Newcastle United owner Mike Ashley's retail empire to take 'considerable' hit amid coronavirus uncertainty

Frasers Group Plc, the name of Ashley’s company formerly known as Sports Direct, have released a statement claiming they will be unable to now make financial forecasts for 2020 due to on-going uncertainty.

They also claim while the true impact of the COVID-19 pandemic is yet to be determined, they predict the virus ‘will cause significant disruption to its business’ and as a result ‘Frasers Group will not achieve the range of guidance of 5 to 15% EBITDA (earnings before interest, tax, depreciation and amortization) growth’.

Their statement, released to shareholders, reads: “Frasers Group has been monitoring the potential impact of COVID-19 across its UK and international businesses. Whilst it is too early to estimate what the full impact from COVID-19 will be on the Company's performance for the current financial year ending 26 April 2020, and future periods, the Board expects that COVID-19 will cause significant disruption to its business, including reducing customer footfall and therefore expects that Frasers Group will not achieve the range of guidance of 5 to 15% EBITDA growth (including House of Fraser but pre-IFRS 16 adjustments) previously given for the financial year ending 26 April 2020. Accordingly, and given the ongoing uncertainty, the Company is no longer giving formal guidance in relation to the financial year 2020.”

The statement continues: “Frasers Group's year-to-date performance had been in-line with expectations prior to COVID-19. The Company has a strong management team which can adapt and respond quickly to challenges and changing market conditions.”

What impact this will have on Ashley’s personal fortune is yet unknown, but the statement forecasts his companies, like most, will be adversely affected.

Previously billionaire Ashley has explained his want not to spend his money, and desire for an NUFC takeover, by describing his wealth as “like wallpaper”.

Speaking to Sky, he said: “I'm nowhere near wealthy enough to compete with clubs like Man City. I don't have the ability to write a cheque for £200m.

"In theory I'm a multi-billionaire, but in reality my wealth is like wallpaper – it's all in Sports Direct shares.”