admin Retail conglomerate Frasers Group has reported its results for the fiscal year 2023, for which it stated that it had experienced “record performance” as group revenue reached 5,565.2 million pounds, a 15.8 percent increase on the previous year.
The group cited acquisitions as one of its main drivers behind the increase, after it went on a takeover spree over the past 12 months, snapping up the likes of I Saw It First, Gieves & Hawkes and 14 brands once owned by JD Sports.
It also marked the first year of Michael Murray being the company’s CEO, after he stepped into the top position in May 2022 following Mike Ashley’s departure.
In a regulatory filing, Murray said that Frasers’ Elevation Strategy was continuing to bolster results across every segment, particularly that of Sports Retail, which saw revenues increase 16.7 percent while gross profit also rose to 244.9 million pounds.
Meanwhile, the group reported a gross margin decrease to 42.6 percent from 43.5 percent, which it said reflected the improvements in Sports Direct’s product mix that mitigated the impact of House of Fraser store closures.
Acquisitions and cost mitigation help bolster financials
Its Premium Lifestyle segment welcomed a revenue increase of 14.8 percent, bolstered by online growth. Flannels, a central brand in this category, “largely maintained its profitability”, which ultimately reflected “tougher marco-economic conditions this year”.
For International Retail, revenue also rose by 15.2 percent following the acquisition of Sportsmaster in May 2022, and was offset by the reduction in revenue linked to the disposal of the US retail business in the same month.
Meanwhile, Frasers cash flow increased 88.8 million pounds to 875.6 million pounds, while its net assets had increased to 1,658.2 million pounds.
For its outlook, the firm said that it continues to expect good progress on its acquisition integration synergies and cost mitigation measures, while further anticipating significantly lower levels of property profits than those in FY23.
Based on these factors, the group is expecting FY24 APBT to be in the range of 500 million and 550 million pounds, representing “strong underlying trading profit progressions”.
Murray added in his statement: “Our investment in the store estate, our focus on strengthening key brand partnerships, and the synergies created by strategic acquisitions is now delivering very clear results.
“We’ve also made huge progress in the year building our sector-leading ecosystem, with Frasers Plus now successfully launched across our brands and businesses.
“We enter the new financial year in a strong position and are determined to unlock further growth, underpinned by our laser focus and acceleration of our Elevation Strategy.”
