Frasers Group launches 60 million pound share buyback programme
4 May 2021
Frasers Group has announced the launch of a new 60 million pound share buyback programme just a month after the company warned of a potential 200 million pound hit to sales related to Covid-19.
The group, which owns brands Sports Direct, Flannels, House of Fraser, and Jack Wills, said it plans to buy up to 10 million shares between now and July.
The company said the purpose of the programme is to “reduce the share capital of the company”. No further details behind the decision were given.
In April, Frasers group warned of a potential 200 million pound hit linked to the pandemic - twice the amount it previously estimated in February.
The group said it believed further restrictions were “almost certain”, and said it was “continuing to assess the Covid-19 potential impact on asset values”.
The company said in a statement at the time: “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.”