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| Sports Direct sees sharp fall in profits | Sports Direct sees sharp fall in profits |
| (35 minutes later) | |
| Sports Direct has reported a big drop in half-year profits after being hit by the fall in the pound. | Sports Direct has reported a big drop in half-year profits after being hit by the fall in the pound. |
| The retailer, which has been heavily criticised for the treatment of some of its workers, said reported pre-tax profits fell 25% to £140.2m. | The retailer, which has been heavily criticised for the treatment of some of its workers, said reported pre-tax profits fell 25% to £140.2m. |
| Chief executive Mike Ashley said the past six months had been "tough for our people and performance". | Chief executive Mike Ashley said the past six months had been "tough for our people and performance". |
| The company said it was continuing in its efforts to become the "Selfridges" of sports retail. | The company said it was continuing in its efforts to become the "Selfridges" of sports retail. |
| "Our UK Sports Retail business continues to be the engine of Sports Direct, but our results have been affected by the significant deterioration in exchange rates, and our assessment of our risk relating to our stock levels and European stores performance," said Mr Ashley of the poor results. | |
| Sports Direct has suffered from a number of scandals in recent months. | |
| Since the uproar over its treatment of staff began, a delegation of MPs claimed an attempt was made to record them in a private discussion while on a visit to the firm's Shirebrook warehouse. | |
| Most recently an investigation into the company's accounts was launched. | |
| Several senior employees have also left the company. Dave Forsey stepped down as chief executive and was replaced by Mr Ashley. | |
| Acting finance director, Matt Pearson was replaced by another interim appointment Herbert Monteith in October. | |
| Keith Hellawell, chairman of the company offered to resign earlier this year, but was convinced not to by Mr Ashley. | |
| However after failing to receive the necessary support from a majority of the company's independent shareholders who voted at the annual general meeting in September, he will stand for re-election on 5 January next year. | |
| Mr Hellawell used the results statement to launch a blistering attack on the company's treatment. | |
| "I have no doubt that the extreme political, union and media campaign waged against this company has not only damaged its reputation and influenced our customers, it has impacted negatively on the morale of our people. | |
| "I begin to question whether this intense scrutiny is all ethically motivated. One of the most damaging consequences has been for the very people our critics supposedly support. | |
| "The Board accepts responsibility for our shortcomings, but there has also been disproportionate, inaccurate and misleading commentary. | |
| "The individuals at the heart of our organisation are blameless. They are increasingly upset and angry at the barrage of detrimental comments about the company which in their view is unjustified. | |
| "On behalf of the Board I thank every member of staff for their continued loyalty during such testing times. We recognise the massive contribution you have made to the success of this Company and look forward to less stressful times." | |
| Shares in Sports Direct fell in early trading on Thursday, down around 6%. |