There were no hidden surprises in the annual figures for Sports Direct (SPD). That's actually more of an achievement then it sounds, given England's early exit from the World Cup last year, the unusually mild autumn weather and a weak European winter sports season.
Despite these challenges, sports retail sales grew by 5.5 per cent to £2.4bn, while the gross margin improved by 170 basis points to 44.6 per cent. That was largely down to ongoing investment in the group’s 'better' and 'best' product ranges and a more efficient supply chain. Online sales also jumped 14 per cent to £384m following the launch of click and collect services in the UK during the second half. Web sales now account for 16.5 per cent of sports retail sales.
Meanwhile, the brands division grew cash profits by 13 per cent to £34.1m (despite margins falling 180 basis points to 40.3 per cent) and an ongoing restructuring of the premium lifestyle business curbed losses there by more than half to £7.7m.
Analysts at Numis expect pre-tax profits of £343m for the current financial year, giving EPS of 43.3p, up from £300m and 38.9p respectively in 2014.
| SPORTS DIRECT INTERNATIONAL (SPD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 775p | MARKET VALUE: | £4.64bn | |
| TOUCH: | 775-776p | 12-MONTH HIGH: | 775p | LOW: 559p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 19 | |
| NET ASSET VALUE: | 195p* | NET DEBT: | 5% | |
| Year to 26 April | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 1.60 | 119 | 14.8 | nil |
| 2012 | 1.84 | 151 | 18.7 | nil |
| 2013 | 2.19 | 207 | 26.6 | nil |
| 2014 | 2.71 | 239 | 30.8 | nil |
| 2015 | 2.83 | 313 | 40.6 | nil |
| % change | +5 | +31 | +32 | - |
Ex-div: na Payment: na *Includes intangible assets of £255m, or 43p a share | ||||
