Sports Direct steps up sales pace

Newcastle United owner Mike Ashley remains on track for a multi-million pound windfall after his Sports Direct chain continued to beat expectations.

The group – which has nearly 400 stores and owns brands including Slazenger, Donnay and Karrimor – said retail sales rose 10.2 per cent to £408.6 million in the 13 weeks to 22 January, boosted by strong growth in internet trading.

It is now “certain” of hitting a bonus trigger of underlying profits of £225m for the year to April under the first leg of a three-year reward programme for Ashley, who is executive deputy chairman.

Ashley, who netted £929m in February 2007 after selling 43 per cent of the business he founded, receives no pay but is now on course to receive six million shares, currently worth £16m, in 2018.

The bonus that Ashley could be in line to pocket has increased by £4m in recent months, reflecting the company’s improving performance on the stock market.

Hitting a lower target of £215m will also be a key milestone in the chain’s staff bonus scheme, which last year paid out more than £40,000 on average to some 2,000 staff.

It is thought to be the largest windfall handed out to shop staff in Britain and has been a large factor in the chain’s strong performance in recent years.

Under the terms of a new scheme introduced last year the company needs to hit targets for four years to trigger a further pay-out.

Gross profits increased 10.2 per cent to £184.4m as trading since December was better than it expected and has remained strong since the end of January.