Sports Direct staff cash in as it defies the gloom with sales and profit surge

By SCOTT REID
Published on 20/07/2012 00:00

The sun shone on Sports Direct yesterday as Britain’s biggest sporting clothes and goods retailer recorded a strong rise in full-year profits, triggering windfalls for hundreds of staff.

The firm, with almost 400 UK stores, posted underlying profits of £240.5 million for the 53 weeks to 29 April, a rise of almost 12 per cent on a like-for-like basis. Sales jumped 13 per cent to £1.84 billion.

Mike Ashley – the group’s founder, deputy executive chairman and owner of Newcastle United football club – is on course to receive eight million shares in 2018 but the company must deliver profits of £270m in the current financial year, rising to £340m by 2015.

The bonus scheme has also been motivating rank-and-file staff, with some 2,000 workers due for a £15,000 windfall next month from a previous scheme.

A new arrangement involving 3,000 workers also passed its first profits hurdle yesterday, fuelling hopes for 2,500 shares in 2015 and 7,500 shares two years later.

Chief executive Dave Forsey said: “In spite of the low expectations surrounding England’s participation in Euro 2012 and the unseasonal weather, our core divisions are performing well.”

Sports Direct, which also owns a number of famous sporting brands including Dunlop and Slazenger, has coped well in the economic downturn, cashing in on its well-stocked, busy stores, expanding online offering and capitalising on the woes of rival JJB Sports.

Panmure Gordon analyst Philip Dorgan said it was disappointing that the firm had not resumed dividend payments. But Sports Direct said that it was best to build up its balance sheet as it continued to look at “inorganic growth opportunities”.