Frasers Group starts share buyback up to £60m

Mike Ashley-controlled Frasers Group said it was starting a share buyback of up to £60m to reduce its share capital.

The group, which includes Sports Direct, Evans Cycles, Jack Wills, and House of Fraser, said it would buy up to 10m shares from Tuesday up to the last day before it enters its closed period ahead of full year results.

No reason was give for the decision. The move comes less than a month the retailer said could take a hit in excess of £200m due to the Covid-19 restrictions - double previous estimate in February.

At the time, they added that further restrictions are "almost certain", believing a writedown against freehold values and other non-cash impairments would be required.

Ashley has also been critical of the government's response to extending the business rates holiday, complaining that the support on offer did not go far enough for big chain retailers.

Frasers reopened its estate on April 12 following the easing of lockdown restrictions for non-essential retailers. It did not give an update on current trading.