Frasers Group (FRAS)

Sector:

Retailers

Index:

FTSE 100

761.00p
   
  • Change Today:
    -23.50p
  • 52 Week High: 938.00
  • 52 Week Low: 753.00
  • Currency: UK Pounds
  • Shares Issued: 450.32m
  • Volume: 616,656
  • Market Cap: £3,426.91m
  • RiskGrade: 211

Shore Capital reiterates 'buy' on Frasers after Matchesfashion purchase

By Benjamin Chiou

Date: Thursday 21 Dec 2023

LONDON (ShareCast) - (Sharecast News) - Shore Capital has reiterated its 'buy' recommendation on Frasers Group after the retail conglomerate purchased loss-making fast fashion group Matches this week.
On Wednesday, Mike Ashley's Frasers announced that it has bought loss-making luxury clothing site Matchesfashion from Apax Partners for around £52m in cash.

Matches offers more than 450 established and next-generation designers and generates the majority of its revenue internationally, with the business delivering to 150 countries outside the UK, Frasers said. The gross assets of the acquired companies were around £170m at the end of January 2023.

Frasers noted that the business has been loss-making in recent years and said the adjusted LBITDA for the year ended 31 January was a loss of £33.5m.

Shore Capital said the deal price is "highly affordable" for Frasers, as the acquisition "is modest in the big scheme of things, and has the basis to be complementary and synergistic".

However, Frasers' ongoing stake-building within other companies such as Boohoo and Asos - the latter of which it has become its biggest shareholder this year after a series of investments - "remains a more questionable exercise", Shore Capital said.

"All in all, we see Frasers being capable of sequential earnings growth set on a robust balance sheet with its distinctive nay maverick at times management at the wheel. So, we give it the benefit of the doubt on Matches... let's see if it strikes."

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Frasers Group Market Data

Currency UK Pounds
Share Price 761.00p
Change Today -23.50p
% Change -3.00 %
52 Week High 938.00
52 Week Low 753.00
Volume 616,656
Shares Issued 450.32m
Market Cap £3,426.91m
RiskGrade 211

Frasers Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
25.64% below the market average25.64% below the market average25.64% below the market average25.64% below the market average25.64% below the market average
23.81% below the sector average23.81% below the sector average23.81% below the sector average23.81% below the sector average23.81% below the sector average
Price Trend
12.16% below the market average12.16% below the market average12.16% below the market average12.16% below the market average12.16% below the market average
4.76% below the sector average4.76% below the sector average4.76% below the sector average4.76% below the sector average4.76% below the sector average
Income Not Available
Growth
23.75% above the market average23.75% above the market average23.75% above the market average23.75% above the market average23.75% above the market average
38.10% above the sector average38.10% above the sector average38.10% above the sector average38.10% above the sector average38.10% above the sector average

Frasers Group Dividends

No dividends found

Trades for 31-Oct-2024

Time Volume / Share Price
17:24 63,686 @ 766.71p
17:24 42,162 @ 766.71p
17:24 5,727 @ 766.71p
17:24 38,464 @ 766.71p
15:20 25,000 @ 753.45p

Frasers Group Key Personnel

CFO Chris Wootton
CEO Michael Murray

Top of Page