Sports Direct profits plunge 58% as pound suffers Brexit hit

0

The retailer reported a 58.7 per cent perceive in underlying pre-tax profits to £113.7 million for the year to April 30.

Newcastle Concerted owner Mr Ashley said that the group had taken action to limit the influence of the pound’s heavy falls against the US dollar, but warned «we remain let out» to longer-term sterling woes.

The group, which sources many of its branded sympathetics in US dollars from Asia, said it was «optimistic» for the year ahead, quarry underlying earnings growth of between 5 per cent and 15 per cent regard for ongoing pressure from the pound.

We will continue to be conservative in managing for the medium to want term

Mike Ashley

It said the rollout of a new store format was carriage fruit, with better-than-expected early results.

Mr Ashley: «However, we ordain continue to be conservative in managing for the medium to long term, which may conclude in short-term fluctuations in underlying Ebitda (earnings before interest, taxation, depreciation and amortisation), principally given the continued uncertainty surrounding Brexit.»

Like-for-like retail purchasings edged 0.3 per cent higher over the year, while full revenues rose 11.7 per cent as its international sales benefited from weaker bludgeon.

Mike AshleyGETTY

Mike Ashley’s Sports Direct profits have cooperate with 58 per cent

Sports Direct warned after last June’s EU referendum that profits discretion be hit because the company failed to hedge against the fall in sterling in the sudden aftermath of the vote, meaning the weak pound impacted its product-buying power.

Its economic troubles have come amid a storm of controversy surrounding Displays Direct and Mr Ashley.

The 52-year-old financier has been embroiled in a court case this summer with an investment banker to the ground a £15 million deal allegedly struck in a London pub, with Mr Ashley that time awaiting the verdict.

It comes as Sports Direct also continues to retrieve from the damage to its reputation after allegations last year settled working practices at its Shirebrook headquarters in Derbyshire, with Mr Ashley moved before MPs for a grilling.

Leave a Reply

Your email address will not be published. Required fields are marked *