Frasers Group is set to return to FTSE 100, re-joining the elite index of the London Stock Exchange’s highest valued firms.
The group dropped out of the index six years ago as its share price plummeted. However, it is expected to make the grade when the new make-up of the ‘Footsie’ is announced on Tuesday.
This is due to its rising share price and a space being vacated by defence firm Meggitt that has been bought by a US company.
Frasers Group has recently acquired various businesses including House of Fraser, Game, Evans Cycles and Missguided. It has sought to “elevate” its brand and stores as it moves away from its ‘pile em high, sell em cheap’ foundations.
To read more on Frasers Group subscribe to the free daily Charged newsletter
The group’s shares have surged 20% in the past year to £8 each, giving the company a market capitalisation of around £3.8b.
At this price, its shares have risen to levels not reached since 2015, when its share price began a steady decline that wasn’t halted until earlier this year.
At their low point in spring 2020, shares stood at less than £2 each. However, the recent acquisitions, improved corporate governance and positive results announcements have seen a climb in the business’s value.
The group revealed it had a “record-breaking year” in its year to 24 April, as pre-tax profits soared from £8.5 million to £366.1 million despite the “significant economic headwinds”.
