Frasers Group scraps guidance following fresh UK restrictions
21 Dec 2020
Frasers Group has withdrawn its guidance after new Covid-19 restrictions announced for London and the South East over the weekend meant the closure of “virtually all” of its stores in those areas.
The group said Monday it has withdrawn its guidance of a 20-30 percent increase in underlying EBITDA during FY21.
It comes after Boris Johnson announced Saturday new stricter restrictions in London and the South East following a surge of what is thought to be a more transmissible strain of coronavirus.
“From Sunday 20 December 2020, the Government closed non-essential retail in London, The South East, and East of England with no warning. This has led to virtually all of our stores closing in these areas,” Frasers Group said in a statement.
“Given this is a peak trading period, and combined with the high likelihood of further rolling lockdowns nationwide over the following months at least, such is the uncertainty of when stores can and cannot open that the Board of Frasers Group plc can no longer commit to Frasers Group achieving its publicised guidance[.]”
For the six months to 25 October, Frasers Group reported a 7.4 percent drop in group revenue to 1.89 billion pounds. In the same period, pre-tax profit increased 17.6 percent to 106.1 million pounds.
Photo credit: Frasers Group