Sports Direct share price: Group posts annual results

iNVEZZ.com, Thursday, July 17: Sports Direct International (LON:SPD) today released its preliminary results for the year ended April 27, 2014.

**Highlights from the company’s statement:**
• Sports Retail like-for-like stores gross contribution increased by 10.5% (FY13: 10.6%)
• Accelerated European expansion including acquisitions in Austria and the Baltic region(4)
• Growth in online revenue of 26.8% – now representing 17.1% of all Sports Retail sales (FY13: 15.0%)(5)
• Reported profit before tax up 15.6% to £239.5m (FY13: £207.2m)

• Underlying free cash generation of £277.2m(6)
• 84 new license agreements signed with contracted values of $51m over the life of the agreements
• Second and final part of 2009 Employee Bonus Share Scheme vested in August 2013
• Continued investment in inventory and strategic acquisitions whilst maintaining a strong balance sheet

Group Chief Executive Officer Dave Forsey commented on the results: “We have delivered another record year of out-performance especially within our Sports Retail division. This success is underpinned by our core strategy, offering our customers a wide range of products which represent exceptional quality and unbeatable value.”

“Through both individual hard work and operating as a team, against a particularly tough comparative which included the UEFA European Championships and the 2012 London Olympics, we have significantly out-performed the third underlying EBITDA target of £260m set under the 2011 Employee Bonus Share Scheme. This means that the Group has now successfully met the first three targets and the Board is very confident of achieving the final target of £300m under the 2011 Employee Bonus Share Scheme.”

“Overall trading since the year end has been in line with management’s expectations with some stronger weeks offset by England’s disappointing World Cup matches. Consistent with previous guidance, we continue to target underlying EBITDA (before share scheme costs) of £360m for the current period.”
More to follow…
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