Sports Direct plans dividend
BRITAIN’S biggest sporting goods retailer Sports Direct International said it would consider paying a dividend at the end of its fiscal year, following strong third-quarter results.
Shares of the company, controlled by Newcastle United soccer club owner Mike Ashley, rose as much as 6.2 per cent to 279.2p yesterday — their highest level in nearly five years.
“Underlying performance in the [third quarter], particularly since December, has outperformed management’s expectations,” chief executive Dave Forsey said in a statement.
“In light of this strong performance, the board will be reviewing the group’s dividend policy at the end of this financial year.”
The company had suspended its dividend in 2009 as it focused on paying down debt.
The company, which owns Sports World and Lillywhites stores as well as brands including Slazenger, Lonsdale and Dunlop, said third-quarter profit rose 10 per cent £184.4m due to strong online sales.
Total sales jumped nine per cent to £453.8m for the quarter ended 2 January.
The company is also certain it will achieve what it calls its “super stretch” goal of £225m in Ebitda for the year.
In December, Sports Direct said if it meets the “super stretch” goal, Ashley — its biggest shareholder with about 70 per cent stake — will receive a bonus of 6m shares, worth £15.72m based on the stock’s last closing price.