Sports Direct Hit By Fall In Profits

Sports Direct, the sportswear retailer owned by Newcastle United chairman Mike Ashley, has announced a 91% drop in full-year profits despite increased sales, after the weak pound and investment losses took their toll.

The company made a profit of £10.7m in the year to 26 April, against £118.9m a year earlier. Total revenues rose 9% to £1.37bn, with revenues in the UK topping £1bn.

Sports Direct said it would not be paying a final dividend in order to concentrate on cutting its £430m debts.

‘The second half of the year remained challenging, but we are pleased with these solid full year results that reflect the resilience and relevance of our flexible business model, focused on the core principles of retailing,’ said chief executive Dave Forsey.

During the year, the company opened 27 new stores in the UK.

The company owns the Sports World chain of stores, as well as brands including Slazenger, Lonsdale and Dunlop.