This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2016/jul/07/sports-direct-not-going-private-in-near-future-says-mike-ashley
The article has changed 9 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Sports Direct sees fall in profits after Brexit, says Mike Ashley | |
| (35 minutes later) | |
| Mike Ashley has told Sports Direct’s board that he has no current intention to take the company private, as the retailer revealed a worse than expected fall in profits. | Mike Ashley has told Sports Direct’s board that he has no current intention to take the company private, as the retailer revealed a worse than expected fall in profits. |
| Dave Forsey, the chief executive, said: “The group has delivered a disappointing full-year financial performance, impacted primarily by a tough trading environment in the second half across our sports retail businesses.” | |
| He also warned that the outlook for the coming year was “somewhat uncertain and hard to predict” as a result of the UK’s decision to exit the EU. Sports Direct has already warned that its profits could be affected by the drop in the value of the pound against the dollar which it uses to buy stock in Asia. | He also warned that the outlook for the coming year was “somewhat uncertain and hard to predict” as a result of the UK’s decision to exit the EU. Sports Direct has already warned that its profits could be affected by the drop in the value of the pound against the dollar which it uses to buy stock in Asia. |
| “Since the EU vote we expect the current political uncertainty, and potential weakness in the UK’s short to medium term economic outlook, is likely to act as a continuing drag on consumer confidence,” Forsey said. | “Since the EU vote we expect the current political uncertainty, and potential weakness in the UK’s short to medium term economic outlook, is likely to act as a continuing drag on consumer confidence,” Forsey said. |
| The retailer confirmed it would not be paying a staff bonus and would not be looking to develop a replacement scheme after underlying profits, at £381.4m, missed the company’s target of £420m. Group sales rose 2.5% to £2.9bn, slightly better than expected, after Sports Direct bought the Irish Heatons chain. | |
| Related: Findel may appoint Sports Direct's Mike Ashley as chairman | Related: Findel may appoint Sports Direct's Mike Ashley as chairman |
| Profit margins rose for the group as a whole as it booked big increases at its brands and premium lifestyle division, which includes the USC and Flannels chains. However margins at the group’s sports stores decreased by 1 percentage point in the second half of the year as the company was forced to discount to clear winter stock during unseasonably warm weather. At the pre-tax level, profits fell 8.4% to £275.2m. | |
| The retailer has dropped out of the FTSE 100 after facing criticism over treatment of workers, revealed by a Guardian investigation last year. It has also had difficulties in securing the acquisitions it needed to meet profit targets. The company issued its second profits warning in a year in March. | The retailer has dropped out of the FTSE 100 after facing criticism over treatment of workers, revealed by a Guardian investigation last year. It has also had difficulties in securing the acquisitions it needed to meet profit targets. The company issued its second profits warning in a year in March. |
| In response to what it said was “repeated press speculation about his intentions with regards to his shareholding in Sports Direct”, the company said Ashley had confirmed to the board of directors that he had no current intention of taking Sports Direct private, and had “indicated his willingness for the company to confirm this statement publicly.” | |
| Ashley admitted last month that Sports Direct had paid workers in its warehouse below the minimum wage because of delays in security searches of staff. Giving evidence to a committee of MPs in parliament, Ashley said he had already taken measures to address the problem. | |
| HM Revenue & Customs, which polices minimum wage abuses, is investigating the retailer and the company is in talks with its full-time staff about a deal to offer back pay. Ashley has said he wants to buy BHS out of administration but his offers have been turned down as too low. | |
| In the US, the company missed out on hopes of securing a joint bid for the Sports Authority retail chain, losing out to a $15m offer from Dick’s Sporting Goods. |