Frasers Group warns of £100m-plus hit to asset values
Frasers Group, the Shirebrook-based retail giant which owns Sports Direct, has said it expects to take a £100m hit to its asset value when it reveals its full-year results in April.
In an update to the London Stock Exchange this morning (February 23), Frasers Group said that it will make “material accounting impairment”s to freehold properties, other property, plant and equipmen, and IFRS 16 Right of Use assets.
A statement from the company added: “Given the length of this current lockdown, potential systemic changes to consumer behaviour, and the risk of further restrictions in future, we believe this non-cash impairment could be in excess of £100m.
“Any such impairment would be in addition to impairments included in the half year results announced on 10 December 2020 and is expected to be included, subject to audit, with the company’s results for the financial year ending April 2021.”