Mike Ashley’s Frasers Group delivers profit surge but warns about cost of living
Ports Direct’s parent firm, Frasers Group, has made strong profits over the past year and expects that to continue to grow despite warnings about the cost of living and supply chain pressures.
The business, founded by Mike Ashley, reported strong performance despite a “significant increase” in running costs.
The company, which also operates House of Fraser and Game stores, saw adjusted pre-tax profit jump to £344.8m in the year to April, compared with a £39.9m loss in the previous year.
It raised its targets for the current financial year, telling shareholders on Thursday morning that it expects to post adjusted pre-tax profits of between £450m and £500m for the current financial year.
However, the retail giant warned that supply chain issues and the rising cost of living “may affect business potential”.
Frasers also made new calls for Govt overhaul the “fundamentally flawed business rates system”.
It came as the group revealed that revenues for the year rose 30.9% to £4.75 billion as it was boosted by the reopening of stores following pandemic restrictions.
Frasers has since started a new financial year under a new chief executive Michael Murrayafter Mr. Ashley returned as chief executive.
Obviously, our strategy to improve efficiency
Mr Murray, the founder’s son-in-law, was promoted to the role after leading Frasers’ so-called “upgrade strategy” as the firm sought to grow its premium division.
The new boss said: “I am really proud of the record performance we announced today.
“It’s clear that our scale-up strategy is working, and we’re gaining incredible momentum through new store openings, digital capabilities and deeper brand partnerships across all of our divisions.
“We have the right strategy, team and determination to continue growing our business.”
Mike Ashley’s Frasers Group delivers profit surge but warns about cost of living
Source link Mike Ashley’s Frasers Group delivers profit surge but warns about cost of living
