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Frasers Group withdraws its outlook for fiscal 2021 on new COVID-19 restrictions

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on Dec 21, 2020
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  • Frasers Group withdraws its outlook for fiscal 2021 on new COVID-19 restrictions.
  • The retailer had originally forecast up to 30% annualised growth in profit.
  • Boohoo Group plc names PKF Littlejohn as its new auditor to replace PwC.

Frasers Group plc (LON: FRAS) said on Monday that it was withdrawing its forecast for fiscal 2021 as the government imposed new restrictions to combat the 2nd wave of the Coronavirus pandemic. The COVID-19 crisis has so far infected 200 thousand people in the United Kingdom and caused over 67 thousand deaths.

All of its stores, Billionaire Mike Ashley’s company said on Monday, were pushed into temporarily shutting down in London due to the new restrictions. Several of its stores in other parts of England were also closed to combat the ongoing pandemic.

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Frasers had forecast up to 30% annualised growth in profit

For fiscal 2021, the retail group had previously forecast its underlying core profit to see a 20% to 30% annualised growth – an outlook that it said it was unable to commit to now amidst the rising new cases of the novel flu-like virus.

Frasers published its financial update for the fiscal first half on 10th December that highlighted a 25% increase in its core earnings. The Shirebrook-based company has been in talks with administrators to acquire British collapsed retailer, Debenhams.

Frasers Group opened about 6% down on Monday and slide another 6% in the next hour. The stock is now exchanging hands at 420 pence per share versus a higher 459 pence per share at the start of the year. Frasers had plummeted in the stock market to as low as 183 pence per share in late March. If you are interested in investing in the stock market online, you will need a reliable stockbroker – here’s a comparison of the top few to make selection easier for you.

At the time of writing, Frasers Group is valued at £2.18 billion and has a price to earnings ratio of 18.68.

Boohoo Group names PKF Littlejohn as its new auditor

In separate news from the British retail sector, Boohoo Group plc (LON: BOO) said its board decided in favour of appointing PKF Littlejohn on Monday as its new auditor. Previously, PwC had been serving as the company’s auditor for almost seven years.

Boohoo Group had originally announced in October that PwC had decided to part ways with the retailer on concerns of a risk to its reputation after an independent review pointed out multiple shortcomings in Boohoo’s supply chain.

Boohoo’s shares slid about 1% in premarket trading on Monday and tanked a little under 1% further on market open.