Acquisitions boost Frasers profits by 53%
Total revenues across the group rose by 12.7% to £2.6bn in the period ended 23 October 2022, as the group continued its Elevation Strategy under new CEO Michael Murray
Frasers has welcomed a strong performance in its half-year results, with pre-tax profits soaring 53% to £284.6m, as sales were boosted by a series of acquisitions over the period.
Total revenues across the group rose by 12.7% to £2.6bn in the period ended 23 October 2022, as the group continued its Elevation Strategy under new CEO Michael Murray.
UK Sports Retail revenue increased by 11.6%, largely due to the acquisition of Studio Retail Limited on 24 February 2022, for example. Without this acquisition, revenues would be down by 3.1%, largely due to a reduction within Game UK and the “very strong” reopening of stores in March 2021.
Meanwhile, Premium Lifestyle revenue increased by 24.7%, largely due to new Flannels stores as well as continued growth in online sales.
International Retail revenue also rose by 5.8%, boosted by the acquisition of Sportmaster on 16 May 2022. While there was an increase in its Malaysian business, this was offset by a reduction in revenue following the disposal of the US retail businesses on 25 May 2022.
The group said that whilst the macroeconomic environment is “clearly challenging”, with the backdrop for the coming year “hard to predict with any certainty”, it has “strong strategic and trading momentum” behind it.
In light of this, Frasers will maintain its guidance for adjusted PBT of between £450m to £500m for the full financial year.