Booming revenues at Sports Direct
Mansfield retailer Sports Direct has hailed an "excellent year of growth" after reporting increased revenues of £1.6bn.
A successful employee share bonus was central to the sportswear retailer's performance, according to the business, which claimed to have strengthened its position in the UK market during the year and continued its international expansion.
Sports Direct said its performance was achieved in a tough market environment.
In the year to 24 April 2011, underlying profit before tax rose by 32.7 per cent to £135.5m while net debt fell by 52 per cent to £149m.
Looking ahead, Sports Direct said it was "very well positioned" for its targets set for the next four years and was confident of reaching its current year target of underlying EBITDA of £215m. EBIDTA currently stands at £200m.
Chief executive Dave Forsey said: "This has been an excellent year of growth for the group in what has been a challenging retail environment. Key to this growth has been the success of our employee bonus share scheme, which we introduced to focus the whole group on our ambitious growth targets.
"The strength of our business model means that we are very well positioned for the challenges and targets for the future. Our progress since the year end is in line with management expectations and we are confident of reaching our current year target of underlying EBITDA."
Earlier this month, Sports Direct agreed a £7m deal to become the majority shareholder of fashion retailers USC and Cruise Clothing. Sports Direct has taken 80 per cent of the shares in the cash deal, with retail tycoon Sir Tom Hunter keeping hold of the remaining ownership.
