Despite difficult trading conditions, Sports Direct has reported a 12.8 per cent increase in revenue (to £1.35 billion) in its first preliminary results since its IPO for the 52-week period ended April 29. The retailer, owned by Mike Ashley (pictured), also confirmed that underlying profit before tax was up 38.3 per cent to £151 million and operating profit growth across all divisions.
“These are a good set of results in which earnings before interest, taxes, depreciation and amortization pre exceptional items is in line with the expectations we set during the IPO process,” says Dave Forsey, chief executive of Sports Direct. “The first three months of the current financial year have been exceptionally difficult with the unprecedented weather conditions having an immediate impact on sales.
“Despite this, and at this early stage in the financial year, due to the underlying strength of the business and its model, the board believes there should be limited growth in EBITDA pre exceptionals from the £191 million reported in the current financial year.”
In its report to the Stock Exchange Sports Direct also confirmed that it plans an initial trial of three health and fitness clubs, which will include a retail element with a ‘full Sports Direct offer’.
