214.7% profit increase for Sports Direct thanks to new acquisitions

Sports Direct has seen its profits more than double due to the firm’s recent acquisitions of a range of retailer brands.

In a trading statement for the 26 weeks up to October 27, the firm experienced a 214.7 per cent rise in pre-tax profits, to £150.1m compared with £47.7m in FY19 H1.

The firm’s results have been boosted by the performances of acquired brands Flannels, House of Fraser, Game UK and Jack Wills.

The group’s overall revenue excluding transactions fell 6.4 per cent, but the group’s chairman remains optimistic that the acquisitions will continue to boost the firm’s performance.

David Daly, non-executive chair, commented: “Whilst revenue across the group, excluding acquisitions and currency movements, has declined 6.4 per cent, underlying EBITDA excluding acquisitions and currency movements has increased 15.1 per cent, and including acquisitions and currency movements has increased 21.8 per cent, which in a very difficult retail environment is a fantastic effort.

“This is showing the improved product mix we are getting access to driving higher margins with less units, together with improved processes and procedures driving efficiencies, is showing tangible results.

“I am very proud of the results we have achieved during this half year period and what the Group has achieved during a very tough and challenging retail environment.”