// Frasers Group has reported pre-tax profits of £186 million for its half-year results
// Sales also rose by 23.6% to £2.3 billion over the six-month period
Frasers Group has reported a surge in its half-year profits and forecast a jump in annual earnings, despite warning of Covid uncertainty and supply chain costs to come.
The parent company of high street retailers including Sports Direct, House of Fraser and Jack Wills, reported pre-tax profits of £186 million for the six months to 24 October, up from £106.1 million year-on-year, when trading was hit by lockdown store closures.
Underlying pre-tax profits rose by 61.7% to £186.8 million, with sales also rising by 23.6% to £2.3 billion over the six-month period.
Mike Ashley’s Frasers Group said it booked a £135.3 million impairment for the pandemic, to cover soaring shipping container and supply chain costs as well as inflation pressure on consumer spending.
If there are no further UK lockdowns, the group believes it can deliver an increase in full-year profits, reaching £300 million and £350 million.
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Underlying pre-tax profits for 2020-21, when trading was hammered by Covid, stood at £5.8 million.
Frasers chairman David Daly said: “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.
“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.”
He added: “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 pre-tax profits of between £300 million to £350 million.”