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”.
