Frasers Group warns of 200 million pound hit from Covid

Frasers Group has warned of a potential 200 million pound hit linked to Covid - twice the amount it estimated back in February.

The group, which owns brands Sports Direct, Flannels, House of Fraser, and Jack Wills, said it believes further restrictions are “almost certain”, and said it is “continuing to assess the Covid-19 potential impact on asset values”.

It comes ahead of the reopening of non-essential retail in England next week.

In a statement to the stock market on Friday, the group said: “In our ongoing assessment we note the continuing government and government advisor pronouncements regarding ‘third waves’ and normality being ‘some way off’, meaning further restrictions are in our view almost certain.

“We also note the Covid-19 affected experiences, estimates, and judgements from other leading retailers.

“Consequently, Frasers Group currently anticipates making material accounting non-cash impairments to freehold properties, other Property, Plant & Equipment, and IFRS 16 Right of Use Assets which could be in excess of 200 million pounds.”

Image: Frasers Group

 

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