// Frasers Group, which Mike Ashley owns a near-70% stake in, is set to return the the FTSE 100 – the London Stock Exchange’s highest valued companies
// The retail group, formerly known as Sports Direct, dropped out of the FTSE 100 in 2016
Frasers Group, the retail empire built by sportswear tycoon Mike Ashley, will return to the FTSE 100 after a six year absence.
The group, which is now run by Ashley’s son-in-law Michael Murray, will rejoin the index of the London Stock Exchange’s highest valued firms on Tuesday, taking defence firm Meggitt’s slot after it was acquired by a US firm.
Frasers, formerly known as Sports Direct, fell out of the FTSE 100 in 2016 when its share price plummeted on the back of poor trading and an exposé into gulag-like working conditions by The Guardian.
Since then Sports Direct has snapped up a throng of businesses including House of Fraser, Game, Evans Cycles and Missguided, and has rebranded as Frasers Group. It has sought to “elevate” its brand and stores as it moves away from its ‘pile em high, sell em cheap’ roots.
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Early this year, Ashley – who still owns almost 70% of the business – handed over the baton to Murray, who had been spearheading its ‘elevation’ strategy.
Frasers Group has been one of the few listed retailers that investors have continued betting on over the past year.
Its share price has soared 20% in the past year to 800p and it holds a £3.8 billion market capitalisation.
The group revealed it had a “record-breaking year” in its year to 24 April, as pre-tax profits rocketed from £8.5 million to £366.1 million despite the “significant economic headwinds”.
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