Frasers Group has announced a half-year revenue of £2.8bn, a figure up 4.4% on last year, after reporting “good growth” in its Sports Direct business.

The retail group, owned by former Newcastle United owner Mike Ashley, has seen its operating profit rise from £285.6m to £298.1m, while the group’s free cash flow improved from £140.5m to £216.0m.

Frasers suggested it is “looking forward” to the Christmas trading period and remains confident of achieving a profit before tax in the range of £500m to £550m.

The retailer added it is building a diverse business for sustained multi-year growth, and said that the ongoing investment into its elevation strategy, infrastructure and new business integrations continues to unlock potential, as it anticipates further profitable growth for FY25.

Chief executive of Frasers Group, Michael Murray, said that group had delivered a “strong performance” in the first half of the year, and that its elevation strategy continues to drive strong trading performance.

“As we look to 2024, we are confident that our diversified proposition will continue to provide consumers with choice across a range of brands and price points,” Murray said. “I want to thank our talented colleagues for their relentless focus and hard work which has enabled another strong set of results.”

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, commented that Frasers had started its financial year “on the front foot”.

“Revenue growth was largely due to some of the businesses acquired last year – a key part of the business’s growth plan,” Chiekrie added.

“Sports Direct remains the main event at the Frasers, accounting for more than half the group’s revenue. There’s significant momentum here, with the long-term goal to expand its presence across Europe and become the number one sports retailer in the region.

“In the meantime, the group’s elevation strategy is well underway. It calls for new flagship stores to display products in a more flattering and digitally integrated environment, which has led to a material improvement in relationships with key global brands. The likes of Nike and Adidas have even gone as far as to name the group’s Sports Direct business as a key partner, which tells you all you need to know about its position in the global sporting goods market.”

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