Key facts
- Frasers Group's revenue rose 8% to £3.3bn in the year to April.
- Pre-tax profit increased by 39% to £528m.
- The company acquired South African sporting goods firm Holdsport and Norwegian sports retailer XXL.
- Frasers tabled a £1.7bn bid for Hugo Boss and a £166m bid for Australian shoe firm Accent.
- Investments in takeover targets contributed £50m to adjusted profit.
Mike Ashley's Frasers Group has reported a significant increase in profit, attributing the growth to its ongoing turnaround strategy and an aggressive spree of takeover bids for international retailers. The company's revenue climbed 8% to £3.3bn in the year ending April, while pre-tax profit surged 39% to £528m.
Recent acquisitions include South African sporting goods firm Holdsport and Norwegian sports retailer XXL. Frasers also made a substantial £1.7bn bid for German fashion house Hugo Boss and a £166m play for Australian shoe firm Accent. The group noted that building stakes in these companies ahead of the bids contributed £50m to its adjusted profit over the past year.
Analysts have questioned the modest premium offered for Hugo Boss, suggesting Frasers may not be seeking full control. The company stated that increasing its investment in Hugo Boss would create value and that it supports the existing leadership's growth strategy.
Due to the uncertainty surrounding these takeover attempts, Frasers declined to provide forward-looking financial guidance. The company is also investing in its existing brands, such as Everlast and Jack Wills, and its high street stores, including a new flagship Sports Direct in Liverpool. However, Frasers acknowledged facing tough trading conditions, subdued consumer confidence, and industry-wide excess inventory levels at the start of the current financial year.