Sports Direct (SPD) revealed another winning full-year performance - underlying cash profit jumped 22 per cent to £288m, well above its £250m target, and the group gross margin improved by 40 basis points to 40.9 per cent.
Sporting events, such as 2012's Olympics, helped sales in the UK sports retail division to rise 17 per cent year on year to £1.57bn. Meanwhile, the unit's like-for-like gross contribution increased to 11.2 per cent - the fourth consecutive year of growth - and a new web platform helped online sales rise 52 per cent. Divisional operating costs rose 19 per cent to £409m, largely reflecting higher warehouse costs, and overheads related to the JJB Sports acquisition - but underlying cash profit still rose 19 per cent to £248m.
International sales grew 20 per cent to £185m, after opening 19 new European stores and following a move in four new countries. The UK premium lifestyle division continued to expand, too, while sales at the brands division rose 7 per cent to £209m - driven by strong trading in North America and higher licensing income.
Broker Oriel Securities expects adjusted pre-tax profit of £262m for 2014, giving adjusted EPS of 30.2p (from £208.1m and 26.85p in 2012).
| SPORTS DIRECT INTERNATIONAL (SPD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 635p | MARKET VALUE: | £3.8bn | |
| TOUCH: | 636-645p | 12-MONTH HIGH: | 635p | LOW: 281p |
| DIVIDEND YIELD: | nil | PE RATIO: | 24 | |
| NET ASSET VALUE: | 108p* | NET DEBT: | 24% | |
| Year to 28 Apr | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 1.36 | 10.6 | -2.80 | 1.22 |
| 2010 | 1.45 | 120 | 15.7 | nil |
| 2011 | 1.60 | 119 | 14.8 | nil |
| 2012 | 1.84 | 151 | 18.7 | nil |
| 2013 | 2.19 | 207 | 26.6 | nil |
| % change | +19 | +37 | +42 | - |
*Includes intangible assets of £240m, or 40p a share | ||||
