9th Apr 2021 08:34
(Alliance News) - Frasers Group PLC on Friday said it expects impairments of more than GBP200 million, double its previous estimate, because of Covid-19.
Frasers owns department store House of Fraser and sporting goods retailer Sports Direct.
The expected financial hit for the retailer is double February's estimate, when Frasers warned it would write down its assets by over GBP100 million. The company cited government announcements on the pandemic warning of a possible new wave and the end being "some way off", which it said makes further restrictions "almost certain".
That's even as the UK prepares to lift restrictions on non-essential shops next week and Covid-19 case numbers continue to fall.
The impairment is expected to be included in the FTSE 250-listed company's results for the financial year ending April 2021. It adds to the GBP124.9 million writedown included in Frasers's half-year results.
Frasers shares were down 0.2% at 496.20 pence in London early Friday.
By Ivan Edwards; [email protected]
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