23rd Feb 2021 08:59
(Alliance News) - Frasers Group PLC on Tuesday said its non-cash impairment relating to Covid-19 could exceed GBP100 million on top of previously announced half-year impairments.
Shares in Frasers were up 4.3% at 479.60 pence in London in morning trading, amid a rise in travel & leisure stocks.
The update from the owner of Sports Direct follows UK Prime Minister Boris Johnson's announcement of a possible re-opening of England's non-essential stores on April 12.
The FTSE 250-listed UK department store group said it expects to record "material accounting impairments to freehold properties, other property, plant & equipment, and IFRS 16 right of use assets."
In light of the length of the current lockdown, as well as the possibility of "systemic changes to consumer behaviour" or even further restrictions in future, Frasers believes it could report non-cash impairment of more than GBP100 million.
This would be on top of impairments recorded for its half-year ended October 25, amounting to GBP124.9 million.
The latest impairment will be included with Frasers's results for its financial year ending in April.
By Anna Farley; [email protected]
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