net assets increased 27% to £1.66 billion, from £1.31 billion the year prior.
Chief Executive Michael Murray said: ‘In my first full year as chief executive, we have delivered a strong performance across the group. We were bold in setting our full year guidance twelve months ago, before the full impact of the cost-of-living crisis was clear, but our business has remained resilient, and we have met these expectations.
‘We enter the new financial year in a strong position and are determined to unlock further growth, underpinned by our laser focus and acceleration of our Elevation Strategy.’
The company said it will not pay a final dividend for financial 2023, unchanged from the year before, to preserve its ‘financial flexibility’.
Frasers said it expects ‘further strong profit’ in financial 2024 as financial 2023 ‘momentum continues’.
The company estimates that adjusted pretax profit will be in the range of £500 million to £550 million, but that it anticipates lower levels of property profit than the £95.4 million delivered in financial 2023.
Shares in Fraser Group were up 2.1% at 795.00 pence in London on Thursday morning.
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