Frasers’ full-year revenue fell 0.9% to £5.5bn, as House of Fraser store closures and weakness in Premium Lifestyle more than offset a strong performance from Sports Direct. An additional week in the prior accounting year negatively impacted comparisons.
Fraser's profits from its retail trading operations were down 0.9% to £738.9mn. However, its headline profit measure (adjusted profit before tax) improved by £63mn to £544.8mn, which was towards the top end of group guidance. This was helped by a sharp fall in non-cash impairments to the value of the company's properties.
Free cash flow improved from £327.2mn to £470.9mn, as a result of improved cash generation. Net debt, including lease liabilities, came in at £1.1bn.
Full-year underlying pre-tax profits are expected to grow to a range of £575-625mn.
The board has again decided not to pay a final dividend. Share buybacks in the period totalled £126.4mn.
The shares rose 10.3% following the announcement.
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