22nd May 2020 11:20
(Alliance News) - Frasers Group PLC on Friday said its online offering of sporting goods, fitness equipment and other products has continued trading during the lockdown period.
The FTSE 250-listed sports equipment and clothing retailer - formerly called Sports Direct International - noted government proposals for the phased reopening of retail stores, stating that this may mean its stores would start to reopen from June 1.
Frasers said that as a result, it has decided to pay 100% of salaries in May to all its employees including those on casual contracts. It added that its decision also covers employees who have been furloughed.
"The Frasers group is nothing without its people, and I want to thank them all for their continued support and hard work," said Founder & Chief Executive Mike Ashley.
The salaries of Chief Financial Officer Chris Wootton, Head of Commercial Sean Nevitt and non-executive directors will remain reduced and capped at GBP40,000. Ashley will not be paid a salary.
In March, the company withdrew its annual earnings guidance which had predicted growth of 5% to 15% in earnings before interest, tax, depreciation and amortisation. In financial 2019, Frasers recorded underlying Ebitda of GBP287.8 million.
It also said it had not been accepted as eligible for the UK government's Covid Corporate Financing Facility. The facility is designed to help larger firms to maintain liquidity amid disruption caused by the Covid-19 outbreak, through the purchase of short-term debt in the form of commercial paper.
Shares in Frasers were trading 0.1% lower at 263.00 pence each on Friday morning in London.
By Ife Taiwo; [email protected]
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