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Pretax profits up 25% at Mike Ashley’s Sports Direct

Sports Direct International plc, the retail empire controlled by Newcastle United owner Mike Ashley, has reported a 25% increase in pretax profits.

Releasing its half yearly results this morning, pretax profits soared from £149.7m last year to £187.3m for the period ending 25 October 2015.

The last six months have been strong for the sports retailer which also enjoyed a slight increase in revenue, surpassing the £1.4bn mark

Moreover, group underlying EBITDA increased by 7.6% to £218.5m and net debt decreased to £20.3m (£59.7m at 26 April 2015), rounding off a successful period for Ashley and the firm.

The firm cited the FIFA 2014 World Cup as having a strong impact on group financials, contributing to the upsurge in sales.

Dave Forsey, Chief Executive of Sports Direct International plc said: “The Group has delivered another excellent set of results particularly given the strong comparable sales generated in the build up to the FIFA 2014 World Cup and after a generally mixed summer for the retail sector.

“Within Sports Retail our commitment to upgrading our store portfolio continues to deliver gross margin growth and is a significant contributor to our strong EBITDA result. We continue to innovate, refine and improve our customer proposition. In line with this strategy, during the period we opened new larger format stores in Leeds and Plymouth and combined gym and retail spaces in St Helens and Newport.

“Trading since the period end has been in line with management’s expectations and, while we retain the ability to invest in margin, inventory and group marketing to deliver long-term sustainable growth, we remain confident of achieving the 2015 Share Scheme’s revised underlying EBITDA target of £420m.”

He added: “We look forward to 2016 with confidence ahead of the Olympic Games in Rio de Janeiro and the 2016 European Football Championships in which England, Wales, Northern Ireland and the Republic of Ireland will be competing.”

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