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Frasers Group has seen its pre-tax profit rocket 75% to £186m in its latest half-year results, largely driven by a strong reopening performance of stores post-lockdown and a continued growth in its online business.
The group also cited ongoing operating efficiencies and the FY21 comparative period being hit by lockdowns as reasons behind the latest results.
In addition to strong profits, it noted that revenue rose by 24% to £2.3bn over the period ended 24 October 2021.
Looking ahead, the group said it remains cautious, with a number of “well publicised macroeconomic headwinds on the horizon”, including cost increases, supply chain issues and “potential squeezes” on consumer spending power.
It warned that there was also still the risk that Covid-19 measures could adversely affect its outlook, particularly as we begin to see restrictions return in light of the Omicron variant.
Nonetheless, the group said it believes it can achieve a pre-tax profit of between £300m and £350m for the period ended 24 April 2022, on the basis there are no “substantial” lockdowns imposed in the UK, particularly over the Christmas period.
David Daly, chairman of the group, said: “As noted in our outlook statement, both our bricks and mortar and online businesses have continued to perform well since reopening from the last lockdown in the UK in March 2021.
“Unfortunately we still have the shadow of uncertainty cast by the ongoing Covid-19 pandemic, with restrictions including lockdowns returning to parts of Europe and with the emergence of new variants. There are also supply chain risks which to date we have proven resilient to but which must be factored into our future forecasting given these could continue for some time.”
He added: “On top of this there are the well-publicised macroeconomic factors contributing to a likely cost of living squeeze which could impinge on consumers spending plans heading into the new year.
“With a successful half year’s trading mitigated to some extent by our conservative forecasting and based on the above mentioned headwinds, we still believe we can achieve an adjusted PBT of between £300m to £350m by the end of the financial year, assuming no significant UK lockdowns before then.”
