Insider Media Limited

Online sales have grown 85 per cent over the last six months at Sports Direct. The Mansfield-based company told the Stock Exchange this morning that it was now working on plans to treble the size of its distribution centre to more than two million sq ft.

For the 26 weeks to 23 October, Sports Direct's total group revenue hit £888.6m, up 8.4 per cent on the comparable 2010 period in which £819.9m was secured.

Pre-tax profit remained broadly flat, rising 0.3 per cent to £100.3m.

The company's online business grew "significantly" over the six moths, and the division now accounts for 9.5 per cent of total retail revenue. Nine new retail outlets were also opened.

It said the website had benefited from the increased recognition of the online brand, with 346 of UK store fascias now branded sportsdirect.com.

Sports Directs said it was now focusing on expanding its warehouses to more than treble the current size by 2014.

"This development is split into two phases, with an initial 400,000 sq ft extension already underway," said the company. "The remaining development will be undertaken after the initial phase has been completed. The overall cost of the first phase is included within our targeted capital expenditure figures of £40m for 2012and £50m for 2013."

This figure excludes the £80m spent on the purchase of owner Mike Ashley's property portfolio, which was completed earlier this year.

"This strong performance yet again demonstrates the success of our unique and resilient business model, and was delivered against both a tough FIFA World Cup comparison last year and an especially fragile consumer environment," said Dave Forsey, chief executive. "The board remains very confident of reaching our full year EBITDA target of £215m."

Sports Direct completed the acquisition of 80 per cent shareholdings in branded fashion retailer West Coast Capital (USC) and luxury womenswear retailer Cruise Clothing for £7.5m.

Initial actions taken include an IT and operating system upgrade, increased proportion of third party brands and proposed updated store layouts, said the company.

Sports Direct made no further mention of its speculated Blacks Leisure bailout, which was noted on the Stock Exchange earlier this week (12 December).

The company put forward an "expression of interest" to save troubled Northampton retailer Blacks, of which Mike Ashley is a key shareholder.

Sports Direct told the Stock Exchange that the expression of interest had not yet materialised into a concrete offer, and said there "was no certainly" that an offer would be made.

It added that if a bailout was to be made, consideration for any such offer would be in cash.

Camping and outdoor retailer Blacks told the Stock Exchange last week that it had put itself up for sale and was inviting offers from interested parties.