Sports Direct, the U.K. sporting goods chain, reported
profits increased more than tenfold after achieving record revenue in the year
to the end of April. Revenues grew 6.2%.
Pre-tax profit came in at £119.5 million ($182.8 million), against £10.7m a year earlier. Group revenue grew 6.2% to £1.45 billion ($2.2 billion), up from £1.37 billion. Brands division declined 17.4% to £190.5m (2009: £230.5m)
Underlying EBITDA up 17.3% to £160.4m ($290 million). Underlying profit
before tax up 49.8% to £102.1m ($155.2 million). Reported profit before tax up
1,016.8% to £119.5m ($181.6 million).
Group gross margin decreased by 20 basis points to 40.6% . UK retail gross margin down to 41.3%. UK Retail
like-for-like gross contribution increased by 3.4%.
Sport Direct also noted that it substantially reduced net
debt by 27.7% to £311.9m ($474.1 million). Net debt to underlying EBITDA of 1.9
times.
Dave Forsey, Chief Executive, said: “The Group performed
strongly throughout the year, achieving excellent sales and profit performances
ahead of initial expectations 12 months ago. In addition, we have made
significant progress in our debt reduction programme. I am especially pleased
that over 2,000 permanent UK employees will benefit from their contribution to
Group success through our meeting the first year's target for the Employee
Bonus Share Scheme introduced last year.
“Looking ahead, we are confident that initiatives we are
taking across all areas of the Group, including improved staff training and new
in-store merchandising areas, put us in a strong position for the next phase of
our growth. We believe we are operationally stronger than ever. Accordingly,
and assuming no significant deterioration in economic conditions we are targeting underlying EBITDA at around
£195m in the current financial year.”
