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Their strategy of keeping prices high,and quality of clothing low seems to be working..In a store recently,l noticed a hooded top l bought for £8.50 3.5 years ago is now just under double,but the stitching is just as poor as when it was cheap.Soon comes undone after 2/3 washes.
Frasers Group plc posted its FY24 results this morning and they confirmed continued strategic progress against key priorities. The business delivered further profitable growth with adjusted PBT up 13.1% to £544.8m with adjusted EPS up 33.6% to 95.8p. The outlook remains positive, guidance was for more of the same with FY25 adjusted PBT expected to be £575m-£625m. 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. Valuation is also still reasonably attractive with forward PE ratio at 8.6x following a couple of years of sideways range trading. The range holds for now so there is no immediate rush to buy here, but the business continues to grow solidly, is profitable and still at a reasonable price, so is well worth keeping an eye on until the start of the next leg higher. Monitor for now....
...from WealthOracle
wealthoracle.co.uk/detailed-result-full/FRAS/841
Very positive reaction to final results.
You have to congratulate the Frasers board, as soon as they realised they may be an issue with Matches, they took decisive action to stop the rot. This is exactly what a forward thinking company does. There are many other companies who still walk the corridors with the ties and 3 piece suits on who take the money and don’t give a damm. Some may not like what’s happened but the reality is, that it clearly needed to be done. Top marks to Frasers.
With MA’s track record to close it after a couple of months doesn’t add up.
£52m plus costs gone for a burton with Matches, terrible business that.
A year of tactical investments, record profits and Mike Ashley staff Bonus paying out at £10. Update early December and should move up to £10 sooner rather than later.
Frasers going to broker a deal with BOO?
Boohoo is facing a £100m lawsuit from some investors amid allegations of modern slavery.
It's in Saturday's Daily Mail and is a bit concerning. Could knock Fraser's share price just as things were looking better.
AO Currys boohoo all in a few weeks, he sure is keen to splash to cash right now
Frasers have been throwing the cash around these days. Not too sure on the Currys investment but the others are fairly logical.
Frasers buys 9% stake in Currys to add to retail portfolio
Another 10 Million share buy back announced today !
He's basically been moving money around & increasing his option / spreadbet exposure.
Before last week he had 500k put options exercisable at £9 + 2m at £8 +100k shares held via a spreadbet (RNS's back in December & March)
Last week he closed off the 500k put options exercisable at £9, but added 1m new options exercisable at £8 + bought an extra 800k shares via spreadbet.
So he started the week with 2.6m shares held via options / spreadbets & ended it with 3.9m
The upshot is that he appears very confident shares will trade over £8 before September
Can anyone explain the logic of Mike Ashley's trades I don't dabble in options. I imagine him selling a put option with a strike price of £9 means he thinks the price will go up but why the exercise here at under £7 is that his decision or the person's he sold them too?or have I got the logic of this completely wrong.
Maybe this could be the next acquisition for Fraser Group ?
https://www.telegraph.co.uk/business/2022/09/04/matalan-searches-buyer-brutal-high-street-conditions-take-toll/
Looks like Mike Ashley and Fraser Group are eyeing up Asos for a takeover
If he buys Boohoo he'll get Debenhams anyway!
It does not get much better than this really, does it.
Such a shame he never bought Debenhams in the end though.
I wish he'd make an offer for S4 Capital!
I have been sitting on these shares doing nothing for a while now, I bought in when I read an article showing how Ashley's Son in Law stood to make a fortune by doubling the share price. Thought about selling a few times but glad I held. A rare success in my portfolio of dogs.
Not a bad start to the day
May it carry on and on
GLA