Frasers Group reported a strong uplift in profits at the interim mark despite what chair David Daly describes as a “lack of clarity of guidance” from the government during the pandemic so far.

Frasers Group reported a 18% uplift in pre-tax profit in the 26 weeks to October 25 to £106m, as group revenue declined 7.4% to £1.9bn.

The retailer attributed its improved profitability to rates relief particularly across its House of Fraser store estate as well as online growth, strong post-lockdown demand in store and Flannels’ expansion.

Frasers Group’s premium lifestyle division, which includes House of Fraser and Flannels, reported a 4.8% uplift in revenue to £320m, while UK sports retail posted a 9.8% decline in revenue to £1.1bn.

The retail group’s gross margin improved from 43.8% during the same period last year to 44%.

Non-executive chair David Daly said: “The board are extremely appreciative and grateful for the extra hard work from our staff during these difficult times.

“I do not wish to comment on the wider Covid-19 picture, but from a general retail perspective it is impossible to ignore the lack of clarity of guidance when it finally arrives. 

“Fortunately the Frasers Group is a strong business built on solid foundations. We can weather most of the storms faced this calendar year, however much of the UK high street, which was already suffering before Covid-19, won’t survive unless the government addresses the out-of-date business rates regime which is due to return come April 2021.”

Frasers Group entered talks with Debenhams earlier this month to potentially buy the department store business after it fell into administration. No update on the progress of these discussions is provided in the group’s interim results.

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