Final Results, 18 Jul 2024 07:00

18 July 2024, 07:00

Source - LSE Regulatory

RNS Number : 8449W

Frasers Group PLC

18 July 2024

FRASERS GROUP PLC ("Frasers Group", "the Group", or "the Company")

Full year results for the 52 weeks ended 28 April 2024 ("FY24")

Sustained profitable growth

Headlines

· Continued strategic progress against key priorities:

1. Profitable growth

· APBT ⁽¹⁾ of £544.8m (+13.1%), at the top end of our guidance range (£500-£550m).

· Adjusted EPS ⁽¹⁾ of 95.8p (+33.6%).

· Continued strong profitable growth - FY25 APBT expected to be £575m-£625m.

2. Elevation Strategy and brands

· Continued successful execution of Elevation Strategy and strengthened brand partnerships, including onboarding new brands such as The North Face, On and Columbia. This contributed to a strong trading performance especially from Sports Direct, which delivered continuing year-on-year revenue and gross profit growth.

· The continued strength of third-party brand relationships and Sports Direct's positioning, are unlocking further international expansion opportunities. Growing our presence in the Nordics, a joint venture in Southeast Asia, and currently acquiring a leading sports retailer in the Netherlands.

3. Integrations and synergies

· Virtual completion of warehouse automation project increased the efficiency of our warehouse and inventory handling processes resulting in a £138.2m (8.2%) reduction in gross stock holding year-on-year. This represents a £266.7m (14.7%) reduction compared to October 2023 and marks significant progress in reducing the like-for-like gross inventory balance by 5-15% by the end of the calendar year.

· Successful integration of acquisitions which will improve efficiency and profitability in coming years.

· Rolling out a new group-wide digital platform, streamlining and enhancing retail operations and improving consumer experiences across all digital brand channels.

4. Frasers Plus

· Very encouraging early performance of Frasers Plus. We see a great deal of potential for Frasers Plus as a new revenue stream and a key pillar of our brand ecosystem. We have a long-term ambition of £1bn+ in sales, £600m in balances delivering a greater than 15% yield with over 2 million active Frasers Plus customers - this is excluding any third-party partnerships.

· Agreed strategic partnership with THG plc ("THG"), post year-end. The partnership includes the integration of Frasers Plus into THG's Ingenuity platform, benefiting customers across THG's retail sites. This marks the first Frasers Plus partnership with an external partner.

5. Strong balance sheet and cash flow

· The Group's strategy is underpinned by a strong balance sheet with net assets increasing to £1,873.0m even after a £126.4m share buyback programme in the year.

· Cash inflow from operating activities before working capital movements of £834.6m, largely driven by strong trading performance particularly at Sports Direct, down 4.7% year-on-year reflecting the non-repeat of the £95.0m reversal of legal and regulatory provisions in the prior year.

Michael Murray, Chief Executive of Frasers Group:

"This has been a break-out year for building Frasers' future growth. As well as delivering a strong trading performance, particularly from Sports Direct, we made significant progress with our Elevation Strategy. We expanded our retail ecosystem, establishing valuable partnerships with new brands. Our brand relationships have never been stronger, giving us invaluable support as we continue the international expansion of our business. We invested in group-wide operational efficiencies in warehouse automation and digital infrastructure, which we expect to yield a tangible impact as early as FY25. And we generated new growth opportunities with the rollout of Frasers Plus, including recently signing our first third party partner in THG.

I'm really proud of what we have achieved at Frasers this year and would like to thank all colleagues for their continued hard work and our brand partners for their support. Together, we are building a resilient, profitable growth retail ecosystem that delivers exceptional value for our partners, consumers and shareholders. We have built a lot of momentum this year and are entering the new financial year with many exciting growth opportunities ahead of us, which we will continue to invest in for the long-term benefit of the Group."

Outlook

Our successful Elevation Strategy is powering our strong financial performance, with strategic brand relationships giving us better access to product across the Frasers Group. As we move into FY25 and the Summer of Sport, we remain confident that our strategy will drive continued strong performance, and we expect significant synergies from both our automation programme and the integration of acquisitions. We continue to build a diverse business within retail, both in the UK and internationally, and also within financial services and property, that can deliver sustainable multi-year profitable growth. For FY25, we expect to achieve another strong increase in APBT in the range £575m-£625m.

	FY24 52 weeks	FY23 ⁽²⁾ 53 weeks	Change
Income statement summary
UK Sports Retail	£2,860.8m	£2,959.1m	(3.3%)
Premium Lifestyle	£1,204.0m	£1,218.1m	(1.2%)
International Retail	£1,289.2m	£1,247.7m	3.3%
Retail revenue	£5,354.0m	£5,424.9m	(1.3%)
Property	£72.7m	£36.1m	101.4%
Financial Services	£111.0m	£125.0m	(11.2%)
Group revenue	£5,537.7m	£5,586.0m	(0.9%)

Retail gross margin	41.8%	41.5%	+30 bps
Group gross margin	43.3%	42.9%	+40 bps

Retail operating costs	(£1,501.0m)	(£1,506.7m)	0.4%
Retail profit from trading	£738.9m	£745.3m	(0.9%)
Other operating costs	(£73.6m)	(£68.8m)	(7.0%)
Fair value adjustments to investment properties	£11.5m	(£6.5m)	276.9%
Gain on disposal of properties	£3.5m	£95.4m	(96.3%)
Group profit from trading	£835.6m	£908.4m	(8.0%)

Depreciation & amortisation	(£284.6m)	(£242.4m)	(17.4%)
Impairments net of impairment reversals/impairments	(£21.4m)	(£239.7m)	91.1%
Share-based payments	(£23.4m)	(£19.3m)	(21.2%)
Foreign exchange realised	£14.4m	£31.2m	(53.8%)
Exceptional items	-	£97.1m	(100.0%)
Operating profit	£520.6m	£535.3m	(2.7%)

Reported profit before tax ("PBT") from continuing operations	£507.0m	£638.0m	(20.5%)

Exceptional items	-	(£97.1m)
Result from discontinued operations	(£12.5m)	£26.4m
Fair value adjustment to derivative financial instruments	(£27.6m)	(£32.5m)
Fair value losses/(gains) and loss/(profit) on disposal of equity derivatives	£68.9m	(£41.1m)
Foreign exchange realised	(£14.4m)	(£31.2m)
Share-based payments	£23.4m	£19.3m
Adjusted profit before tax ("APBT") ⁽¹⁾	£544.8m	£481.8m	13.1%

Reported basic earnings per share ("EPS")	86.8p	106.9p	(18.8%)
Adjusted basic EPS ⁽¹⁾	95.8p	71.7p	33.6%

Balance Sheet summary
Property, plant & equipment	£962.6m	£1,132.0m	(15.0%)
Investment property	£350.5m	£160.0m	119.1%
Inventories (net of provision)	£1,355.3m	£1,464.9m	(7.5%)
Net assets	£1,873.0m	£1,668.2m	12.3%
Cashflow & capital allocation
Cash inflow from operating activities before working capital	£834.6m	£875.6m	(4.7%)
Net capital expenditure (including sale & leasebacks)	(£211.3m)	(£214.5m)	1.5%
Purchase of own shares	(£126.4m)	(£155.3m)	18.6%

Summary of financial performance

· APBT ⁽¹⁾ increased by 13.1% to £544.8m despite lower profits from the disposal of properties and subsidiaries (£28.5m in the current period vs. £113.0m in prior year) and a £12.5m loss in respect of the Group's acquisition of Matches Fashion (vs. a £26.3m gain on disposal of Bob's in prior year). Property and acquisition related impairments returned to more normalised levels in the current year as a result of the strong trading performance combined with the rationalisation of loss-making stores, and future forecasts outweighing our downside impairment assumptions (a net impairment charge of £21.4m in the current period vs. £239.7m charge in the prior year).

· Retail profit from trading of £738.9m, down 0.9%. A strong trading performance from Sports Direct reflecting the continuing success of the Elevation Strategy and strengthening brand relationships, was broadly offset by expected declines in Game UK and Studio Retail, planned House of Fraser store closures, and a softer luxury market. The previous year's result also included the benefit of a 53^rd week of trading.

· Reported PBT of £507.0m, a decrease of 20.5%. The Group's trading performance has been offset by a decrease in foreign exchange gains, non-cash fair value movements on equity derivatives and the non-repeat of exceptional gains (primarily related to the gain made on businesses acquired from JD Sports Fashion plc).

· Group:

· Retail revenue decreased by 1.3%. A strong trading performance from the core Sports Direct business offset the majority of the planned sales declines in Game UK and Studio Retail, as well as the impact of House of Fraser store closures and a softer luxury market in Premium Lifestyle. Excluding the impact of the 53^rd week from prior year, revenue increased by 0.6%. ⁽³⁾

· Group gross margin % increased to 43.3% from 42.9%, driven by an increase in retail gross margin reflecting improvements in Sports Direct's product mix as a result of strengthening brand relationships mitigated by the softer luxury market.

· UK Sports (51.7% of total group revenue):

· Revenue decreased by 3.3% with Sports Direct largely mitigating planned declines in Game UK and Studio Retail. Excluding the impact of the 53^rd week from prior year, revenue decreased by 1.5%. ⁽³⁾

· Gross profit increased by £28.9m and gross margin increased by +250 bps to 45.5% reflecting an improved product mix at Sports Direct due to strengthening brand relationships, as well as reduced lower margin sales from Game UK and Studio Retail. This contributed to a £13.7m (3.0%) increase in the segment's profit from trading.

· Premium Lifestyle (21.7% of total group revenue):

· We have invested in a unique proposition in our luxury business and are well positioned for the future. Our long-term ambitions for this business remain unchanged, although it is likely that progress will remain subdued for the short to medium term in the face of a softer market. However, we view this as an opportunity for continued consolidation in order to further strengthen our position.

· Revenue decreased by 1.2%, as the impact of planned House of Fraser store closures and a softer luxury market were partially offset by sales from the businesses acquired from JD Sports Fashion plc in H2 of FY23. Excluding the impact of the 53^rd week from prior year, revenue increased by 0.7%. ⁽³⁾

· Segment profit from trading was broadly flat at £137.2m with the planned clearance of surplus inventory from businesses acquired from JD Sports Fashion plc and the impact of continuing closures of legacy House of Fraser stores leading to a 340bps reduction in gross margin to 35.8%. This was offset by overheads savings arising from the closure of House of Fraser stores and acquired businesses being integrated into the Group.

· International Retail (23.3% of total group revenue):

· Revenue increased by 3.3% due to growth from the Sports Direct International business, as well as the acquisition of the MySale business in Australia in mid FY23. Excluding the impact of the 53^rd week from prior year, revenue increased by 5.3%. ⁽³⁾

· Segment profit from trading decreased by £23.3m (14.9%) year on year as gross profit growth (achieved at a lower margin % due to Game Spain (console sales) and MySale) was more than offset by the one-off costs associated with integrating acquired businesses (such as Sportmaster in Denmark), and inflation linked operating cost increases.

· We continue to explore opportunities for growth having invested in our Indonesian joint venture and expect to complete on the purchase of Netherlands retailer, Twinsport post year-end.

· Property (1.3% of total group revenue):

· Property investment remains a key focus for the Group, unlocking occupational demand for our retail business whilst delivering strong property returns that can be recycled at the appropriate time.

· Revenue increased by 101.4%, largely due to the annualisation of the prior year acquisitions of Luton, Dundee and Coventry Arena, as well as the impact of current year acquisitions such as the Castleford shopping centre.

· Segment profit from trading declined by £58.2m, with the equivalent result in FY23 including a £95.4m gain on disposal of properties.

· Financial Services (2.0% of total group revenue):

· We see a great deal of potential for Frasers Plus as a new revenue stream and a key pillar of our compelling brand ecosystem. We are excited to grow our new Financial Services division with a long-term ambition of £1bn+ in sales, £600m in balances delivering a greater than 15% yield with over 2 million active Frasers Plus customers - this is excluding any third-party partnerships.

· Our focus is to prioritise the growth of our new Frasers Plus credit offering and reduce the Studio Retail book. As a result of this, and the planned reduction in sales as Studio Retail was integrated into the Group's warehouse and ecommerce infrastructure, revenue decreased 11.2%.

· Segment profit from trading decreased £8.2m (12.5%) year-on-year with the impairment charge returning to normalised levels (following a release of impairment provision in the prior year as a result of the cost-of-living crisis being less severe than anticipated) and an increase in overhead costs arising from the implementation of Frasers Plus.

· Post year-end, we agreed a strategic partnership with THG. The partnership includes the integration of Frasers Plus into THG's Ingenuity platform, benefiting customers across THG's retail sites. This marks the first Frasers Plus partnership with an external partner.

· Basic EPS of 86.8p, a decrease of 20.1p year-on-year. Adjusted EPS ⁽¹⁾ of 95.8p, an increase of 24.1p (33.6%) due to increased underlying profitability, the impact of share buy-backs and a lower effective tax rate.

· Net assets have increased to £1,873.0m from £1,668.2m at 30 April 2023, due to the profitability of the Group offset by share buybacks.

· Cash inflow from operating activities before working capital movements of £834.6m, largely driven by strong trading performance particularly in Sports Direct, down 4.7% year-on-year reflecting the non-repeat of the £95.0m reversal of legal and regulatory provisions in the prior year.

Acquisitions and investments

· We expect to complete on the purchase of Netherlands retailer, Twinsport post year-end further supporting our growth ambitions in Europe.

· Launched new joint venture in Indonesia to support our expansion plans in Southeast Asia.

· Made further strategic investments as the Group continues to explore opportunities to expand commercial relationships and further develop the Group's ecosystem.

· Strategic disposal of several non-core properties and lesser-performing brands, optimising the Group's portfolio and allowing us to focus on high-growth areas.

Revised segments

Following a review of the Group's operating segments at the start of the 2023/24 financial year, a decision was taken to change the Group's segmental reporting to more accurately reflect the impact of recent acquisitions and strategy changes on how management views the business and makes decisions, and to allow a more granular analysis of the Group's operating base. Further details are given in note 3 to the financial information below.

Other notes

(1) This is an Alternative Performance Measure. APBT is reconciled to the equivalent GAAP measure in note 3 to the financial information. Adjusted EPS is discussed in note 10 to the financial information.

(2) Restated to reflect the Group's revised segmental reporting, the reclassification of rental income and the change in accounting policy regarding the valuation of investment property. Please refer to note 1 of the financial information for details.

(3) A reconciliation to results excluding the 53^rd week in prior year can be found in performance review by segment section below.

Enquiries

Andrew Kasoulis

Investor Relations Director

E. andrew.kasoulis@frasers.group

T. 07826 532191

Ronnie Laffar

Group Head of Communications

E. fgpr@frasers.group

T. 07931 841082

Rosie Oddy

Brunswick Group, PR Advisors

E. frasersgroup@brunswickgroup.com

T. 07557 804 512

CHIEF EXECUTIVE'S REPORT AND BUSINESS REVIEW

Introduction

Reflecting on this past year, I am proud of the strides we have made at Frasers Group and the disciplined execution of our Elevation Strategy, which is bringing the business closer to where we want to be for our consumers, people, brand partners, and shareholders. Despite macro-economic challenges, we continue to remain focused on delivering our Elevation Strategy and further building our brand ecosystem across attractive segments. Given the scale of growth the Frasers Group has experienced in recent years, it is more important than ever to ensure we keep our business simple. With this in mind, from FY24, we have clearly defined our segments as UK Sports Retail, Premium Lifestyle, International Retail, Property and Financial Services to best illustrate our focus areas. FY24 has been an exceptional year. We have delivered a strong financial performance thanks in part to the breadth of our business across these segments, and affirming the Frasers equity story: best brands, diverse growth, and cash compounder.

Best Brands

· Our brand relationships are stronger than they have ever been, unlocking selectively distributed products from the world's best brands.

· Continued commitment to the Elevation Strategy reaffirms our new positioning, creating more opportunities and securing the Group in markets with high barriers to entry.

· The strength of our ecosystem positions us as a key strategic wholesale partner for the world's best brands, giving them access to new consumers, an elevated omni-channel experience, and an aligned wholesale strategy.

Diverse Growth

· While Sport has always and continues to be a core tenet of the business, we have exciting profitable growth opportunities across a diverse range of segments including differentiated retail and international opportunities and, most recently, property and financial services.

· A focus on leveraging these new revenue streams for the Group whilst fixating on profitable growth.

Cash Compounder

· Frasers Group is highly cash generative and a cash compounder, consistently generating new and diverse profit growth opportunities.

· The business has delivered £3.7bn in operating cash over the last 9 years which has been reinvested, funding the Elevation Strategy which started in 2016, and delivered great value for all stakeholders whilst maintaining consistently low leverage.

· This impressive cash compounder model is supported by conservative, consistent and simple accounting principles.

Financials

We have seen strong trading momentum across much of our diversified portfolio, especially in Sports Direct, underscoring the resilience of our operations and the strength of our business. We continue our practice of adopting conservative, consistent, and simple accounting principles. This disciplined approach to our balance sheet ensures that stakeholders have a transparent view of the value creation within the business.

Our financial performance has been robust, with our cash compounder model driving significant returns. We maintained strong financials across our diverse growth sectors, including Retail across multiple sectors, international markets, Property, and Financial Services. Our commitment to a strong balance sheet provides a solid foundation for future growth and stability, positioning us well to capitalise on emerging opportunities.

Key financial metrics include:

· UK Sports segment gross margin increased 250bps to 45.5% demonstrating the strength of our proposition and brand relationships, and improving product access.

· Adjusted PBT ⁽¹⁾ increased to £544.8m (13.1%) driven particularly by Sports Direct, and more normalised impairment levels as results and forecasts outperform downside assumption scenarios.

· Adjusted EPS ⁽¹⁾ up 33.6% to 95.8p due to improved profitability supported by the significant share buy-back programme in the year and lower effective tax rate.

· Net assets have increased 12.3% to £1.9bn.

· £126.4m of capital returned to shareholders by way of share buy-backs in the year.

· Very strong cash inflow from operating activities before working capital movements of £834.6m versus the prior year of £875.6m, which included £95.0m of legal and regulatory provision reversals not repeated in the current year.

· Continued self-funded growth of the Group and investment in the Elevation Strategy with leverage remaining consistently low.

Retail

Our mission at Frasers Group is to build the planet's most admired and compelling brand ecosystem. We obsess over our relationships with the best brands across Sport, Premium and Luxury. Part of the strength of our ecosystem is its diversity: no single brand supplier represents more than 15% of our total Group sales. Our brand portfolio is strengthened by an ever-evolving roster of new brands, such as The North Face, ON, Salomon, Columbia and Alo Yoga, which we have onboarded this year. Importantly, this is underpinned by Frasers' owned brands, which generate higher gross margin for the Group. This brand mix not only provides consumers with a wide selection of products across sectors but also provides varied price points to serve different consumer groups. As brands continue to evaluate their direct-to-consumer model, wholesale partners are becoming increasingly imperative. Our Elevation Strategy has enabled clear alignment with the world's best brands making us a key strategic partner and presenting us with greater opportunities.

The mutual value of our brand relationships came to life at the Frasers Festival held in May, where over 40 of our strategic brand partners joined us for two days to celebrate and foster collaboration. We had founders and CEOs join us from the world's biggest brands, such as Kevin Plank, Founder and CEO of Under Armour, Bjørn Gulden, CEO of adidas, Daniel Grieder, CEO of Hugo Boss, Marc Maurer, Co-CEO of ON, and more. It was fantastic to celebrate our achievements together and their endorsement of Frasers Festival 2024 truly demonstrated their trust in the repositioning of our business and their alignment to-- our vision.

Sports Direct continues to reinforce its position as an undisputed leader in Sport. The Sport industry is not slowing down; high consumer demand, coupled with our unique proposition continues to drive profitable growth for the division. In FY24, we have built on our strong foundations with the successful roll-out of new elevated stores, experiential-led flagship store openings and best-in-class category concepts. We will continue to invest significantly in our store estate over the coming years, always ensuring our robust payback model for store investment is adhered to. In line with our international expansion ambition, we have made meaningful progress with acquiring the intellectual property of sporting goods retailers Perry Sport, and Atkiesport, and contracted to acquire Twinsport post year-end - which now makes us the #1 top Sport retailer in Benelux. We have increased our equity investment in Norwegian sports retailer, XXL and remain close to agreeing a strategic partnership to further develop our presence across the Nordics. We are also excited about our joint venture with international retail giant, PT MAP Active, having already opened 3 stores in Indonesia. We will be further growing our presence across Southeast Asia and are very excited about the opportunities that arise from this partnership.

While Sport moves from strength-to-strength, our Premium and Luxury division experienced the softening of the global luxury market felt by most high-end retailers and brands. We made the difficult but necessary decision to put MATCHES into administration once it became clear that too much further investment would be required to sustain the business. Following an extensive process by the Joint Administrators, we reached an agreement to acquire certain intellectual property assets. We remain committed to the luxury market and, whilst the environment is likely to remain challenging for the medium-term, we are confident in our well-invested and differentiated proposition with FLANNELS; we have strong relationships with key brand partners and remain well-placed to capitalise on longer-term opportunities. In our Premium division, we have made good progress on consolidating the House of Fraser store estate and introduced other Frasers Group fascias to make the retail space more productive whilst increasing the product offering for the consumer. This new retail model with more of our concepts under one roof is proving hugely attractive and is a commercial way to incorporate multiple fascias together.

Over the last 12 months, we have made excellent progress on our warehouse automation programme across our supply chain, which is set to transform our Group-wide retail operations. The project is now 99% complete and already enabling further Group efficiencies and synergies, and we have already made significant headway rationalising our stock holding by £138.2m year-on-year.

This improvement in our operations enables us to accelerate the integrations of acquisitions, unlocking potential for the years ahead by reducing warehouse locations, systems and infrastructure costs and, ultimately, increasing profitability. Finally, we are nearing completion of the integration of several acquisitions, including Studio Retail, Sportmaster and GAME which we expect to produce further efficiency and profitability improvements once completed.

Our strong infrastructure has been a key enabler for the elevation of our digital platform. Earlier this year, we started the overhaul of our digital offering with the creation of a cutting-edge platform that is transforming the consumer e-commerce experience through personalisation and better product discoverability, building on our operational efficiencies and improvements. To complement our international expansion, we launched 10 new localised Sports Direct websites this year, which allows us to unlock the strong demand across Europe, and we are looking forward to scaling this further.

Strategic investments

Building a compelling brand ecosystem requires a dynamic M&A strategy which is central to the Group's DNA. Starting with one store in 1982, the Group has grown to over £5 billion in sales across a number of diverse sectors and countries, nearly all of which have been acquired as part of our ongoing M&A strategy. We regularly review our investment portfolio to ensure it is diverse and resilient, but also conducive to synergies and future growth as demonstrated by our recently increased investment in Hugo Boss. We are and always have been incredibly supportive of Hugo Boss' strategy and work closely with the management team to bring synergies for both businesses. It is our intention to remain a long-term and supportive shareholder.

Property

Frasers Group occupies over 20 million square feet of stores, warehouses, and office space. Actively managing this vast estate is essential, and our presence in large towns and cities often exceeds 150,000 square feet. Our unique advantage lies in our deep understanding of trading data, enabling us to effectively underwrite our occupational demand, giving us an edge over other investors. This insight has unlocked numerous opportunities to acquire property assets at attractive prices.

By leveraging these acquisitions, we not only fulfil our retail representation requirements but also drive additional footfall, enhance the tenant mix, and ultimately increase the value of our assets. When market conditions are favourable, we maintain the flexibility to sell these assets, capturing the value created and redeploying the proceeds across the Group. In FY24, we successfully executed property acquisitions totalling £91.0m and completed £12.1m of disposals. As we move forward, we remain vigilant in monitoring further opportunities to expand and optimise our portfolio.

Financial Services

We are incredibly optimistic about our Financial Services proposition, further expanding our diverse ecosystem. The platform evolves our capability, allowing us to better understand our consumers cross-fascia, streamline the consumer experience with a one-click checkout, and reward our most loyal consumers.

Our improved capabilities support the continued success of Frasers Plus - our FCA-regulated credit payment account and rewards product - which is changing how consumers shop across the Group's brands and third-party platforms. The early performance of Frasers Plus has been very encouraging, as it is an attractive product for consumers, and has driven a rise in spending across categories and segments, and Average Order Value above where we initially forecasted.

After a promising early uptake from our consumers within Frasers Group, which generated invaluable consumer insights and data that will help us better serve our consumers, we entered our first external Frasers Plus partnership with THG. Frasers Plus will be integrated into THG's Ingenuity platform, benefiting consumers across THG retail sites and unlocking new growth opportunities for the business by recruiting new consumers and offering existing Frasers Plus members exciting new products.

We see a great deal of potential for Frasers Plus as a new revenue stream and a key pillar of our compelling brand ecosystem. We are excited to grow our new Financial Services division with a long-term ambition of £1bn+ in sales, £600m in balances delivering a greater than 15% yield with over 2 million active Frasers Plus customers - this is excluding any third-party partnerships.

Our teams

Our people are our best and most important asset - whether on the shop floor, in our warehouse, or at head office - and we're always looking for new ways to inspire and drive them. That's why we hosted our second Frasers Festival in May, which brought together over 1,500 of our top-performing colleagues from across the world. The day aimed to inspire, connect and motivate our teams through fitness challenges, brand activations and panel talks from global brand leaders. Feedback from employees has been overwhelmingly positive as we head into a busy summer period. We strongly believe that rewarding colleagues for their contribution is crucial, which is why our Fearless 1000 bonus scheme recognises and rewards the Group's top 1,000 performers. We also introduced 'Retail Reconnect' for Head Office staff whereby they spend two days a year in either a Retail or Warehouse environment. The experience drives collaboration and a better understanding of the demands facing our Retail and Warehouse teams, as well as an understanding of our consumers. We're already reaping the benefits of this initiative and seeing greater cohesion among our people.

Continued focus on environmental, social, and governance

This year, we introduced Frasers Group's global Sustainability framework against which we benchmark and measure our ESG progress and impact. We have made significant strides against our ESG framework, underpinning our dedication to environmental stewardship and social responsibility. While we have made progress we can be proud of, we recognise that meaningful change will take time and that we are at the beginning of a long journey.

We're in the process of completing our global carbon footprint audit for FY24, which demonstrates our commitment to transparency and continuous improvement. Our collaborative efforts with brand partners have optimised shipping, significantly increased efficiency and reduced our carbon footprint. We have also focused on reducing our reliance on single-use plastics, as well as saving over 2-million hangers from disposal to keep them in circulation for longer. We have implemented energy-saving initiatives, including voltage optimisation projects and LED installations, which led to a noteworthy reduction in energy consumption.

Outlook

As I mark two years as Chief Executive at Frasers Group, I want to extend my gratitude and thanks to every member of the Frasers Group team, our Board of Directors, investors, and partners. Your ongoing commitment and support drive us forward every day, and here's to continuing our shared success in the years to come.

Looking ahead to FY25, we are confident that our strategy will continue to drive strong trading, bolstered by a Summer of Sport, the integration of recent acquisitions and synergies from our automation programme. We also expect to reduce the like-for-like gross inventory balance by 5% to 15% by the end of the calendar year, and have already made significant progress. We're continuing to build a diversified and global retail business for sustained multi-year growth and expect to achieve another significant increase in FY25 APBT in the range £575m-£625m.

Michael Murray

Chief Executive Officer

17 July 2024

PERFORMANCE OVERVIEW

	52 weeks ended 28 April 2024	53 weeks ended 30 April 2023 ⁽¹⁾
Retail revenue	£5,354.0m	£5,424.9m
Total revenue	£5,537.7m	£5,586.0m

Retail gross profit	£2,239.9m	£2,252.0m
Group gross profit	£2,395.2m	£2,395.0m
Retail gross margin	41.8%	41.5%
Group gross margin	43.3%	42.9%

Retail profit from trading	£738.9m	£745.3m
Group profit from trading	£835.6m	£908.4m

Reported profit before tax ("PBT") from continuing operations	£507.0m	£638.0m
Adjusted profit before tax ("APBT") ⁽²⁾	£544.8m	£481.8m

Reported basic earnings per share ("EPS")	86.8p	106.9p
Adjusted basic EPS ⁽²⁾	95.8p	71.7p
Net assets	£1,873.0m	£1,668.2m
Cash inflow from operating activities before working capital	£834.6m	£875.6m

(1) Restated to reflect the Group's revised segmental reporting, the reclassification of rental income and the change in accounting policy regarding the valuation of investment property. Please refer to note 1 of the financial information for details.

(2) This is an Alternative Performance Measure. APBT is reconciled to the equivalent GAAP measure in note 3 to the financial information. Adjusted EPS is discussed in note 10 to the financial information.

The Directors have adopted Alternative Performance Measures (APM's). APM's should be considered in addition to UK-Adopted International Accounting Standards ("UK IAS") measures. The Directors believe that Adjusted profit before tax ("APBT") and Adjusted basic EPS provide further useful information for shareholders on the underlying performance of the Group in addition to the reported numbers and are consistent with how business performance is measured internally. They are not recognised profit measures under UK IAS and may not be directly comparable with "adjusted" or "alternative" profit measures used by other companies.

Retail revenue decreased by 1.3%. A strong trading performance from the core Sports Direct business has offset the majority of the planned sales declines in Game UK and Studio Retail, as well as the impact of House of Fraser store closures and a softer luxury market in Premium Lifestyle. Excluding the impact of the 53rd week from prior year, retail revenue increased by 0.6%. Total group revenue decreased by 0.9% with growth in the property segment partially mitigating declines in Retail and Financial Services. Excluding the impact of the 53rd week from prior year, total revenue increased by 1.0%.

Group gross margin % increased to 43.3% from 42.9%, driven by an increase in retail gross margin reflecting improvements in Sports Direct's product mix as a result of strengthening brand relationships mitigated by the softer luxury market.

Retail profit from trading of £738.9m, down 0.9%. A strong trading performance from Sports Direct reflecting the continuing success of the Elevation Strategy and strengthening brand relationships, was broadly offset by expected declines in Game UK and Studio Retail, planned House of Fraser store closures, and a softer luxury market. The previous year's result also included the benefit of a 53^rd week of trading.

APBT ⁽²⁾ increased by 13.1% to £544.8m despite lower profits from the disposal of properties and subsidiaries (£28.5m in the current period vs. £113.0m in prior year) and a £12.5m loss in respect of the Group's acquisition of Matches Fashion (vs. a £26.3m gain on disposal of Bob's in prior year). Property and acquisition related impairments returned to more normalised levels in the current year as a result of the strong trading performance combined with the rationalisation of loss-making stores, and future forecasts outweighing our downside impairment assumptions (a net impairment charge of £21.4m in the current period vs. £239.7m charge in the prior year).

Reported PBT of £507.0m, a decrease of 20.5%. The Group's trading performance has been offset by a decrease in foreign exchange gains, non-cash fair value movements on equity derivatives (which have moved from a £41.1m gain in FY23 to a loss of £68.9m in FY24 and account for a significant portion of the year-on-year decline in statutory PBT) and the non-repeat of exceptional gains (primarily related to the gain made on businesses acquired from JD Sports Fashion plc).

Basic EPS of 86.8p, a decrease of 20.1p year-on-year. Adjusted EPS ⁽²⁾ of 95.8p, an increase of 24.1p (33.6%) due to increased underlying profitability, the impact of share buy-backs and a lower effective tax rate.

Net assets have increased to £1,873.0m from £1,668.2m at 30 April 2023, due to the profitability of the Group offset by share buybacks.

Cash inflow from operating activities before working capital movements of £834.6m, largely driven by strong trading performance particularly in Sports Direct, down 4.7% year-on-year reflecting the non-repeat of the £95.0m reversal of legal and regulatory provisions in the prior year.

REVIEW BY BUSINESS SEGMENT

UK SPORTS

This segment now 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, and the Group's central operating functions (including the Shirebrook campus).

UK Sports accounts for 51.7% (FY23: 53.0%) of the Group's revenue.

	52 weeks ended 28 April 2024	53 weeks ended 30 April 2023⁽¹⁾	Pro-forma 52 weeks ended April 2023
Revenue	£2,860.8m	£2,959.1m	£2,903.3m
Cost of sales	(£1,558.5m)	(£1,685.7m)	(£1,653.9m)
Gross profit	£1,302.3m	£1,273.4m	£1,249.4m
Gross margin %	45.5%	43.0%	43.0%
Trading result	£468.4m	£454.7m	£446.1m
Operating profit	£353.1m	£328.3m	£322.1m

Store numbers	797	812

Revenue decreased by 3.3% with Sports Direct largely mitigating planned declines in Game UK and Studio Retail. Excluding the impact of the 53rd week from prior year, revenue decreased by 1.5%.

Gross profit increased by £28.9m and gross margin increased by +250 bps to 45.5% reflecting an improved product mix at Sports Direct due to strengthening brand relationships, as well as reduced lower margin sales from Game UK and Studio Retail. This contributed to a £13.7m (3.0%) increase in the segment's profit from trading.

UK Sports' operating profit result of £353.1m (FY23: £328.3m) includes impairment reversals of £8.4m (FY23: impairments of £25.1m), a result of the strong trading performance, and future forecasts outweighing our downside impairment assumptions, and foreign exchange gains of £9.2m (FY23: £35.8m).

Store numbers decreased from 812 to 797 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, Gieves and Hawkes, and Sofa.com along with the related websites, the businesses acquired from JD Sports in FY23, as well as the results from the I Saw it First website and the Missguided website until the disposal of the Missguided intellectual property in October 2023.

Premium Lifestyle accounts for 21.7% (FY23: 21.8%) of the Group's revenue

	52 weeks ended 28 April 2024	53 weeks ended 30 April 2023⁽¹⁾	Pro-forma 52 weeks ended April 2023
Revenue	£1,204.0m	£1,218.1m	£1,195.1m
Cost of sales	(£773.2m)	(£741.0m)	(£727.0m)
Gross profit	£430.8m	£477.1m	£468.1m
Gross margin %	35.8%	39.2%	39.2%
Trading result	£137.2m	£134.0m	£131.5m
Operating profit	£98.6m	£91.0m	£89.3m

Store numbers	181	221

Revenue decreased by 1.2%, as the impact of planned House of Fraser store closures and a softer luxury market were partially offset by sales from the businesses acquired from JD Sports Fashion plc in H2 of FY23. Excluding the impact of the 53^rd week from prior year, revenue increased by 0.7%.

Segment profit from trading was broadly flat at £137.2m with the planned clearance of surplus inventory from businesses acquired from JD Sports Fashion plc and the impact of continuing closures of legacy House of Fraser stores leading to a 340bps reduction in gross margin to 35.8%. This was offset by overheads savings arising from the closure of House of Fraser stores and acquired businesses being integrated into the Group.

Premium Lifestyle's operating profit result of £98.6m (FY23: £91.0m) includes impairments of £2.5m (FY23: impairments of £56.9m including £20.5m in respect of writing down intangibles recognised on the acquisition of Missguided and I Saw it First).

We have invested in a unique proposition in our luxury business and are well positioned for the future. Our long-term ambitions for this business remain unchanged, although it is likely that progress will remain subdued for the short to medium term in the face of a softer market. However, we view this as an opportunity for continued consolidation in order to further strengthen our position.

Store numbers decreased from 221 to 181 as we continued to rationalise the House of Frasers store estate and close unprofitable stores in the businesses acquired from JD Sports Fashion plc in H2 of FY23.

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, GAME Spain stores and e-commerce offering, the Baltics & Asia e-commerce offerings, the MySale business in Australia, the Group's US retail operations until they were disposed of in 2022, and all non-UK based wholesale and licensing activities (relating to brands such as Everlast, Karrimor and Slazenger).

International accounts for 23.3% (FY23: 22.3%) of the Group's revenue.

	52 weeks ended 28 April 2024	53 weeks ended 30 April 2023⁽¹⁾	Pro-forma 52 weeks ended April 2023
Revenue	£1,289.2m	£1,247.7m	£1,224.2m
Cost of sales	(£782.4m)	(£746.2m)	(£732.1m)
Gross profit	£506.8m	£501.5m	£492.1m
Gross margin %	39.3%	40.2%	40.2%
Trading result	£133.3m	£156.6m	£153.6m
Operating profit/(loss)	£44.1m	(£11.3m)	(£11.1m)

Store numbers	575	597

Revenue increased by 3.3% due to growth from the Sports Direct International business, as well as the acquisition of the MySale business in Australia in mid FY23. Excluding the impact of the 53^rd week from prior year, revenue increased by 5.3%.

Segment profit from trading decreased by £23.3m (14.9%) year on year as gross profit growth (achieved at a lower margin % due to Game Spain (console sales) and MySale) was more than offset by the one-off costs associated with integrating acquired businesses (such as Sportmaster in Denmark), and inflation linked operating cost increases.

International's operating profit result of £44.1m (FY23: loss of £11.3m) includes impairments of £12.5m (FY23: impairments of £133.8m, including £87.9m in respect of intangible assets allocated to the Everlast CGU) and foreign exchange gains of £0.3m (FY23: losses of £4.7m).

We continue to explore opportunities for growth having invested in our Indonesian joint venture and expect to complete on the purchase of Netherlands retailer, Twinsport post year-end.

Store numbers decreased from 597 to 575 as we continued to evaluate our stores at lease expiries and breaks, to rationalise the store international store portfolio.

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 results of the Coventry Arena are reported in this segment.

Property accounts for 1.3% (FY23: 0.6%) of the Group's revenue.

	52 weeks ended 28 April 2024	53 weeks ended 30 April 2023⁽¹⁾	Pro-forma 52 weeks ended April 2023
Revenue	£72.7m	£36.1m	£35.4m
Cost of sales	(£7.8m)	(£2.6m)	(£2.6m)
Gross profit	£64.9m	£33.5m	£32.8m
Gross margin %	89.3%	92.8%	92.7%
Trading result	£39.1m	£97.3m	£95.5m
Operating (loss)/profit	(£31.3m)	£37.4m	£36.7m

Revenue increased by 101.4%, largely due to the annualisation of the prior year acquisitions of Luton, Dundee and Coventry Arena, as well as the impact of current year acquisitions such as the Castleford retail park retail park.

Segment profit from trading declined by £58.2m, with the equivalent result in FY23 including a £95.4m gain on disposal of properties.

Property's operating loss of £31.3m (FY23: profit of £37.4m) includes a net impairment charge of £14.8m (FY23: impairments of £23.9m), fair value gains on investment property £11.5m (FY23: fair value loss of £6.5m) and depreciation of £60.2m (FY23: £36.0m).

Property investment remains a key focus for the Group, unlocking occupational demand for our retail business whilst delivering strong property 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 2.0% (FY23: 2.2%) of the Group's revenue.

	52 weeks ended 28 April 2024	53 weeks ended 30 April 2023⁽¹⁾	Pro-forma 52 weeks ended April 2023
Revenue	£111.0m	£125.0m	£122.6m
Impairment losses on credit receivables	(£20.6m)	(£15.5m)	(£15.2m)
Gross profit	£90.4m	£109.5m	£107.4m
Gross margin %	81.4%	87.6%	87.6%
Trading result	£57.6m	£65.8m	£64.6m
Operating profit	£56.1m	£89.9m	£88.2m

Our focus is to prioritise the growth of our new Frasers Plus credit offering and reduce the Studio Retail book. As a result of this, and the planned reduction in sales as Studio Retail was integrated into the Group's warehouse and ecommerce infrastructure, revenue decreased 11.2%.

Segment profit from trading decreased £8.2m (12.5%) year-on-year with the impairment charge returning to normalised levels (following a release of impairment provision in the prior year as a result of the cost-of-living crisis being less severe than anticipated) and an increase in overhead costs arising from the implementation of Frasers Plus.

Post year-end, we agreed a strategic partnership with THG plc ("THG"), post year-end. The partnership includes the integration of Frasers Plus into THG's Ingenuity platform, benefiting customers across THG's retail sites. This marks the first Frasers Plus partnership with an external partner.

DISCONTINUED OPERATION

	52 weeks ended 28 April 2024	53 weeks ended 30 April 2023⁽¹⁾
Result from discontinued operation (net of tax)	(£12.5m)	£26.3m

On 20 December 2023, the Group acquired the Matches business ("Matches") from MF Intermediate Limited, by way of the purchase of 100% of the shares of a group of 6 companies (of which MatchesFashion Limited was the main trading subsidiary) and the acquisition of the senior and junior debt owed by those companies. The consideration payable was £51.9m.

Following the acquisition, the Group provided significant funding to Matches but the business continued to generate material trading losses. As a result of this, management concluded that the funding requirements of the business would be far in excess of amounts that the Group considers to be viable and on 8 March 2024 administrators were appointed. Since the Group lost control of Matches upon the administrators' appointment, its net assets (including the associated goodwill) were derecognised and the loans due to the Group from Matches were recognised at this point, net of a provision for expected credit loss.

The £12.5m loss from discontinued operation reflects a trading loss of £8.4m for the period during which Matches was a subsidiary of the Group and £4.1m loss on disposal, reflecting the difference between the carrying value of the net assets at the point the Group ceased to control Matches and the recoveries expected from the administration.

In the period between the administrators' appointment and 28 April 2024, the Group purchased the brand names and intellectual property of Matches for £20.0m, with the consideration payable being treated as a reduction in the amounts owed to the Group by Matches.

In the prior period, the Group disposed of its US retail businesses trading as Bobs Stores and Eastern Mountain Sports for net cash consideration of approximately £43.6m. The £26.3m profit from discontinued operation reflects a break even trading performance (after tax) for the period during which these businesses were subsidiaries of the Group and a £26.3m gain on disposal.

FINANCIAL REVIEW

The consolidated financial statements for the 52 weeks ended 28 April 2024 are presented in accordance with UK-adopted International Accounting Standards (UK IAS).

SUMMARY OF RESULTS

	52 weeks ended 28 April 2024	53 weeks ended 30 April 2023 ⁽¹⁾
Revenue	£5,537.7m	£5,586.0m
Reported profit before tax	£507.0m	£638.0m
Adjusted PBT ⁽²⁾	£544.8m	£481.8m
Reported basic EPS	86.8p	106.9p
Adjusted basic EPS ⁽²⁾	95.8p	71.7p

FOREIGN EXCHANGE AND TREASURY

The Group reports its results in GBP but trades internationally and is therefore exposed to currency fluctuations on currency cash flows in various ways. These include purchasing inventory from overseas suppliers, making sales in currencies other than GBP and holding overseas assets in other currencies. The Board mitigates the cash flow risks associated with these fluctuations with the careful use of currency hedging using forward contracts and other derivative financial instruments.

The Group uses forward contracts that qualify for hedge accounting in two main ways - to hedge highly probable EUR sales income and USD inventory purchases. This introduces a level of certainty into the Group's planning and forecasting process. Management has reviewed detailed forecasts and the growth assumptions within them and is satisfied that the forecasts meet the criteria for being highly probable forecast transactions.

As at 28 April 2024, the Group had the following forward contracts and bought options that qualified for hedge accounting under IFRS 9 Financial Instruments ("IFRS 9"), meaning that fluctuations in the value of the contracts before maturity are recognised in the Hedging Reserve through Other Comprehensive Income. After maturity, the sales and purchases are then valued at the hedge rate.

Currency	Hedging against	Currency value	Timing	Rates
USD / GBP	USD Inventory Purchases	USD 275m	FY25	1.31
EUR / GBP	Euro sales	EUR 456m	FY25-FY26	0.98-1.08

The Group also uses currency options, swaps and spots for more flexibility against cash flows that are less than highly probable and therefore do not qualify for hedge accounting under IFRS 9. The fair value movements before maturity are recognised in the Income Statement.

The Group has the following sold currency options and unhedged forwards:

Currency	Expected use	Currency value	Timing	Rates
USD / GBP	USD inventory purchases	USD 240m	FY25	1.26 - 1.31
USD / EUR	USD inventory purchases	USD 95m	FY25	1.04 - 1.31
EUR / GBP	Euro sales	EUR 1,056m	FY25 - FY27	0.98 - 1.15

The Group is proactive in managing its currency requirements. The Treasury team works closely with senior management to understand the Group's plans and forecasts and discusses and understands appropriate financial products with various financial institutions, including those within the Group Financing Facility. This information is then used to implement suitable currency products to align with the Group's strategy.

Regular reviews of the hedging performance are performed by the Treasury team alongside senior management to ensure the continued appropriateness of the currency hedging in place and, where suitable, to implement additional strategies and or restructure existing approaches, in conjunction with our financial institution partners.

Given the potential impact of commodity prices on raw material costs, the Group may hedge certain input costs, including cotton, crude oil and electricity.

EARNINGS

Basic earnings per share (EPS) is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the financial period. Shares held in Treasury and the Employee Benefit Trust are excluded from this figure.

	52 weeks ended 28 April 2024	53 weeks ended 30 April 2023 ⁽¹⁾
Reported EPS (Basic)	86.8p	106.9p
Adjusted EPS (Basic) ⁽²⁾	95.8p	71.7p
Weighted average number of shares (actual)	438,504,703	459,911,330

(2) This is an Alternative Performance Measure. Adjusted EPS is discussed in note10 to the financial information.

DIVIDENDS & SHARE BUYBACKS

The Board has decided not to pay a final dividend in relation to FY24 (FY23: £nil). The Board remains of the opinion that it is in the best interests of the Group and its shareholders to preserve financial flexibility and facilitate future investments and other growth opportunities. The payment of dividends remains under review.

The Group's share buyback programme has continued during the year which is a demonstration of our commitment to shareholder returns, our confidence in our strategy and our potential for future growth. Share buy-backs totalled £126.4m (FY23: £155.3m).

CAPITAL EXPENDITURE

During the period, gross capital expenditure (excluding IFRS 16) amounted to £267.2m (FY23: £468.4m - this figure was inflated as a result of the sale and leaseback transaction entered into in the prior year).

STRATEGIC INVESTMENTS

The Group continues to hold various strategic investments as detailed in note 15. In addition, the Group also holds indirect strategic investments within contracts for difference and options.

On initial application of IFRS 9 the Group made the irrevocable election to account for long term financial assets (i.e., strategic investments) at fair value through other comprehensive income (FVOCI) given these are not held for trading purposes. The election is made on an instrument-by-instrument basis, only qualifying dividend income is recognised in profit and loss, changes in fair value are recognised within OCI and never reclassified to profit and loss, even if the asset is impaired, sold or otherwise derecognised.

The fair values of the contracts for difference and options are recognised in Derivative Financial Assets or Liabilities on the Group's Balance Sheet, with the movement in fair value recorded in the Income Statement.

The Frasers Group's strategic investment strategy is a key enabler in the growth and success of the Group and is in the ordinary course of business.

ACQUISITIONS

The Group acquired a number of businesses during the period.

RELATED PARTIES

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 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.

TAXATION

Total tax contribution

The effective tax rate on profit before tax in FY24 was 21.8% (FY23 restated: 24.0%). The Group has contributed approximately £500m (FY23: £469m) in taxes paid and collected during the year. Taxes paid by the Group of approximately £220m (FY23: £204m) are primarily business rates, corporation tax and employer's national insurance contributions. Taxes collected by the Group of approximately £280m (FY23: £265m) are primarily net VAT, PAYE and employee's national insurance contributions.

The Group's Tax Strategy is published at: https://frasers-cms.netlify.app//assets//files/financials/fy24-tax-strategy.pdf

Taxes paid by country

The Group generates 92.6% of its profits in companies that are resident in the UK and pays 88.3% of its corporation tax liabilities to HMRC in the UK.

Plastic Packaging Taxes

During FY24 the Group has paid approx. £0.1m in respect of the new UK Plastics Packaging Tax.

CASH FLOW AND NET DEBT

Net debt increased by £30.8m from £416.8m at 30 April 2023 to £447.6m at 28 April 2024. Net debt includes £126.8m of borrowings relating to the Frasers Group Financial Services Limited securitisation facility (30 April 2023: £161.6m). Net interest on bank loans and overdrafts increased to £51.4m in the year (FY23: £37.2m) largely due to increased interest rates and increased usage of the Revolving Credit Facility ("RCF") in the period.

Analysis of net debt:

	28 April 2024	30 April 2023
Cash and cash equivalents	£358.6m	£332.9m
Borrowings	(£806.2m)	(£749.7m)
Net debt	(£447.6m)	(£416.8m)
Securitisation (disclosed within borrowings)	(£126.8m)	(£161.6m)
Net debt excluding securitisation	(£320.8m)	(£255.2m)

The Group enacted the second one-year extension to its Group facility and currently has access to a combined term loan and RCF with total commitments of £1,432.5m until November 2025. This reduces to 1,372.5m from December 2025 until maturity in November 2026.

The Group continues to operate comfortably within its banking facilities and covenants and the Board remains comfortable with the Group's available headroom.

SUMMARY OF CASH FLOW

	28 April 2024	30 April 2023 ⁽¹⁾
Operating cash inflow before changes in working capital	£834.6m	£875.6m
(Increase)/decrease in receivables	(£47.4m)	£95.8m
Decrease/(increase) in inventories	£114.1m	(£71.6m)
Decrease in payables	(£42.6m)	(£132.4m)
Decrease in provisions	(£47.5m)	(£132.5m)
Cash inflows from operating activities	£811.2m	£634.9m
Income taxes paid	(£129.0m)	(£93.2m)
Net cash inflows from operating activities	£682.2m	£541.7m
Lease payments	(£162.8m)	(£140.7m)
Net finance costs paid	(£35.6m)	(£30.4m)
Net capital expenditure (including sale & leasebacks)	(£211.3m)	(£214.5m)
Net proceeds from acquisition and disposal of subsidiary undertakings	(£35.9m)	£18.5m
Purchase of listed investments, net of disposal proceeds	(£249.3m)	(£70.9m)
Proceeds in relation to equity derivatives	£58.0m	£66.2m
Decrease in deposits relating to equity derivatives	£51.1m	£53.8m
Investment income	£2.3m	£3.0m
Exchange movement on cash balances	(£3.1m)	£3.6m
Purchase of own shares	(£126.4m)	(£155.3m)
Dividends paid to non-controlling interests	-	(£0.7m)
Movement in net debt	(£30.8m)	£74.3m

1) Restated to reflect the change in accounting policy regarding the valuation of investment property. Please refer to note 1 of the financial information for details.

SUMMARY OF CONSOLIDATED BALANCE SHEET

	28 April 2024	30 April 2023 ⁽¹⁾
Property, plant & equipment	£962.6m	£1,132.0m
Investment properties	£350.5m	£160.0m
Long-term financial assets	£495.4m	£289.6m
Intangible assets	£42.2m	£24.1m
Inventories	£1,355.3m	£1,464.9m
Trade & other receivables	£674.9m	£720.1m
Trade & other payables	(£683.9m)	(£711.9m)
Provisions	(£259.0m)	(£306.5m)
Net debt (excluding securitisation borrowings)	(£320.8m)	(£255.2m)
Securitisation borrowings	(£126.8m)	(£161.6m)
Lease liabilities	(£646.3m)	(£679.9m)
Other	£28.9m	(£7.4m)
Net assets	£1,873.0m	£1,668.2m

1) Restated to reflect the change in accounting policy regarding the valuation of investment property. Please refer to note 1 of the financial information for details.

The decrease within property, plant and equipment from 30 April 2023 is largely due to net additions offset by depreciation and the transfer of three properties with a net book value of approximately £79.4m to investment property following a change of use in the period. The increase in investment property reflects this transfer, acquisitions in the year (including the Junction 32 retail park in Castleford, Yorkshire) and fair value gains of £11.5m.

The year-on-year increase within intangible assets primarily reflects the purchase of the Matches intellectual property and brand names for £20m offset by the amortisation of brands allocated to the Everlast cash generating unit ("CGU").

Long-term financial assets have increased since 30 April 2023 due to the business making significant strategic investments including in AO World plc, ASOS plc and Boohoo plc during the period.

Gross inventory has reduced by £138.2m (8.2%) year-on-year. This reflects the increased the efficiency of our warehouse and inventory handling processes following the virtual completion of the automation project, as well as the rationalisation of inventory from the businesses acquired from JD sports fashion plc in the second half of FY23.

Trade and other receivables include £139.0m relating to deposits in respect of derivative financial instruments (30 April 2023: £190.1m) and the Frasers Group Financial Services consumer credit receivables portfolio with a carrying value of £206.2m (30 April 2023: £225.9m).

Trade and other payables have reduced by £28.0m from £711.9m to £683.9m reflecting the timing of supplier payments around the prior year end due to the 53^rd week.

Provisions have reduced by £47.5m from £306.5m to £259.0m reflecting the utilisation and partial release of property related provisions due to the Group's strong trading performance, combined with the rationalisation of loss-making stores and future forecasts outweighing our downside assumptions.

Included within other, the closing corporation tax creditor at 28 April 2024 is approximately £94.4m (FY23: £102.6m) and net deferred tax assets of £82.1m (FY23: £66.4m) have been recognised.

Chris Wootton

Chief Financial Officer

17 July 2024

KEY PERFORMANCE INDICATORS

The Board manages the Group's performance by reviewing a number of key performance indicators (KPIs). The table below summarises the Group's KPIs.

	52 weeks ended 28 April 2024	53 weeks ended 30 April 2023 ⁽¹⁾
Group revenue	£5,537.7m	£5,586.0m
Reported PBT	£507.0m	£638.0m
Adjusted PBT ⁽²⁾	£544.8m	£481.8m
Cash inflow from operating activities before working capital	£834.6m	£875.6m
Net assets	£1,873.0m	£1,668.2m
NON-FINANCIAL KPIs
Number of retail stores	1,551	1,630
Workforce turnover	31.0%	32%*
Electricity consumption on like for like stores improvement vs FY20	24.8%	15.9%

The Directors have adopted Alternative Performance Measures (APM's). APMs should be considered in addition to UK-Adopted International Accounting Standards ("UK IAS") measures. The Directors believe that Adjusted profit before tax ("APBT") provides further useful information for shareholders on the underlying performance of the Group in addition to the reported numbers, and is consistent with how business performance is measured internally. They are not recognised profit measures under UK IAS and may not be directly comparable with 'adjusted' or 'alternative' profit measures used by other companies.

Adjusted PBT is profit before tax excluding the effects of exceptional items, realised foreign exchange, fair value adjustments to derivative financial instruments included within finance income/costs, fair value gains/losses and profit on disposal of equity derivatives, and share schemes. This measure has been reviewed by the Audit Committee which has appropriately challenged management on the presentation and the adjusting items included in this APM.

Group Revenue

The Board considers that this measurement is a key indicator of the Group's growth.

Reported Profit Before Tax

Reported PBT shows both the Group's trading and operational efficiency, as well as the effects on the Group of external factors as shown in the fair value movements in Strategic investments and FX.

Adjusted Profit Before Tax

Adjusted PBT shows how well the Group is managing its ongoing trading performance and controllable costs and therefore the overall performance of the Group.

Cash Inflow from Operating Activities Before Working Capital

Cash inflow from operating activities before working capital is considered an important indicator for the Group of the cash generated and available for investment in the Elevation strategy.

Net Assets

The Board considers that this measurement is a key indicator of the Group's financial position and health.

Number of Retail Stores

The Board considers that this measure is an indicator of the Group's growth. The Group's Elevation strategy is replacing older stores and often this can result in the closure of two or three stores, to be replaced by one larger new generation store.

Workforce Turnover

The Board considers that this measure is a key indicator of the contentment of our people We have adjusted the measure this year to report only non-redundancy related staff turnover in order to drive a focus on the parts of our business that have a higher attrition. *The prior period figure has been restated on an equivalent basis (FY23: reported figure 44.5%).

Like for Like electricity consumption

This measure links to our targets in the TCFD report around the installation of LED lighting, building management services, and voltage optimisation. This measure allows the board to determine the effectiveness of these projects in reducing the Group's energy consumption. Like for like stores includes stores in Great Britain, above a de minimis consumption, and that were open from 2019 onwards.

FINANCIAL INFORMATION

CONSOLIDATED INCOME STATEMENT

For the 52 weeks ended 28 April 2024

		Total	Total
		52 weeks ended 28 April 2024	53 weeks ended 30 April 2023 (restated)¹
	Note	52 weeks ended 28 April 2024	53 weeks ended 30 April 2023 (restated)¹
		(£'m)	(£'m)

CONTINUING OPERATIONS
Revenue		5,426.7	5,461.0
Credit account interest		111.0	125.0
Total revenue (including credit account interest)	3	5,537.7	5,586.0
Cost of sales		(3,121.9)	(3,175.5)
Impairment losses on credit customer receivables	16	(20.6)	(15.5)
Gross profit	3	2,395.2	2,395.0
Selling, distribution and administrative expenses		(1,886.0)	(1,957.8)
Other operating income		10.9	11.7
Property related impairments	12,13	(14.5)	(99.6)
Exceptional items	4	-	97.1
Profit on sale of properties		3.5	95.4
Fair value adjustment to investment properties	13	11.5	(6.5)
Operating profit	3	520.6	535.3
Gain on sale of subsidiaries	11	25.0	17.6
Investment income	5	78.4	112.6
Investment costs	6	(68.9)	(4.6)
Finance income	7	43.4	46.1
Finance costs	8	(91.5)	(69.0)
Profit before taxation	3	507.0	638.0
Taxation	9	(107.9)	(159.3)
Profit after taxation from continuing operations		399.1	478.7

DISCONTINUED OPERATIONS
Result from discontinued operation, net of tax	11	(12.5)	26.3
Profit for the period		386.6	505.0

ATTRIBUTABLE TO:
Equity holders of the Group		380.8	491.7
Non-controlling interests		5.8	13.3
Profit for the period		386.6	505.0

		Pence per share	Pence per share
Basic earnings per share - Continuing operations	10	89.7	101.2
Basic earnings per share - Discontinued operations	10	(2.9)	5.7
Basic earnings per share - Total	10	86.8	106.9

Diluted earnings per share - Continuing operations	10	89.7	101.2
Diluted earnings per share - Discontinued operations	10	(2.9)	5.7
Diluted earnings per share - Total	10	86.8	106.9

(1) Restated to reflect the change in presentation of discontinued operations into a single line, accounting policy regarding the valuation of investment property and reclassification of rental income. Please refer to note 1 for further details.

Discontinued operations relate to MATCHES in the current year and the Group's US retail businesses which were disposed of in the prior year. See note 11.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the 52 weeks ended 28 April 2024

		52 weeks ended	53 weeks ended
	Note	28 April 2024	30 April 2023 (restated)¹
		(£'m)	(£'m)
Profit for the period		386.6	505.0

OTHER COMPREHENSIVE (LOSS)/INCOME
ITEMS THAT WILL NOT BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS
Fair value movement on long-term financial assets		(43.7)	9.9
Remeasurements of defined benefit pension scheme		0.4	(0.5)
Fair value adjustment in respect of properties transferred to investment property		1.2	-

ITEMS THAT MAY BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS
Exchange differences on translation of foreign operations		(21.7)	13.4
Foreign exchange impact of disposal of discontinued operations		-	(1.6)
Fair value movement on hedged contracts - recognised in the period		25.5	6.5
Fair value movement on hedged contracts - recognised time value of options		(0.7)	0.7
Fair value movement on hedged contracts - reclassified and reported in sales		(6.1)	(24.6)
Fair value movement on hedged contracts - reclassified and reported in inventory/cost of sales		(8.1)	(38.5)
Fair value movement on hedged contracts - taxation taken to reserves		(2.9)	14.6

OTHER COMPREHENSIVE LOSS FOR THE PERIOD, NET OF TAX		(56.1)	(20.1)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		330.5	484.9

Continuing operations		343.0	460.2
Discontinued operations		(12.5)	24.7
		330.5	484.9

ATTRIBUTABLE TO:
Equity holders of the Group		324.7	471.6
Non-controlling interest		5.8	13.3
		330.5	484.9

(1) Restated to reflect the change in accounting policy regarding the valuation of investment property and reclassification of rental income. Please refer to note 1 for further details.

CONSOLIDATED BALANCE SHEET Company number: 06035106

As at 28 April 2024

	Note	28 April 2024	30 April 2023 (restated)¹	24 April 2022 (restated)¹
		(£'m)	(£'m)	(£'m)
ASSETS - NON CURRENT
Property, plant and equipment	12	962.6	1,132.0	1,011.0
Investment properties	13	350.5	160.0	95.5
Intangible assets	14	42.2	24.1	120.6
Long-term financial assets		495.4	289.6	206.6
Investment in associate undertakings		18.0	16.9	-
Retirement benefit surplus		0.6	0.8	2.2
Deferred tax assets		109.6	82.1	100.8
		1,978.9	1,705.5	1,536.7
ASSETS - CURRENT
Inventories		1,355.3	1,464.9	1,277.6
Trade and other receivables	16	674.9	720.1	841.4
Derivative financial assets		87.2	79.3	116.5
Cash and cash equivalents		358.6	332.9	336.8
		2,476.0	2,597.2	2,572.3
Assets in disposal groups classified as held for sale		-	-	40.0
TOTAL ASSETS		4,454.9	4,302.7	4,149.0

LIABILITIES - NON CURRENT
Lease liabilities		(533.8)	(560.3)	(503.6)
Borrowings	17	(806.2)	(749.7)	(827.9)
Retirement benefit obligations		(1.8)	(1.7)	(1.6)
Deferred tax liabilities		(27.5)	(15.7)	(40.4)
Provisions	18	(247.8)	(290.2)	(433.0)
		(1,617.1)	(1,617.6)	(1,806.5)
LIABILITIES - CURRENT
Derivative financial liabilities		(62.8)	(66.5)	(107.2)
Trade and other payables		(683.9)	(711.9)	(729.8)
Lease liabilities		(112.5)	(119.6)	(117.0)
Provisions	18	(11.2)	(16.3)	-
Current tax liabilities		(94.4)	(102.6)	(50.9)
		(964.8)	(1,016.9)	(1,004.9)
Liabilities in disposal groups classified as held for sale		-	-	(22.7)
TOTAL LIABILITIES		(2,581.9)	(2,634.5)	(2,834.1)

NET ASSETS		1,873.0	1,668.2	1,314.9

EQUITY
Share capital		64.1	64.1	64.1
Share premium		874.3	874.3	874.3
Treasury shares reserve		(770.6)	(644.2)	(488.9)
Permanent contribution to capital		0.1	0.1	0.1
Capital redemption reserve		8.0	8.0	8.0
Foreign currency translation reserve		25.7	47.4	35.6
Reverse combination reserve		(987.3)	(987.3)	(987.3)
Own share reserve		(66.8)	(66.8)	(66.8)
Hedging reserve		21.7	14.0	55.3
Share based payment reserve		51.4	33.1	14.1
Revaluation reserve		1.2	-	-
Retained earnings		2,623.0	2,285.5	1,784.4
Issued capital and reserves attributable to owners of the parent		1,844.8	1,628.2	1,292.9
Non-controlling interests		28.2	40.0	22.0
TOTAL EQUITY		1,873.0	1,668.2	1,314.9

1) Restated to reflect the change in accounting policy regarding the valuation of investment property and reclassification of rental income. Please refer to note 1 for further details.

The Group's Financial Statements were approved by the Board and authorised for issue on 17 July 2024 and were signed on its behalf by:

Chris Wootton

Chief Financial Officer

CONSOLIDATED CASH FLOW STATEMENT

For the 52 weeks ended 28 April 2024

		52 weeks ended	53 weeks ended
	Note	28 April 2024	30 April 2023 (restated)¹
		(£'m)	(£'m)
Profit before income tax from:
Continuing operations		507.0	638.0
Discontinued operation		(12.5)	26.4
Profit before taxation including discontinued operations		494.5	664.4
Net finance costs		49.6	23.0
Net investment income		(9.5)	(108.0)
Gain on disposal of subsidiaries		(20.9)	(43.9)
Depreciation of property, plant and equipment		282.8	262.3
Amortisation of intangible assets		1.8	6.9
Net impairment of tangible and intangible assets and investment properties		21.4	239.7
Loss/(gain) on modification/remeasurement of lease liabilities		6.6	(26.8)
Profit on disposal of property, plant and equipment		(3.5)	(95.4)
Fair value adjustments in respect of investment property		(11.5)	6.5
Fair value gain on recognition of associated undertaking		-	(16.9)
Gain on bargain purchase		(0.7)	(56.1)
Employee bonus scheme charge		23.4	19.0
Pension contributions less income statement charge		0.6	0.9
Operating cash inflow before changes in working capital		834.6	875.6
(Increase)/decrease in receivables		(47.4)	95.8
Decrease/(increase) in inventories		114.1	(71.6)
Decrease in payables		(42.6)	(132.4)
Decrease in provisions		(47.5)	(132.5)
Cash inflows from operating activities		811.2	634.9
Income taxes paid		(129.0)	(93.2)
Net cash inflows from operating activities		682.2	541.7
Proceeds on disposal of property, plant and equipment and investment property		55.9	14.8
Proceeds from sale and leaseback transactions		-	185.6
Proceeds on disposal of listed investments		133.3	172.4
Proceeds in relation to equity derivatives		58.0	66.2
Disposal of subsidiary undertakings		25.0	46.5
Purchase of subsidiaries, net of cash acquired		(60.9)	(28.0)
Purchase of property, plant and equipment, intangible assets and investment property		(267.2)	(469.4)
Purchase of listed investments		(382.6)	(243.3)
Decrease in deposits relating to equity derivatives		51.1	53.8
Investment income received		2.3	3.0
Finance income received		29.3	20.1
Net cash outflows from investing activities		(355.8)	(178.3)
Lease payments		(162.8)	(140.7)
Finance costs paid		(64.9)	(50.5)
Borrowings drawn down		482.1	616.8
Borrowings repaid		(425.6)	(695.0)
Proceeds from sale and leaseback transactions		-	54.5
Dividends paid to non-controlling interests		-	(0.7)
Purchase of own shares		(126.4)	(155.3)
Net cash outflows from financing activities		(297.6)	(370.9)
Net increase/(decrease) in cash and cash equivalents including overdrafts		28.8	(7.5)
Exchange movement on cash balances		(3.1)	3.6
Cash and cash equivalents including overdrafts at beginning of period		332.9	336.8
Cash and cash equivalents including overdrafts at the period end		358.6	332.9

(1) Restated to reflect the change in accounting policy regarding the valuation of investment property. Please refer to note 1 for further details.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the 52 weeks ended 28 April 2024

	Share capital	Share premium⁽¹⁾	Treasury shares	Share- based payment reserve	Foreign currency translation reserve	Own share reserve	Retained earnings	Other⁽²⁾	Total attributable to owners of parent	Non-controlling interests	Total
	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)
At 24 April 2022 (previously presented)	64.1	874.3	(488.9)	14.1	35.6	(66.8)	1,778.1	(923.9)	1,286.6	22.0	1,308.6
Restatement (see note 1)	-	-	-	-	-	-	6.3	-	6.3	-	6.3
At 24 April 2022 (restated)	64.1	874.3	(488.9)	14.1	35.6	(66.8)	1,784.4	(923.9)	1,292.9	22.0	1,314.9
Acquisitions	-	-	-	-	-	-	-	-	-	4.0	4.0
Share scheme	-	-	-	19.0	-	-	-	-	19.0	-	19.0
Purchase of own shares	-	-	(155.3)	-	-	-	-	-	(155.3)	-	(155.3)
Dividends paid to non-controlling interests	-	-	-	-	-	-	-	-	-	0.7	0.7
Transactions with owners in their capacity as owners	-	-	(155.3)	19.0	-	-	-	-	(136.3)	4.7	(131.6)
Profit for the financial period (restated)	-	-	-	-	-	-	491.7	-	491.7	13.3	505.0
Other comprehensive income
Cashflow hedges - recognised in the period	-	-	-	-	-	-	-	6.5	6.5	-	6.5
Cashflow hedges - recognised time value of options	-	-	-	-	-	-	-	0.7	0.7	-	0.7
Cashflow hedges - reclassified and reported in sales	-	-	-	-	-	-	-	(24.6)	(24.6)	-	(24.6)
Cashflow hedges - reclassified and reported in inventory/cost of sales	-	-	-	-	-	-	-	(38.5)	(38.5)	-	(38.5)
Cashflow hedges - taxation	-	-	-	-	-	-	-	14.6	14.6	-	14.6
Fair value adjustment in respect of long-term financial assets - recognised	-	-	-	-	-	-	9.9	-	9.9	-	9.9
Remeasurements of defined benefit pension scheme	-	-	-	-	-	-	(0.5)	-	(0.5)	-	(0.5)
Foreign exchange impact of disposal of discontinued operations	-	-	-	-	(1.6)	-	-	-	(1.6)	-	(1.6)
Translation differences - Group	-	-	-	-	13.4	-	-	-	13.4	-	13.4
Total comprehensive income for the period	-	-	-	-	11.8	-	501.1	(41.3)	471.6	13.3	484.9

At 30 April 2023 (restated)	64.1	874.3	(644.2)	33.1	47.4	(66.8)	2,285.5	(965.2)	1,628.2	40.0	1,668.2
Acquisitions⁽³⁾	-	-	-	-	-	-	-	-	-	(17.6)	(17.6)
Share scheme	-	-	-	18.3	-	-	-	-	18.3	-	18.3
Purchase of own shares	-	-	(126.4)	-	-	-	-	-	(126.4)	-	(126.4)
Transactions with owners in their capacity as owners	-	-	(126.4)	18.3	-	-	-	-	(108.1)	(17.6)	(125.7)
Profit for the financial period	-	-	-	-	-	-	380.8	-	380.8	5.8	386.6
Other comprehensive income
Cashflow hedges - recognised in the period	-	-	-	-	-	-	-	25.5	25.5	-	25.5
Cashflow hedges - recognised time value of options	-	-	-	-	-	-	-	(0.7)	(0.7)	-	(0.7)
Cashflow hedges - reclassified and reported in sales	-	-	-	-	-	-	-	(6.1)	(6.1)	-	(6.1)
Cashflow hedges - reclassified and reported in inventory/cost of sales	-	-	-	-	-	-	-	(8.1)	(8.1)	-	(8.1)
Cashflow hedges - taxation	-	-	-	-	-	-	-	(2.9)	(2.9)	-	(2.9)
Fair value adjustment in respect of long-term financial assets	-	-	-	-	-	-	(43.7)	-	(43.7)	-	(43.7)
Fair value adjustment in respect of investment properties	-	-	-	-	-	-	-	1.2	1.2	-	1.2
Remeasurements of defined benefit pension scheme	-	-	-	-	-	-	0.4	-	0.4	-	0.4
Translation differences - Group	-	-	-	-	(21.7)	-	-	-	(21.7)	-	(21.7)
Total comprehensive income for the period	-	-	-	-	(21.7)	-	337.5	8.9	324.7	5.8	330.5
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

(1) The share premium account is used to record the excess proceeds over nominal value on the issue of shares.

(2) Other reserves comprise permanent contribution to capital, capital redemption reserve, reverse combination reserve, the hedging reserve and the revaluation reserve. All movements in the period related to the hedging reserve . Equity as at 24 April 2022 and the results for the financial period ended 30 April 2023 have been restated to reflect the change in accounting policy regarding the valuation of investment property and reclassification of rental income. Please refer to note 1 for further details.

(3) In the current period, the Group increased its ownership in Sports Direct Malaysia.

1. ACCOUNTING POLICIES

Frasers Group Plc (Company number: 06035106) is a company incorporated and domiciled in the United Kingdom, its shares are listed on the London Stock Exchange. The registered office is Unit A, Brook Park East, Shirebrook, NG20 8RY. The principal activities and structure of the Group can be found in the Directors' Report and the 'Our Business' section of the Annual Report.

BASIS OF PREPARATION

Whilst the financial information included in this Preliminary Announcement has been prepared on the basis of UK-adopted International Accounting standards, this announcement does not itself contain sufficient information to comply with UK-adopted International Accounting Standards.

The financial information set out in this Preliminary Announcement does not constitute the Group's Consolidated Financial Statements for the period ended 28 April 2024 but is derived from those Financial Statements which were approved by the Board of Directors on 17 July 2024. The auditor, RSM UK Audit LLP, has reported on the Group's Consolidated Financial Statements and the report was unqualified and did not contain a statement under section 498 (2) or 498 (3) of the Companies Act 2006.

The statutory financial statements for the period ended 28 April 2024 have not yet been delivered to the Registrar of Companies and will be delivered following the Company's Annual General Meeting.

The Group financial statements have been prepared and approved by the Directors in accordance with UK-adopted International Accounting Standards.

The Group's accounting policies are set out in the 2023 Annual Report and Accounts and have been applied consistently in 2024 except as noted below.

Going Concern

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Chief Executive's Report and Business Review section above.

The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described in the Financial Review. In addition, the financial statements include the Group's objectives, policies and processes for managing its capital, its financial risk management objectives, details of its financial instruments and hedging activities, and its exposures to credit risk and liquidity risk.

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 November 2026, 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 and also a number of even more conservative scenarios, including taking into account the Group's open positions in relation to strategic investment options. These forecasts and projections show that the Group will be able to operate within the level of the current facility and its covenant requirements (being interest cover and net debt to EBITDA ratios). Management also has a number of mitigating actions which could be taken if required such as selling strategic investments at a discount to the market price if a significant share price fall occurred, reducing capital expenditure, putting on hold discretionary spend, liquidating certain assets on the Balance Sheet and paying down the Group Financing Facility. See the Viability Statement in the Annual Report for further details.

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 the Annual Report and financial statements which is a period of at least 12 months from the date of approval of these financial statements.

New Accounting Standards, Interpretations and Amendments Adopted By The Group

The Group has not early adopted any new accounting standard, interpretation or amendment that has been issued but is not effective. The Group has applied for the first time the following new standards:

· IFRS 17 - Insurance contracts

· Disclosure on Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2

· Definition of Accounting Estimates - Amendments to IAS 8

· International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12) - application of the exception and disclosure of that fact

· International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12) - other disclosure requirements

· Deferred Tax relating to assets and liabilities arising from a single transaction - Amendments to IAS 12.

By adopting the above, there has been no material impact on the Financial Statements.

International Financial Reporting Standards ("Standards") In Issue But Not Yet Effective

At the date of authorisation of these consolidated Financial Statements, there are no standards in issue from the International Accounting Standards Board ("IASB") or International Financial Reporting Interpretations Committee ("IFRIC") which are effective for annual accounting periods beginning on or after 28 April 2024 that will have a material impact on these Financial Statements.

Restated financial information

During the period the Group made several changes including presentation of discontinued operations, operating segments, classification of rental income and changing accounting policy to the fair value model for investment properties. For comparative purposes, the results for the 53-week period ended 30 April 2023, and the restated balance sheet as at 24 April 2022 have been presented showing the new basis of presentation.

1) Change to classification of rental income

As a result of the changes in operating segments, see note 3, management has concluded that is more appropriate to disclose rental income received from third parties within revenue from the property segment rather than in other operating income in various retail segments as was previously disclosed.

The impact of this change is to increase reported revenue in the 53-week period ended 30 April 2023 by £29.3m and reducing the amounts reported in other operating income by an equivalent amount.

The changes to our segmental analysis and the reclassification of rental income have no impact on the Group's profit before tax as previously reported for FY23.

2) Change in accounting policy in respect of investment properties

Following the creation of the Property operating segment, management conducted a review of the accounting treatment of investment properties (properties held to earn rentals or for capital appreciation or both, rather than for use in operations) and concluded that it would be more appropriate to adopt the fair value model set out in paragraphs 33-35 of IAS 40 Investment Property for remeasuring the value of these properties, rather than on the cost model set out in paragraph 56 of the standard, which was previously used. As a result, these assets will not be depreciated but held at fair value with changes in fair value being recorded in the income statement in the period in which they occur.

Management has considered this voluntary change in accounting policy in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors and concluded that the fair value model results in the financial statements providing reliable and more relevant information. The changes have been applied retrospectively and as such prior period figures have been restated on an equivalent basis to allow for meaningful comparison.

The impact of this change in accounting policy is to increase the carrying value of the Group's investment properties held on 25 April 2022 by £6.3m, with a corresponding adjustment being made the Group's opening retained earnings at this date. The carrying value of these assets as at 24 April 2023 increased by £10.0m vs. the amount previously reported, resulting in an increase to profit before tax for the 53-week period ended 2023 of £3.7m and an increase in basic and diluted earnings per share of 0.8p.

This change in accounting policy does not have a material impact on the reported tax charge in the comparative period, nor on the Group's consolidated cash flow statement.

The impact on APBT for the 53-week period ended 30 April 2023 is summarised as follows:

	FY23
Reported APBT	£478.1m
Impact of change in accounting policy	£3.7m
Revised APBT	£481.8m

3) Change in presentation regarding discontinued operations

Management has voluntarily elected to change the presentation of discontinued operations to disclose the impact as a single line in the statement of profit and loss in line with IFRS 5.33.

Impact on the Consolidated Income Statement and Comprehensive Income

53-week period ended 30 April 2023

	Amounts previously reported	1) Rental income	2) Investment property	3) Discontinued operation	As restated
	Amounts previously reported	1) Rental income	2) Investment property	3) Discontinued operation	As restated
	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)
CONTINUING OPERATIONS
Revenue	5,449.8	19.7	-	(8.5)	5,461.0
Credit account interest	115.4	9.6	-	-	125.0
Total revenue (including credit account interest)	5,565.2	29.3	-	(8.5)	5,586.0
Cost of sales	(3,179.9)	-	-	4.4	(3,175.5)
Impairment losses on credit customer receivables	(15.5)	-	-	-	(15.5)
Gross profit	2,369.8	29.3	-	(4.1)	2,395.0
Selling, distribution and administrative expenses	(1,972.0)	-	10.2	4.0	(1,957.8)
Other operating income	41.1	(29.3)	-	(0.1)	11.7
Property related impairments	(99.6)	-	-	-	(99.6)
Exceptional items	97.1	-	-	-	97.1
Profit on sale of properties	95.4	-	-	-	95.4
Fair value adjustment to investment properties	-	-	(6.5)	-	(6.5)
Operating profit	531.8	-	3.7	(0.2)	535.3
Gain on sale of subsidiaries	43.9	-	-	(26.3)	17.6
Investment income	112.6	-	-	-	112.6
Investment costs	(4.6)	-	-	-	(4.6)
Finance income	46.1	-	-	-	46.1
Finance costs	(69.1)	-	-	0.1	(69.0)
Profit before taxation	660.7	-	3.7	(26.4)	638.0
Taxation	(159.4)	-	-	0.1	(159.3)
Profit after taxation from continuing operations	501.3	-	3.7	(26.3)	478.7

DISCONTINUED OPERATIONS
Result from discontinued operation	-	-	-	26.3	26.3
Profit for the period	501.3	-	3.7	-	505.0

ATTRIBUTABLE TO:
Equity holders of the Group	488.0	-	3.7	-	491.7
Non-controlling interests	13.3	-	-	-	13.3
Profit for the period	501.3	-	3.7	-	505.0

	Pence per share		Pence per share		Pence per share
Basic earnings per share - Continuing operations	100.4	-	0.8	-	101.2
Basic earnings per share - Discontinued operations	5.7	-	-	-	5.7
Basic earnings per share - Total	106.1	-	0.8	-	106.9

Diluted earnings per share - Continuing operations	100.4	-	0.8	-	101.2
Diluted earnings per share - Discontinued operations	5.7	-	-	-	5.7
Diluted earnings per share - Total	106.1	-	0.8	-	106.9

Total comprehensive income	481.2	-	3.7	-	484.9

Impact on the Consolidated Balance Sheet

30 April 2023

	Amounts previously reported	2) Investment property	As restated
	Amounts previously reported	2) Investment property	As restated
	(£'m)	(£'m)	(£'m)
ASSETS - NON CURRENT
Property, plant and equipment	1,150.7	(18.7)	1,132.0
Investment properties	131.3	28.7	160.0
Intangible assets	24.1	-	24.1
Long-term financial assets	289.6	-	289.6
Investment in associate undertakings	16.9	-	16.9
Retirement benefit surplus	0.8	-	0.8
Deferred tax assets	82.1	-	82.1
	1,695.5	10.0	1,705.5
ASSETS - CURRENT
Inventories	1,464.9	-	1,464.9
Trade and other receivables	720.1	-	720.1
Derivative financial assets	79.3	-	79.3
Cash and cash equivalents	332.9	-	332.9
	2,597.2	-	2,597.2
TOTAL ASSETS	4,292.7	10.0	4,302.7

LIABILITIES - NON CURRENT
Lease liabilities	(560.3)	-	(560.3)
Borrowings	(749.7)	-	(749.7)
Retirement benefit obligations	(1.7)	-	(1.7)
Deferred tax liabilities	(15.7)	-	(15.7)
Provisions	(290.2)	-	(290.2)
	(1,617.6)	-	(1,617.6)
LIABILITIES - CURRENT
Derivative financial liabilities	(66.5)	-	(66.5)
Trade and other payables	(711.9)	-	(711.9)
Lease liabilities	(119.6)	-	(119.6)
Provisions	(16.3)	-	(16.3)
Current tax liabilities	(102.6)	-	(102.6)
	(1,016.9)	-	(1,016.9)
TOTAL LIABILITIES	(2,634.5)	-	(2,634.5)

NET ASSETS	1,658.2	10.0	1,668.2

EQUITY
Share capital	64.1	-	64.1
Share premium	874.3	-	874.3
Treasury shares reserve	(644.2)	-	(644.2)
Permanent contribution to capital	0.1	-	0.1
Capital redemption reserve	8.0	-	8.0
Foreign currency translation reserve	47.4	-	47.4
Reverse combination reserve	(987.3)	-	(987.3)
Own share reserve	(66.8)	-	(66.8)
Hedging reserve	14.0	-	14.0
Share based payment reserve	33.1	-	33.1
Revaluation reserve	-	-	-
Retained earnings	2,275.5	10.0	2,285.5
Issued capital and reserves attributable to owners of the parent	1,618.2	10.0	1,628.2
Non-controlling interests	40.0	-	40.0
TOTAL EQUITY	1,658.2	10.0	1,668.2

24 April 2022

	Amounts previously reported	2) Investment property	As restated
	Amounts previously reported	2) Investment property	As restated
	(£'m)	(£'m)	(£'m)
ASSETS - NON CURRENT
Property, plant and equipment	1,011.0	-	1,011.0
Investment properties	89.2	6.3	95.5
Intangible assets	120.6	-	120.6
Long-term financial assets	206.6	-	206.6
Retirement benefit surplus	2.2	-	2.2
Deferred tax assets	100.8	-	100.8
	1,530.4	6.3	1,536.7
ASSETS - CURRENT
Inventories	1,277.6	-	1,277.6
Trade and other receivables	841.4	-	841.4
Derivative financial assets	116.5	-	116.5
Cash and cash equivalents	336.8	-	336.8
	2,572.3	-	2,572.3
Assets in disposal groups classified as held for sale	40.0	-	40.0
TOTAL ASSETS	4,142.7	6.3	4,149.0

LIABILITIES - NON CURRENT
Lease liabilities	(503.6)	-	(503.6)
Borrowings	(827.9)	-	(827.9)
Retirement benefit obligations	(1.6)	-	(1.6)
Deferred tax liabilities	(40.4)	-	(40.4)
Provisions	(433.0)	-	(433.0)
	(1,806.5)	-	(1,806.5)
LIABILITIES - CURRENT
Derivative financial liabilities	(107.2)	-	(107.2)
Trade and other payables	(729.8)	-	(729.8)
Lease liabilities	(117.0)	-	(117.0)
Current tax liabilities	(50.9)	-	(50.9)
	(1,004.9)	-	(1,004.9)
Liabilities in disposal groups classified as held for sale	(22.7)	-	(22.7)
TOTAL LIABILITIES	(2,834.1)	-	(2,834.1)

NET ASSETS	1,308.6	6.3	1,314.9

EQUITY
Share capital	64.1	-	64.1
Share premium	874.3	-	874.3
Treasury shares reserve	(488.9)	-	(488.9)
Permanent contribution to capital	0.1	-	0.1
Capital redemption reserve	8.0	-	8.0
Foreign currency translation reserve	35.6	-	35.6
Reverse combination reserve	(987.3)	-	(987.3)
Own share reserve	(66.8)	-	(66.8)
Hedging reserve	55.3	-	55.3
Share based payment reserve	14.1	-	14.1
Retained earnings	1,778.1	6.3	1,784.4
Issued capital and reserves attributable to owners of the parent	1,286.6	6.3	1,292.9
Non-controlling interests	22.0	-	22.0
TOTAL EQUITY	1,308.6	6.3	1,314.9

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. 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, however we are working to mitigate these risks as detailed within the TCFD section of the 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.

Critical Accounting Judgements

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 ("IAS 28"), 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 these entities 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.

Shareholdings in investees greater than 20%

During the period the Group has held greater than 20% of the voting rights of Mulberry Group plc, XXL ASA, ASOS plc, AO World plc, Boohoo Group plc and N Brown Group plc. Management consider that the Group does not have significant influence over these entities for combinations of the following reasons:

• The Group does not have any representation on the board of directors of the investees.

• There is no participation in decision making and strategic processes, including participation in decisions about dividends or other distributions.

• There have been no material transactions between the entity and the investee companies.

• There has been no interchange of managerial personnel.

• No non-public essential technical management information is provided to the investees.

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 £30.0m (FY23: £37.5m), being £6.4m (FY23: £4.3m) 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.

Tymit Limited

The Group holds 28.2% 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 £15.8m at 28 April 2024 (£7.2m as 30 April 2023), 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

During the prior period, the Group sold 51% of its shareholding in Kangol LLC to Bollman Hat Company for £17.6m, retaining a 49% stake. 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.

Cash Flow Hedging

The Group uses a range of forward and option contracts that are entered into at the same time; they 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; accordingly hedge accounting for the forwards is permitted.

Under IFRS 9 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 the growth assumptions within them and are satisfied that forecasts on 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 £21.7m (FY23: £14.0m) would be shown in Finance Income.

Adjustment to Regulatory Provisions in Frasers Group Financial Services (formerly Studio Retail Limited)

In the prior period, a revision to management's best estimate of the probable costs of remediating customers who may have been adversely impacted by legacy decisions resulted in a reduction in the amount provided of approximately £25.0m. Management considered whether or not the reduction in provision should result in an adjustment to the amounts recognised in the acquisition balance sheet in accordance with the requirements of IFRS3.45 and IFRS3.47 and concluded that the release should be treated as a prospective change in accounting estimate under IAS8.34 since it arose as a result of new information which came to light after the acquisition date. It is the Group's policy to present items that "merit separate presentation" by reference to their "their size, nature and infrequency of the events giving rise to them" as exceptional items. Given the unusual size, nature and infrequency of movements in provisions of this nature, management disclosed the income statement impact within exceptional items in the prior period consolidated income statement.

Sale and Leaseback transactions

During the prior period, the Group disposed of a number of freehold properties by means of the sale of shares in the limited companies that owned the relevant properties but accounted for these as sale and leaseback transactions under IFRS 16 Leases ("IFRS 16"). Management exercised judgement in determining whether or not these sales should be treated as a loss of control of subsidiaries under IFRS 10 Consolidated Financial Statements or sale and leaseback transactions as defined by IFRS 16, paying due consideration to the IFRS Interpretations Committee's tentative agenda decision on this topic from September 2020.

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. Management applies judgement in the consideration of whether or not 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 four 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 Estimates

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 28 April 2024 a provision of £192.0m (FY23: £220.6m) was held against a gross inventory value of £1,547.3m (FY23: £1,685.5m).

In assessing the level of provision required, management has applied its experience and industry knowledge to divide the core UK inventory holding into separate categories based on internal management classifications and behavioural characteristics, taking account of experience by fascia and segment, as follows:

· Continuity inventory - inventory that is considered to be perennial and therefore exhibits limited risk of obsolescence.

· Current season inventory - inventory that has been purchased specifically for seasons in the current calendar year and future years.

· Out of season inventory (including inventory previously classified as continuity) - inventory that has moved out of the two categories above because of its age, range development or because it is being sold at below cost to clear warehouse/store space.

An adjusted rate of loss is then calculated based on losses incurred on the sale of out of season inventory over the past three years (being management's assessment of the time taken to clear through out of season inventory), with any inventory remaining on hand after three years of being classified as out of season being assumed to require a 100% provision rate. The historical rate is sensitised to reflect management's best estimate of future performance by making assumptions around changes to sales prices achieved on the sale of out of season inventory vs. those achieved in the past three years and the level of inventory remaining after three years of being classified as out of season. In the current period, management have estimated that selling prices will need to reduce by a further 15% (FY23: 10%) to clear an equivalent volume of out of season inventory and that approximately fifteen times (FY23: twelve times) as much Premium Lifestyle out of season inventory will remain on hand at the end of the three-year period of assessment than has typically been the case historically, requiring a 100% provision rate, reflecting the different profile of this inventory to Sports inventory.

The changes in assumptions around selling prices and Premium Lifestyle out of season inventory will remain on hand reflect management's best estimates based on performance seen in the past 12 months.

In addition, management has applied a provision rate of 100% against a portion of the inventory holding that is either currently being sold at a loss or exhibits an unusually high level of obsolescence risk. The 100% provision rate reflects the costs associated with clearing and disposing of this inventory.

The adjusted rate of loss is applied to the gross value of inventory in each of the categories above as follows:

· Continuity inventory - the adjusted loss rate is applied to 30% of the gross holding (representing the proportion of inventory in this category that is expected to roll into the out of season category based on historical experience and anticipated future trends).

· Current season inventory - the adjusted loss rate is applied to 30% of the gross holding (representing the proportion of inventory in this category that is expected to roll into the out of season category based on historical experience and anticipated future trends).

· Out of season inventory (including inventory previously classified as continuity) - the adjusted loss rate is applied to this population, excluding those specific items that carry a 100% provision rate based on the analysis detailed above.

The provisioning calculations require a high degree of judgement, given the significant level of estimation uncertainty in the roll rates between classifications, as well as the use of estimates around future sales prices and the remaining inventory holding for out of season inventory. Sensitivity analysis relating to these key assumptions and its impact upon the core UK inventory holding (which makes up the most significant part of the Group's inventory holding) is set out below.

% of inventory rolling into out of season (including inventory previously classified as continuity) category

Base assumption	30%
Sensitised assumption	35%/25%

Increase/(decrease) to provision	£5.5m/(£5.5m)

Decrease in sales prices on out of season inventory

Base assumption	-15%
Sensitised assumption	-20%/-10%

Increase/(decrease) to provision	£7.0m/(£2.0m)

Increase in out of season Premium Lifestyle inventory on hand after three-years

Base assumption	15 times historical rate
Sensitised assumption	16 times historical rate/14 times historical rate

Increase/(decrease) to provision	£2.1m/(£2.6m)

These sensitivities reflect management's assessment of reasonably possible changes to key assumptions which could result in adjustments to the level of provision within the next financial year.

Dilapidations

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.

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	30%
Sensitised assumption	£19.10/£17.10	35%/25%
Increase to provision	£3.2m	£7.8m
(Decrease) to provision	(£3.2m)	(£7.8m)

Legal and regulatory provisions

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 non-financial assets

a) IFRS 16 right-of-use assets and associated plant and equipment

IFRS 16 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 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 weighted average discount rates based on incremental borrowing rates used throughout the period across the Group's lease portfolio are shown below. The discount rate for each lease is dependent on lease start date, term and location.

Lease Term FY24	UK	Europe	Rest of World
Up to 5 years	1.4% - 5.7%	0.3% - 4.0%	1.5% - 6.2%
Greater than 5 years and up to 10 years	1.4% - 5.7%	0.3% - 4.0%	1.5% - 6.0%
Greater than 10 years and up to 20 years	2.0% - 5.7%	0.3% - 4.0%	1.5% - 6.2%
Greater than 20 years	2.0% - 5.9%	0.5% - 4.0%	1.5% - 6.3 %

Lease Term FY23	UK	Europe	Rest of World
Up to 5 years	1.4% - 5.1%	0.3% - 4%	1.5% - 5.3%
Greater than 5 years and up to 10 years	2.0% - 5.7%	0.5% - 4%	1.5% - 5.3%
Greater than 10 years and up to 20 years	2.2% - 5.7%	0.8% - 4%	1.5% - 5.4%
Greater than 20 years	2.5% - 5.9%	1.1% - 4%	1.5% - 5.6%

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 defines recoverable amount as the higher of an asset's or cash-generating unit's fair value less costs of disposal and its value in use. The Group has determined that each store is a separate 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.

In the period, a net reversal of previous impairments has been recognised for the amount of £0.4m (FY23: impairment charge £66.1m) due to the improving conditions in the retail sector on the forecast cash flows of the CGU since the COVID-19 pandemic where material impairments were incurred. This is broken down as follows:

• £5.2m reversal (FY23: impairment charge £43.1m) against right-of-use assets; and

• £4.8m impairment charge (FY23: £23.0m) 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:	Reversal increase / (decrease) (£'m)
Sales decline year 1	10% improvement to 7% increase	14.4
Sales decline year 1	10% reduction to 13%	(11.8)
Existing gross margin year 1 > 40%	100bps - improvement	3.2
Existing gross margin year 1 > 40%	100bps - reduction	(3.2)
New store exemption ⁽¹⁾	Change from 2 to 3 years	5.5
Operating costs increase year 1	Change from 3% to 6%	(4.0)

(1) Stores which have been open for less than two years are not reviewed for impairment. This has changed in the current period on the basis that management do not consider that a trading performance in the first two years that is worse than an appraisal forecast constitutes an indicator of impairment. Management also notes that new stores can take up to two years to develop an established trading pattern. Stores trading for less than two years are still reviewed for impairment if there are other significant indicators of impairment present such as a deterioration in local market conditions.

b) Freehold land and buildings, long-term leasehold and associated plant and equipment

Freehold land and buildings and long-term leasehold assets are assessed at each reporting period for as to whether there is any indication of impairment or reversal in line with IAS 36.

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 defines recoverable amount as the higher of an asset's or cash-generating unit'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, a net impairment charge of approximately £14.9m (FY23: £33.5m) was recorded for the current period due to certain properties under performing against forecasted results where material impairments were incurred. This is broken down as follows:

• £6.8m reversal (FY23: impairment charge £24.1m) against freehold land and buildings and a £6.7m impairment charge (FY23: impairment charge £0.2m) in relation to long leasehold properties; and

• £15.0m impairment charge (FY23: £9.2m) against plant and equipment.

Value In Use (VIU)

The value in use is calculated based on five-year cash flow projections. These are formulated by using the Group's forecast cash flows for each individual CGU, taking into account historic performance of the CGU, and then adjusting for the Group's current views on future profitability for 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 FY24	Year 1	Year 2	Year 3	Year 4	Year 5
Sales decline	-3%	-2%	-2%	-2%	-2%
Existing gross margin > 40%	-100bps	-75bps	-50bps	-25bps	-
Operating costs increase per annum	3%	3%	3%	3%	3%
Discount rate	9.8%	9.8%	9.8%	9.8%	9.8%
Terminal growth rate of 2%
Properties purchased within one year, or stores that have not traded for two years, are not reviewed for impairment.

Key assumptions FY23	Year 1	Year 2	Year 3	Year 4	Year 5
Sales decline	-5%	-4%	-3%	-2%	-2%
Existing gross margin > 40%	-175bps	-150bps	-125bps	-100bps	-75bps
Operating costs increase per annum	3%	3%	3%	3%	3%
Discount rate	8.5%	8.5%	8.5%	8.5%	8.5%
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 7%	(4.1)
Sales decline year 1	10% reduction to 13%	7.0
Existing gross margin year 1 > 40%	100bps - improvement	(0.8)
Existing gross margin year 1 > 40%	100bps - reduction	0.8
Operating costs increase year 1	Change from 3% to 6%	0.8

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. 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 reflect the market to generate a net capital value. A deduction to the capital value generated is then made based on the void period with applicable rates payable for the unit and rent-free incentive.	Void period and rent-free band - three bands applied depending on circumstances: • 1 year void, 1 year rent free; or
		• 1 year void, 2 years rent free; or
		• 2 years void, 3 years rent free.
		Yield bands - ranging from 5.5% - 20.0%
Frasers Group occupied	Will be assumed the unit is vacant given there is no legally binding inter-company agreement in place. Therefore, a void and rent-free incentive period assumed, the cost amount then deducted from the capital value generated by the ERV and reversionary yield. Although we consider the commercial reality 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 rules and that of our management experts.	Void period and rent-free band - three bands applied depending on circumstances: • 1 year void, 1 year rent free; or
		• 1 year void, 2 years rent free; or
		• 2 years void, 3 years rent free.
		Yield bands - ranging from 5.5% - 20.0%
Third party tenanted	An ERV is applied using a percentage band on the passing rent. An appropriate 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 the current passing rent.	ERV is applied reflecting the market for the applicable unit. An appropriate 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 the current passing rent.

A 10% increase in the market valuation amounts used in the impairment/reversal calculations would result in a decrease in impairment of £0.8m (FY23: £3.4m).

The total recoverable amount of the assets that were impaired and reversed at the period end was £61.8m (FY23: £72.2m), with £7.7m (FY23: £60.5m) of this being based on their fair value less costs of disposal and £54.1m (FY23: £11.7m) being based on their value in use.

Onerous lease provisions

IAS 37 defines a contract is onerous when the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it. Accordingly, the Group provides for the future unavoidable costs that will be incurred under the lease obligations at the present date when the outflow of future economic benefits is deemed probable.

The Group has determined that each store is a separate CGU and assess the profitability of lease contracts by taking into account current economic and market conditions, current trading performance and forecast profitability over the remaining life of the lease.

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. Given the number of assumptions used, the assessment involves significant estimation uncertainty. During the period, net reversals of provisions amounted to £34.5m.

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:	Reversal increase / (decrease) (£'m)
Sales decline year 1	10% improvement to 7% increase	10.9
Sales decline year 1	10% reduction to 13%	(22.8)
Existing gross margin year 1 > 40%	100bps - improvement	2.1
Existing gross margin year 1 > 40%	100bps - reduction	(2.3)
New store exemption ⁽¹⁾	Change from 2 to 3 years	2.3
Operating costs increase year 1	Change from 3% to 6%	(4.0)

Investment Property valuations

Investment properties valued by the Group's internal property team are valued on an open market basis based on active market prices adjusted for any differences in the nature, location or condition of the specified asset such as plot size, encumbrances and current use. If this information is not available, alternative valuation methods are used such as recent prices on less active markets, or discounted cashflow projections.

The market value of the investment properties is also supported by comparison to that produced using the valuation methodology described in the "Fair value less costs of disposal" section above. The range of yield applied across the investment property portfolio is 7.0% to 14.0%.

Credit Customer Receivables

The Group's credit customer receivables are recognised on the balance sheet at amortised cost (i.e., net of provision for expected credit loss). At 28 April 2024, trade receivables with a gross value of £286.9m (FY23: £326.0m) were recorded in the consolidated balance sheet, less a provision for impairment of £80.7m (FY23: £100.1m).

Expected credit loss

An appropriate allowance for expected credit loss in respect of trade receivables is derived from estimates and underlying assumptions such as the Probability of Default and the Loss Given Default, taking into consideration forward looking macro-economic assumptions. The assessment involves significant estimation uncertainty. Changes in the assumptions applied such as the value and frequency of future debt sales in calculating the Loss Given Default, and the estimation of customer repayments and Probability of Default rates, as well as the weighting of the macro-economic scenarios applied to the impairment model could have a significant impact on the carrying value of trade receivables. These assumptions are continually assessed for relevance and adjusted appropriately. Revisions to estimates are recognised prospectively. Sensitivity analysis is given in note 16.

Macroeconomic scenarios

The principial macroeconomic driver factored into the impairment model is unemployment. The latest economic scenarios used in the model along with the probably weighting applied to each are summarised as follows:

Scenario	Qualitative explanation	Probability weighting applied
Upside	Inflation recedes quickly and the Bank of England cuts interest rates to 4% by end of 2024. Unemployment falls back to 3.6%. and wage growth remains strong.	10%
Baseline	Inflation recedes but monetary policy is still tight and the unemployment rate rises to 4.4% in H2 2024.	55%
Downside	The Bank of England raises interest rates to 5.5% and unemployment peaks at 6.0% in Q3 2025.	25%
Stress	A combination of shocks sees inflation rise sharply, hitting a peak of 7.2% early in 2025 leading to an increase in interest rates to 6.25%. Unemployment peaks at 8%.	10%

Post model adjustment

In the prior year, a post model adjustment was applied to the output of the statistical impairment model as the model was not designed to take into account changes to customer payment and default performance arising as a result of the cost-of-living crisis. This increased the provision required at 30 April 2023 by £6.6m. It is management's view that the post model adjustment is no longer required, as the statistical model, which uses unemployment rates as the principal determinant in considering forward looking macro-economic assumptions, is now considered to be sufficiently effective.

Valuation of assets acquired in business combinations

Matches

Following the acquisition of Matches, the principal estimates were around the fair value of inventory acquired and the intangible asset recognised in respect of the trademarks and intellectual property acquired. The fair value of inventory, which primarily included finished goods, was estimated at £97.5m, an increase of £7.9m on the carrying value prior to the acquisition. The fair value adjustment related only to finished goods and was calculated as the estimated selling price less costs to complete and sell the inventory.

The Group recognised intangible assets with a fair value of £20.0m on acquisition in respect of the trademarks and intellectual property acquired This represents management's assessment of the price that would be paid for the acquired assets in an orderly transaction between market participants at the acquisition date.

Prior year acquisitions

In the prior year, on the acquisition of JD premium brands, the principal estimate was around the fair value of inventory acquired. The fair value of inventory, which primarily included finished goods was estimated at £73.4m, a reduction of £6.9m on the carrying value prior to the acquisition. The fair value adjustment related only to finished goods and was calculated as the estimated selling price less costs to complete and sell the inventory. The fair value adjustment amortised during the current financial year in line with revenue, as expected.

A gain on bargain purchase arose on the acquisition of JD premium brands. In light of this, management considered the fair values attributed to the acquired assets and liabilities and concluded that they were appropriate. If the fair value of assets and liabilities recognised were to increase/decrease by £5m, there would be a corresponding increase/decrease to the gain on bargain purchase by an equivalent amount.

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.

Historically the Group has presented four operating segments:

· UK Sports

This segment included the Group's core sports retail store operations in the UK, plus all the Group's sports retail online business, Frasers Fitness, the Group's Shirebrook campus operations, freehold property owning companies excluding Premium Lifestyle fascia properties, GAME UK stores and online operations, Frasers Group Financial Services Limited, and retail store operations in Northern Ireland.

· Premium Lifestyle

This segment included the results of the Group's premium and luxury retail businesses FLANNELS, Cruise, Van Mildert, Jack Wills, House of Fraser, Gieves and Hawkes, and Sofa.com along with the related websites, the Missguided and I Saw it First websites, and freehold property owning companies where trading was purely from Premium Lifestyle fascias.

· International

This segment included 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, European freehold property owning companies, GAME Spain stores and e-commerce offering, the Baltics & Asia e-commerce offerings and the MySale business in Australia.

· Wholesale & Licensing

This segment included the results of the Group's portfolio of internationally recognised brands such as Everlast, Karrimor, and Slazenger.

Following the acquisition of Frasers Group Financial Services Limited (formerly known as Studio Retail Limited) and the launch of the Group's consumer credit offering, Frasers Plus, as well as recent acquisitions of investment property, the Group has decided that its financial services and property divisions should be disclosed as separate operating segments.

In addition, the Group's wholesale and licensing activities have become less of an area of focus in recent periods and therefore management judge the results from these activities no longer warrant separate presentation as an operating segment.

As a result, the Group will now present five operating segments, with the creation of new Property and Financial Services segments, and the Wholesale and Licensing Segment being absorbed into the UK Sports and International segments:

· UK Sports

This segment now 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, Gieves and Hawkes, and Sofa.com along with the related websites, the businesses acquired from JD Sports Fashion Plc in FY23, as well as the results from the I Saw it First website and the Missguided website until the disposal of the Missguided intellectual property in October 2023.

· International

· Property

· Financial Services

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. The segmental results for the comparative period ended 30 April 2023 have been restated to present segmental information on a consistent basis and to restate for changes to the reclassification of rental income, see first note 1 for further details.

Segmental information for the 52 weeks ended 28 April 2024:

	UK Sports	Premium lifestyle	International	Retail	Property	Financial Services	Group Total
	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)
Revenue	2,860.8	1,204.0	1,289.2	5,354.0	72.7	111.0	5,537.7
Cost of sales	(1,558.5)	(773.2)	(782.4)	(3,114.1)	(7.8)	(20.6)	(3,142.5)
Gross profit	1,302.3	430.8	506.8	2,239.9	64.9	90.4	2,395.2
Gross Margin %	45.5%	35.8%	39.3%	41.8%	89.3%	81.4%	43.3%
Operating costs	(833.9)	(293.6)	(373.5)	(1,501.0)	(40.8)	(32.8)	(1,574.6)
Fair value adjustments to investment properties	-	-	-	-	11.5	-	11.5
Gain on disposal of properties	-	-	-	-	3.5	-	3.5
Profit from trading	468.4	137.2	133.3	738.9	39.1	57.6	835.6
Depreciation & amortisation	(109.9)	(36.4)	(76.6)	(222.9)	(60.2)	(1.5)	(284.6)
Impairments net of impairment reversals	8.4	(2.5)	(12.5)	(6.6)	(14.8)	-	(21.4)
Share-based payments	(23.0)	-	(0.4)	(23.4)	-	-	(23.4)
Foreign exchange realised	9.2	0.3	0.3	9.8	4.6	-	14.4
Operating profit/(loss)	353.1	98.6	44.1	495.8	(31.3)	56.1	520.6
Gain on sale of subsidiaries/discontinued operations							25.0
Net investment income							9.5
Net finance costs							(48.1)
Profit before tax							507.0
Result from discontinued operation							(12.5)
Fair value adjustment to derivative financial instruments							(27.6)
Fair value losses on equity derivatives							68.9
Realised FX gain							(14.4)
Share-based payments							23.4
Adjusted profit before tax ("APBT")							544.8

Revenue from external customers in Frasers Group Financial Services Limited includes credit account interest of £111.0m (FY23: £125.0m), and gross profit includes impairment losses on credit customer receivables of £20.6m (FY23: £15.5m), both of which are recognised in the newly created Financial Services segment.

Other segmental items included in the income statement for the 52 weeks ended 28 April 2024:

	UK Sports	Premium lifestyle	International	Retail	Property	Financial Services	Group Total
	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)
Property, plant & equipment depreciation	(68.7)	(26.9)	(41.7)	(137.3)	(60.2)	(2.1)	(199.6)
Property, plant & equipment impairment	(3.0)	3.0	(4.9)	(4.9)	(14.8)	-	(19.7)
IFRS 16 ROU depreciation	(40.7)	(9.5)	(33.6)	(83.8)	-	0.6	(83.2)
IFRS 16 ROU (impairment)/reversals	11.9	(0.3)	(6.4)	5.2			5.2
Fair value adjustments to investment properties				-	11.5		11.5
IFRS 16 disposal and modification/remeasurement of lease liabilities	(2.1)	4.9	(9.4)	(6.6)	-	-	(6.6)
Intangible amortisation	(0.5)	-	(1.3)	(1.8)	-	-	(1.8)
Intangible impairment	(0.5)	(5.2)	(1.2)	(6.9)	-	-	(6.9)

Segmental information for the 53 weeks ended 30 April 2023⁽¹⁾

	UK Sports	Premium lifestyle	International	Retail	Property	Financial Services	Group Total
	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)
Revenue	2,959.1	1,218.1	1,247.7	5,424.9	36.1	125.0	5,586.0
Cost of sales	(1,685.7)	(741.0)	(746.2)	(3,172.9)	(2.6)	(15.5)	(3,191.0)
Gross profit	1,273.4	477.1	501.5	2,252.0	33.5	109.5	2,395.0
Gross Margin %	43.0%	39.2%	40.2%	41.5%	92.8%	87.6%	42.9%
Operating costs	(818.7)	(343.1)	(344.9)	(1,506.7)	(25.1)	(43.7)	(1,575.5)
Fair value adjustments to investment properties	-	-	-	-	(6.5)	-	(6.5)
Gain on disposal of properties	-	-	-	-	95.4	-	95.4
Profit from trading	454.7	134.0	156.6	745.3	97.3	65.8	908.4
Depreciation & amortisation	(117.8)	(41.4)	(46.3)	(205.5)	(36.0)	(0.9)	(242.4)
Impairments net of impairment reversals	(25.1)	(56.9)	(133.8)	(215.8)	(23.9)	-	(239.7)
Share-based payments	(19.3)			(19.3)			(19.3)
Foreign exchange realised	35.8	0.1	(4.7)	31.2			31.2
Exceptional items	-	55.2	16.9	72.1	-	25.0	97.1
Operating profit	328.3	91.0	(11.3)	408.0	37.4	89.9	535.3
Gain on sale of subsidiaries/discontinued operations							17.6
Net investment income							108.0
Net finance costs							(22.9)
Profit before tax							638.0
Exceptional items							(97.1)
Result from discontinued operation							26.4
Fair value adjustment to derivative financial instruments							(32.5)
Fair value losses on equity derivatives							(41.1)
Realised FX gain							(31.2)
Share-based payments							19.3
Adjusted profit before tax ("APBT")							481.8

1) The FY23 results have been re-categorised due to changes in the reporting segments, with the creation of new Property and Financial Services segments, and the Wholesale and Licensing Segment being absorbed into the UK Sports and International segments. They have also been restated for the reclassification as rental income (note 1).

Inter-segment sales are priced at cost plus a 10% mark-up.

Other segmental items included in the income statement for the 53 weeks ended 30 April 2023:

	UK Sports	Premium lifestyle	International	Retail	Property	Financial Services	Group Total
	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)
Property, plant & equipment depreciation	(95.6)	(35.6)	(19.0)	(150.2)	(36.0)	(0.9)	(187.1)
Property, plant & equipment impairment	(14.0)	(17.2)	(1.4)	(32.6)	(23.9)	-	(56.5)
IFRS 16 ROU depreciation	(40.0)	(6.6)	(28.6)	(75.2)	-	-	(75.2)
IFRS 16 ROU impairment	(6.2)	(19.2)	(17.7)	(43.1)	-	-	(43.1)
Fair value adjustments to investment properties	-	-	-	-	(6.5)	-	(6.5)
IFRS 16 disposal and modification/remeasurement of lease liabilities	17.8	0.8	8.2	26.8	-	-	26.8
Intangible amortisation	-	-	(6.9)	(6.9)	-	-	(6.9)
Intangible impairment	(4.9)	(20.5)	(114.7)	(140.1)	-	-	(140.1)

4. EXCEPTIONAL ITEMS

	52 weeks ended	53 weeks ended
	28 April 2024	30 April 2023
	(£'m)	(£'m)
Fair value gain on associate	-	16.9
Adjustment to Studio regulatory provision	-	25.0
Gain on bargain purchase	-	55.2
	-	97.1

The gain on bargain purchase in the prior period relates to acquisition of JD brands.

The fair value gain on associate in the prior year arose as a result of the disposal of 51% of Kangol LLC, following the loss of control.

5. INVESTMENT INCOME

	52 weeks ended	53 weeks ended
	28 April 2024	30 April 2023
	(£'m)	(£'m)
Premium received on equity derivatives	76.1	63.9
Fair value gain on equity derivatives	-	45.7
Dividend income	2.3	3.0
	78.4	112.6

The premium received on equity derivatives mainly relates to written Hugo Boss options. In the prior year, the fair value gain on equity derivatives mainly relates to Hugo Boss options.

6. INVESTMENT COSTS

	52 weeks ended	53 weeks ended
	28 April 2024	30 April 2023
	(£'m)	(£'m)
Loss on disposal of equity derivatives	36.5	4.6
Fair value loss on equity derivatives	32.4	-
	68.9	4.6

The loss on equity derivatives relates to losses across the strategic investments portfolio including Hugo Boss.

7. FINANCE INCOME

	52 weeks ended	53 weeks ended
	28 April 2024	30 April 2023
	(£'m)	(£'m)
Bank interest receivable	15.8	9.7
Other finance income	-	3.9
Fair value adjustment to derivatives*	27.6	32.5
	43.4	46.1

*Includes £6.1m (FY23: £8.4m) from interest rate swaps.

8. FINANCE COSTS

	52 weeks ended	53 weeks ended
	28 April 2024	30 April 2023
	(£'m)	(£'m)
Interest on bank loans and overdrafts	66.8	41.4
Other interest	0.4	9.4
IFRS 16 lease interest	24.3	18.2
	91.5	69.0

9. TAXATION

	52 weeks ended	53 weeks ended
	28 April 2024	30 April 2023
	(£'m)	(£'m)
Current tax	127.5	145.2
Adjustment in respect of prior periods	(8.9)	(1.0)
Total current tax	118.6	144.2

Deferred tax	(0.7)	39.7
Adjustment in respect of prior periods	(10.0)	(24.5)
Total deferred tax	(10.7)	15.2

	107.9	159.4

Profit before taxation - continuing operations	507.0	638.0
(Loss)/profit before taxation - discontinued operations	(12.5)	26.4
Total Profit before taxation	494.5	664.4
Taxation at the standard rate of tax in the UK of 25% (FY23: 19.5%)	123.6	129.6

Non-taxable income	(23.5)	(18.7)
Expenses not deductible for tax purposes	34.3	70.9
Other tax adjustments	(7.6)	3.1
Adjustments in respect of prior periods - current tax	(8.9)	(1.0)
Adjustments in respect of prior periods - deferred tax	(10.0)	(24.5)
Changes in deferred tax rate	-	-
	107.9	159.4

Tax charge - continuing operations	107.9	159.3
Tax charge - discontinued operations	-	0.1
Total tax charge	107.9	159.4

Expenses not deductible for tax purposes largely relates to non-qualifying depreciation and impairments not qualifying for tax allowances.

10. EARNINGS PER SHARE FROM TOTAL AND CONTINUING OPERATIONS ATTRIBUTABLE TO THE 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 year.

For diluted earnings per share, the weighted average number of shares, 438,504,703 (FY23: 459,911,330), is adjusted to assume conversion of all dilutive potential ordinary shares under the Group's share schemes, being nil (FY23: nil), to give the diluted weighted average number of shares of 438,504,703 (FY23: 459,911,330). There is therefore no difference between the Basic and Diluted EPS calculations for both periods. Shares bought back into treasury are deducted when calculating the weighted average number of shares below.

Basic and Diluted Earnings Per Share

	52 weeks ended	52 weeks ended	52 weeks ended	53 weeks ended	53 weeks ended	53 weeks ended
	28 April 2024	28 April 2024	28 April 2024	30 April 2023 (restated)¹	30 April 2023 (restated)¹	30 April 2023 (restated)¹
	Basic and diluted, continuing operations	Basic and diluted, discontinued operations	Basic and diluted, total	Basic and diluted, continuing operations	Basic and diluted, discontinued operations	Basic and diluted, total
	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)
Profit for the period	393.3	(12.5)	380.8	465.4	26.3	491.7
	Number in thousands	Number in thousands	Number in thousands	Number in thousands	Number in thousands	Number in thousands
Weighted average number of shares	438,505	438,505	438,505	459,911	459,911	459,911
	Pence per share	Pence per share	Pence per share	Pence per share	Pence per share	Pence per share
Earnings per share	89.7	(2.9)	86.8	101.2	5.7	106.9

(1) Restated to reflect the change in accounting policy regarding the valuation of investment property and reclassification of rental income. Please refer to note 1 for further details.

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.

	52 weeks ended	52 weeks ended	53 weeks ended	53 weeks ended
	28 April 2024	28 April 2024	30 April 2023	30 April 2023
	Basic	Diluted	Basic	Diluted
	(£'m)	(£'m)	(£'m)	(£'m)
Profit for the period	380.8	380.8	491.7	491.7
Pre-tax adjustments to profit / (loss) for the period for the following items:
Exceptional items	-	-	(97.1)	(97.1)
Fair value adjustment to derivatives included within finance (income)	(27.6)	(27.6)	(32.5)	(32.5)
Fair value losses/(gains) and loss/(profit) on disposal of equity derivatives	68.9	68.9	(41.1)	(41.1)
Realised foreign exchange gains	(14.4)	(14.4)	(31.2)	(31.2)
Share based payments	23.4	23.4	19.3	19.3

Tax adjustments on the above items	(11.0)	(11.0)	20.8	20.8

Adjusted profit for the period	420.1	420.1	329.9	329.9

	Number in thousands	Number in thousands	Number in thousands	Number in thousands
Weighted average number of shares	438,505	438,505	459,911	459,911
	Pence per share	Pence per share	Pence per share	Pence per share
Adjusted Earnings per share	95.8	95.8	71.7	71.7

11. DISCONTINUED OPERATIONS AND SALE OF SUBSIDIARIES

Following the acquisition, the Group provided significant funding to Matches but the business continued to generate material trading losses. As a result of this, the management concluded that the funding requirements of the business would be far in excess of amounts that the Group considers to be viable and on 8 March 2024 administrators were appointed. From this point, the Group was no longer exposed to and no longer had rights to variable returns from Matches and lost its ability to influence these returns through its power over the entity. Therefore, in accordance with IFRS 10 Consolidated Financial Statements ("IFRS 10") management concluded that it no longer had control over Matches.

In accordance with IFRS 5.32, management considered that Matches 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.

Details of the disposal

	Period ended 28 April 2024
	(£'m)
Total disposal consideration	74.7
Carrying amount of net assets disposed of	(78.8)
Loss on disposal after income tax	(4.1)

All amounts are attributable to the owners of the parent.

Total disposal consideration of £74.7m reflects loans due to the Group from Matches at the point of disposal, net of a provision for expected credit loss.

In period between the administrators' appointment and 28 April 2024, the Group purchased the brand names and intellectual property of Matches for £20.0m, with the consideration payable being treated as a reduction in the amounts owed to the Group by Matches.

A first dividend of £30.0m was received from the administrators prior to year-end leaving and outstanding balance of £24.7m at year end, which is recorded within trade and other receivables.

Financial performance and cash flow information

	20 December 2023 to
	28 April 2024
	(£'m)
Revenue	29.9
Expenses	(38.3)
Loss after tax of discontinued operation	(8.4)
Loss on disposal	(4.1)
Loss from discontinued operation	(12.5)

Net cash outflow from operating activities	(9.1)
Net cash outflow from investing activities	(5.3)
Net decrease in cash generated by the discontinued operation	(14.4)

The carrying amounts of assets and liabilities at the date of disposal on 8 March 2024 were as follows:

	(£'m)
Goodwill	1.9
Intangible assets	20.0
Inventories	73.9
Trade and other receivables	34.9
Cash and cash equivalents	20.0
Total assets	150.7
Trade and other payables	(45.8)
Provisions	(12.3)
Lease liabilities	(13.8)
Total liabilities	(71.9)

Net assets of the disposal group	78.8

Disposal of subsidiaries

During the current period, the Group sold certain intellectual property assets relating to Missguided for net consideration of approximately £25.0m.

Summary of FY23 discontinued operation and disposals of subsidiaries

On 24 May 2022, the Group disposed of its US retail businesses trading as Bobs Stores and Eastern Mountain Sports for net cash consideration of approximately £43.6m. The disposal took place through the sale of 100% of the share capital of Roberts 50 USA LLC and its subsidiaries to GoDigital Media Group.

As per IFRS 5, this disposal group was classified as held for sale and as a discontinued operation in FY22. A profit on disposal of £26.3m was recognised in the Consolidated Income Statement in the prior year.

The reconciliation of the transaction is detailed below:

	30 April 2023
	(£'m)
Net assets disposed of (including FX revaluation)	(18.9)
Cash received, net of transaction costs and cash disposed of	43.6
Gain on sale before income tax and reclassification of foreign currency translation reserve	24.7
Reclassification of foreign currency translation reserve	1.6
Gain on sale after income tax	26.3

The Consolidated Cash Flow Statement in the prior year included the following amounts relating to this discontinued operation:

	53 weeks ended
	30 April 2023
	(£'m)
Operating activities	(2.2)
Financing activities	(0.5)
Net cash outflow from discontinued operations	(2.7)

Additionally, during the prior period, consideration of £2.9m was received in respect of the Group's disposal of a 51% shareholding in Kangol LLC to Bollman Hat Company. Total proceeds received from disposals of discontinued operations and subsidiaries in the prior period was therefore £46.5m.

12. PROPERTY, PLANT AND EQUIPMENT

	Right of use assets*	Freehold land and Buildings	Long-term Leaseholds	Short-term leasehold improvements	Plant and Equipment	Total
	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)
COST
At 24 April 2022	686.6	904.0	155.7	125.1	995.8	2,867.2
Acquisitions (see note 32)	43.0	-	15.7	-	7.6	66.3
Additions	98.0	97.5	6.0	1.1	275.5	478.1
Eliminated on disposals	(111.2)	(60.1)	(34.3)	-	(65.6)	(271.2)
Reclassifications / Remeasurements	7.6	(1.5)	-	-	-	6.1
Exchange differences	12.6	(13.3)	0.6	0.3	18.6	18.8
At 30 April 2023	736.6	926.6	143.7	126.5	1,231.9	3,165.3
Additions	81.3	15.5	6.8	-	169.4	273.0
Eliminated on disposals	(75.1)	(16.5)	(2.1)	(14.7)	(96.0)	(204.4)
Reclassifications / Remeasurements	15.2	(83.9)	(3.0)	-	(10.6)	(82.3)
Exchange differences	(2.6)	(3.3)	(0.4)	(0.5)	(5.2)	(12.0)
At 28 April 2024	755.4	838.4	145.0	111.3	1,289.5	3,139.6

ACCUMULATED DEPRECIATION AND IMPAIRMENT
At 24 April 2022	(491.9)	(420.5)	(63.0)	(121.4)	(759.4)	(1,856.2)
Charge for the period	(75.2)	(43.8)	(11.4)	(1.7)	(130.2)	(262.3)
Impairment	(43.1)	(23.9)	(0.2)	-	(32.2)	(99.4)
Eliminated on disposals	110.8	16.7	11.6	(0.9)	57.0	195.2
Reclassifications / Remeasurements	-	0.2	-	-	-	0.2
Exchange differences	(9.4)	4.3	(0.3)	(0.3)	(5.1)	(10.8)
At 30 April 2023	(508.8)	(467.0)	(63.3)	(124.3)	(869.9)	(2,033.3)
Charge for the period	(83.2)	(17.4)	(17.4)	(0.1)	(164.7)	(282.8)
Impairment	5.2	6.8	(6.7)	-	(19.8)	(14.5)
Eliminated on disposals	75.1	4.4	3.0	14.1	32.0	128.6
Reclassifications / Remeasurements	(3.4)	12.7	(3.7)	0.2	8.9	14.7
Exchange differences	5.1	0.6	0.2	0.4	4.0	10.3
At 28 April 2024	(510.0)	(459.9)	(87.9)	(109.7)	(1,009.5)	(2,177.0)

NET BOOK VALUE
At 28 April 2024	245.4	378.5	57.1	1.6	280.0	962.6
At 30 April 2023	227.8	459.6	80.4	2.2	362.0	1,132.0
At 24 April 2022	194.7	483.5	92.7	3.7	236.4	1,011.0

*ROU assets have been restated to reflect the change in accounting policy regarding the valuation of investment property. Please refer to note 1 for further details. Lease arrangements for ground rents have also been reclassified to investment properties as they are now recognised and measured as part of the fair values of investment property.

13. INVESTMENT PROPERTIES

	Freehold land and Buildings
	(£'m)
Fair value at 24 April 2022*	95.5

Direct acquisitions	107.0
Less right-of-use asset additions	(18.7)
Transfer from property, plant and equipment - at fair value	1.3
Disposals	(37.3)
Net loss from fair value adjustment on investment properties	(6.5)
Market value per valuation report	141.3

Lease liabilities on ground leases	18.7

Fair value at 30 April 2023*	160.0

Lease liabilities on ground leases brought forward	(18.7)
Direct acquisitions	99.2
Less right-of-use asset additions	(23.7)
Transfer from property, plant and equipment - at fair value	79.4
Net gain from fair value adjustment on investment properties	11.5
Market value per valuation report	307.7

Lease liabilities on ground leases	42.8

Fair value at 28 April 2024	350.5

*Restated to reflect the change in accounting policy regarding the valuation of investment property. Please refer to note 1 for further details.

The rental income from Investment Properties recognised in the consolidated income statement for the year was £38.7m (FY23: £23.7m).

Valuation processes

The Group's investment properties were valued as at 28 April 2024 by the Group's internal property team who are appropriately qualified chartered surveyors, follow the applicable valuation methodology of the Royal Institute of Chartered Surveyors, and have recent experience in the locations and segments of the investment properties valued. For all investment properties, their current use equates to the highest and best use. The Group's finance department includes a team that reviews the valuations performed by the property team for financial reporting purposes. This team reports directly to the Chief Financial Officer (CFO) and the Audit Committee (AC). Discussions of valuation processes and results are held between the finance department and the property team in August and February each year.

At each financial discussion, the finance department verifies all major inputs to the valuation report and assesses property valuation movements when compared to the previous valuation report.

Measurement of fair value of investment property

Properties valued by the Group's internal property team are valued on an open market basis based on active market prices adjusted for any differences in the nature, location or condition of the specified asset such as plot size, encumbrances and current use. If this information is not available, alternative valuation methods are used such as recent prices on less active markets, or discounted cashflow projections. The significant unobservable input is the adjustment for factors specific to the properties in question. The extent and direction of this adjustment depends on the number and characteristics of the observable market transactions in similar properties that are used as the starting point for the valuation. Although this input is a subjective judgement, management consider that the overall valuation would not be materially altered by any reasonable alternative assumptions. All of the valuations across the Group's investment property are considered to be level 3 fair values.

The market value of the investment properties has been supported by comparison to that produced under income capitalisation techniques applying yield as a key unobservable input. The range of yield applied is 7.0% to 20.0%.

The fair value of an investment property reflects, among other things, rental income from current leases and assumptions about future rental lease income based on current market conditions and anticipated plans for the property

14. INTANGIBLE ASSETS

	Goodwill	Trademarks and licenses	Brands	Customer related	Total
	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)
COST
At 24 April 2022	176.8	91.1	87.0	5.7	360.6
Acquisitions (note 32)	35.6	11.7	-	-	47.3
Additions	-	1.0	-	-	1.0
Disposals	(0.2)	(2.3)	-	-	(2.5)
Exchange adjustments	2.5	0.3	1.8	-	4.6
At 30 April 2023	214.7	101.8	88.8	5.7	411.0
Acquisitions (note 32)	4.2	20.0	-	-	24.2
Additions	-	25.0	-	-	25.0
Disposals	(1.9)	(20.0)	-	-	(21.9)
Exchange adjustments	-	(0.1)	0.3	-	0.2
At 28 April 2024	217.0	126.7	89.1	5.7	438.5

AMORTISATION AND IMPAIRMENT
At 24 April 2022	(132.4)	(87.3)	(19.3)	(1.0)	(240.0)
Amortisation charge	-	(0.9)	(6.0)	-	(6.9)
Impairment	(71.7)	(11.7)	(52.0)	(4.7)	(140.1)
Disposals	0.4	2.3	-	-	2.7
Exchange adjustments	(1.1)	(0.3)	(1.2)	-	(2.6)
At 30 April 2023	(204.8)	(97.9)	(78.5)	(5.7)	(386.9)
Amortisation charge	-	(0.5)	(1.3)	-	(1.8)
Impairment	(2.3)	(4.6)	-	-	(6.9)
Disposals	-	-	-	-	-
Exchange adjustments	-	(0.4)	(0.3)	-	(0.7)
At 28 April 2024	(207.1)	(103.4)	(80.1)	(5.7)	(396.3)

At 28 April 2024	9.9	23.3	9.0	-	42.2
At 30 April 2023	9.9	3.9	10.3	-	24.1
At 24 April 2022	44.4	3.8	67.7	4.7	120.6

Amortisation is charged to selling, distribution and administrative expenses in the Consolidated Income Statement.

Goodwill, trademarks and licenses and brands that are acquired in a business combination are allocated, at acquisition, to the CGUs that are

expected to benefit from that business combination. After recognition of impairment losses, the carrying amount of these assets at the start and end of the current period are allocated as follows:

	28 April 2024
	Goodwill	Trademarks and licenses	Brands	Total
	(£'m)	(£'m)	(£'m)	(£'m)
Wholesale & Licensing (excl. Everlast)	9.9	-	-	9.9
Everlast	-	3.0	9.0	12.0
Matches	-	20.0	-	20.0
	9.9	23.0	9.0	41.9
	30 April 2023
	Goodwill	Trademarks and licenses	Brands	Total
	(£'m)	(£'m)	(£'m)	(£'m)
Wholesale & Licensing (excl. Everlast)	9.9	-	-	9.9
Everlast	-	3.3	10.3	13.6
	9.9	3.3	10.3	23.5

Acquisitions

In the current period, goodwill and trademarks with a fair value of £24.2m (FY23: £47.3m) were recognised as part of business combinations with £21.9m relating to the Matches acquisition. See note 32 for details. The goodwill and trademarks recognised in respect of Matches were derecognised once the business went into administration on 8 March 2024. See note 16 for details. Following a review of the trading performance of the other businesses acquired the goodwill was fully impaired as the recoverable amount on a value in use basis was estimated to be £nil.

Additions

In period between the administrators' appointment and 28 April 2024, the Group purchased the brand names and intellectual property of Matches for £20.0m (see note 11 for further details). The assets acquired were assumed to have a useful economic life of 15 years. Management does not consider that there was any indicator of impairment at the reporting date.

During the current period, the Group also acquired other trademarks and brand names with a cost value of £5m. These assets were fully impaired as the recoverable amount on a value in use basis was estimated to be £nil.

Amortisation

The brands, trademarks & licenses allocated to the Everlast CGU are being amortised over a 15-year period. The amortisation charge in the current period is £1.3m (FY23: £6.5m) and is disclosed within selling, distribution and administrative expenses in the Consolidated Income Statement. The remaining useful economic life of these assets is 10 years (FY23: 11 years).

Impairment review

The Group tests the carrying amount of goodwill and intangible assets with an indefinite life for impairment annually or more frequently if there are indications that their carrying value might be impaired. The carrying amounts of other intangible assets are reviewed for impairment if there is an indicator of impairment.

The recoverable amounts of the Wholesale & Licensing (excl. Everlast) and Everlast CGUs have been determined by reference to value in use calculations. The recoverable amounts were then compared to the carrying value of the assets allocated to each CGU to assess the level impairment required, if any.

No impairment testing was performed on the intellectual property purchased from Matches due to the absence of any indicator of impairment and the proximity of the transaction to the reporting date.

Significant judgements, assumptions, and estimates

In determining the value in use of CGUs it is necessary to make a series of assumptions to estimate the present value of future cash flows. In each case, these key assumptions have been made by management reflecting past experience, current trends, and where applicable, are consistent with relevant external sources of information. The key assumptions are as follows:

	28 April 2024		30 April 2023
	Wholesale & Licensing (excl. Everlast)	Everlast	Wholesale & Licensing (excl. Everlast)	Everlast
5-year average annual forecast sales decline	(1.7%)	(1.8%)	(3.0%)	(2.6%)
Discount rate	9.8%	13.5%	8.5%	14.2%
Annual % increase in operating costs	-	-	-	3.0%
Terminal growth rate	2.0%	2.0%	2.0%	2.0%

Management has prepared cash flow forecasts for a five-year period derived from the actual results for financial year 2023/24. These forecasts include assumptions around sales prices and volumes, specific customer relationships and operating costs and working capital movements.

The average rate of annual sales decline forecast for the Everlast CGU of 1.7% pa is less pessimistic than the 2.6% pa in the prior year and is reflective of management's latest view of the business' prospects in the medium-term due to current restructuring underway.

The pre-tax rates used to discount the forecast cash flows are shown above and are derived from the Group's weighted average cost of capital as adjusted for the specific risks related to each CGU.

Overhead costs in the Everlast CGU have been assumed to remain flat (FY23: 3.0% pa increase) throughout the forecast period on the basis that inflationary cost increases will be offset by operational efficiencies due to current restructuring underway.

To forecast beyond the detailed cash flows into perpetuity, a long-term average growth rate of 2.0% (FY23: 2.0%) has been used. This is not greater than the published International Monetary Fund average growth rate in gross domestic product for the next five-year period in the territories where the CGUs operate. The growth rate was assessed separately for each CGU however the 2.0% rate was deemed appropriate in both cases.

Results

The recoverable amount of the Wholesale & Licensing (excluding Everlast) CGU exceeds its carrying value by approximately £72.7m (FY23: £82.0m) and as such no impairment was required.

The recoverable amount of the Everlast CGU exceeds its carrying value by approximately £9.0m (FY23: £87.9m impairment loss) and as such no impairment was required.

Sensitivity Analysis

The table below shows changes to the terminal growth rate, risk adjusted discount rate and forecast operating cash flow assumptions used in the calculation of value in use for the Everlast CGU to make recoverable amount of CGU equal to its carrying value:

		Everlast
Value in use		£55.2m
Current headroom		£9.0m

Change in key assumption required to make recoverable amount of CGU equal to its carrying value
Current Terminal Growth Rate		2.0%
Revised Terminal Rate of Decline		(0.9%)

Current Discount Rate		13.5%
Revised Discount Rate		13.9%

Current 5-year average annual forecast sales decline		(1.8%)
Revised 5-year average annual forecast sales decline		(2.1%)

Current annual % increase in operating costs		-
Revised annual % increase in operating costs		1.5%

Based on the results of the impairment test for the Wholesale & Licensing (excluding Everlast) CGU and the immaterial carrying value of the remaining goodwill, management are satisfied that there is sufficient headroom against the carrying value such that a reasonably possible change in assumption would not lead to an impairment. Consequently, no sensitivity analysis has been disclosed for this CGU.

Climate Change

Management considered the impact of climate change when conducting its impairment review and concluded that it was unlikely to have a material impact on the assumptions based on the following:

· The relevant tangible assets have relatively short useful economic lives and are not considered to be in locations that will be materially impacted by climate change (i.e., they are in the USA - a developed country).

· The forecasts include estimates for ongoing capital expenditure, which management consider to be sufficient to make any essential climate change related acquisitions (e.g., solar panels or building energy management systems).

15. LONG-TERM FINANCIAL ASSETS

The Group is not looking to make gains through increases in market prices of its long-term financial assets, therefore on initial application of IFRS 9 the Group made the irrevocable election to account for long term financial assets at fair value through other comprehensive income (FVOCI). The election has been made on an instrument-by-instrument basis, only qualifying dividend income is recognised in profit and loss, changes in fair value are recognised within OCI and never reclassified to profit and loss, even if the asset is impaired, sold or otherwise derecognised. All of the Group's long-term financial assets are recognised in the UK Sports segment.

The fair value of the long-term financial assets is based on bid quoted market prices at the balance sheet date or where market prices are not available, at management's estimate of fair value.

The following table shows the aggregate movement in the Group's financial assets during the period:

	28 April 2024	30 April 2023
	(£'m)	(£'m)
At beginning of period	289.6	206.6
Additions	382.6	243.3
Disposals	(133.3)	(172.4)
Amounts recognised through other comprehensive income	(43.7)	9.9
Exchange differences	0.2	2.2
	495.4	289.6

Included within long-term financial assets at the period ended 28 April 2024 are the following direct interests held by the Group:

• 36.9% (FY23: 36.9%) interest in Mulberry Group Plc

• 31.1% (FY23: Nil%) interest in XXL ASA

• 24.5% (FY23: Nil%) interest in AO World Plc

• 22.7% (FY23: Nil%) interest in Boohoo Group Plc

• 20.4% (FY23: 17.6%) interest in N Brown Group Plc

• 20.2% (FY23: 5.5%) interest in ASOS Plc

• 9.3% (FY23: Nil%) interest in Hornby Plc

• 6.6% (FY23: Nil%) interest in Currys Plc

• Various other interests, none of which represent more than 5.0% of the voting power of the investee

The following table shows the fair value of each of the Group's long-term financial assets (all listed):

	28 April 2024	30 April 2023
	(£'m)	(£'m)
AO World plc	150.1	-
Boohoo Group plc	98.4	-
ASOS plc	83.1	40.5
Currys plc	46.1	-
XXL ASA	31.9	-
Mulberry Group plc	23.8	53.2
N Brown Group plc	13.4	23.5
Hornby plc	5.2	-
Other*	43.4	172.4
At end of period	495.4	289.6

*Other relates to interests which do not represent more than 5.0% of the voting power of the investee as at 28 April 2024.

These holdings have been assessed under IFRS 9 Financial Instruments and categorised as long-term financial assets, as the Group does not consider them to be associates and therefore, they are not accounted for on an equity basis, see note 2.

Our strategic investments are intended to allow us to develop relationships and commercial partnerships with the relevant retailers and brands.

16. TRADE AND OTHER RECEIVABLES

	52 weeks ended	53 weeks ended
	28 April 2024	30 April 2023
	(£'m)	(£'m)
Gross credit customer receivables	286.9	326.0
Allowance for expected credit loss on credit customer receivables	(80.7)	(100.1)
Net credit customer receivables	206.2	225.9
Trade receivables	91.6	65.6
Deposits in respect of derivative financial instruments	139.0	190.1
Amounts owed by related parties (see note 34)	6.6	4.7
Other receivables	128.1	122.3
Prepayments	103.4	111.5
	674.9	720.1

Following the acquisition of Frasers Group Financial Services Limited (formerly known as Studio Retail Limited) in FY22, credit customer receivables now make up a significant element of trade and other receivables. Further disclosure with regards to the credit customer receivables and the associated allowance for expected credit loss can be found at the end of this note.

Trade and other receivables

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 and volatility), the financial institutions' assessment of the Group's creditworthiness and further purchases / sales of underlying investments held.

Credit Customer Receivables

Certain of the Group's trade receivables are funded through a securitisation facility that is secured against those receivables. The finance provider will seek repayment of the finance, as to both principal and interest, only to the extent that collections from the trade receivables financed allows and the benefit of additional collections remains with the Group. At the period end, receivables of £201.3m (FY23: £256.4m) were eligible to be funded via the securitisation facility, and the facilities utilised were £126.8m (FY23: £161.6m).

Other information

The average credit period taken on sales of goods is 264 days (FY23: 222 days). On average, interest is charged at 3.4% (FY23: 3.4%) per month on the outstanding balance.

The Group will undertake a reasonable assessment of the creditworthiness of a customer before opening a new credit account or significantly increasing the credit limit on that credit account. The Group will only offer credit limit increases for those customers that can reasonably be expected to be able to afford and sustain the increased repayments in line with the affordability and creditworthiness assessment. There are no customers (FY23: None) who represent more than 1% of the total balance of the Group's trade receivables.

Where appropriate, the Group will offer forbearance to allow customers reasonable time to repay the debt. The Group will ensure that the forbearance option deployed is suitable in light of the customer's circumstances (paying due regard to current and future personal and financial circumstances). Where repayment plans are agreed, the Group will ensure that these are affordable to the customer and that unreasonable or unsustainable amounts are not requested. At the balance sheet date there were 25,170 accounts (FY23: 21,395) with total gross balances of £16.6m (FY23: £14.3m) on repayment plans. Provisions are assessed as detailed above.

During the current period, overdue receivables with a gross value of £35.6m (FY23: £56.0m) were sold to third party debt collection agencies. As a result of the sales, the contractual rights to receive the cash flows from these assets were transferred to the purchasers. Any gain or loss between actual recovery and expected recovery is reflected within the impairment charge.

Allowance for expected credit loss

The following tables provide information about the exposure to credit risk and ECLs for trade receivables from individual customers as at 28 April 2024:

	28 April 2024			30 April 2023
	Trade receivables	Trade receivables on forbearance arrangements	Total	Trade receivables	Trade receivables on forbearance arrangements	Total
	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)
Ageing of trade receivables
Not past due	206.7	15.7	222.4	242.5	13.0	255.5
Past due:
0 - 60 days	22.0	0.9	22.9	23.4	1.3	24.7
60 - 120 days	9.3	-	9.3	9.6	-	9.6
120+ days	32.3	-	32.3	36.2	-	36.2
Gross trade receivables	270.3	16.6	286.9	311.7	14.3	326.0
Allowance for expected credit loss	(69.0)	(11.7)	(80.7)	(90.2)	(9.9)	(100.1)
Carrying value	201.3	4.9	206.2	221.5	4.4	225.9

	1 May 2023 to 28 April 2024
	Stage 1	Stage 2	Stage 3	Total
	(£'m)	(£'m)	(£'m)	(£'m)
Gross trade receivables	185.6	47.3	54.0	286.9
Allowance for doubtful debts:
Opening balance	(17.2)	(37.2)	(45.7)	(100.1)
Impairment (charge)/release	(6.9)	5.0	(19.9)	(21.8)
Utilisation in period	6.4	13.3	21.5	41.2
Closing balance	(17.7)	(18.9)	(44.1)	(80.7)
Carrying value	167.9	28.4	9.9	206.2

Analysis of impairment charge:

	1 May 2023 to 28 April 2024	25 April 2022 to 30 April 2023
	(£'m)	(£'m)
Impairment charge impacting on provision	(21.8)	(22.2)
Recoveries	9.5	9.2
Other	(8.3)	(2.5)
Impairment charge	(20.6)	(15.5)

Sensitivity analysis

Management judgement is required in setting assumptions around probabilities of default, cash recoveries and the weighting of macro-economic scenarios applied to the impairment model, which have a material impact on the results indicated by the model.

A 1% increase/decrease in the probability of default would increase/decrease the provision amount by approximately £1.4m.

A 1% increase in the assumed recoveries rate would result in the impairment provision decreasing by approximately £0.8m.

Changing the weighting of macro-economic scenarios to a more positive outlook so that the severe-case scenario's weighting is halved to 5% and base reducing by 10% to 45% (with upside increasing by 15% to 25% and downside remaining at 25%) would result in the impairment provision reducing by approximately £0.7m.

17. BORROWINGS

	28 April 2024	30 April 2023
	(£'m)	(£'m)
Current:
Lease liabilities	112.5	119.6

Non-Current
Bank and other loans	806.2	749.7
Lease liabilities	533.8	560.3
	1,452.5	1,429.6

An analysis of the Group's total borrowings other than bank overdrafts is as follows:

	28 April 2024	30 April 2023
	(£'m)	(£'m)
Borrowings - sterling	806.2	749.7

Group borrowings (excluding Frasers Group Financial Services Limited) are at a rate of interest of 3.4% (FY23: 2.0%) over the interbank rate of the country within which the borrowing entity resides. The securitisation loan relating to Frasers Group Financial Services Limited had a balance at 28 April 2024 of £126.8m (FY23: £161.6m). The average interest rate paid on the securitisation loan was 7.02% (FY23: 5.41%).

Reconciliation Of Liabilities Arising From Financing Activities

The changes in the Group's liabilities arising from financing activities can be classified as follows:

	Non-current borrowings	Current borrowings	Total
	(£'m)	(£'m)	(£'m)
At 24 April 2022	1,331.5	117.0	1,448.5

Cash-flows:
- Borrowings drawn down	616.8	-	616.8
- Borrowings repaid	(695.0)	-	(695.0)

Lease liability:
- IFRS 16 Lease Liabilities - cash-flows	-	(140.7)	(140.7)
- IFRS 16 Lease Liabilities - modifications/remeasurements, transfers from non-current to current, and foreign exchange adjustments	(121.4)	101.8	(19.6)
- IFRS 16 Lease Liabilities - new leases	137.1	35.2	172.3
- IFRS 16 Lease Liabilities - acquired through business combinations (note 32)	41.0	6.3	47.3
At 30 April 2023	1,310.0	119.6	1,429.6

Cash-flows:
- Borrowings drawn down	482.1	-	482.1
- Borrowings repaid	(425.6)	-	(425.6)

Lease liability:
- IFRS 16 Lease Liabilities - cash-flows	-	(162.8)	(162.8)
- IFRS 16 Lease Liabilities - modifications/remeasurements, transfers from non-current to current, and foreign exchange adjustments	(121.3)	133.3	12.0
- IFRS 16 Lease Liabilities - new leases	82.3	21.1	103.4
- IFRS 16 Lease Liabilities - acquired through business combinations (note 32)	12.5	1.3	13.8
At 28 April 2024	1,340.0	112.5	1,452.5

On 30 November 2021 the Group refinanced its existing borrowings and entered into a combined term loan and revolving credit facility of £930.0m for a period of 3 years, with the possibility to extend this by a further 2 years. This facility was extended by two years and the facility increased to £1,322.5m as at the reporting date, increasing to 1,432.5m from December 2024 then reducing to £1,372.5m from December 2025 until November 2026. Given the revolving credit facility is available for a minimum of 2 years and the limited restriction of lending under the facility, the balance is classified as non-current on the Consolidated Balance Sheet.

The Group continues to operate comfortably within its banking facilities and covenants and the Board remains comfortable with the Group's available headroom. The carrying amounts and fair value of the borrowings are not materially different.

Reconciliation of Net Debt:

	28 April 2024	30 April 2023
	(£'m)	(£'m)
Borrowings	(1,452.5)	(1,429.6)
Add back:
- Lease liabilities	646.3	679.9
Cash and cash equivalents	358.6	332.9
Net debt	(447.6)	(416.8)

18. PROVISIONS

	Legal and regulatory	Property related	Financial services related	Other	Total
	(£'m)	(£'m)	(£'m)	(£'m)	(£'m)
At 24 April 2022	230.2	161.2	41.6	-	433.0
Acquired through business combinations	-	6.0	-	-	6.0
Amounts provided	1.3	69.7	-	0.8	71.8
Amounts utilised / reversed	(108.0)	(70.2)	(25.6)	(0.5)	(204.3)
At 30 April 2023	123.5	166.7	16.0	0.3	306.5
Acquired through business combinations	-	12.3	-	-	12.3
Amounts provided	24.1	38.5	1.6	2.7	66.9
Amounts utilised / reversed	(23.9)	(93.4)	(9.4)	-	(126.7)
At 28 April 2024	123.7	124.1	8.2	3.0	259.0

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 material loss in excess of the amounts provided.

Property related provisions

Included within property related provisions are onerous lease provisions and provisions for dilapidations in respect of the Group's retail stores and warehouses. Further details of management's estimates are included in note 2.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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END

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