On the face of it, these were a good set of numbers from Sports Direct International (SPD) - indeed, they were described by the company as "ahead of management expectations." Underlying cash profit rose 12 per cent to £183m and management says the group is on track to achieve at least its full-year cash profit target of £310m.
But the shares slipped 6 per cent, with broker Espirito Santo saying that the results had to be seen in the "context of very upbeat expectations and a seemingly up-with-events valuation." The 12 per cent growth in cash profits was certainly a step down from the 22 per cent growth seen at the previous set of results. But comparatives were tough with the the London 2012 Olympics and UEFA European Championships providing a boost last year.
The UK sports retail division grew revenues by 13 per cent to £903m with strong online sales having also helped significantly. But there was bad news for Chelsea fans. Sportswear maker adidas has decided to stop selling Chelsea replica kits through Sports Direct - a move that management says is "impossible to understand" and likely to lead to fans paying more for the kits.
Broker Liberum Capital expects adjusted full-year EPS of 30.5p (From 24.6p in 2013).
| SPORTS DIRECT INTERNATIONAL (SPD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 723p | MARKET VALUE: | £4,324m | |
| TOUCH: | 722p-723p | 12-MONTH HIGH: | 761p | LOW: 357p |
| DIVIDEND YIELD: | nil | PE RATIO: | 25 | |
| NET ASSET VALUE: | 127p* | NET DEBT: | 25% | |
| Half-year to 27 Oct | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 1.09 | 125 | 16.1 | nil |
| 2013 | 1.35 | 143 | 18.6 | nil |
| % change | +24 | +14 | +16 | - |
* Includes intangible assets of £265m, or 44p a share | ||||
