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Sports Direct profits plunge 25% on falling pound Sports Direct chairman hits out at 'extreme campaign' as profits plunge
(35 minutes later)
Scandal-hit retailer Sports Direct has a reported a sharp drop in half-year profits  following a calamitous year in which it has come under fire for the treatment of workers and was left badly exposed by the slump in the value of the pound after the UK voted to leave the EU. The chairman of scandal-hit retailer Sports Direct has accused the media, trade unions and MPs for waging a damaging campaign against the company as the retailer reported a sharp drop in half-year profits.
Sports Direct said pre-tax profits fell 25 per cent to £140.2m  following a calamitous year in which it has come under fire for the treatment of workers and was left badly exposed by the slump in the value of the pound after the UK voted to leave the EU.
On a pre-tax basis, profits slumped 57 per cent to £71.6 million from £166.4m.
Keith Hellawell, the chairman of Sports Direct who survived a vote to remain in the post at the company's AGM in September, launched an attacks on critics of the retailer, claiming that an 'extreme campaign against' the business damaged the morale of staff and influenced customers.
He said: “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 company and its majority owner, Mike Ashley, have been under scrutiny due to the working conditions at its Shirebrook warehouse, including using agency staff who were employed on zero hour contracts. The company and its majority owner, Mike Ashley, have been under scrutiny due to the working conditions at its Shirebrook warehouse, including using agency staff who were employed on zero hour contracts. 
In its first results since billionaire Mr Ashley took over as chief executive from Dave Forsey, he said: "The significant events over the last year have been tough on our people and morale - our people are our number one priority over the long term." In its first results since billionaire Mr Ashley took over as chief executive from Dave Forsey, he said: "The significant events over the last year have been tough on our people and morale - our people are our number one priority over the long term." 
Sports Direct said it was continuing in its efforts to become the "Selfridges" of sports retail.Sports Direct said it was continuing in its efforts to become the "Selfridges" of sports retail.
Underlying profits before tax fell 25 per cent to £140.2m in the 26 weeks to Oct 23. On a pre-tax basis, profits slumped 57 per cent to £71.6 million from £166.4m.
The company said revenue rose 4.2 per cent to £1.6bn, but warned of a challenging environment which the firm expects to continue into the "foreseeable future". 
"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," Mr Ashley added."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," Mr Ashley added.
The results come after a string of controversies for the firm which has seen billionaire Mr Ashley hauled before MPs to be grilled over working conditions, the company host a tumultuous ‘open day’ at its headquarters, and its chief executive Dave Forsey, quit - only to be replaced by Mr Ashley.  
Keith Hellawell, the chairman of Sports Direct who survived a vote to remain in the post at the company's AGM in September, launched an attacks on critics of the retailer, claiming that criticism of the business damaged the morale of staff and influenced customers.
He said: “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."
Speaking on Radio 4’s Today programme, Simon Walker, director general of the Institute of Directors, said the company was making changes, but that they did not go far enough. “It’s a start … and it has to be a good step, but they continue to have real problems.”Speaking on Radio 4’s Today programme, Simon Walker, director general of the Institute of Directors, said the company was making changes, but that they did not go far enough. “It’s a start … and it has to be a good step, but they continue to have real problems.”
He noted that Sports Direct’s share price had halved since last December, to 314p.He noted that Sports Direct’s share price had halved since last December, to 314p.
“This is a reflection on what happens when a company lets its governance systems collapse.”“This is a reflection on what happens when a company lets its governance systems collapse.”
Sports Direct’s shares plunged by almost 5 per cent to 295p in early trading. Sports Direct’s shares plunged by 6 per cent in early trading.
Additional reporting by agenciesAdditional reporting by agencies