Frasers: The boy done good! Ashley son-in-law guides firm to £5bn revenue
Frasers Group revenues surged 15.8 per cent in the last financial year, totalling £5.56bn, as the retail powerhouse shows signs of performing well under the reign of new chief Michael Murray.
Murray, who is the son in law of founder and business tycoon Mike Ashley, took over the business in 2022 after Ashley announced plans to step down.
During the 12 months to the end of April the retail giant, which owns Sports Direct and House of Fraser, said adjusted profit before tax also surged 40.7 per cent to £478.1m up from £339.8m last year.
But gross margins declined to 42.6 per cent from 43.5 per cent, with the group citing improving its product line at value chain Sports Direct.
Last August it also offloaded a number of properties including retail parks in the North West, Hertfordshire and Scotland, in a £250m deal.
Frasers said sales of the retail properties “increase financial agility.”
During the term the business also snapped up two shopping centres in Luton and Dundee totalling £95.5m.
“This significant and required investment into the retail industry allows us to unlock demands and deliver retail experiences to our customers. We have also disposed of significant property assets to increase financial agility,” Frasers said.
Michael Murray, chief executive of Frasers Group, 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.”
Frasers share price was up 2.57 per cent this morning when markets opened.
“Frasers Group’s diversity in its portfolio has provided resilience to the current economic conditions by having a foot in the door across several markets, both online and offline, from luxury goods to affordable products,” Jocelyn Paulley, co-head of the Retail Sector at Gowling WLG said.
“Mike Ashley has always been focused on maximising margins, and this has been reflected in the healthy position the retail group is currently in.
“It has acquired a number of online brands over the past year to strengthen its position in this area so it can offer attractive propositions to consumers, however they might be shopping.”
She added: “Additionally, the purchase of the Coventry Building Society Arena demonstrates the business’ ambitions for growth in the leisure sector and its commitment to physical retail outlets which it can potentially develop.”