Frasers Group, the retail empire founded by Mike Ashley, has warned it expects little to no profit growth in the year ahead, citing mounting concerns over potential tax rises and economic uncertainty following the Chancellor’s upcoming budget.
The FTSE 250-listed group—which owns Sports Direct, Flannels and its flagship Frasers department stores—said it expects adjusted pre-tax profits for the new financial year to come in between £550 million and £600 million. That compares with a modest 2.8% rise in profits to £560.2 million for the year ending 27 April.
Despite headwinds, the company chose to maintain its guidance, pointing to caution over what it called the “drumbeats of doom” surrounding October’s budget statement.
Chris Wootton, Frasers Group’s chief financial officer, said: “We do have to keep an eye on that and so we felt it was sensible to maintain our adjusted profit before tax guidance.”
Group revenues fell by 7.4% to £4.9 billion, driven largely by a 14.8% decline in sales within its premium division—an area that includes its Flannels chain and luxury retail offerings.
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