Sports Direct profit surges by 50pc
BRITAIN’S biggest sporting goods retailer Sports Direct hit forecasts with a 50 per cent rise in annual profit and predicted more growth in the 2010-11 year.
“We believe we are operationally stronger than ever,” chief executive Dave Forsey said.
“Accordingly, and assuming no significant deterioration in economic conditions, we are targeting underlying EBITDA (earnings before interest, tax, depreciation and amortistion) at around £195m in the current financial year.”
The firm, which is 71 per cent owned by Newcastle United soccer club owner Mike Ashley, said it made an underlying pre-tax profit of £102.1m in the year to April 25.
That was bang in line with analysts’ consensus forecast of £102.2m.
Sports Direct, which owns Sports World and Lillywhites stores as well as brands such as Slazenger, Lonsdale and Dunlop, said revenue increased 6.2 to £1.45bn, while gross margin fell 20 basis points to 40.6 per cent.
The firm fared better than most UK retailers during the recession, thanks to its discount pricing and the weakness of its main rival JJB Sports which came close to administration in 2009.
Although net debt was cut by 27.7 percent to £311.9m, Sports Direct again passed on paying a final dividend.
Shares in the group, which floated at 300 pence in 2007, have increased by 30 per cent over the last year.