Mike Ashley’s Frasers Group expects to take a further hit of more than £200m on asset values, including its freehold property portfolio, due to the Covid-19 pandemic – double the amount it anticipated just weeks ago.
The Sports Direct owner told shareholders that it is likely to make material impairments of more than £200m to freehold properties, as well as other property, plant and equipment. In late February it had said it expected such impairments to stand at around £100m.
Frasers said it had taken into account government warnings over a “third wave” of the coronavirus and normality being “some way off”. The company said that meant “further restrictions are, in our view, almost certain”.
Any impairments will come on top of the £125m in write downs reported in the company’s half year results, and will be included in its full-year figures for the year to April.
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