Frasers Group has started a share buyback scheme worth up to £80 million, aimed at reducing the company’s share capital. This strategic financial move involves purchasing a maximum of 10 million shares and will be executed by Barclays Bank. The buyback coincides with the company’s closed period, ending when the annual financial results are announced in July.
- Frasers Group’s recent financial performance has been promising, with operating profits up by 4.4% to £298.1 million for the six months ending in October 2023.
- The group’s overall revenue also saw a 4.4% rise, reaching £2.76 billion, supported by its UK sports retail business and international sales.
- A significant portion of the revenue was generated by the UK sports retail unit, which includes Sports Direct, contributing £1.5 billion.
- The premium lifestyle and international segments also showed positive growth, with sales increases of 3.1% and 13.2%, respectively.
Frasers Group has initiated a substantial share buyback programme, authorising a total of up to £80 million for share repurchases as part of its capital reduction strategy. The company has engaged Barclays Bank to execute this non-discretionary arrangement, which will remain active until the day the company announces its financial results for the year ending April 2024.
This strategic move is set against a backdrop of positive financial performance for the group. The group’s operating profits have increased by 4.4% year on year, amounting to £298.1 million for the last half-year period ending October 2023. Revenue figures have mirrored this growth, climbing by the same percentage to reach £2.76 billion.
The UK sports retail sector, encompassing the sportswear chain Sports Direct, has played a pivotal role, contributing over half of the year’s total revenues. This segment reported a slight annual growth of 0.8%, totalling £1.5 billion.
Notably, the premium lifestyle division, which includes the Flannels brand, experienced a 3.1% increase in sales, reaching £550.1 million. This reflects a continuous consumer demand for premium retail experiences.
Moreover, international sales exhibited remarkable growth, rising by 13.2% to £645.8 million, showcasing the group’s robust market strategy and international appeal.
Frasers Group’s share buyback initiative underscores its robust financial position and strategic approach to capital management.
