REG - Frasers Group PLC - Half-year Report
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RNS Number : 1747K Frasers Group PLC 04 December 2025
4 December 2025
FRASERS GROUP PLC ("Frasers Group", "the Group", or "the Company")
Unaudited half year results for the 26 weeks ended 26 October 2025 ("FY26 H1")
A solid first half: Continued success of the Elevation Strategy with progress
on margins, cost savings and international expansion, with tough market
conditions continuing into the second half.
Michael Murray, Chief Executive of Frasers Group:
"We've made a solid start to FY26 even though market conditions are tough,
consumer confidence is very subdued and excess inventory continues to weigh on
the industry, leading to increased promotional activity. While we remain
cautious into the second half, our focus is unwavering as we confront these
challenges head-on, and we are today re-iterating our FY26 APBT guidance of
£550m to £600m. We are continuing to invest boldly in our Elevation
Strategy-deepening brand partnerships, elevating our product mix, opening new
Sports Direct stores internationally, and acquiring strategic properties to
strengthen our portfolio. These steps reinforce our ambition and give us real
confidence in the substantial long-term opportunities ahead for the Group."
Headlines
· Continued strategic progress against key priorities:
1. Focus on underlying profitable growth
· Revenue up 5.0% to £2,581.3m, driven by international revenue
growth of 42.8%.
· APBT((1)) decreased by 2.8% to £290.9m as an £82.3m increase in
impairments of tangible and intangible fixed assets and an £11.3m increase in
interest costs were largely offset by a £33.8m gain from the disposal of the
Coventry Arena and a £41.1m increase in premiums from strategic investments.
· Group and retail gross margin % up 160bps year-on-year, driven by
improved product and retail mix in both UK Sports (+140bps improvement) and
Premium Lifestyle (+410bps improvement), as the core Sports Direct and
Flannels businesses continue to grow as a proportion of group sales.
· Retail profit from trading up 12.2% to £411.4m.
· Green shoots in the luxury market as Flannels returned to sales
growth. Premium Lifestyle's profit from trading up £5.2m (9.2%) to £61.5m.
· Disposed of the non-core, Coventry Arena business for £50m,
generating a £33.8m gain on disposal.
· Basic EPS of 76.4p, an increase of 40.5p year-on-year, reflecting
fair value gains on derivatives held in relation to strategic investments.
Adjusted EPS ((1)) of 49.8p, a decrease of 1.2p (2.4%) in line with the
reduction in APBT ((1)).
2. Elevation Strategy, best brands and international expansion
· Successfully completed acquisitions of Holdsport in South Africa,
XXL in the Nordics and recently opened our first stores with partners in
Malta, Australia and the Middle East as we continue to build a platform for
global growth.
· Driving even stronger relationships with the biggest global
brands, including with strategic brand partners Nike, Adidas and HUGO BOSS.
· Michael Murray appointed to the HUGO BOSS supervisory board in
May 2025. Associate accounting for the Group's holdings in HUGO BOSS and
Accent Group added £19.0m to APBT in FY26 H1.
· Further UK property investments at attractive yields to satisfy
our occupational demand, with new shopping centres and retail park
acquisitions including sites at Greenock and Almondvale. After period end,
completed the £217.6m acquisition of Braehead retail park near Glasgow.
· Continue to invest in UK Sport, demonstrated by the opening of
our biggest Sports Direct flagship store in Liverpool.
· Invested in The Webster, a leading luxury multi-brand retailer in
the US, further strengthening our global brand partnerships.
3. Acquisition integrations and automation synergies
· Delivered £10.3m of underlying net cost-savings and synergy
benefits despite significant increases in staff costs driven by increases to
National Minimum Wage and Employers' National Insurance which came into effect
in April 2025.
· Efforts under way to realise synergies from recent international
acquisitions.
· As noted in our letter to the Unite Union General Secretary
Sharon Graham on 3 October 2025, given the significant cost increases imposed
on retail by the Labour government, it would be reckless and irresponsible for
Unite to implement a strike whilst demanding further above inflation wage
increases. We await the Union's response to our latest communication following
a breakdown in talks and urge them not to repeat their previous politically
motivated actions against the Group, noting Unite Assistant General Secretary
Steve Turner's quote to us on 4 October 2016 that "It was the agencies we were
after…we had to get to you in order to get to the agencies."
4. Frasers Plus
· Continued progress towards our long-term ambitions of delivering
£1bn+ in sales, £600m in credit balances, a greater than 15% yield, and over
2 million active Frasers Plus customers (excluding any third-party
partnerships). £154m of retail sales were made on credit in FY26 H1 (FY25 H1:
£154m). The business ended FY26 H1 with 1.1m active customers (FY25 H1: 0.4m)
and Frasers Plus accounted for 20.0% of UK online sales, compared to 13.7% in
FY25 H1. Encouraging improvements seen in store uptake during FY26 H1, and
StudioPay exit now complete.
5. Strong balance sheet and cash flow
· The Group's strategy is underpinned by a strong balance sheet
with net assets increasing to £2,394.2m from £1,988.1m at FY25 and net
assets per share increasing to £5.32 from £4.41 at FY25.
· Cash inflow from operating activities before working capital
movements of £430.8m has enabled the Group to continue to invest in its
retail proposition, international acquisitions, Frasers Plus, our property
portfolio and strategic partnerships such as HUGO BOSS and Accent Group. Our
holding in HUGO BOSS increased to 25.2% in FY26 H1, whilst we also increased
our investment in Accent Group to 19.9%.
· Net debt excluding securitisation increased to £1,030.4m
(£847.5m at FY25), reflecting capital expenditure, international acquisitions
and strategic investments in FY26 H1.
· We secured a new £3.0bn Term Loan and Revolving Credit Facility
in July 2025, replacing the previous £1.65bn arrangements, with options to
extend the term up to a total of five years and increase the facility by a
further £0.5bn. The facility currently stands at £3.1bn.
Outlook
The Group delivered a solid first half, driven by Sports Direct and
strengthening margins in our Premium & Luxury division, particularly at
Flannels. The consumer environment remains challenging, and although trading
has improved compared to last year's Budget-affected period, it is still
weaker than FY24, with excess inventory in the sector continuing to weigh on
the wider market.
Despite this backdrop, our ambitions remain high. We are working hard to
offset the £50m-plus incremental annual costs from last year's Budget through
disciplined savings, synergies and efficiencies, and continue to expect FY26
APBT of £550m to £600m, including the expected loss from XXL ASA* and the
first-time equity accounting of HUGO BOSS and Accent Group.
*Prior guidance, provided on July 17 2025, excluded the results of XXL ASA
which was acquired on 27 June 2025.
FY26 H1 FY25 H1 ((2)) Change
Income statement summary
UK Sports Retail £1,328.1m £1,409.5m (5.8%)
Premium Lifestyle £444.5m £461.4m (3.7%)
International Retail £736.5m £515.8m 42.8%
Retail revenue £2,509.1m £2,386.7m 5.1%
Property £38.7m £26.2m 47.7%
Financial Services £33.5m £45.7m (26.7%)
Group revenue £2,581.3m £2,458.6m 5.0%
Retail gross margin 46.2% 44.6% +160 bps
Group gross margin 47.3% 45.7% +160 bps
Retail operating costs (£748.8m) (£698.2m) (7.2%)
Retail profit from trading £411.4m £366.6m 12.2%
Other operating costs (£25.7m) (£25.0m) (2.8%)
Gain on disposal of properties £0.4m £0.3m 33.3%
Group profit from trading £447.9m £401.2m 11.6%
Depreciation & amortisation (£161.0m) (£133.6m) (20.5%)
Impairments net of impairment reversals (£67.8m) £14.5m (567.6%)
Share-based payments £11.2m (£4.7m) 338.3%
Foreign exchange realised (£10.5m) (£8.8m) (19.3%)
Operating profit £219.8m £268.6m (18.2%)
Reported profit before tax ("PBT") from continuing operations £412.1m £209.0m 97.2%
Result from discontinued operations £32.4m £2.5m
Fair value adjustment to derivative financial instruments (£32.4m) £10.2m
Fair value gains and loss on disposal of equity derivatives (£120.5m) £64.0m
Foreign exchange realised £10.5m £8.8m
Share-based payments (£11.2m) £4.7m
Adjusted profit before tax ("APBT") ((1)) £290.9m £299.2m (2.8%)
Reported basic earnings per share ("EPS") 76.4p 35.9p 112.8%
Adjusted basic EPS ((1)) 49.8p 51.0p (2.4%)
Balance Sheet summary
Property, plant & equipment £1,229.8m £897.2m 37.1%
Investment property £596.1m £484.0m 23.2%
Long-term financial assets £477.6m £1,007.2m (52.6%)
Investments in associated undertakings £722.8m £19.0m 3704.2%
Inventories (net of provision) £1,453.0m £1,341.9m 8.3%
Net assets £2,394.2m £2,101.7m 13.9%
Net assets per share £5.32 £4.67 13.9%
Cashflow & capital allocation
Cash inflow from operating activities before working capital £430.8m £410.4m 5.0%
Net capital expenditure (£175.1m) (£204.3m) 14.3%
Purchase of listed investments and associates, net of disposal proceeds (£193.9m) (£448.6m) 56.8%
Other notes
(1) This is an Alternative Performance Measure, for which the
reconciliation to the equivalent GAAP measure is set out in note 3 to the
financial information. Adjusted EPS is discussed in note 8.
(2) Restated to reflect the classification of the results of
Game Spain and Coventry Arena as discontinued operations and the
reclassification of delivery income and costs associated with free-issue gift
vouchers from selling, distribution and administrative expenses to revenue.
Please refer to note 1 of the financial information for further details.
Enquiries
Andrew Kasoulis
Investor Relations Director
E. andrew.kasoulis@frasers.group
T. 07826 532191
Kathleen Glover
Frasers Group PR
E. fgpr@frasers.group
T. 07878 771 800
BUSINESS REVIEW
GROUP SUMMARY
26 weeks ended 26 October 2025 (unaudited) 26 weeks ended 27 October 2024 (unaudited) ((1))
Retail revenue £2,509.1m £2,386.7m
Total revenue £2,581.3m £2,458.6m
Retail gross profit £1,160.2m £1,064.8m
Group gross profit £1,222.0m £1,124.1m
Retail gross margin 46.2% 44.6%
Group gross margin 47.3% 45.7%
Retail profit from trading £411.4m £366.6m
Group profit from trading £447.9m £401.2m
Reported profit before tax ("PBT") from continuing operations £412.1m £209.0m
Adjusted profit before tax ("APBT") ((2)) £290.9m £299.2m
Reported basic earnings per share ("EPS") 76.4p 35.9p
Adjusted EPS ((2)) 49.8p 51.0p
APBT((2)) decreased by 2.8% to £290.9m as an £82.3m increase in impairments
of tangible and intangible fixed assets and an £11.3m increase in interest
costs was largely offset by a £33.8m gain from the disposal of the Coventry
Arena and a £41.1m increase in premiums from strategic investments.
The current period result includes impairment charges totalling £47.1m (FY25
H1: £nil), primarily due to the write-off of intangible assets and goodwill
assigned to the Everlast and Twinsport cash generating units, and the Matches
intellectual property, as well as a net impairment charge of £20.7m (FY25 H1:
£14.5m net impairment reversal) largely relating to two under-performing
stores in the UK.
Share of profit/(loss) of associates includes £19.7m in respect of HUGO BOSS,
Accent Group and Four (Holdings) Limited, offset by the write-off of the
carrying value of investments in Kangol LLC (£16.9m) and X Channel Marketing
Ltd (£1.0m).
Reported PBT of £412.1m, an increase of 97.2%. The year-on-year increase in
reported PBT is largely the result of fair value gains on equity derivatives
held in relation to strategic investments. The £120.5m fair value gain in
FY26 H1 (FY25 H1: £64.0m fair value loss) primarily relates to an increase in
the HUGO BOSS share price between April 2025 and October 2025 (FY25 H1:
decline in share price between April 2024 and October 2024).
Retail revenue increased by 5.1%. In the UK, sales growth from Sports Direct
and Flannels, reflecting the ongoing success of the Elevation Strategy and
green shoots in the luxury market, was more than offset by planned declines in
Game UK, Studio Retail, House of Fraser, and the businesses acquired from JD
Sports. International revenue benefited from the acquisitions of Holdsport
(completed in May 2025) and XXL (completed in June 2025), partially offset by
the disposal of the MySale business in May 2025.
Group gross margin % increased to 47.3% from 45.7% due to an improved mix
effect, as the lower margin % businesses reduce as a proportion of total
revenue, and the higher margin Sports Direct and Flannels businesses continue
to grow as a proportion of group sales. Flannels has increased its gross
margin % through a more relevant product offering and improved inventory
holding.
Basic EPS of 76.4p, an increase of 40.5p year-on-year, reflecting fair value
gains on derivatives held in relation to strategic investments. Adjusted EPS
((2)) of 49.8p, a decrease of 1.2p (2.4%) in line with the reduction in APBT
((2)).
UK SPORTS
This segment includes the results of the Group's core sports retail store
operations in the UK, plus all the Group's sports retail online business,
other UK-based sports retail and wholesale operations, GAME UK stores and
online operations, retail store operations in Northern Ireland, Frasers
Fitness, Studio Retail's sales and the Group's central operating functions
(including the Shirebrook campus).
UK Sports accounts for 51.5% (FY25 H1((1)): 57.2%) of the Group's revenue.
26 weeks ended 26 October 2025 (unaudited) 26 weeks ended 27 October 2024 (unaudited) ((1))
Revenue £1,328.1m £1,409.5m
Cost of sales (£686.0m) (£748.8m)
Gross profit £642.1m £660.7m
Gross margin % 48.3% 46.9%
Profit from trading £248.5m £255.3m
Operating profit £168.3m £190.0m
Store numbers 791 782
Revenue decreased by 5.8%. Continued sales growth from Sports Direct
reflecting the ongoing success of the Elevation Strategy and strengthening
brand relationships, was more than offset by planned declines in Game UK and
Studio Retail.
Gross profit decreased by £18.6m as a result of the sales decline but gross
margin % increased by +140 bps to 48.3% reflecting the fact that the higher
margin Sports Direct business now makes up a greater proportion of this
segment.
Operating costs reduced by £11.8m as the benefits of integrating and
right-sizing the lower margin businesses were realised, although the savings
were largely offset by increases to National Minimum Wage and Employers'
National Insurance.
As a result of the above, the segment's profit from trading declined by £6.8m
year-on-year.
UK Sports' operating profit result of £168.3m (FY25 H1: £190.0m) includes
impairment charges of £18.0m (FY25 H1: impairment reversals of £5.5m), which
reflects the write-down of the carrying value of the Matches intellectual
property and brands, and realised foreign exchange losses of £8.8m (FY25 H1:
£4.4m).
Store numbers increased slightly from 782 to 791 mainly driven by the
replacement of standalone Game stores with Game concessions situated inside
larger Sports Direct stores.
PREMIUM LIFESTYLE
This segment includes the results of the Group's premium and luxury retail
businesses FLANNELS, Cruise, Van Mildert, Jack Wills, House of Fraser &
Frasers, Gieves and Hawkes, and Sofa.com along with the related websites, the
businesses acquired from JD Sports, as well as the results from the I Saw it
First website.
Premium Lifestyle accounts for 17.2% (FY25 H1 ((1)): 18.8%) of the Group's
revenue.
26 weeks ended 26 October 2025 (unaudited) 26 weeks ended 27 October 2024 (unaudited) ((1))
Revenue £444.5m £461.4m
Cost of sales (£254.7m) (£283.5m)
Gross profit £189.8m £177.9m
Gross margin % 42.7% 38.6%
Profit from trading £61.5m £56.3m
Operating profit £46.0m £48.3m
Store numbers 139 167
Revenue decreased by 3.7% as growth in Flannels was more than offset by the
impact of continuing to optimise our store portfolio in House of Fraser, the
businesses acquired from JD Sports and Jack Wills, reducing the number of
stores from 58 at 27 October 2024 to 34 at 26 October 2025.
Gross profit increased by £11.9m as the negative impact of the revenue
decline was more than offset by a 410bps increase in gross margin % from 38.6%
to 42.7% (the result of an improving mix effect with FLANNELS increasing its
proportion of group sales and through a more relevant product offering).
This gross profit growth was partially offset by a £6.7m increase in
operating costs driven by increases to National Minimum Wage and Employers'
National Insurance, resulting in an increase in segment trading profit of
£5.2m.
Premium Lifestyle's operating profit result of £46.0m (FY25 H1: £48.3m)
includes impairment reversals of £nil (FY25 H1: impairment reversals of
£7.3m).
Store numbers decreased from 167 to 139 as we continued to optimise our store
portfolio in House of Fraser, the businesses acquired from JD Sports, and Jack
Wills.
INTERNATIONAL RETAIL
This segment includes the results all of the Group's sports retail stores,
management and operating functions in Europe, Asia and the rest of the world,
including the Group's European Distribution Centres in Belgium and Austria,
Twinsport in the Netherlands, Holdsport in South Africa, XXL in the Nordics,
the Baltics & Asia e-commerce offerings, the MySale business in Australia
until its disposal in May 2025, and all non-UK based wholesale and licensing
activities (relating to brands such as Everlast and Slazenger).
International accounts for 28.5% (FY25 H1 ((1)): 21.0%) of the Group's
revenue.
26 weeks ended 26 October 2025 (unaudited) 26 weeks ended 27 October 2024 (unaudited) ((1))
Revenue £736.5m £515.8m
Cost of sales (£408.2m) (£289.6m)
Gross profit £328.3m £226.2m
Gross margin % 44.6% 43.9%
Profit from trading £101.4m £55.0m
Operating profit £9.7m £18.3m
Store numbers 537 372*
*FY25 H1 store numbers restated to remove Game Spain.
International revenue benefited from the acquisitions of Holdsport (completed
in May 2025) and XXL (completed in June 2025), partially offset by the
disposal of the MySale business in May 2025. This resulted in revenue growth
of 42.8% year-on-year.
Segment profit from trading increased by £46.4m year-on-year. Gross profit
increased by £102.1m largely due the acquisitions noted above, which also
drove an uplift in overhead costs of £55.7m.
International's operating profit result of £9.7m (FY25 H1((1)): £18.3m)
includes impairment charges of £29.1m (FY25 H1: impairment reversals of
£2.4m), which reflect the write-down of the goodwill and intangible assets
allocated to the Everlast and Twinsport businesses, and realised foreign
exchange losses of £2.8m (FY25 H1: £4.4m).
Store numbers increased from 372 to 537 due to the acquisitions of Holdsport
and XXL.
PROPERTY
This segment includes the results from the Group's freehold property owning
and long leasehold holding property companies that generate third party rental
and other property related income (e.g., car parking, conference and events
income). The depreciation of freehold and long leasehold owner-occupied
properties is also reported in this segment.
Property accounts for 1.5% (FY25 H1 ((1)): 1.1%) of the Group's revenue.
26 weeks ended 26 October 2025 (unaudited) 26 weeks ended 27 October 2024 (unaudited) ((1))
Revenue £38.7m £26.2m
Gross profit £38.7m £26.2m
Profit from trading £38.1m £21.7m
Operating loss (£2.3m) (£0.2m)
Revenue increased by £12.5m (47.7%), due to the annualisation of prior year
acquisitions including Doncaster's Frenchgate, Exeter's Princesshay,
Maidstone's Fremlin Walk, and Affinity outlets, as well as the impact of
acquisitions in FY26 H1.
Segment profit from trading increased by £16.4m, with the additional rental
income combining with the non-repeat of one-off acquisition costs from the
prior year.
Property's operating loss of £2.3m (FY25 H1 ((1)); loss of £0.2m) includes a
net impairment charge of £20.7m (FY25 H1 ((1)): £0.7m impairment), largely
relating to two under-performing stores in the UK and depreciation of £21.0m
(FY25 H1 ((1)): £21.3m).
Property investment remains a key focus for the Group, unlocking occupational
demand for our retail business whilst delivering strong returns that can be
recycled at the appropriate time.
FINANCIAL SERVICES
This segment includes the results of Frasers Group Financial Services. This
includes interest charged on amounts advanced to consumer credit customers,
along with the associated impairment and operating costs.
Financial Services accounts for 1.3% (FY25 H1 ((1)): 1.9%) of the Group's
revenue.
26 weeks ended 26 October 2025 (unaudited) 26 weeks ended 27 October 2024 (unaudited) ((1))
Revenue £33.5m £45.7m
Impairment losses on credit receivables (£10.4m) (£12.6m)
Gross profit £23.1m £33.1m
Gross margin % 69.0% 72.4%
(Loss)/profit from trading (£1.6m) £12.9m
Operating (loss)/profit (£1.9m) £12.2m
Frasers Plus continues to make progress towards our long-term ambitions of
delivering £1bn+ in sales, £600m in credit balances, a greater than 15%
yield, and over 2 million active Frasers Plus customers (excluding any
third-party partnerships). £154m of retail sales were made on credit in FY26
H1 (FY25 H1: £154m). The business ended FY26 H1 with 1.1m active customers
(FY25 H1: 0.4m) and Frasers Plus accounted for 20.0% of UK online sales,
compared to 13.7% in FY25 H1. Encouraging improvements have also been seen in
store uptake during FY26 H1, and the StudioPay exit is now complete.
Revenue decreased by £12.2m (26.7%) vs. FY25 H1 as the business completed the
closure of the Studio Pay product and migrated eligible customers to the
Frasers Plus platform.
Segment profit from trading decreased by £14.5m due to the revenue decline
noted above, partially offset by a £2.2m decrease in impairment charges,
combined with an increase in overhead costs of £4.5m arising from the dual
running of Frasers Plus and Studio Pay. FY25 H1 also benefited from a £4.2m
gain in respect of a legal settlement.
We continue to see a great opportunity for Frasers Plus as a new revenue
stream and a key pillar of our compelling brand ecosystem.
DISCONTINUED OPERATIONS
26 weeks ended 26 October 2025 (unaudited) 26 weeks ended 27 October 2024 (unaudited) ((1))
Result from discontinued operations (net of tax) £32.4m £2.5m
In FY26 H1, the result from discontinued operations reflects the trading loss
of Coventry Arena until its disposal in August 2025 (£1.4m), as well as a
£33.8m gain on disposal.
In the prior period, the result from discontinued operations relates to
amounts received from the Matches administration in excess of those assumed at
FY24 year-end (a gain of £4.3m), Game Spain's trading loss for the period
(£1.0m) and Coventry Arena's trading loss for the period (£0.8m).
BALANCE SHEET
26 October 2025 (unaudited) 27 October 2024 (unaudited) 27 April 2025
(audited)
Property, plant & equipment £1,229.8m £897.2m £1,097.2m
Investment properties £596.1m £484.0m £513.3m
Long-term financial assets £477.6m £1,007.2m £959.1m
Investments in associated undertakings £722.8m £19.0m £36.4m
Intangible assets £270.0m £55.5m £58.5m
Inventories £1,453.0m £1,341.9m £1,128.3m
Trade & other receivables £808.7m £721.1m £927.8m
Trade & other payables (£897.1m) (£752.5m) (£663.8m)
Provisions (£204.6m) (£241.6m) (£223.6m)
Net debt (excluding securitisation borrowings) (£1,030.4m) (£725.0m) (£847.5m)
Securitisation borrowings (£91.8m) (£106.3m) (£93.5m)
Lease liabilities (£848.3m) (£608.3m) (£667.8m)
Other (£91.6m) £9.5m (£236.3m)
Net assets £2,394.2m £2,101.7m £1,988.1m
The increase within property, plant and equipment from 27 April 2025 is
largely due to net additions from acquired businesses partially offset by
depreciation.
The increase to investment property since 27 April 2025 reflects acquisitions
totalling £82.8m at sites including Greenock, Guildford, Burnley and
Almondvale.
Long-term financial assets have decreased since 27 April 2025 due to the
reclassification of the fair value of the Group's holdings in HUGO BOSS and
Accent Group to investments in associated undertakings (a reduction of
£569.2m), the acquisition of XXL (a reduction of £25.5m), net additions of
£52.7m, fair value gains of £67.2m and foreign exchange movements (a
reduction of £6.7m).
The principal movements in investments in associated undertakings relate to
the reclassification of the fair value of the Group's holdings in HUGO BOSS
and Accent Group from long-term financial assets (an increase of £569.2m),
further investments in HUGO BOSS (an increase £133.5m), the Group's share of
associates' profit (an increase of £19.7m), and foreign exchange gains (an
increase of £0.4m), offset by the Group's share of associates' other
comprehensive losses (a reduction of £6.0m), dividends received (a reduction
of £12.5m), and fully impairing the carrying value of the Group's investments
in Kangol LLC and X Channel Marketing Ltd (a reduction of £17.9m).
The increase to intangible assets since 27 April 2025 primarily reflects the
recognition of approximately £139.1m of goodwill in respect of the
acquisition of XXL and £110.3m in respect of the acquisition of Holdsport
(plus the associated foreign exchange movements), offset by amortisation
charged in respect of other intangible assets and impairments of goodwill and
intangible assets in respect of Matches, Everlast and Twinsport totalling
£47.1m. The fair value of acquired assets and thus goodwill value will be
finalised by year-end in accordance with IFRS 3 Business Combinations.
The increase in the inventory balance since year-end is reflective of the
acquisitions of XXL and Holdsport as well as normal seasonal trends.
Trade and other receivables includes £276.4m relating to deposits in respect
of derivative financial instruments (27 October 2024 £182.8m; 27 April 2025:
£522.7m) and the Frasers Group Financial Services consumer credit receivables
portfolio with a carrying value of £162.0m (27 October 2024 £195.6m; 27
April 2025: £181.7m).
See note 10 for further details in relation to provisions.
The increase in trade and other payables since 27 April 2025 largely follows
seasonal patterns, the impact of acquisitions, and the timing of payments
around the end of October.
CASH FLOW AND NET DEBT
Net debt increased by £181.2m from £941.0m at 27 April 2025 to £1,122.2m at
26 October 2025, reflecting capital expenditure, international acquisitions
and strategic investments in FY26 H1, particularly Accent Group and HUGO BOSS.
Net debt includes £91.8m of borrowings relating to the Frasers Group
Financial Services Limited securitisation facility (27 October 2024 £106.3m;
27 April 2025: £93.5m).
Net interest on bank loans and overdrafts increased to £48.1m (FY25 H1:
£36.8m) largely due to increased usage of the Revolving Credit Facility
("RCF") in the period.
Analysis of net debt:
26 October 2025 (unaudited) 27 October 2024 (unaudited) 27 April 2025 (audited)
Cash and cash equivalents £359.8m £323.7m £252.2m
Borrowings (£1,482.0m) (£1,155.0m) (£1,193.2m)
Net debt (£1,122.2m) (£831.3m) (£941.0m)
Securitisation (disclosed within borrowings) (£91.8m) (£106.3m) (£93.5m)
Net debt excluding securitisation (£1,030.4m) (£725.0m) (£847.5m)
The Group completed the successful refinancing of its combined term loan and
RCF in July 2025 and now has access to total committed facilities in excess of
£3 billion for a period of at least three years. The facility has two
one-year extension options.
Cash flow:
26 weeks ended 26 October 2025 (unaudited) 26 weeks ended 27 October 2024 (unaudited)
Operating cash inflow before changes in working capital £430.8m £410.4m
Increase in receivables (£56.8m) (£2.4m)
(Increase)/decrease in inventories (£153.7m) £13.4m
Increase in payables £84.9m £52.0m
Decrease in provisions (£21.0m) (£17.4m)
Cash inflows from operating activities £284.2m £456.0m
Income taxes paid (£80.9m) (£76.7m)
Net cash inflows from operating activities £203.3m £379.3m
Lease payments (£92.4m) (£81.5m)
Net finance costs paid (£76.6m) (£29.4m)
Net capital expenditure (£175.1m) (£204.3m)
Purchase and disposal of subsidiary undertakings (£198.6m) (£16.4m)
Net cashflows in relation to equity derivatives £335.0m £16.2m
Purchase of listed investments and associates, net of disposal proceeds (£193.9m) (£448.6m)
Other £17.1m £1.0m
Movement in net debt (£181.2m) (£383.7m)
(1) Restated to reflect the classification of the results of
Game Spain and Coventry Arena as discontinued operations and the
reclassification of delivery income and costs associated with free-issue gift
vouchers from selling, distribution and administrative expenses to revenue.
Please refer to note 1 of the financial information for further details.
(2) This is an Alternative Performance Measure, for which the
reconciliation to the equivalent GAAP measure is set out in note 3 to the
financial information. Adjusted EPS is discussed in note 8.
GOING CONCERN
Having thoroughly reviewed the performance of the Group and having made
suitable enquiries, the Directors are confident that the Group has adequate
resources to remain in operational existence for the foreseeable future which
is at least 12 months from the date of approval of these unaudited condensed
consolidated financial statements. Full details of this assessment can be
found in note 1.
DIRECTORS' RESPONSIBILITY STATEMENT
Each of the directors confirm that to the best of their knowledge:
· The condensed set of financial statements has been prepared in
accordance with UK-adopted IAS 34 'Interim Financial Reporting' and the
Disclosure Guidance and Transparency Rules Sourcebook of the United Kingdom's
Financial Conduct Authority.;
· The interim management report includes a fair review of the
information required by:
a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events during the first 26 weeks of the financial year
and their impact on the condensed set of financial statements; and a
description of the principal risks and uncertainties for the remaining 26
weeks of the year; and
b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related
party transactions that have taken place in the first 26 weeks of the current
financial year and that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last annual report that could do so.
The summary of results for the 52 weeks ended 27 April 2025 is an extract from
the published Annual Report and Financial Statements which have been reported
on by the Group's auditors at the time and delivered to the Registrar of
Companies. The audit report was unqualified, did not draw attention to any
matters by way of emphasis and did not contain a statement under s498 (2) or
s498 (3) of the Companies Act 2006.
Michael Murray
Chief Executive Officer
4 December 2025
FINANCIAL INFORMATION
CONSOLIDATED INCOME STATEMENT
FOR THE 26 WEEKS ENDED 26 OCTOBER 2025
26 weeks ended 26 weeks ended
26 October 2025 27 October 2024 (unaudited)
Note (unaudited) (restated) ((1))
£m £m
CONTINUING OPERATIONS
Revenue 2,547.8 2,412.9
Credit account interest 33.5 45.7
Total revenue (including credit account interest) 2,581.3 2,458.6
Cost of sales (1,348.9) (1,321.9)
Impairment losses on credit customer receivables (10.4) (12.6)
Gross profit 1,222.0 1,124.1
Selling, distribution and administrative expenses (991.7) (877.6)
Other operating income 9.8 7.3
Property related (impairments)/reversals (20.7) 14.5
Profit on sale of properties 0.4 0.3
Operating profit 3 219.8 268.6
Loss on sale of subsidiaries - (0.8)
Investment income 4 229.4 73.3
Investment costs 5 (7.6) (73.9)
Finance income 6 44.7 8.8
Finance costs 7 (76.0) (68.0)
Share of profit of associates 1.8 1.0
Profit before taxation 412.1 209.0
Taxation (110.8) (52.8)
Profit for the period from continuing operations 301.3 156.2
DISCOUNTINUED OPERATIONS
Result from discontinued operations, net of tax 32.4 2.5
Profit for the period 333.7 158.7
ATTRIBUTABLE TO:
Equity holders of the Group 330.9 155.3
Non-controlling interests 2.8 3.4
Profit for the period 333.7 158.7
EARNINGS PER SHARE ATTRIBUTABLE TO THE EQUITY SHAREHOLDERS
Pence per share Pence per share
Basic earnings per share - Continuing operations 8 68.9 35.3
Basic earnings per share - Discontinued operations 8 7.5 0.6
Basic earnings per share - Total 8 76.4 35.9
Diluted earnings per share - Continuing operations 8 68.9 35.3
Diluted earnings per share - Discontinued operations 8 7.5 0.6
Diluted earnings per share - Total 8 76.4 35.9
(1) Restated to reflect the classification of the results of Game Spain and
Coventry Arena as discontinued operations and the reclassification of delivery
income and costs associated with free-issue gift vouchers from selling,
distribution and administrative expenses to revenue. Please refer to note 1
for further information.
The result from discontinued operations was wholly attributable to the equity
holders of the Group.
The accompanying accounting policies and notes form part of these condensed
consolidated financial statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 26 WEEKS ENDED 26 OCTOBER 2025
26 weeks ended 26 weeks ended
26 October 2025 27 October 2024
Note (unaudited) (unaudited)
£m £m
Profit for the period 333.7 158.7
OTHER COMPREHENSIVE INCOME
ITEMS THAT WILL NOT BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS
Fair value movement on long-term financial assets 60.5 64.3
Share of other comprehensive loss of associates (6.0) -
ITEMS THAT WILL BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS
Exchange differences on translation of foreign operations 10.2 (1.0)
Fair value movement on hedged contracts - recognised in the period 11 12.2 5.8
Fair value movement on hedged contracts - reclassified and reported in sales 11 (20.8) (3.5)
Fair value movement on hedged contracts - reclassified and reported in 11 7.3 (1.4)
inventory/cost of sales
Fair value movement on hedged contracts - taxation taken to reserves 11 0.2 (0.3)
OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX 63.6 63.9
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 397.3 222.6
Continuing operations 364.9 220.1
Discontinued operations 32.4 2.5
397.3 222.6
ATTRIBUTABLE TO:
Equity holders of the Group 394.5 219.2
Non-controlling interests 2.8 3.4
397.3 222.6
The accompanying accounting policies and notes form part of these condensed
consolidated financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
26 October 2025 27 October 2024 27 April 2025
(unaudited)
(unaudited)
Note
(audited)
£m £m
£m
ASSETS - NON CURRENT
Property, plant and equipment 1,229.8 897.2 1,097.2
Investment properties 596.1 484.0 513.3
Intangible assets 270.0 55.5 58.5
Long-term financial assets 477.6 1,007.2 959.1
Investment in associated undertakings 722.8 19.0 36.4
Retirement benefit surplus 0.1 0.2 0.1
Deferred tax assets 85.0 123.2 110.5
3,381.4 2,586.3 2,775.1
ASSETS - CURRENT
Inventories 1,453.0 1,341.9 1,128.3
Trade and other receivables 9 808.7 721.1 927.8
Derivative financial assets 11 71.6 90.7 47.3
Cash and cash equivalents 359.8 323.7 252.2
2,693.1 2,477.4 2,355.6
TOTAL ASSETS 6,074.5 5,063.7 5,130.7
LIABILITIES - NON CURRENT
Lease liabilities (692.6) (480.5) (558.2)
Borrowings (1,482.0) (1,155.0) (1,118.2)
Retirement benefit obligations (2.0) (1.3) (1.9)
Deferred tax liabilities (14.6) (25.9) (13.0)
Provisions 10 (193.3) (230.7) (214.5)
(2,384.5) (1,893.4) (1,905.8)
LIABILITIES - CURRENT
Borrowings - - (75.0)
Derivative financial liabilities 11 (189.9) (94.5) (327.3)
Trade and other payables (897.1) (752.5) (663.8)
Lease liabilities (155.7) (127.8) (109.6)
Provisions 10 (11.3) (10.9) (9.1)
Current tax liabilities (41.8) (82.9) (52.0)
(1,295.8) (1,068.6) (1,236.8)
TOTAL LIABILITIES (3,680.3) (2,962.0) (3,142.6)
NET ASSETS 2,394.2 2,101.7 1,988.1
EQUITY
Share capital 64.1 64.1 64.1
Share premium 874.3 874.3 874.3
Treasury shares reserve (770.6) (770.6) (770.6)
Permanent contribution to capital 0.1 0.1 0.1
Capital redemption reserve 8.0 8.0 8.0
Foreign currency translation reserve 32.3 24.7 22.1
Reverse combination reserve (987.3) (987.3) (987.3)
Own share reserve (66.8) (66.8) (66.8)
Hedging reserve 11 6.4 22.3 7.5
Share-based payment reserve 4.7 58.9 60.1
Revaluation reserve 1.2 1.2 1.2
Retained earnings 3,196.9 2,842.6 2,747.4
Issued capital and reserves attributable to owners of the parent 2,363.3 2,071.5 1,960.1
Non-controlling interests 30.9 30.2 28.0
TOTAL EQUITY 2,394.2 2,101.7 1,988.1
The accompanying accounting policies and notes form part of these condensed
consolidated financial statements.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE 26 WEEKS ENDED 26 OCTOBER 2025
26 weeks ended 26 weeks ended
26 October 2025 27 October 2024
(unaudited) (unaudited)
(restated) ((1))
£m £m
Profit before income tax from:
Continuing operations 412.1 209.0
Discontinued operation 32.4 2.5
Profit before taxation including discontinued operations 444.5 211.5
Net finance costs 31.3 59.2
Net investment (income)/costs (221.8) 0.6
(Gain)/loss on disposal of subsidiaries (33.8) 0.8
Depreciation of property, plant and equipment 159.9 133.0
Amortisation of intangible assets 2.0 1.8
Net impairment/ (impairment reversals) of tangible and intangible assets 67.8 (14.5)
(Gain)/loss on modification/remeasurement of lease liabilities (5.7) 21.3
Profit on disposal of property, plant and equipment (0.4) (0.3)
Share of profit of associated undertakings (1.8) (1.0)
Gain on bargain purchase - (6.7)
Employee bonus scheme (credit)/charge (11.2) 4.7
Operating cash inflow before changes in working capital 430.8 410.4
Increase in receivables (56.8) (2.4)
(Increase)/decrease in inventories (153.7) 13.4
Increase in payables 84.9 52.0
Decrease in provisions (21.0) (17.4)
Cash inflows from operating activities 284.2 456.0
Income taxes paid (80.9) (76.7)
Net cash inflows from operating activities 203.3 379.3
Proceeds on disposal of property, plant and equipment and investment property 0.5 6.4
Proceeds on disposal of listed investments 4.3 76.3
Proceeds in relation to equity derivatives 88.7 60.0
Proceeds in relation to disposal of subsidiaries 7.5 -
Purchase of subsidiaries, net of cash acquired (123.0) (16.4)
Purchase of property, plant and equipment, intangible assets and investment (175.6) (210.7)
property
Purchase of listed investments and associates (198.2) (524.9)
Dividends received from associated undertakings 12.5 -
Reduction in deposits relating to equity derivatives 958.8 711.8
Increase in deposits relating to equity derivatives (712.5) (755.6)
Investment income received 0.2 3.4
Finance income received 4.0 8.8
Net cash outflows from investing activities (132.8) (640.9)
Lease payments (92.4) (81.5)
Finance costs paid (80.6) (38.2)
Borrowings drawn down 921.1 619.5
Borrowings repaid (715.4) (270.7)
Net cash inflows from financing activities 32.7 229.1
Net increase/(decrease) in cash and cash equivalents including overdrafts 103.2 (32.5)
Exchange movement on cash balances 4.4 (2.4)
Cash and cash equivalents including overdrafts at beginning of period 252.2 358.6
Cash and cash equivalents including overdrafts at the period end 359.8 323.7
((1) Restated to reflect the classification of the results of
Game Spain and Coventry Arena as discontinued operations. Please refer to note
1 for further information.)
The accompanying accounting policies and notes form part of these condensed
consolidated financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 26 WEEKS ENDED 26 OCTOBER 2025 (unaudited)
Share Share premium Treasury shares reserve Share-based payment reserve Foreign currency translation reserve Own share reserve Retained earnings Other Total attributable to owners of Non-controlling Total
capital parent interests
(£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m)
At 27 April 2025 64.1 874.3 (770.6) 60.1 22.1 (66.8) 2,747.4 (970.5) 1,960.1 28.0 1,988.1
Acquisition and disposal of subsidiaries - - - - - - - - - 0.1 0.1
Share scheme - - - (55.4) - - 64.1 - 8.7 - 8.7
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS - - - (55.4) - - 64.1 - 8.7 0.1 8.8
Profit for the financial period - - - - - - 330.9 - 330.9 2.8 333.7
OTHER COMPREHENSIVE INCOME
Cashflow hedges - recognised in the period - - - - - - - 12.2 12.2 - 12.2
Cashflow hedges - reclassified and reported in sales - - - - - - - (20.8) (20.8) - (20.8)
Cashflow hedges - reclassified and reported in inventory/cost of sales - - - - - - - 7.3 7.3 - 7.3
Cashflow hedges - taxation - - - - - - - 0.2 0.2 - 0.2
Fair value adjustment in respect of long-term financial assets - recognised - - - - - - 60.5 - 60.5 - 60.5
Translation differences - Group - - - - 10.2 - - - 10.2 - 10.2
Share of other comprehensive loss of associates - - - - - - (6.0) - (6.0) - (6.0)
Total comprehensive income for the period - - - - 10.2 - 385.4 (1.1) 394.5 2.8 397.3
At 26 October 2025 64.1 874.3 (770.6) 4.7 32.3 (66.8) 3,196.9 (971.6) 2,363.3 30.9 2,394.2
( )
FOR THE 26 WEEKS ENDED 27 OCTOBER 2024 (unaudited)
Share Share premium Treasury shares reserve Share-based payment reserve Foreign currency translation reserve Own share reserve Retained earnings Other Total attributable to owners of Non-controlling Total
capital parent interests
(£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m)
At 28 April 2024 64.1 874.3 (770.6) 51.4 25.7 (66.8) 2,623.0 (956.3) 1,844.8 28.2 1,873.0
Acquisition and disposal of subsidiaries - - - - - - - - - (1.4) (1.4)
Share scheme - - - 7.5 - - - - 7.5 - 7.5
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS - - - 7.5 - - - - 7.5 (1.4) 6.1
Profit for the financial period - - - - - - 155.3 - 155.3 3.4 158.7
OTHER COMPREHENSIVE INCOME
Cashflow hedges - recognised in the period - - - - - - - 5.8 5.8 - 5.8
Cashflow hedges - reclassified and reported in sales - - - - - - - (3.5) (3.5) - (3.5)
Cashflow hedges - reclassified and reported in inventory/cost of sales - - - - - - - (1.4) (1.4) - (1.4)
Cashflow hedges - taxation - - - - - - - (0.3) (0.3) - (0.3)
Fair value adjustment in respect of long-term financial assets - recognised - - - - - - 64.3 - 64.3 - 64.3
Translation differences - Group - - - - (1.0) - - - (1.0) - (1.0)
Total comprehensive income for the period - - - - (1.0) - 219.6 0.6 219.2 3.4 222.6
At 27 October 2024 64.1 874.3 (770.6) 58.9 24.7 (66.8) 2,842.6 (955.7) 2,071.5 30.2 2,101.7
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL INFORMATION
FOR THE 26 WEEKS ENDED 26 OCTOBER 2025
1. BASIS OF PREPARATION
Non-Statutory
The results for the first half of the financial year have not been audited or
reviewed by external auditors. The financial information in the Group's Annual
Report and Financial Statements for the 52-week period ended 27 April 2025 is
prepared in accordance with UK-adopted International Accounting Standards and
the requirements of the Companies Act 2006 and which have been delivered to
the Registrar of Companies. The Interim Results have been prepared on the
basis of the policies set out in the 2025 Annual Report and in accordance with
International Accounting Standard (IAS) 34 'Interim Financial Reporting' as
adopted by the UK and the Disclosure Guidance and Transparency Rules of the
UK's Financial Conduct Authority (DTR). The Interim Results do not include all
of the information required for full annual statements and should be read in
conjunction with the 2025 Annual Report.
The summary of results for the 52 weeks ended 27 April 2025 is an extract from
the published Annual Report and Financial Statements which have been reported
on by the Group's auditors at the time and delivered to the Registrar of
Companies. The audit report was unqualified, did not draw attention to any
matters by way of emphasis and did not contain a statement under s498 (2) or
s498 (3) of the Companies Act 2006.
Going Concern
The Directors have reviewed the current financial performance and liquidity of
the business, including modelling a number of downside scenarios. The Group is
profitable, highly cash generative and has considerable financial resources.
The Group is able to operate within its banking facilities and covenants,
which run until July 2028 and is well placed to take advantage of strategic
opportunities as they arise. As a consequence, the Directors believe that the
Group is well placed to manage its business risks successfully despite the
continued uncertain economic outlook.
Management have assessed the level of trading and have forecast and projected
a conservative base case scenario and also a number of even more conservative
scenarios taking into account the Group's open positions in relation to
various option positions. These forecasts and projections show that the Group
will be able to operate within the current facility and its covenant
requirements (being interest cover and net debt to EBITDA ratios). Management
have also identified a number of mitigating actions which could be taken if
required such as putting on hold discretionary spend, liquidating certain
assets on the balance sheet and paying down the Revolving Credit Facility.
Having thoroughly reviewed the performance of the Group and Parent Company and
having made suitable enquiries, the Directors are confident that the Group and
Parent Company have adequate resources to remain in operational existence for
the foreseeable future which is at least 12 months from the date of these
financial statements. Trading would need to fall significantly below levels
observed during the pandemic to require mitigating actions or a relaxation of
covenants. On this basis, the Directors continue to adopt the going concern
basis for the preparation of these condensed consolidated financial
statements.
New accounting standards, interpretations and amendments adopted by the Group
The principal accounting policies have remained unchanged from those applied
for the 52 week period ended 27 April 2025 except as noted below.
Several amendments apply for the first time during the period but have not
resulted in any changes to the Group's accounting policies or had any other
material impact on the financial position or performance of the Group. The
Group continues to monitor the potential impact of new standards and
interpretations which have been or may be endorsed and require adoption by the
Group in future reporting periods. The Group does not consider that any
standards, amendments or interpretation issued by the UK Endorsement Board,
but not yet applicable, will have a significant impact on the condensed
consolidated financial statements.
Risks and uncertainties
The Board has considered the risks and uncertainties for the remaining half of
the financial year and determined that the risks and the level of risks
presented in the FY25 Annual Report, noted below, also remain relevant for the
rest of the financial year and that there aren't any further risks or
uncertainties to add at this stage:
· Strategy
· Third-party brand relationships, key suppliers and supply chain
management
· Global macro-economic conditions, events (pandemic) or political
factors
· Treasury, liquidity and credit risks
· Customer
· Governance and regulatory compliance
· Technology capability and infrastructure renewal
· Cyber risks, data loss and data privacy
· Business continuity management and incident response
· Group Entities, Mergers and Acquisitions
· People, talent management and succession
· Environmental, social & governance (ESG)
· Property
Detailed explanations of the principal risks and uncertainties can be found in
the Principal Risks and Uncertainties section of the FY25 Annual Report.
Restated Financial Information
Reclassification of delivery income and costs associated with free-issue gift
vouchers
Following a review of financial reporting processes undertaken during the
prior period, management identified that income received from customers in
respect of the delivery on online orders and the costs associated with
offering free-issue gift vouchers (essentially a discount against a future
order) had been incorrectly classified within selling, distribution and
administrative expenses rather than within revenue.
The results for the prior period have been restated on an equivalent basis
resulting in a £50.4m increase to revenue (and consequently gross profit) and
a corresponding increase in selling, distribution and administrative expenses.
This change does not impact upon the Group's reported profit, earnings per
share, consolidated balance sheet or consolidated cashflow statement in either
the current or prior period.
Game Spain
The Group completed the disposal of the Game Spain business on 19 March 2025
by way of selling the entire share capital of Game Spain Iberia, SL to
Guidebridge Opportunities 4, S.L. In accordance with IFRS 5.32, management
considered that Game Spain constituted a separate major line of business that
had been disposed of and that it therefore met the criteria to be classified
as a discontinued operation. Consequently, its results for the current period
have been presented separately as a single line item within the Consolidated
Income Statement. The prior period results have been restated on an equivalent
basis. Please refer to Note 7 in the FY25 Annual Report for further details.
Coventry Arena
The Group completed the disposal of the Coventry Arena business on 23 August
2025 by way of selling the entire share capital of Coventry Areana Opco
Limited, Coventry Arena Propco Limited, Coventry Arena Retail Limited and
Coventry Arena Ipco Limited to Covcityco LTD. In accordance with IFRS 5.32,
management considered that Coventry constituted a separate major line of
business that had been disposed of and that it therefore met the criteria to
be classified as a discontinued operation. Consequently, its results for the
current period have been presented separately as a single line item within the
Consolidated Income Statement. The prior period results have been restated on
an equivalent basis.
2. CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES
Climate Change
We have considered the potential impact of climate change in preparing these
financial statements. Tackling climate change is a global imperative and
measures which support climate change initiatives and our wider ESG agenda
continue to be key components of our strategic direction, supporting
sustainability, the broader social agenda and consumer choice. The risks
associated with climate change have been deemed to be arising in the medium to
long term and we are working to mitigate these risks as detailed within the
TCFD section of the FY25 Annual Report.
We have considered climate change as part of our cash flow projections within
going concern, impairment assessments and viability, and the impact of climate
change is not deemed to have a significant impact on these assessments
currently and therefore they are not deemed to be a key source of estimation
uncertainty. The Group will continue to monitor the impacts of climate change
over the coming years.
Determining Related Party Relationships
Management determines whether a related party relationship exists by assessing
the nature of the relationship by reference to the requirements of IAS 24
Related Party Disclosures. This is in order to determine whether significant
influence exists as a result of control, shared directors or parent companies,
or close family relationships. The level at which one party may be expected to
influence the other is also considered for transactions involving close family
relationships.
Control and Significant Influence Over Certain Entities
Under IAS 28 Investments in Associates and Joint Ventures if an entity holds
20% or more of the voting power of the investee, it is presumed that the
entity has significant influence, unless it can clearly demonstrate that this
is not the case.
In assessing the level of control that management have over certain entities,
management will consider the various aspects that allow management to
influence decision making. This includes the level of share ownership, board
membership, the level of investment and funding, and the ability of the Group
to influence operational and strategic decisions and affect its returns
through the exercise of such influence. If management were to consider that
the Group does have significant influence over the entity then the equity
method of accounting would be used and the percentage shareholding multiplied
by the results of the investee in the period would be recognised in profit or
loss.
Where an investment previously accounted for at fair value through OCI under
IFRS 9 becomes an associate, the fair value of the interest held at the date
that significant influence is obtained is deemed to be the cost for the
initial application of equity accounting.
Shareholdings in investees greater than 20%
Mulberry Group plc
Management consider that the Group did not have significant influence at any
point in the current or prior periods for the following reasons:
• There is no participation in decision making and strategic
processes, including participation in decisions about dividends or other
distributions. In this regard, it was noted that there is another shareholder
(Challice Limited) who owns over 50% of the shares.
• There have been no material transactions between the Group and
the investee.
• There has been no interchange of managerial personnel.
• No non-public essential technical management information is
provided by the investee.
Management notes that a representative of the Group was appointed to the board
of Mulberry during the current period. Whilst representation on the board of
directors is an indicator of significant influence, management conclude that,
in this instance, it has not yet given rise to significant influence due to
the make-up of the rest of the board and the presence of a majority
shareholder. Thus, management have not been able to evidence significant
influence in decision making and strategic processes. This position will be
kept under review.
ASOS plc
Management consider that the Group did not have significant influence at any
point in the current or prior periods for the following reasons:
• The Group does not have any representation on the board of
directors.
• There is no participation in decision making and strategic
processes, including participation in decisions about dividends or other
distributions. In this regard, it was noted that there is another shareholder
with a larger shareholding than the Group.
• There have been no material transactions between the Group and
the investee.
• There has been no interchange of managerial personnel.
• No non-public essential technical management information is
provided by the investee.
AO World plc
Management consider that the Group did not have significant influence at any
point in the current or prior periods for the following reasons:
• The Group does not have any representation on the board of
directors.
• There is no participation in decision making and strategic
processes, including participation in decisions about dividends or other
distributions. It was noted that there are a number of other shareholders who
hold large investments comparable to the Group's. These include John Roberts
(the founder of the business) who remains a board director and currently holds
17.5% of the voting rights, and also Camelot Capital who hold 20.4% of the
voting rights. In combination, these other large shareholders could block any
resolutions proposed by the Group.
• There have been no material transactions between the Group and
the investee.
• There has been no interchange of managerial personnel.
• No non-public essential technical management information is
provided by the investee.
Boohoo Group plc
Management consider that the Group did not have significant influence at any
point in the current or prior periods for the following reasons:
• The Group does not have any representation on the board of
directors. The Group attempted to get directors appointed to the Board during
FY25, but these attempts were rebuffed.
• There is no participation in decision making and strategic
processes, including participation in decisions about dividends or other
distributions. It was noted that the Kamani family holds 22.8% of voting
rights in the company and that the two founders of the group are members of
the board of directors. These individuals run the business on a day-to-day
basis and the Group's management do not consider that they exert significant
influence on them.
• There have been no material transactions between the Group and
the investee.
• There has been no interchange of managerial personnel.
• No non-public essential technical management information is
provided by the investee.
Four (Holdings) Limited
The Group holds 49% of the share capital of Four (Holdings) Limited which is
accounted for as an associate using the equity method. The Group does not have
any representation on the board of directors and no participation in decision
making about relevant activities such as establishing operating and capital
decisions, including budgets, appointing or remunerating key management
personnel or service providers and terminating their services or employment.
However, in prior periods the Group has provided Four (Holdings) Limited with
a significant loan. At the reporting date, the amount owed by Four (Holdings)
Limited for this loan totalled £22.5m (FY25: £22.5m), being £6.4m (FY25:
£6.4m) net of amounts recognised in respect of loss allowance. The Group is
satisfied that the existence of these transactions provides evidence that the
entity has significant influence over the investee but in the absence of any
other rights, in isolation it is insufficient to meet the control criteria of
IFRS 10, as the Group does not have power over Four (Holdings) Limited. The
investee is accounted for as an associate under IAS 28.
Tymit Limited
The Group holds 44.2% (FY25: 44.2%) of the share capital of Tymit Limited.
This holding is accounted for as an associate under IAS 28, although the
carrying value of the investment is £nil as a result of management's
assessment of future trading prospects of the business. Management has
advanced Tymit convertible loans of £16.8m at 26 October 2025 (£16.8m as 27
April 2025), which have been fully provided for. Management has considered
whether any of the rights attaching to the loan notes could give rise to
control and concluded that this was not the case.
Kangol LLC
The Group holds 49% of the share capital of Kangol LLC having sold 51% of its
shareholding to Bollman Hat Company for £17.6m during FY24. Management
considered the criteria set out in IFRS 10 when assessing whether or not it
retains control of the entity or significant influence as defined by IAS 28.
It was concluded that the Group has significant influence by virtue of its
holding more than 20% of the voting power of the investee, but not control
since Bollman holds 51% of total voting rights. Consequently, the Group's 49%
shareholding has been accounted for as an associate under IAS 28.
Hudson Holdings ("Hudson")
The Group acquired a 41.8% holding in Hudson during FY25. This holding is
accounted for as an associate under IAS 28 as the Group exhibits significant
influence over the investee, including over strategic decision making.
HUGO BOSS
The Group holds 25.2% of the share capital of HUGO BOSS AG at the period end.
Michael Murray was appointed to the supervisory board on 16 May 2025.
Management consider that the Group held significant influence over the
investee from 16 May 2025 and HUGO BOSS is accounted for as an associate under
IAS 28 from that date.
Accent Group
In May 2025 the Group entered into a long-term partnership with Accent,
increasing its shareholding to 19.9%. A representative of the Group is also on
the board of Accent. Management consider that the Group had significant
influence over the investee from May 2025 and Accent is accounted for as an
associate under IAS 28 from that date.
Cash Flow Hedging
The Group uses a range of forward and option contracts that are entered into
at the same time, are in contemplation with one another and have the same
counterparty. A judgement is made in determining whether there is an economic
need or substantive business purpose for structuring the transactions
separately that could not also have been accomplished in a single transaction.
Management are of the view that there is a substantive distinct business
purpose for entering into the options and a strategy for managing the options
independently of the forward contracts. The forward and options contracts are
therefore not viewed as one instrument and hedge accounting for the forwards
is permitted.
Under IFRS 9 Financial Instruments, in order to achieve cash flow hedge
accounting, forecast transactions (primarily Euro denominated sales and USD
denominated purchases) must be considered to be highly probable. The hedge
must be expected to be highly effective in achieving offsetting changes in
cash flows attributable to the hedged risk. The forecast transaction that is
the subject of the hedge must be highly probable and must present an exposure
to variations in cash flows that could ultimately affect profit or loss.
Management have reviewed the detailed forecasts and growth assumptions within
them and are satisfied that forecasts in which the cash flow hedge accounting
has been based meet the criteria per IFRS 9 as being highly probable forecast
transactions. Should the forecast levels not pass the highly probable test,
any cumulative fair value gains and losses in relation to either the entire or
the ineffective portion of the hedged instrument would be recognised in the
Consolidated Income Statement.
Management considers various factors when determining whether a forecast
transaction is highly probable. These factors include detailed sales and
purchase forecasts by channel, geographical area and seasonality, conditions
in target markets and the impact of expansion in new areas. Management also
consider any change in alternative customer sales channels that could impact
on the hedged transaction.
If the forecast transactions were determined to be not highly probable and all
hedge accounting was discontinued, amounts in the hedging reserve of up to
£6.4m (27 April 25: £7.5m) would be shown in finance income.
Classification of Investment Properties
Upon the acquisition of a property, management perform an assessment of the
rationale for holding the property in line with IAS 40 Investment Property.
Management applies judgement in the consideration of whether or not it is
feasible to sell or let parts of the property under a finance lease, whether
this is commercially viable in the relevant marketplace, and whether or not
any owner-occupied portion is insignificant.
During the current period, the Group acquired five properties, all of which
met the criteria to be classified as investment properties and were considered
to be non-separable, with either insignificant or no owner-occupied portions.
Key Sources of Estimation Uncertainty
The critical estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within
the next financial year are addressed below:
Inventory provisioning
The Group carries significant amounts of inventory, against which there are
provisions for expected losses to be incurred in the sale of slow moving,
obsolete and delisted products. At 26 October 2025 a provision of £182.8m (27
April 2025: £146.8m; 27
October 2024: £173.3m) was held against a gross inventory value of £1,635.8m
(27 April 2025: £1,275.1m; 27 October 2024:
£1,515.2m).
The Group has applied the same inventory provision in FY26 H1 as that set out
in note 2 to the FY25 consolidated financial statements.
Dilapidations - Note 10
The Group provides for its legal responsibility for dilapidation costs
following advice from chartered surveyors and previous experience of exit
costs (including strip out costs and professional fees). Management do not
consider these costs to be capital in nature and therefore dilapidations are
not capitalised, except for in relation to the sale and leaseback of
Shirebrook for which a material dilapidations provision was capitalised in
FY20.
Management calculates its best estimate of the provision required by reference
to the proportion of closed stores for which a dilapidation cost is likely to
be incurred, based on past experience, and an estimate for the level of costs
based on advice from chartered surveyors. The annual movement in the
dilapidations provisions is considered immaterial.
Sensitivity analysis to changes in key assumptions is as follows:
Estimated cost per sq. ft. % of stores where a dilapidation cost is incurred
Base assumption £18.10 20%
Sensitised assumption £19.10/£17.10 25%/15%
Increase to provision £1.7m £6.8m
(Decrease) to provision (£1.7m) (£6.8m)
Legal and regulatory provisions - Note 10
Provisions are made for items where the Group has identified a present legal
or constructive obligation arising as a result of a past event, it is probable
that an outflow of resources will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
Legal and regulatory provisions reflect management's best estimate of the
potential costs arising from the settlement of outstanding disputes of a
commercial and regulatory nature. A substantial portion of the amounts
provided relates to ongoing legal claims and non-UK tax enquiries. Management
have made a judgement to consider all claims collectively given their similar
nature. In accordance with IAS37.92, management have concluded that it would
prejudice seriously the position of the entity to provide further specific
disclosures in respect of amounts provided for non-UK tax enquiries and legal
claims.
Other receivables and amounts owed by related parties
Other receivables and amounts owed by related parties are stated net of
provision for any impairment. Management have applied estimates in assessing
the recoverability of working capital and loan advances made to investee
companies. Matters considered include the relevant financial strength of the
underlying investee company to repay the loans, the repayment period and
underlying terms of the monies advanced, forecast performance of the
underlying borrower, and where relevant, the Group's intentions for the
companies to which monies have been advanced. Management have applied a
weighted probability to certain potential repayment scenarios, with the
strongest weighting given to expected default after two years.
Impairment of Assets
a) IFRS 16 right-of-use assets and associated plant and equipment
IFRS 16 Leases defines the lease term as the non-cancellable period of a lease
together with the options to extend or terminate a lease, if the lessee were
reasonably certain to exercise that option. The Group will assess the
likelihood of extending lease contracts beyond the break date by taking into
account current economic and market conditions, current trading performance,
forecast profitability and the level of capital investment in the property.
IFRS 16 Leases states that the lease payments shall be discounted using the
lessee's incremental borrowing rate where the rate implicit in the lease
cannot be readily determined. Accordingly, all lease payments have been
discounted using the incremental borrowing rate (IBR). The IBR has been
determined by using a synthetic credit rating for the Group which is used to
obtain market data on debt instruments for companies with the same credit
rating, this is split by currency to represent each of the geographical areas
the Group operates within and adjusted for the lease term.
The right of use assets are assessed for impairment at each reporting period
in line with IAS 36 Impairment of Assets to review whether the carrying amount
exceeds its recoverable amount. For impairment testing purposes the Group has
determined that each store is a separate cash generating unit ("CGU"). The
recoverable amount is calculated based on the Group's latest forecast cash
flows which are then extrapolated to cover the period to the break date of the
lease taking into account historic performance and knowledge of the current
market, together with the Group's views on future profitability of each CGU.
The key assumptions in the calculations are the sales growth rates, gross
margin rates, changes in the operating cost base and the pre-tax discount rate
derived from the Group's weighted average cost of capital using the capital
asset pricing model, the inputs of which include a risk-free rate, equity risk
premium and a risk adjustment (Beta). Given the number of assumptions used,
the assessment involves significant estimation uncertainty.
An asset is impaired when the carrying amount exceeds its recoverable amount.
Equally, previous impairments are reversed when the recoverable amount exceeds
the carrying amount and there are previous impairments against the asset.
In the current period, an impairment charge for the amount of £2.5m (FY25 H1:
net reversal £15.2m) was recognised due to certain properties under
performing against forecasted results. This is broken down as follows:
· £0.7m net impairment charge (FY25 H1: £16.8m reversal) against
right-of-use assets; and
· £1.8m impairment charge (FY25 H1: £1.6m charge) against plant
and equipment.
The key assumptions, which are equally applicable to each CGU, in the cash
flow projections used to support the carrying amount of the right of use asset
are consistent with the cashflow projections for the freehold land and
buildings impairment assessment.
A sensitivity analysis has been performed in respect of sales, margin, the new
store exemption and operating costs as these are considered to be the most
sensitive of the key assumptions:
Forecast: Impact of change in assumption: Impairment increase / (decrease) £m
Sales decline year 1 10% improvement to 10% increase (0.1)
Sales decline year 1 10% reduction to 10% decrease 4.3
Existing gross margin year 1 > 40% 100bps - improvement -
Existing gross margin year 1 > 40% 100bps - reduction 0.5
New store exemption (1) Change from 1 to 2 years (0.3)
Operating costs increase year 1 Change from 2% to 4% 0.3
(1) Stores which have been open for less than one year are not reviewed for
impairment. Management do not consider that a trading performance in the first
year that is worse than an appraisal forecast constitutes an indicator of
impairment. Management also notes that new stores can take up to a year to
develop an established trading pattern. Stores trading for less than one year
are still reviewed for impairment if there are other significant indicators of
impairment present such as a deterioration in local market conditions. This
has changed in the current period from a two-year exemption to a one-year
exemption, the impact is not material as shown above.
b) Freehold land and buildings, long-term leasehold, investment property and
associated plant and equipment
Freehold land and buildings and long-term leasehold assets are assessed at
each reporting period for whether there is any indication of impairment in
line with IAS 36 Impairment of Assets.
An asset is impaired when the carrying amount exceeds its recoverable amount.
Equally previous impairments are reversed when the recoverable amount exceeds
the carrying amount and there are previous impairments against the asset. IAS
36 Impairment of Assets defines recoverable amount as the higher of an asset's
or CGU's fair value less costs of disposal and its value in use. the Group has
determined that each store is a separate CGU.
Key triggers considered by management include store (i.e., CGU) EBITDA showing
a material year-on-year movement, significant changes in property valuations,
and whether any new, wider economic factors may impact the forecast
performance. Based on the criteria set by management, an impairment charge of
£18.2m (FY25 H1: £0.7m) was recorded for the current period due to certain
properties under performing against forecasted results. This is broken down as
follows:
· £6.8m impairment charge (FY25 H1: £0.5m impairment charge)
against freehold land and buildings
· £11.4m impairment charge (FY25 H1: £0.2m impairment charge)
plant and equipment
Value in use (VIU)
The value in use is calculated based on a five year cash flow projection. This
is formulated by using the Group's forecast cash flows of each individual CGU,
taking into account historic performance of the CGU, and then adjusting for
the Group's current views on future profitability of each CGU. The key
assumptions in the calculations are the sales growth rates, gross margin
rates, changes in the operating cost base and the pre-tax discount rate
derived from the Group's weighted average cost of capital using the capital
asset pricing model, the inputs of which include a risk-free rate, equity risk
premium and a risk adjustment (Beta). Given the number of assumptions used,
the assessment involves significant estimation uncertainty.
The key assumptions, which are equally applicable to each CGU, in the cash
flow projections used to support the carrying amount of the freehold land and
buildings were as follows:
Key assumptions HY26 Year 1 Year 2 Year 3 Year 4 Year 5
Sales decline - - - - -
Existing gross margin > 40% - - - - -
Operating costs increase per annum 2% 2% 2% 2% 2%
Discount rate 10.6% 10.6% 10.6% 10.6% 10.6%
Terminal growth rate of 2%
Properties purchased within one year, or stores that have not traded for one
year, are not reviewed for impairment.
A sensitivity analysis has been performed in respect of sales, margin and
operating costs as these are considered to be the most sensitive of the key
assumptions.
Forecast: Impact of: Impairment increase / (decrease) (£'m)
Sales decline year 1 10% improvement to 10% sales increase (10.4)
Sales decline year 1 10% reduction to -10% sales decline 11.4
Existing gross margin year 1 > 40% 100bps - improvement (2.4)
Existing gross margin year 1 > 40% 100bps - reduction 2.4
Operating costs increase year 1 Change from 2% to 4% 1.7
Fair value less costs of disposal
For those CGUs where the value in use is less than the carrying value of the
asset, the fair value less costs of disposal has been determined using both
external and internal market valuations. This fair value is deemed to fall
into Level 3 of the fair value hierarchy as per IFRS 13 Fair Value
Measurement. The property portfolio consists of vacant, Frasers Group occupied
and third party tenanted units. One property can include all three types. The
following valuation methodology has been adopted for each:
Scenario Valuation methodology Key assumptions
Vacant units Estimated Rental Value (ERV) and suitable reversionary yield applied to Void period and rent free band - three bands applied depending on
reflect the market to generate a net capital value. A deduction to the capital circumstances:
value generated is then made based on the void period with applicable rates
payable for the unit and rent-free incentive. • 1 year void, 1 years rent free; or
• 1 year void, 2 years rent free; or
• 2 years void, 3 years rent free.
Yield bands - ranging from 6.0% - 20.0%
Frasers Group occupied Will be assumed the unit is vacant given there is no legally binding Void period and rent free band - three bands applied depending on
inter-company agreement in place. Therefore, a void and rent free incentive circumstances:
period assumed, the cost amount then deducted from the capital value generated
by the ERV and reversionary yield. Although we consider the commercial reality • 1 year void, 1 years rent free; or
is that fair value less costs to sell will be higher than vacant possession
this very conservative assumption is in line with both technical accounting • 1 years void, 2 years rent free; or
rules and that of our management experts.
• 2 years void, 3 years rent free.
Yield bands - ranging from 6.0% - 20.0%
Third party tenanted ERV is applied reflecting the market for the applicable unit. An appropriate ERV is applied reflecting the market for the applicable unit. An appropriate
reversionary yield is applied reflecting the risk of tenant and renewal to reversionary yield is applied reflecting the risk of tenant and renewal to
generate a capital value. This will also provide a net initial yield based off generate a capital value. This will also provide a net initial yield based off
the current passing rent. the current passing rent.
A 10% increase in the market valuation amounts used in the impairment
calculations would result in a decrease in impairment of £0.2m (FY25 H1:
£nil).
The total recoverable amount of the assets that were impaired, or on which
impairments were reversed, at the period end was £18.4m (FY25 H1: £64.0m),
with £1.5m (FY24 H1: £nil) of this being based on their fair value less
costs of disposal and £16.9m (FY25 H1: £64.0m) being based on their value in
use.
Credit Customer Receivables
The Group's credit customer receivables are recognised on balance sheet at
amortised cost (i.e., net of provision for expected credit loss). At 26
October 2025, consumer credit receivables with a gross value of £202.6m were
recorded on the balance sheet, less a provision for impairment of £40.6m (27
April 2025: gross value of £254.9m, less a provision for impairment of
£73.2m). The Group has applied the same methodology for calculating expected
credit loss as that detailed in note 2 to the FY25 consolidated financial
statements.
3. SEGMENTAL ANALYSIS
IFRS 8 requires operating segments to be identified on the basis of the
internal financial information reports to the Chief Operating Decision Maker
("CODM") who is primarily responsible for the allocation of resources to
segments and assessment of performance of the segments.
The Group presents five operating segments:
· UK Sports
This segment includes the results of the Group's core sports retail store
operations in the UK, plus all the Group's sports retail online business,
other UK-based sports retail and wholesale operations, GAME UK stores and
online operations, retail store operations in Northern Ireland, Frasers
Fitness, Studio Retail's sales and the Group's central operating functions
(including the Shirebrook campus).
· Premium Lifestyle
This segment includes the results of the Group's premium and luxury retail
businesses FLANNELS, Cruise, Van Mildert, Jack Wills, House of Fraser &
Frasers, Gieves and Hawkes, and Sofa.com along with the related websites, the
businesses acquired from JD Sports, as well as the results from the I Saw it
First website.
· International
This segment includes the results all of the Group's sports retail stores,
management and operating functions in Europe, Asia and the rest of the world,
including the Group's European Distribution Centres in Belgium and Austria,
Twinsport in the Netherlands, Holdsport in South Africa, XXL in the Nordics,
the Baltics & Asia e-commerce offerings, the MySale business in Australia
until its disposal in May 2025, and all non-UK based wholesale and licensing
activities (relating to brands such as Everlast and Slazenger).
· Property
This segment includes the results from the Group's freehold property owning
and long leasehold holding property companies that generate third party rental
and other property related income (e.g., car parking, conference and events
income). The depreciation of freehold and long leasehold owner-occupied
properties is also reported in this segment.
· Financial Services
This segment includes the results of Frasers Group Financial Services. This
includes interest charged on amounts advanced to consumer credit customers,
along with the associated impairment and operating costs.
The operating performance of each segment is assessed by reference to revenue,
gross margin, and profit from trading activities after operating expenses. For
the avoidance of doubt, operating costs in the Group's three retail operating
segments include rents payable to third party landlords. Intra-group rent
payments are eliminated on consolidation.
For the property segment, profit from trading activities includes fair value
gains and losses in respect of investment properties (see further below) and
gains or losses on disposal of properties since the Group's property
businesses seek to generate income from rentals and capital appreciation of
properties held.
In the Financial Services segment, impairment losses on consumer credit
receivables are disclosed within gross margin, which management deem to be the
appropriate treatment for a financial services business.
Depreciation, amortisation and impairments (net of any reversals) are
disclosed as part of each segment's operating profit/(loss).
Net investment and finance income and costs are not split by segment as
management consider that these items relate to the Group as a whole and any
split would not be meaningful.
Segmental information for the 26 weeks ended 26 October 2025 (unaudited):
UK Sports Premium Lifestyle International Retail Property Financial Services Group
Total
(£'m) (£'m) (£'m) (£'m) (£'m) (£'m) (£'m)
Revenue 1,328.1 444.5 736.5 2,509.1 38.7 33.5 2,581.3
Cost of sales (686.0) (254.7) (408.2) (1,348.9) - (10.4) (1,359.3)
Gross profit 642.1 189.8 328.3 1,160.2 38.7 23.1 1,222.0
Gross Margin % 48.3% 42.7% 44.6% 46.2% 100% 69.0% 47.3%
Operating costs (393.6) (128.3) (226.9) (748.8) (1.0) (24.7) (774.5)
Gain on disposal of properties - - - - 0.4 - 0.4
Profit/(loss) from trading 248.5 61.5 101.4 411.4 38.1 (1.6) 447.9
Depreciation & amortisation (64.1) (15.5) (60.3) (139.9) (21.0) (0.1) (161.0)
Impairments net of impairment reversals (18.0) - (29.1) (47.1) (20.7) - (67.8)
Share-based payments 10.7 - 0.5 11.2 - - 11.2
Foreign exchange realised (8.8) - (2.8) (11.6) 1.3 (0.2) (10.5)
Operating profit/(loss) 168.3 46.0 9.7 224.0 (2.3) (1.9) 219.8
Net investment income 221.8
Share of profit of associated undertakings 1.8
Net finance costs (31.3)
Profit before tax 412.1
Result from discontinued operations 32.4
Fair value adjustment to derivative financial instruments (32.4)
Fair value gains and losses on disposal of equity derivatives (120.5)
Realised foreign exchange loss 10.5
Share-based payments (11.2)
Adjusted profit before tax ("APBT") 290.9
Segmental information for the 26 weeks ended 27 October 2024 (unaudited):
((1))
UK Sports Premium Lifestyle International Retail Property Financial Services Group
Total
(£'m) (£'m) (£'m) (£'m) (£'m) (£'m) (£'m)
Revenue 1,409.5 461.4 515.8 2,386.7 26.2 45.7 2,458.6
Cost of sales (748.8) (283.5) (289.6) (1,321.9) - (12.6) (1,334.5)
Gross profit 660.7 177.9 226.2 1,064.8 26.2 33.1 1,124.1
Gross Margin % 46.9% 38.6% 43.9% 44.6% 100.0% 72.4% 45.7%
Operating costs (405.4) (121.6) (171.2) (698.2) (4.8) (20.2) (723.2)
Gain on disposal of properties - - - - 0.3 - 0.3
Profit from trading 255.3 56.3 55.0 366.6 21.7 12.9 401.2
Depreciation & amortisation (61.7) (15.2) (34.7) (111.6) (21.3) (0.7) (133.6)
Impairments net of impairment reversals 5.5 7.3 2.4 15.2 (0.7) - 14.5
Share-based payments (4.7) - - (4.7) - - (4.7)
Foreign exchange realised (4.4) (0.1) (4.4) (8.9) 0.1 - (8.8)
Operating profit/(loss) 190.0 48.3 18.3 256.6 (0.2) 12.2 268.6
Gain on sale of subsidiaries (0.8)
Net investment costs (0.6)
Share of profit of associated undertaking 1.0
Net finance costs (59.2)
Profit before tax 209.0
Result from discontinued operation 2.5
Fair value adjustment to derivative financial instruments 10.2
Fair value losses and losses on disposal of equity derivatives 64.0
Realised foreign exchange loss 8.8
Share-based payments 4.7
Adjusted profit before tax ("APBT") 299.2
(1) Restated to reflect the classification of the results of Game Spain and
Coventry Arena as discontinued operations and the reclassification of delivery
income and costs associated with free-issue gift vouchers from selling,
distribution and administrative expenses to revenue. Please refer to note 1
for further information.
Other segment items included in the income statement for the 26 weeks ended 26
October 2025 (unaudited):
UK Sports Premium Lifestyle International Retail Property Financial Services Group Total
(£'m) (£'m) (£'m) (£'m) (£'m) (£'m) (£'m)
Property, plant & equipment depreciation (43.1) (12.9) (20.8) (76.8) (21.0) (0.1) (97.9)
Property, plant & equipment impairment - - - - (20.0) - (20.0)
IFRS 16 ROU depreciation (20.3) (2.6) (38.2) (61.1) - - (61.1)
IFRS 16 ROU impairment - - - - (0.7) - (0.7)
Intangible amortisation (0.7) - (1.3) (2.0) - - (2.0)
Intangible impairment (18.0) - (29.1) (47.1) - - (47.1)
Other segment items included in the income statement for the 26 weeks ended 27
October 2024 (unaudited): ((1))
UK Sports Premium Lifestyle International Retail Property Financial Services Group Total
(£'m) (£'m) (£'m) (£'m) (£'m) (£'m) (£'m)
Property, plant & equipment depreciation (41.2) (11.4) (15.2) (67.8) (21.3) (0.7) (89.8)
Property, plant & equipment impairment - - (1.6) (1.6) (0.7) - (2.3)
IFRS 16 ROU depreciation (20.5) (3.7) (17.8) (42.0) - - (42.0)
IFRS 16 ROU impairment reversal 5.5 7.3 4.0 16.8 - - 16.8
Intangible amortisation - (0.1) (1.7) (1.8) - - (1.8)
(1) Restated to reflect the classification of the results of Game Spain and
Coventry Arena as discontinued operations. Please refer to note 1 for further
information.
4. INVESTMENT INCOME
26 weeks ended 26 weeks ended
26 October 2025
27 October 2024
(unaudited) (unaudited)
(£m) (£m)
Premiums received on equity derivatives 101.1 60.0
Fair value gain on equity derivatives 128.1 9.9
Dividend income 0.2 3.4
229.4 73.3
5. INVESTMENT COSTS
26 weeks ended 26 weeks ended
26 October 2025
27 October 2024
(unaudited) (unaudited)
(£m) (£m)
Loss on disposal of equity derivatives 7.6 73.9
7.6 73.9
6. FINANCE INCOME
26 weeks ended 26 weeks ended
26 October 2025
27 October 2024
(unaudited) (unaudited)
(£m) (£m)
Bank interest receivable 4.1 6.6
Other finance income 4.0 2.2
Fair value adjustment to derivatives 36.6 -
44.7 8.8
7. FINANCE COSTS
26 weeks ended 26 weeks ended
26 October 2025
27 October 2024
(unaudited) (unaudited)
(£m) (£m)
Interest on bank loans and overdrafts 49.6 41.7
Other interest 6.6 3.9
IFRS 16 lease interest 15.6 12.2
Fair value adjustment to derivatives 4.2 10.2
76.0 68.0
The fair value adjustment to derivative financial instruments relates to
differences between the fair value of forward foreign currency contracts and
written options that were not designated for hedge accounting from one period
end to the next and fair value movements in respect of interest rate swaps.
8. EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY SHAREHOLDERS
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders of the parent by the weighted average number of
ordinary shares outstanding during the period.
For diluted earnings per share, the weighted average number of shares,
432,929,122 (27 October 2024: 432,929,122), is adjusted to assume conversion
of all dilutive potential ordinary shares under the Group's share schemes,
being nil (27 October 2024: nil). There is therefore no difference between the
basic and diluted EPS calculations for all periods. Shares bought back into
treasury and own shares held are deducted when calculating the weighted
average number of shares below.
BASIC AND DILUTED EARNINGS PER SHARE
26 weeks ended 26 weeks ended 26 weeks ended
26 October 2025
26 October 2025
26 October 2025
(unaudited) (unaudited) (unaudited)
Basic and diluted, continuing operations Basic and diluted, discontinued operations Basic and diluted, total
£m £m £m
Profit for the period 298.5 32.4 330.9
Number in millions Number in millions Number in millions
Weighted average number of shares 432.9 432.9 432.9
Pence per share Pence per share Pence per share
Earnings per share 68.9 7.5 76.4
26 weeks ended 26 weeks ended 26 weeks ended
27 October 2024
27 October 2024
27 October 2024
(unaudited) (unaudited) (unaudited)
Basic and diluted, continuing operations Basic and diluted, discontinued operations Basic and diluted, total
£m £m £m
Profit for the period 152.8 2.5 155.3
Number in millions Number in millions Number in millions
Weighted average number of shares 432.9 432.9 432.9
Pence per share Pence per share Pence per share
Earnings per share 35.3 0.6 35.9
ADJUSTED EARNINGS PER SHARE
The adjusted earnings per share reflects the underlying performance of the
business compared with the prior period and is calculated by dividing adjusted
earnings by the weighted average number of shares for the period. Adjusted
earnings is used by management as a measure of profitability within the Group.
Adjusted earnings is defined as profit for the period attributable to equity
holders of the parent for each financial period but excluding the post-tax
effect of certain non-trading items. Tax has been calculated with reference to
the effective rate of tax for the Group.
The Directors believe that the adjusted earnings and adjusted earnings per
share measures provide additional useful information for shareholders on the
underlying performance of the business and are consistent with how business
performance is measured internally. Adjusted earnings is not a recognised
profit measure under IFRS and may not be directly comparable with adjusted
profit measures used by other companies.
26 weeks ended 26 weeks ended 26 weeks ended 26 weeks ended
26 October 2025
26 October 2025
27 October 2024
27 October 2024
(unaudited) (unaudited) (unaudited) (unaudited)
Basic Diluted Basic Diluted
£m £m £m £m
Profit for the period 330.9 330.9 155.3 155.3
Pre-tax adjustments to profit for the period for the following items:
Fair value adjustment to derivatives included within finance costs/(income) (32.4) (32.4) 10.2 10.2
Fair value movement and losses on disposal of equity derivatives (120.5) (120.5) 64.0 64.0
Realised foreign exchange loss/(gain) 10.5 10.5 8.8 8.8
Share-based payments (11.2) (11.2) 4.7 4.7
Tax adjustments on the above items 38.4 38.4 (22.3) (22.3)
Adjusted profit for the period 215.7 215.7 220.7 220.7
Number in millions Number in millions
Weighted average number of shares 432.9 432.9 432.9 432.9
Pence per share Pence per share
Adjusted earnings per share 49.8 49.8 51.0 51.0
9. TRADE AND OTHER RECEIVABLES
26 weeks ended 26 weeks ended 52 weeks ended
26 October 2025
27 October 2024
27 April 2025
(unaudited) (unaudited)
(audited)
(£m) (£m)
(£m)
Gross credit customer receivables 202.6 276.1 254.9
Allowance for expected credit loss on credit customer receivables (40.6) (80.5) (73.2)
Net credit customer receivables 162.0 195.6 181.7
Trade receivables 53.9 93.1 64.9
Deposits in respect of derivative financial instruments 276.4 182.8 522.7
Amounts owed by related parties 8.3 13.3 7.3
Other receivables 135.2 119.4 64.2
Prepayments 172.9 116.9 87.0
808.7 721.1 927.8
The Directors consider that the carrying amount of trade and other receivables
approximates to their fair value. The maximum exposure to credit risk at the
reporting date is the carrying value of each class of asset above, plus any
cash balances. Other receivables also include unremitted sales receipts.
Deposits in respect of derivative financial instruments are collateral to
cover margin requirements for derivative transactions held with
counterparties. The collateral requirement changes with the market (which is
dependent on share price, interest rates, time to maturity and volatility) and
further purchases / sales of underlying investments held.
10. PROVISIONS
26 weeks ended 26 October 2025 (unaudited)
Legal and regulatory Property related Financial services related Other Total
(£m) (£m) (£m) (£m) (£m)
At 27 April 2025 101.3 113.2 3.0 6.1 223.6
Acquired through business combinations - - - 0.9 0.9
Amounts provided - - 0.5 2.3 2.8
Amounts utilised / reversed (15.0) (6.2) (0.2) (1.3) (22.7)
At 26 October 2025 86.3 107.0 3.3 8.0 204.6
26 weeks ended 27 October 2024 (unaudited)
Legal and regulatory Property related Financial services related Other Total
(£m) (£m) (£m) (£m) (£m)
At 28 April 2024 123.7 124.1 8.2 3.0 259.0
Amounts provided - 10.4 - 0.1 10.5
Amounts utilised / reversed (5.1) (22.4) - (0.4) (27.9)
At 27 October 2024 118.6 112.1 8.2 2.7 241.6
52 weeks ended 27 April 2025 (audited)
Legal and regulatory Property related Financial services related Other Total
(£m) (£m) (£m) (£m) (£m)
At 28 April 2024 123.7 124.1 8.2 3.0 259.0
Amounts provided 3.7 30.0 0.5 3.8 38.0
Amounts utilised / reversed (26.1) (40.9) (5.7) (0.7) (73.4)
At 27 April 2025 101.3 113.2 3.0 6.1 223.6
Financial services related and other provisions are categorised as current
liabilities, while legal and regulatory and property related provisions are
non-current.
Legal and regulatory provisions
Legal and regulatory provisions reflect management's best estimate of the
potential costs arising from the settlement of outstanding disputes of a
commercial and regulatory nature.
A substantial portion of the amounts provided relates to ongoing legal claims
and non-UK tax enquiries. In accordance with IAS37.92, management have
concluded that it would prejudice seriously the position of the Group to
provide further specific disclosures in respect of amounts provided for legal
claims and non-UK tax enquiries.
The timing of the outcome of legal claims and non-UK tax inquiries is
dependent on factors outside the Group's control and therefore the timing of
settlement is uncertain. After taking appropriate legal advice, the outcomes
of these claims are not expected to give rise to a material loss in excess of
the amounts provided.
Property related provisions
Included within property related provisions are provisions for dilapidations
and onerous lease contracts in respect of the Group's retail stores and
warehouses. Further details of management's estimates are included in note 2.
11. FINANCIAL INSTRUMENTS
(a) Financial assets and liabilities by category and fair value hierarchy
The fair value hierarchy for financial assets and liabilities, which are
principally denominated in Sterling or US Dollars, were as follows:
26 October 2025 (unaudited) Level 1 Level 2 Level 3 Other Total
(£m) (£m) (£m) (£m) (£m)
FINANCIAL ASSETS
Amortised cost:
Trade and other receivables* - - - 629.4 629.4
Cash and cash equivalents - - - 359.8 359.8
Amounts owed by related parties - - - 6.4 6.4
FVOCI:
Long Term Financial Assets (Equity Instruments) 477.6 - - - 477.6
Derivative financial assets (FV):
Foreign forward purchase and sales contracts - 54.4 - - 54.4
Derivative financial assets - equity options - 3.9 - - 3.9
Interest rate swaps - 13.3 - - 13.3
- 71.6 - - 71.6
FINANCIAL LIABILITIES
Amortised cost:
Non-current borrowings - - - (1,482.0) (1,482.0)
Trade and other payables** - - - (884.4) (884.4)
IFRS 16 lease liabilities - - - (848.3) (848.3)
Derivative financial liabilities (FV):
Foreign forward and written options purchase and sales contracts - (30.8) - - (30.8)
Derivative financial liabilities - equity options - (159.1) - - (159.1)
- (189.9) - - (189.9)
*Prepayments of £172.9m are not included as a financial asset.
**Other taxes including social security costs of £12.7m are not included as a
financial liability.
27 October 2024 (unaudited) Level 1 Level 2 Level 3 Other Total
(£m) (£m) (£m) (£m) (£m)
FINANCIAL ASSETS
Amortised cost:
Trade and other receivables* - - - 590.9 590.9
Cash and cash equivalents - - - 323.7 323.7
Amounts owed by related parties - - - 13.3 13.3
FVOCI:
Long Term Financial Assets (Equity Instruments) 1,007.2 - - - 1,007.2
Derivative financial assets (FV):
Foreign forward purchase and sales contracts - 63.7 - - 63.7
Derivative financial assets - contracts for difference & equity options - 14.6 - - 14.6
Interest rate swaps - 12.4 - - 12.4
- 90.7 - - 90.7
FINANCIAL LIABILITIES
Amortised cost:
Non-current borrowings - - - (1,155.0) (1,155.0)
Trade and other payables** - - - (700.4) (700.4)
IFRS 16 lease liabilities - - - (608.3) (608.3)
Derivative financial liabilities (FV):
Foreign forward and written options purchase and sales contracts - (14.7) - - (14.7)
Derivative financial liabilities - contracts for difference & equity - (79.8) - - (79.8)
options
- (94.5) - - (94.5)
*Prepayments of £116.9m are not included as a financial asset.
**Other taxes including social security costs of £52.1m are not included as a
financial liability.
27 April 2025 (audited) Level 1 Level 2 Level 3 Other Total
(£m) (£m) (£m) (£m) (£m)
FINANCIAL ASSETS
Amortised cost:
Trade and other receivables* - - - 833.5 833.5
Cash and cash equivalents - - - 252.2 252.2
Amounts owed by related parties - - - 7.3 7.3
FVOCI:
Long Term Financial Assets (Equity Instruments) 959.1 - - - 959.1
Derivative financial assets (FV):
Foreign forward purchase and sales contracts - 39.1 - - 39.1
Interest rate swaps - 8.2 - - 8.2
- 47.3 - - 47.3
FINANCIAL LIABILITIES
Amortised cost:
Non-current borrowings - - - (1,193.2) (1,193.2)
Trade and other payables** - - - (638.2) (638.2)
IFRS 16 lease liabilities - - - (667.8) (667.8)
Derivative financial liabilities (FV):
Foreign forward and written options purchase and sales contracts - (46.6) - - (46.6)
Derivative financial liabilities - contracts for difference & equity - (280.7) - - (280.7)
options
- (327.3) - - (327.3)
*Prepayments of £87.0m are not included as a financial asset.
**Other taxes including social security costs of £25.6m are not included as a
financial liability.
(b) Financial assets and liabilities
Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair
value of financial instruments by valuation technique:
• Level 1: quoted (unadjusted) prices in active markets for
identical assets or liabilities;
• Level 2: other techniques for which all inputs which have a
significant effect on the recorded fair value are observable, either directly
or indirectly; and
• Level 3: techniques which use inputs which have a significant
effect on the recorded fair value that are not based on observable market
data.
Contracts for difference are classified as Level 2 as the fair value is
calculated using quoted prices for listed shares at contract inception and the
period end.
Foreign forward purchase and sales contracts and options are classified as
Level 2, the Group enters into these derivative financial instruments with
various counterparties, principally financial institutions with investment
grade credit ratings. Foreign exchange forward contracts and options are
valued using valuation techniques, which employ the use of market observable
inputs. The most frequently applied valuation techniques include forward
pricing and swap models using present value calculations. The models
incorporate various inputs including the credit quality of counterparties,
foreign exchange spot and forward rates, and yield curves of the respective
currencies.
Long-term financial assets such as equity instruments are classified as Level
1 as the fair value is calculated using quoted prices.
Sold options are classified as Level 2 as the fair value is calculated using
other techniques, where inputs are observable.
Trade receivables / payables, amounts owed from related parties, other
receivables / payables, cash and cash equivalents and current / non-current
borrowings are held at amortised cost.
The maximum exposure to credit risk as at 26 October 2025 is the carrying
value of each class of asset in the Balance Sheet, except for amounts owed
from related parties which is the gross carrying amount of £39.3m (27 October
2024: £46.0m, 27 April 2025: £38.7m).
(c) Derivatives: Foreign currency forward contracts
(c)(i) Hedged currency instruments
The most significant exposure to foreign exchange fluctuations relates to
purchases made in foreign currencies, principally the US Dollar, and online
sales in Euros. The Group's policy is to reduce substantially the risk
associated with foreign currency spot rates by using forward fixed rate
currency purchase contracts, taking into account any foreign currency cash
flows. The Group does not hold or issue derivative financial instruments for
trading purposes, however if derivatives, including both forwards and written
options, do not qualify for hedge accounting they are accounted for as such
and accordingly any gain or loss is recognised immediately in the Income
Statement. Management are of the view that there is a substantive distinct
business purpose for entering into the written options and a strategy for
managing the written options independently of the forward contracts. The
forward and written options contracts are therefore not viewed as one contract
and hedge accounting for the forwards is permitted under IFRS 9 Financial
Instruments.
Hedge effectiveness is determined at inception of the hedge relationship and
at every reporting period end through the assessment of the hedged items and
hedging instrument to determine whether there is still an economic
relationship between the two.
The critical terms of the foreign currency forwards entered into exactly match
the terms of the hedged item. As such the economic relationship and hedge
effectiveness are based on the qualitative factors and the use of a
hypothetical derivative where appropriate. Hedge ineffectiveness may arise
where the critical terms of the forecast transaction no longer meet those of
the hedging instrument, for example if there was a change in the timing of the
forecast sales transactions from what was initially estimated, or if the
volume of currency in the hedged item was below expectations leading to
over-hedging. Differences can arise when the initial value on the hedging
instrument is not zero.
The hedged items and the hedging instrument are denominated in the same
currency and as a result the hedging ratio is always one to one.
All derivative financial instruments used for hedge accounting are recognised
initially at fair value and reported subsequently at fair value in the
Statement of Financial Position. To the extent that the hedge is effective,
changes in the fair value of derivatives designated as hedging instruments in
cash flow hedges are recognised in other comprehensive income and included
within the cash flow hedge reserve in equity. Any ineffectiveness in the hedge
relationship is recognised immediately in profit or loss.
At the time the hedged item affects profit or loss, any gain or loss
previously recognised in other comprehensive income is reclassified from
equity to profit or loss and presented as a reclassification adjustment within
other comprehensive income. If a forecast transaction is no longer expected to
occur, any related gain or loss recognised in other comprehensive income is
transferred immediately to profit or loss. If the hedging relationship ceases
to meet the effectiveness conditions, hedge accounting is discontinued, and
the related gain or loss is held in the equity reserve until the forecast
transaction occurs.
The fair value of hedged contracts as at 26 October 2025 was:
26 October 2025 27 October 2024 27 April 2025
(unaudited) (unaudited) (audited)
(£m) (£m) (£m)
Assets
US Dollar purchases - GBP 4.5 -
12.8
Euro sales 43.8 31.3
29.1
Total 48.3 31.3
41.9
Liabilities
US Dollar purchases - GBP (2.2) (8.7)
-
Total (2.2) (8.7)
-
The details of hedged forward foreign currency purchase contracts and
contracted forward rates were as follows:
26 October 2025 (unaudited) 27 October 2024 (unaudited) 27 April 2025 (audited)
Currency (millions) GBP (millions) Rates Currency (millions) GBP (millions) Rates Currency (millions) GBP (millions) Rates
US Dollar purchases (USD / GBP) 620.0 459.1 1.30 - 1.41 720.0 554.4 1.27 - 1.32 560.0 429.1 1.26 - 1.36
Euro sales (EUR / GBP) (300.0) (309.8) 0.95 - 0.99 336.0 329.4 0.98 - 1.08 (240.0) (249.1) 0.95 - 0.98
The timing of the contracts is as follows:
Currency Hedging against Currency value Timing Rates
USD / GBP USD inventory purchases USD 620m FY26 - FY28 1.30 - 1.41
EUR / GBP Euro sales EUR 240m FY28 0.95 - 0.98
Hedge ineffectiveness may arise where the critical terms of the forecast
transaction no longer meet those of the hedging instrument, for example if
there was a change in the timing of the forecast sales transactions from what
was initially estimated or if the volume of currency in the hedged item was
below expectations leading to over-hedging.
At 26 October 2025 £459.1m of purchase contracts (27 October 2024 £554.4m;
27 April 2025: £429.1m) and £249.1m of forward sales contracts (27 October
2024: £329.4m; 27 April 2025: £249.1m) qualified for hedge accounting and
the movement on fair valuation of these contracts of £12.2m (27 October 2024:
£5.8m, 27 April 2025: £5.9m) has therefore been recognised in
other comprehensive income.
At 26 October 2025, £437.0m hedged purchase contracts had a maturity of
greater than 12 months (27 October 2024: £240.m; 27 April 2025: £88.2m) and
£249.1m of hedged sales contracts had a maturity of greater than 12 months
(29 October 2024: £109.3m; 27 April 2025: £249.1m).
The movements through the hedging reserve are:
USD/GBP EUR/GBP USD/EUR Total Hedge Movement Deferred Tax Total Hedging Reserve
As at 28 April 2024 (audited) (1.3) 29.9 - 28.6 (6.9) 21.7
Recognised 9.7 (3.9) - 5.8 - 5.8
Reclassified in sales (3.5) - - (3.5) - (3.5)
Reclassified in inventory / cost of sales - (1.4) - (1.4) - (1.4)
Deferred tax - - - - (0.3) (0.3)
As at 27 October 2024 (unaudited) 4.9 24.6 - 29.5 (7.2) 22.3
Recognised (22.6) 7.8 - (14.8) - (14.8)
Reclassified in sales 3.5 (12.3) - (8.8) - (8.8)
Reclassified in inventory / cost of sales 2.5 1.4 - 3.9 - 3.9
Deferred tax - - - - 4.9 4.9
As at 27 April 2025 (audited) (11.7) 21.5 - 9.8 (2.3) 7.5
Recognised 14.3 (2.1) 12.2 - 12.2
Reclassified in sales - (20.8) - (20.8) - (20.8)
Reclassified in inventory / cost of sales 7.3 - - 7.3 - 7.3
Deferred tax - - - - 0.2 0.2
As at 26 October 2025 (unaudited) 9.9 (1.4) - 8.5 (2.1) 6.4
(c)(ii) Unhedged currency instruments
The sterling principal amounts of unhedged forward contracts and written
currency option contracts and the contracted rates were as follows:
26 October 2025 27 October 2024 27 April 2025
(unaudited) (unaudited) (audited)
(£m) (£m) (£m)
US Dollar purchases - GBP 756.0 170.2 705.4
Contracted rates USD/GBP 1.31 - 1.44 1.4 1.29 - 1.43
US Dollar sales - GBP 48.4 - 48.4
Contracted rates USD/GBP 1.24 - 1.24
US Dollar purchases - EUR - 22.9 -
Contracted rates USD/EUR - 1.3 -
Euro sales 157.9 440.4 631.6
Contracted rates EUR/GBP 1.14 1.1 1.14
Euro purchases 127.7 559.4 550.8
Contracted rates EUR/GBP 1.41 1.20 - 1.22 1.27 - 1.41
AUD income 29.9 119.4 119.4
Contracted rates AUD/GBP 2.0 2.0 2.01
ZAR costs 47.5 - 85.1
Contracted rates ZAR/GBP 25.3 - 23.5
ZAR income 68.6 - -
Contracted rates ZAR/GBP 17.5 - -
NOK costs 34.8 - -
Contracted rates NOK/GBP 13.5 - -
EUR/HUF costs 2.0 - -
Contracted rates HUF/EUR 392.8 - -
Included within finance income, classified within fair value adjustment to
derivatives, is a loss on fair value of unhedged forward contracts, written
currency option contracts and swaps of £28.6m (27 October 2024: loss of
£8.8m included in finance costs, 27 April 2025: loss of £44.5m included in
finance cost).
At 26 October 2025, £822.8m of unhedged purchase contracts had a maturity at
inception of greater than 12 months (27 October 2024: £220.2m, 27 April 2025:
£935.9m) and £162.3m of unhedged sales contracts had a maturity at inception
of greater than 12 months (27 October 2024: £326.6m, 27 April 2025:
£365.5m).
These contracts form part of the treasury management activities, which
incorporates the risk management strategy for areas that are not reliable
enough in timing and amount to qualify for hedge accounting. This includes
acquisitions, disposals of overseas subsidiaries, related working capital
requirements, dividends and loan repayments from overseas subsidiaries and
purchase and sale of overseas property. Written options carry additional risk
as the exercise of the option lies with the purchaser. The options involve the
Group receiving a premium on inception in exchange for accepting that risk and
the outcome is that the bank may require the Group to sell Euros or buy USD.
However, the Group is satisfied that the use of options as a treasury
management tool is appropriate.
The October 2025 values above excludes short term swaps of GBP/NOK of NOK
1,860m, GBP ZAR of ZAR 1,000m, GBP/SEK of SEK 420m, EUR/HUF of HUF 400m, GBP
EUR of EUR 330m, GBP/USD of USD 80m and GBP/AUD of AUD 30m which are required
for treasury management purposes only (27 October 2024: EUR/GBP of EUR 325m
and AUD/GBP of AUD 126m; 27 April 2025: EUR/GBP of EUR 500m and AUD/GBP of AUD
35m of short term swaps).
(d) Interest rate swaps
The Group uses interest rate swaps to manage its exposure to interest rate
movements on its bank borrowings. The Group has one contract in place that
fixes interest payments on variable rate debt. The contract covers a notional
amount of £250.0m and fixes the interest rate at 0.985% per annum until 29
May 2026. The fair value of these interest rate swaps is an asset of £3.9m
(27 April 2025: £8.2m; 27 October 2024: £12.4m). The fair value loss of
£4.2m has been recognised in finance costs classified within fair value
adjustments to derivatives.
Capital Management
The capital structure of the Group consists of equity attributable to the
equity holders of the parent company, comprising issued share capital (less
treasury shares), share premium, retained earnings and cash and borrowings.
It is the Group's policy to maintain a strong capital base so as to maintain
investor, creditor and market confidence and to sustain the development of the
business.
In respect of equity, the Board has decided, in order to maximise flexibility
in the near term with regards to a number of inorganic growth opportunities
under review, not to return any cash by way of a final dividend at this time.
The Board is committed to keeping this policy under review and to looking to
evaluate methods of returning cash to shareholders when appropriate.
The objective of the share scheme is to encourage employee share ownership and
to link employee's remuneration to the performance of the Company. It is not
designed as a means of managing capital. From time to time the Board may
initiate share buy back programmes.
In respect of cash and borrowings, the Board regularly monitors the ratio of
net debt to Reported EBITDA (Pre-IFRS 16), the working capital requirements
and forecasted cash flows, however no minimum or maximum ratios are set
outside of maintaining a ratio of net debt to Reported EBITDA (pre IFRS 16)
below 3.0.
Based on this analysis, the Board determines the appropriate return to equity
holders whilst ensuring sufficient capital is retained within the Group to
meet its strategic objectives, including but not limited to, acquisition
opportunities.
The Group allocates capital in the following order:
- The existing business such as automation and infrastructure
- Growth opportunities such as acquisitions and property purchases
- Strategic investments where the Group believes that there is a
mutually beneficial commercial relationship
- Returns to shareholders in the form of share buy backs
These capital management policies have remained unchanged from the prior
period.
Following the successful refinancing in July 2025 our capital allocation
policy is unchanged to maintain a robust and flexible credit structure, credit
metrics and liquidity - supported by the Group's operational cashflows and
financing facilities - at levels commensurate with an investment grade credit
rating. Following this capital allocation policy, we have a track record of
operating in this manner notwithstanding our significant capital investments
into retail operations, acquisitions, strategic investments, equity buybacks
and real estate. Frasers retains considerable flexibility to optimise
liquidity, and we will continue to manage liquidity proactively in line with
this policy.
12. ACQUISITIONS/INVESTMENTS IN ASSOCIATES
XXL
On 27 June 2025, the Group acquired 100% of the share capital of XXL ASA
('XXL') for consideration of £68.6m. XXL's principal activity is the retail
of sports and outdoor clothing, equipment and accessories across Norway,
Sweden and Finland.
The fair value adjustments to property, plant and equipment and right of use
assets reflects the fair value of tangible assets acquired at the transactions
date.
The acquisition accounting has only been provisionally determined at the end
of the reporting period, due to the acquisition occurring in this first half
of the financial year. The Group will finalise the acquisition balance sheet
within 12 months of the acquisition date in accordance with IFRS 3 Business
Combinations. The process of obtaining a fair valuation of identifiable
intangible assets on acquisition is not complete at the reporting date for
XXL, therefore no provisional amount for these assets is included below.
The goodwill generated on acquisition reflects the expected synergies from
being part of a larger group, leveraging the Group's expertise and
infrastructure to deliver operational efficiencies and support growth in the
Nordic region.
The asset and liability values at acquisition are detailed below:
Book Value Fair Value adjustment Fair values
(Provisional) (Provisional) (Provisional)
(£'m) (£'m) (£'m)
Intangible Assets 5.3 (5.3) -
Investment in subsidiaries 171.8 (171.8) -
Property, plant and equipment 28.2 (23.4) 4.8
Right of use assets - 155.6 155.6
Deferred tax 6.8 (6.8) -
Inventories 145.9 (11.3) 134.6
Trade and other receivables 267.1 (242.8) 24.3
Cash and cash equivalents 40.4 - 40.4
Trade and other payables (451.0) 269.2 (181.8)
Borrowings (62.4) - (62.4)
Lease Liabilities - (186.0) (186.0)
Goodwill - 139.1 139.1
Net assets acquired 152.1 (83.5) 68.6
Transaction costs for the acquisition of XXL totalled £1.4m.
Holdsport
On 26 November 2024, the Group acquired 100% of the share capital of S and R
Holdco (Pty) Ltd ('Holdsport') from OMPE, S&R Management Co and Holdsport
Group Management Trust for £122.9m which is deemed the fair value of the
consideration. The transaction was subject to competition clearance and these
regulatory conditions were met on 16 May 2025.
Holdsport is predominately a South African sportswear retailer but also has
manufacturing, wholesale and e-commerce elements. The business has expanded
with a store opening in Nambia and has diversified into the Premium sector
working with partners such as Jordan, Addidas and PUMA. The acquisition is in
line with Frasers Group's strategy in expanding internationally.
The fair value adjustments to property, plant and equipment and right of use
assets reflects the fair value of tangible assets acquired at the transactions
date.
The acquisition accounting has only been provisionally determined at the end
of the reporting period, due to the acquisition occurring in this first half
of the financial year. The Group will finalise the acquisition balance sheet
within 12 months of the acquisition date in accordance with IFRS 3 Business
Combinations. The process of obtaining a fair valuation of identifiable
intangible assets on acquisition is not complete at the reporting date for
Holdsport, therefore no provisional amount for these assets is included below.
The goodwill generated on acquisition reflects the expected synergies from
combining operations between the Group and the acquiree because of leveraging
the Group's supply chain and operations.
The asset and liability values at acquisition are detailed below:
Book Value Fair Value adjustment Fair values
(Provisional) (Provisional) (Provisional)
(£'m) (£'m) (£'m)
Intangible Assets 63.9 (63.9) -
Investment in subsidiaries 157.8 (157.8) -
Property, plant and equipment 16.0 (7.2) 8.8
Right of use assets 21.3 (4.7) 16.6
Deferred tax 1.4 - 1.4
Inventories 36.9 (0.3) 36.6
Trade and other receivables 3.6 - 3.6
Cash and cash equivalents 2.1 - 2.1
Trade and other payables (19.1) 0.5 (18.6)
Borrowings (19.9) - (19.9)
Lease Liabilities (22.1) 5.0 (17.1)
Provisions (0.9) - (0.9)
Goodwill - 110.3 110.3
Net assets acquired 241.0 (118.1) 122.9
Transaction costs for the acquisition of Holdsport totalled £1.9m.
Summary of HY26 acquisitions
Cash consideration Fair value of strategic investment Total consideration
(£'m) (£'m) (£'m)
XXL 42.6 26.0 68.6
Holdsport 122.9 - 122.9
Total 165.5 26.0 191.5
The asset and liability values of all the acquisitions are summarised below:
Fair values
(Provisional)
(£m)
Property, plant and equipment 13.6
Right of use assets 172.2
Deferred tax 1.4
Inventories 171.2
Trade and other receivables 27.9
Cash and cash equivalents 42.5
Trade and other payables (200.4)
Borrowings (82.3)
Lease Liabilities (203.1)
Provisions (0.9)
Goodwill 249.4
Net assets acquired 191.5
Total transaction costs across all acquisitions totalled £3.3m, the amount
has been recognised within selling, distribution and administrative expenses
in the period.
Since the date of control, the following amounts have been included within the
Group's Financial Statements for the period:
Revenue Profit/(loss)
(£m) before tax
(£m)
XXL 145.3 (4.2)
Holdsport 69.9 5.1
Total 215.2 0.9
Had the acquisitions been included from the start of the period the following
amounts would have been included within the Group's Financial Statements for
the period:
Revenue Profit/(loss)
(£m) before tax
(£m)
XXL 218.0 (6.3)
Holdsport 69.9 5.1
Total 287.9 (1.2)
Reconciliation of net cash outflow from investing activities:
Cash consideration Fair value of cash and cash equivalents acquired Purchase of subsidiaries, net of cash acquired
(£m) (£m) (£m)
XXL 42.6 40.4 2.2
Holdsport 122.9 2.1 120.8
Total 165.5 42.5 123.0
There were no contingent liabilities acquired as a result of the above
transactions.
On 8 October 2025, the Group confirmed that it had purchased the trade and
assets of Webster, ABC LLC for an immaterial amount. The fair value of the
assets acquired and liabilities assumed cannot be quantified as no fair value
exercise has been carried out by the date of this report. Due to the proximity
of this acquisition to the date of issue of these condensed consolidated
financial statements, it is impracticable for the pro forma revenue and profit
to be disclosed.
Investments in associates
Associates
(£m)
At 27 April 2025 36.4
Amounts reclassified from long-term financial assets 569.2
Additions 133.5
Impairments (17.9)
Share of profit 19.7
Share of other comprehensive loss (6.0)
Dividends received (12.5)
Foreign exchange 0.4
At 26 October 2025 722.8
At the point that the Group obtained significant influence, the fair value of
the Group's shareholdings in HUGO BOSS (£458.1m) and Accent Group (£111.1m)
were transferred from long-term financial assets to investments in associates.
The fair value accounting has only been provisionally determined at the end of
the reporting period, due to transfer occurring in this first half of the
financial year.
Additions in the period relate to increases in the Group's shareholding in
HUGO BOSS.
Share of profit of associates includes £19.7m in respect of HUGO BOSS, Accent
Group and Four (Holdings) Limited.
Impairments represent the write-off of the carrying value of investments in
Kangol LLC (£16.9m) and X Channel Marketing Ltd (£1.0m).
On a go-forward basis, the carrying value of investments in associates will be
impacted by the Group's share of profit and other comprehensive income, offset
by dividends received.
13. POST BALANCE SHEET EVENTS
On 20 November 2025, the Group confirmed that it had purchased the share
capital of Braehead Glasgow Limited and Braehead Park Investments Limited from
SGS Limited for consideration of £217.6m. The fair value of the assets
acquired and liabilities assumed cannot be quantified as no fair value
exercise has been carried out by the date of this report.
14. CAPITAL COMMITMENTS
The Group had capital commitments of £12.8m as at 26 October 2025 (27 October
2024: £3.8m; 27 April 2025 £38.9m) relating to property purchases.
15. RELATED PARTY TRANSACTIONS
The Group has taken advantage of the exemptions contained within IAS 24
Related Party Disclosures from the requirement to disclose transactions
between group companies as these have been eliminated on consolidation.
The Group entered into the following material transactions with related
parties:
26 weeks ended 26 October 2025 (unaudited):
Related party Relationship Sales Purchases Trade and other receivables Trade and other payables
(£m) (£m) (£m) (£m)
Four (Holdings) Limited & subsidiaries((1)) Associate 1.5 7.9 7.3 0.5
Mike Ashley((2)) Majority shareholder 1.3 - - -
Reath SW Limited Connected persons - 0.2 - 0.1
X Channel Marketing Limited Associate - 0.6 - -
HUGO BOSS Associate 1.2 49.5 1.0 4.0
(1) The outstanding balance with Four (Holdings) Limited reflects the
funding related to Agent Provocateur. Management consider that the underlying
results of Four (Holdings) Limited supports the recoverability of the
receivables balance. The results of Four (Holdings) Limited are not material
on the basis of net assets and profit before tax, subsequently detailed
disclosures have not been presented under IFRS 12 Disclosure of Interests in
Other Entities.
(2) Use of the Company jet and helicopter are charged at commercial rates.
26 weeks ended 27 October 2024 (unaudited):
Related party Relationship Sales Purchases Trade and other receivables Trade and other payables
(£m) (£m) (£m) (£m)
Four (Holdings) Limited & subsidiaries((1)) Associate 1.3 23.1 12.8 4.1
Mash Holdings Limited Parent company - - 0.2 -
Mike Ashley((2)) Majority shareholder 0.7 - - -
Reath SW Limited Connected persons - 0.3 - 0.1
VX3 Limited Associate - - 0.3 -
IWL Realisations 2023 Ltd Associate 0.4 0.2 - -
Kangol LLC Associate - 0.2 - -
(1) The outstanding balance with Four (Holdings) Limited reflects the
funding related to Agent Provocateur. Management consider that the underlying
results of Four (Holdings) Limited supports the recoverability of the
receivables balance. The results of Four (Holdings) Limited are not material
on the basis of net assets and profit before tax, subsequently detailed
disclosures have not been presented under IFRS 12 Disclosure of Interests in
Other Entities.
(2) Use of the Company jet and helicopter are charged at commercial rates.
52 weeks ended 27 April 2025 (audited):
Related party Relationship Sales Purchases Trade and other receivables Trade and other payables
(£m) (£m) (£m) (£m)
Four (Holdings) Limited & subsidiaries ((1)) Associate 5.1 32.9 7.3 0.4
Mike Ashley ((2)) Majority shareholder 1.3 - - -
Reath SW Limited Connected persons - 0.5 - 0.1
X Channel Marketing Limited Associate - 0.6 - -
IWL Realisations 2023 Ltd Associate 0.4 0.2 - -
Kangol LLC Associate - 0.2 - -
Fulham Football Club Limited Associated entity - 0.1 - -
(1) The outstanding balance with Four (Holdings) Limited reflects the
funding related to Agent Provocateur. Management consider that the underlying
results of Four (Holdings) Limited supports the recoverability of the
receivables balance. The results of Four (Holdings) Limited are not material
on the basis of net assets and profit before tax, subsequently detailed
disclosures have not been presented under IFRS 12.
(2) Use of the Company jet and helicopter are charged at commercial rates.
The trade and other receivables balance with Four (Holdings) Limited includes
a loan balance of £22.5m (gross of amounts recognised in respect of loss
allowance) which attracts interest at a rate of SONIA + 2.5% within current
assets (27 October 2024: £30.0m; 27 April 2025: £22.5m). This has been
accounted for at amortised cost in accordance with IFRS 9 Financial
Instruments. The carrying value has been determined by assessing the
recoverability of the receivable balance, discounted at an appropriate market
rate of interest. £nil was recognised in the period in respect of doubtful
debts. The sales amounts in relation to Four (Holdings) Limited relates to the
interest charge on the loan and the purchases relate to the purchase of
clothing products.
The trade and other receivables balance includes a loan balance of £16.0m due
from Tymit Ltd, an associate. (gross of amounts recognised in respect of loss
allowance; £nil net of amounts recognised in respect of loss allowance).
Reath SW Limited is a company in which Robert Palmer, the Group's Company
Secretary until his resignation on 24 September 2025, is a director. Reath SW
Limited provide professional services to the Group.
David Daly, the Group's chairman until his resignation on 24 September 2025,
is a non-executive director of Fulham, Football Club Limited.
Relationship Between Frasers Group plc and Mike Ashley
Mike Ashley opened his first sports shop in 1982 and built the Frasers Group
into a multi-billion-pound retailer over the next forty years. The Group was
initially floated on the London Stock Exchange in 2007 and following continued
growth Mike stepped down as CEO in 2022. He also stepped down from the Board
of Directors later in 2022 and has no day-to-day involvement or responsibility
for the strategic direction of the Group or any Board matters.
However, given his extensive involvement in leading the business for over
forty years, the Board has an agreement with Mr Ashley, through his own
company MASH Holdings Limited, which provides for management to seek his
expertise in discrete areas where he has specific knowledge, for example in
warehousing, logistics or strategic relationships with the supply chain. He
does not receive any remuneration for providing this advice to management and
has no decision-making powers.
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