21st Dec 2020 09:55
(Alliance News) - Mike Ashley's Frasers Group PLC on Monday said it has withdrawn its guidance for its current financial year due to the closure of non-essential retail in London, the south east and the east of England.
On Saturday, UK Prime Minister Boris Johnson announced that from Sunday, areas in the South East currently in Tier 3 will be moved into a new Tier 4, effectively returning to the lockdown rules of November after scientists said a new coronavirus variant is spreading more rapidly.
Non-essential shops, gyms, cinemas, hairdressers and bowling alleys have been forced to close for two weeks – with people being restricted to meeting only one other person from another household in an outdoor public space.
The FTSE 250-listed sports equipment and clothing retailer - formerly called Sports Direct International - stated the new restrictions enacted during the peak trading period and combined with the high likelihood of further lockdowns nationwide over the coming months means it can no longer commit to its guidance of a 20% to 30% improvement in underlying earnings before interest, tax, depreciation, and amortization for its financial year ending April 2021.
Frasers' underlying Ebitda for financial 2020 was GBP301.1 million. Pretax profit was GBP143.5 million on revenue of GBP3.96 billion.
Shares in Frasers were trading 8.8% lower at 433.40 pence each on Monday morning in London.
By Ife Taiwo; [email protected]
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