Frasers Group profits have jumped 13.1% in what it described as a “break-out year” as the group benefited from its plan to diversify its portfolio and shift upmarket.
The FTSE 100-listed firm posted an adjusted pre-tax profit of £544.8m in the year to 28 April – falling at the top end of its guidance range of £500m to £550m and up from £478m the year before – despite a 0.9% dip in total sales to £5.53bn.
The Sports Direct and Flannels owner reported a 1.3% fall in retail revenue to £5.53bn, as a result of “planned sales declines in Game UK and Studio Retail, as well as the impact of House of Fraser store closures and a softer luxury market”.
The weaker performance in retail was offset by sales from its property division doubling to £72.7m, which it attributed to the annualisation of the prior year acquisitions of Luton, Dundee and Coventry Arena, as well as the impact of current year acquisitions such as the Castleford shopping centre.
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Frasers Group chief executive Michael Murray said: “This has been a break-out year for building Frasers’ future growth. As well as delivering a strong trading performance, particularly from Sports Direct, we made significant progress with our elevation strategy.
“We expanded our retail ecosystem, establishing valuable partnerships with new brands. Our brand relationships have never been stronger, giving us invaluable support as we continue the international expansion of our business.
“We invested in group-wide operational efficiencies in warehouse automation and digital infrastructure, which we expect to yield a tangible impact as early as FY25. And we generated new growth opportunities with the rollout of Frasers Plus, including recently signing our first third party partner in THG.
“We have built a lot of momentum this year and are entering the new financial year with many exciting growth opportunities ahead of us, which we will continue to invest in for the long-term benefit of the group.”
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