Frasers ‘working hard' to offset cost hit as sales improve
The Sports Direct owner reported a 2.8% rise in underlying pre-tax profits to £560.2 million for the year to April 27, despite a 7.4% drop in revenues to £4.9 billion.
Second-half profits jumped 8.3% as it recovered from a tough end to 2024 due to weaker consumer confidence in the run up to, and following, the autumn budget.
Frasers – majority-owned by retail tycoon Mike Ashley – had cut its profit outlook in December after the tougher trading, but it said conditions had since improved.
'Following an especially weak period after last year's budget, both UK consumer confidence and trading conditions improved into 2025, and recent sales trends have been more encouraging,' the group said.
But shares fell 4% in morning trading on Thursday.
The group said it expects to deliver underlying profits of between £550 million and £600 million in 2025-26 as it looks to cut costs to offset a £50 million hike in costs due to the autumn budget move to hike national insurance contributions (NICs) and increase the minimum wage once again.
Frasers – which also owns brands including House of Fraser, Flannels and Jack Wills and stakes in firms such as Hugo Boss – said it would focus on using artificial intelligence (AI) to drive cost savings.
'We are working hard to mitigate those (costs) by taking more costs out, focusing on potential efficiencies through the use of AI, realising further acquisition synergies and sustaining a robust gross margin,' it said.
Figures show on a reported basis, pre-tax profits fell 24.3% to £379.4 million from £501 million the previous year, hit by currency movements and a drop in the value of its stake in Hugo Boss.
Michael Murray, chief executive of Frasers Group, said: 'I'm pleased with our performance this year, despite the headwinds caused by last year's budget.
'We remain fully committed to our Elevation Strategy, which drove another record year of profitable growth and further delivery of our key priorities.'
Frasers Group ramped up expansion once again over the past year, with new markets and upping stakes in companies such as Hugo Boss and AO World.
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Metro
3 minutes ago
- Metro
5 areas within commuting distance of London with prices under £400,000
London might be bustling with culture, nightlife and foodie destinations, but it's certainly not synonymous with affordability. House prices in the capital famously exceed the national average, as in May 2025, they stacked up at £566,000, compared to £290,000 across England alone. Ouch. So, if you're looking to get on the property ladder but, understandably, can't afford the lofty heights of London, you might consider swapping the big city life out for a commuter one. Trains are your new best friend. Prices might be creeping up across many famous commuter spots, including the likes of St Albans, Harpenden, Brighton and Woking, but there are still plenty of places where the average is under £400,000. After all, just think about how much reading you'll get done on the journey in. Noisy Northern Line and sweaty Central Line, who? You can access completely fee-free mortgage advice with London & Country (L&C) Mortgages, a partner of Metro. Customers benefit from: – Award winning service from the UK's leading mortgage broker – Expert advisors on hand 7 days a week – Access to 1000s of mortgage deals from across the market Unlike many mortgage brokers, L&C won't charge you a fee for their advice. Find out how much you could borrow online Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage. Perched right on the River Stour in Essex is the unassuming village of Mistley, famed for its warm community feel, unique history, and efficient train lines into the centre of London. It's just over one hour away from Liverpool Street – simply hop on the service to Manningtree for one stop and change for the direct line. Goodbye, boiling hot Victoria Line. If you've got a budget of up to £400,000, it's firmly affordable too, as over the last year, data from Rightmove shows that the average house sold for £375,183. The village has a fascinating backstory, as during the 18th century, politician Richard Rigby drew up ambitious plans that envisaged it as a saltwater spa town. At the time, Mistley was relatively small, with only a port, a few warehouses and a small church, constructed in 1735. Though his spa town vision never came into being, the Mistley Towers of the local church remain to this day, as do many Georgian structures along the high street, which are well worth a nosy. It's right by the seaside, too, with Manningtree Beach on the doorstep. Speaking of Essex, Southend-on-Sea is also commutable from London – and is just shy of an hour from Fenchurch Street on the train. And with average house prices of £341,050 over the last year, it's firmly under that £400,000 mark. A typical British seaside destination, here you can indulge in a trip to the pier or opt for a day on the beach at either Shoebury East or Thorpe Bay. There's culture galore too, as Southend City Jam is the UK's largest free street art festival, transforming the locality with colourful murals each and every August, while Waddle-on-Sea sees more than 100 penguin sculptures take over Southend. Just for fun. Neighbouring Leigh-on-Sea is also a local favourite, inundated with galleries, independent shops and eateries, and a slightly quieter vibe than Southend. The Old Leigh is a once-bustling fishing port that now hosts a selection of pubs and fish restaurants, including the authentic, rustic-style cockle shed as well as the sit-down OakTree vegan restaurant, La Sirena and The Boatyard. There are plenty of beaches and green spaces around too, with long strolls on the sandy Bell Wharf Beach or a leafy walk around Oakwood or Blenheim Park. Cambridgeshire certainly doesn't have a shortage of quaint market towns, with the likes of St Ives, Chatteris, March, and Ramsey to choose from. And, of course, Cambridge is the headline event, known for its history through the university, as well as the joys of punting and Chelsea Buns from the iconic Fitzbillies. But, even though the average house price in St Neots is £343,756 and it's just 56 minutes from St Pancras on the train, it often gets overlooked as a quieter version of its neighbours. With sprawling green space, local coffee shops and a blossoming local community, though, it's safe to say that there's plenty of peace to be found here if you're looking to keep a foot in London. Perhaps just don't expect there to be a pumping nightlife scene. With hectares of lakes and meadows, Paxton Pits Nature Reserve is a local favourite, while right in the centre of town, Riverside Park offers scenic views of the waterfront. Locals love it too, as over on the r/Cambridgeshire Subreddit, @ilikeyoualotl described the atmosphere as 'wonderful' and people as 'friendly.' 'There is always something going on in the town…there are markets every Wednesday and Saturday, with an arts and crafts market every other weekend,' they added. Oxford might conjure up images of Gothic architecture, botanical gardens and university libraries, but there's more to Oxfordshire (known locally as 'Oxon') than just the City of Dreaming Spires. Around 25 miles north, Banbury's average house prices over the last year have rested at £303,530, with trains into both Marylebone and Paddington taking just over an hour. Undoubtedly, the countryside is the winning point for this North Oxfordshire spot. Characterised by rolling green fields, there are plenty of circular walks around nearby Bodicote and Deddington, while the town centre also has Banbury Country Park, the People's Park, and the (uniquely named) Spiceball Country Park. It might not be quite as pretty as the picturesque Cotswold villages that surround it, but that hasn't stopped locals enjoying it. 'It's cheaper than Oxford, the town centre is nice, [and] with more character than similar towns like Bicester or Didcot,' @misguided_trousers previously penned in the r/Oxford Subreddit, adding that they felt Banbury gets an unfairly 'bad rep' simply because it's not as 'posh' as other local areas. 'It's a decent location, has good transport links and very easy to escape to green spaces,' @is_there wrote, while @Yoraffe lived there for two years and would 'happily go back.' While Hitchin might be a popular commuter hotspot, particularly for those looking to move out of North London, there are other Hertfordshire market towns worthy of a moment. More Trending Baldock is around 5 miles away and is considerably cheaper, with prices resting around a much cooler £350,368, compared to a much pricier £514,581. The fastest trains will get you into St Pancras in 42 minutes, which isn't too shabby considering a commute from inside London might rack up around the same. It might be slightly quieter than Hitchin, but it has its own art gallery at Gallery 1066, while dating back to the 12th century, the Baldock Market still takes over the centre every Wednesday with local produce. View More » Tipples aplenty are served up at The George, a 15th-century coaching inn, as well as The Buntingford Brewery and The Orange Tree. Ours is a gin and tonic, if you're offering. Do you have a story to share? Get in touch by emailing MetroLifestyleTeam@ MORE: Experts warn London to Berlin trains 'might not happen' MORE: Cherished lollipop men and women vanish from Croydon after council wields the axe MORE: A £6,000,000 mistake? The 'Omaze curse' plaguing these stunning dream homes
Auto Express
3 minutes ago
- Auto Express
Range Rover's secret mid-size EV: Inside its £500m factory
The Halewood factory has churned out nine million cars: some fabulous (the Ford Escort Mk1), some derided (the Jaguar X-Type), some both (the Ford Capri). But none of them are powered solely by electricity. All that will change in 2026, when an all-new mid-size Range Rover starts rolling out of a brand-new body facility. Jaguar Land Rover (JLR) is overhauling its Liverpool production hub with a £500million staggered investment, and Auto Express has ventured inside for a sneak preview. Advertisement - Article continues below Planning to introduce a new Electric Modular Architecture (EMA) began four years ago, triggering Halewood's transformation into a hi-tech digital factory building a unique electric Range Rover. The new 4x4 will be similar in size to the existing Velar, but stands apart due to its long wheelbase, low roof and zero-emissions running. Assembling today's petrol/hybrid Velar will continue at the Solihull plant, embodying JLR's 'parallel production' philosophy as it overhauls its vast industrial footprint. So the EMA's e-motors will be made alongside Ingenium petrol engines in Wolverhampton, and Solihull will also make flagship Range Rover EVs and hybrids, while Halewood merges its smaller EV with venerable 4x4s. Daniel Ford, director of global manufacturing engineering, is at the heart of Halewood's rebirth. His team is spending 30,000 hours a week on the project, with the paint shop already refitted, robots and heavy plant shipped up from the former Jaguar factory in Castle Bromwich for reuse, and a new 32,000m2 body-assembly building finished. Skip advert Advertisement - Article continues below Factory shorthand to give a sense of scale is to say how many football pitches fit inside (4.48 should you ask), but JLR went one better: it put a pop-up pitch inside the empty hall, inviting Premier League club Everton to host some training. It's outreach from a plant that's the beating heart of the community, with half of the workers coming from the deprived Knowsley neighbourhood. Advertisement - Article continues below The body-assembly extension towers over two storeys, requiring double-sized, 20-metre foundations to be sunk into ground softened by the River Mersey. Why? 'It's like building a bungalow in Manhattan: an expensive way to use your space. So go up,' says Ford. And up we go, climbing a steep staircase to survey the upper assembly hall where engineers are installing an army of robots, many lined up like the hangar scene in the movie iRobot. Ultimately there will be 250 in the hall, overseen by 30 people. Welding cells unfurl before us, robot arms frozen in suspended animation, awaiting the call to start turning metal into vehicle engine bays, main floors and rear floors, plus sub-assemblies that will be 'framed' into a whole body-in-white downstairs. These parts are made in a separate area because the EMA architecture – with its battery housing – is distinct from the Premium Transverse Architecture that underpins Land Rover's Discovery Sport and Range Rover Evoque. Skip advert Advertisement - Article continues below Boosting automation should help JLR unlock better quality. Measuring devices will scrutinise each frame to ensure a precise aperture into which robots will mount and bolt the doors, for example. 'The automatic door-to-body system will require less finessing than a manual process,' explains Ford. Lots of car companies talk nebulously about digital factories of the future, but our Halewood trip really brings the benefits to life. Early on, architectural consultants scanned every metre of the physical factory, even down to the pipework and wiring, to create its 3D digital twin. The intricate puzzle of deciding where equipment goes becomes so much easier when you can make any planning mistakes on a virtual assembly line. And the installation teams can check their work against the 3D visualisation. Advertisement - Article continues below The machines will be connected, with tooling programmed to tighten bolts to precise torque settings, and the shop floor linked to the logistics hub to ensure there are no costly interruptions to parts supply. Machinery will even be able to sign itself off sick. 'We can see facility health so much better,' Ford tells us, 'so we may not need to [service equipment] as many times as before and we can put our maintenance resource elsewhere'. Skip advert Advertisement - Article continues below We also visit the new £3million training centre, where 1,900 of Halewood's 3000 direct employees have already been reskilled for the battery-electric future. Training guru Andy Coleman watches as I complete a warm-up dexterity test and practise tightening up bolts with a torque wrench. It's even more fun to use an Evoque body-in-white as a climbing frame, to understand how to safely enter and where to crouch to fit parts. JLR will layer digital training on top, too, with associates wearing virtual-reality goggles to create training videos on how to trim a new Range Rover that isn't physically there. It's a step on from paper-based training manuals. Nonetheless the printed 'shipper' – the customer's build spec taped to the car – still soldiers on. 'On a screen it can be out of eyeline,' explains manufacturing engineer Ford. Advertisement - Article continues below JLR upgraded the first-floor paint shop in 2023, to boost capacity for the two-tone finishes popular among Range Rover buyers. The quality inspection centre, with an enlarged but more water-efficient monsoon testing facility, is gearing up to scrutinise EVs. And now Ford's team is focused on the biggest overhaul of the trim shop since the Jaguar X400 – the X-Type – was introduced around the millennium. Everything starts with the 'cube': essentially the cubic volume of the new models that must be carried into paint, then body storage before finally going down the trim line. 'Since the X-Type, every model iteration is slightly wider, slightly longer, slightly taller, definitely heavier. So you start by making sure that your facility is able to accept the car,' explains Ford. Today Halewood's biggest car is the 4.6m-long Discovery Sport: the EV will likely be a couple of hundred millimetres longer. And that means new vehicle carriers. Laid out like a mortuary for yellow JCB parts are shrink-wrapped extension kits, to be bolted to the carriers to transport the bulkier EMA cars. Some 60 of 303 have been upgraded so far. Skip advert Advertisement - Article continues below Our minders unlock a gate leading behind a mesh fence, and gaze into the painted bodies' storage tower. Constructed at weekends, the new 12-storey hub replaced one built 30 years ago, which was too small for the cube and increasingly hard to service. Advertisement - Article continues below It can hold 600 bodies, which is the sweet spot between body assembly output and the trim line's supply chain. Within 80 seconds, a shell can be picked up and gracefully lowered into the trim hall despatch area. 'We need it connected to the broader factory landscape and made more efficient. What worked in 1995 doesn't work in 2025,' says Ford, who previously spent nine years bedding Jaguars into Castle Bromwich. Bodies are dropped onto a conveyor where a protective 'puck' is fitted, preventing any damage to hybrid batteries when a car is being jacked-up. The EMA pack – not expected to be a load-bearing part of the car, unlike in BYDs – will need similar safeguarding. Batteries will arrive fully dressed from Tata's plant in Bridgwater, Somerset. After quality checks they'll be loaded onto Autonomous Mobile Robots, which will glide onto the line to be united with an EMA chassis at the battery-marriage station. 'EV batteries are so big, some in the industry need 22 fixings. And they're so heavy that adding their weight can change the [alignment] of the body, so there'll be a huge focus to get [slim] panel gaps,' says feels like the pinnacle of Halewood's parallel production: combustion engines, hybrid drivetrains and EV batteries – for two different vehicle architectures – wending their way along the same trim line. That epitomises JLR's Reimagine strategy, the company's strategic overhaul of its cars, technologies and factories, says Halewood's operations director Brian Stone. 'Reimagine is about every nameplate having an electric offering by 2030, linked to [JLR's target] of carbon neutrality in 2039. We're taking a traditional OEM and completely pivoting into the electrified world,' Stone Halewood's boss – who started at the factory as a 16-year-old apprentice and racked up 27 years on site before stints at Solihull and running JLR's Chinese manufacturing joint venture – thinks parallel production is the perfect hedge for an uncertain car market. Advertisement - Article continues below Skip advert Advertisement - Article continues below 'We're a global manufacturer servicing more than 140 countries around the world. If you look at the different rates that markets are transitioning to full BEV, this is where parallel production is so important. We want to process common things together, only separating out what is truly unique.' Stone talks of his pride at getting the first electric-only Range Rover in his hometown plant. The initial £250million upgrades the facility for EMA, then a similar amount will convert it to EV-only when the time is right. Halewood is on a single shift producing an SUV every 90 seconds, and currently makes around 60,000 vehicles a year. The new electric Range Rover should put it back on an upward trajectory, aspiring to its 185,000 peak when the Evoque was running red hot. It'll be 2026 before car buyers get to decide if this new electric Range Rover is, like its Halewood forebears, fabled, derided or something in between. Regardless, Brian Stone will be focused on keeping the factory rolling, supporting 18,000 jobs and adding £1billion to the UK economy. Tell us which new car you're interested in and get the very best offers from our network of over 5,500 UK dealers to compare. 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The Independent
3 minutes ago
- The Independent
Stocks climb as market is buoyed by Trump's decision not to fire Powell
Stock prices in London closed higher on Friday, with markets maintaining the optimism that prevailed after US President Donald Trump said on Wednesday that it was 'highly unlikely' that he would fire Federal Reserve chair Jerome Powell. Meanwhile, also in the US, preliminary data from the University of Michigan showed that consumer sentiment improved marginally in July. However, overall confidence remains well below recent highs and historical norms. The FTSE 100 index closed up 19.48 points, 0.2%, at 8,992.12. The FTSE 250 ended up 131.83 points, 0.6%, at 21,898.26, and the AIM All-Share closed up 3.85 points, 0.5%, at 772.78. On AIM, Metals One closed up 3.3%. The mineral developer with projects in Norway and Finland has completed the acquisition of a 10% interest in NovaCore Exploration Inc, which is advancing the Red Basin uranium project in New Mexico. Metals One has acquired the stake with a share subscription worth 300,000 US dollars (£223,000), and said it has also been granted warrants to increase its ownership to 30%. PHSC fell 9.3%. The provider of health, safety, hygiene and environmental consultancy and security solutions reported a pretax loss of £127,419 for the year to the end of March, swinging from a profit of £332,317 in the prior year. Sales revenue fell 15% to £3.2 million from £3.8 million. PHSC also declared no dividend, down from a total dividend of 2p last year. Small-cap Sure Ventures closed 3.0% higher. The venture capital fund, backing early-stage AI, AR and VR, and IoT companies, said net asset value per share at March 31 was 175.79 pence, more than doubled from 82.53p a year earlier. NAV total return was 113% against a negative 31.25% a year prior. Also, Sure swung to pretax profit of £7.4 million from a £2.5 million loss the year before, as total net income increased to £8.0 million from a £2.1 million loss. It said this was primarily driven by 'two key exits' from the Fund I portfolio. In European equities on Friday, the CAC 40 in Paris closed up 0.1%, while the DAX 40 in Frankfurt ended down 0.4%. The eurozone's current account surplus grew by less than anticipated in May, data from the European Central Bank showed. The single-currency area's surplus grew to 32.31 billion euros (£28 billion) in May from 18.64 billion euros (£16.16 billion) in April, less than the increase to 34.8 billion euros (£30.2 billion) expected by market consensus cited by FXStreet. In the 12 months to the end of May, the current account surplus fell to 333 billion euros (£288.7 billion), or 2.1% of eurozone GDP, from 364 billion euros (£315.6 billion) and 2.5% of GDP a year prior. The decline was mostly driven by a shift from a surplus of 34 billion euros (£29.5 billion) to a deficit of 5.0 billion euros (£4.33 billion) for primary income. Separately, Eurostat reported that annual growth in construction output slowed to 2.9% in May from 4.7% in April. On a monthly basis, eurozone construction output declined by 1.7% in May, after 4.3% growth in April from March. The pound was quoted higher at 1.3444 dollars at the time of the London equities close on Friday, compared to 1.3414 dollars on Thursday. The euro stood at 1.1656 dollars, higher against 1.1594 dollars. Against the Japanese yen, the dollar was trading slightly lower at 148.44 yen compared to 148.48 yen. Stocks in New York were mixed. The Dow Jones Industrial Average was down 0.3%, the S&P 500 index up marginally, and the Nasdaq Composite up 0.1%. The yield on the US 10-year Treasury was quoted at 4.42%, narrowing from 4.45%. The yield on the US 30-year Treasury was quoted unchanged at 4.99%. The University of Michigan's index of US consumer sentiment rose to 61.8 in July from 60.7 in June, up 1.8% on the month but still 6.9% lower than the level recorded in July 2024. The reading marked a five-month high but remained 16% below December 2024. The current economic conditions index climbed to 66.8 from 64.8 in June, a 3.1% monthly gain and a 6.5% increase from a year earlier. However, the index of consumer expectations edged up just 0.9% to 58.6, down 15% on the year. ' Consumers are unlikely to regain their confidence in the economy unless they feel assured that inflation is unlikely to worsen,' said Joanne Hsu, director of the survey. She noted that the recent tax and spending bill had little impact on sentiment, while concerns over trade policy continue to weigh on consumer confidence. Also, US housing starts rose modestly in June, rebounding from the previous month, but completions slumped to their lowest level since early 2023, according to data released on Friday by the US Census Bureau and the Department of Housing & Urban Development. Privately-owned housing starts increased to a seasonally adjusted annual rate of 1.32 million in June, up 4.6% from May's revised figure of 1.26 million. However, the total remained slightly below the June 2024 rate of 1.33 million. Housing completions tumbled 14.7% from May to 1.31 million, down 24.1% compared to a year earlier. Single-family completions dropped 12.5% to 908,000, and multifamily completions fell to 383,000. The sharp decline in completions signals continued supply constraints in the housing market, despite a slight pickup in new starts. Brent oil was quoted at 69.41 dollars (£60.17) a barrel at the time of the London equities close on Friday, up from 68.94 dollars (£59.77) late Thursday. Gold was quoted higher at 3,352.48 dollars (£2,496.36) an ounce against 3,338.20 dollars (£2485.72). The biggest risers on the FTSE 100 were: Rentokil, up 10.3p at 357.3p; Antofagasta, up 47p at 1,868.5p; Intermediate Capital, up 50p at 2,156p; 3i, up 96p at 4,340p; and Whitbread, up 61p at 3,182p. The biggest fallers on the FTSE 100 were: GSK, down 65p at 1,348p; Mondi, down 23.3p at 1,144.2p; ConvaTec, down 3.6p at 238p; Informa, down 9.2p at 836.6p; and Croda International, down 31p at 2,846p. On Monday's economic calendar, there is an interest rate call from China, consumer inflation from Hong Kong, and Canada's producer inflation. Japanese markets will be closed for Marine Day. On Monday's UK corporate calendar, Mony Group releases half-year results and Ryanair has its first-quarter report.
