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Sports Direct preliminary retail revenue grow by 16.2%
25 Jul '07
4 min read
Sports Direct International plc, the UK's leading sports retailer, announces its Preliminary Results for the 52 week period ended on 29th April 2007.
Dave Forsey, Chief Executive of Sports Direct, said: “These are a good set of results in which EBITDA pre exceptional items is in line with the expectations we set during the IPO process.” The first three months of the current financial year have been exceptionally difficult with the unprecedented weather conditions having an immediate impact on sales.
“Despite this, and at this early stage in the financial year, due to the underlying strength of the business and its model, the Board believes there should be limited growth in EBITDA pre exceptional from the £191m reported today in the current financial year.”
In the 52 weeks ended 29 April 2007, the Group achieved sales growth of 12.8% taking total revenue to £1.35 billion. Group margins strengthened to 44.3% so allowing a growth in EBITDA pre exceptional items to £191 million and in underlying profit before tax to £151 million. Underlying earnings per share were up 40.4% to 14.0 pence. In accordance with the statements made at the time of the IPO, a dividend of 1.03p per share, totalling £7.4m, will be paid on 31 July 2007 to shareholders who were on the register on 30 June 2007.
Brands revenue fell overall, largely due to the loss of sales of golf balls following the closure of the golf ball factory in the USA, but licensing income grew by 22.5%, and licensing continues to be the main driver of growth within the brand division. We continue to invest in sponsorship and marketing around the core values of each brand. We are also looking to consolidate our UK-based brand businesses into the Shirebrook campus.
Retail revenue grew by 16.2%. The UK accounted for 94.6% of retail with the balance in Belgium, The Netherlands and Slovenia.
Brands revenue fell by 6.3% overall. Licensing income increased by 22.5%. The reduction in wholesale revenue of 8.7% is primarily due to the loss of sales to third parties of golf balls following the closure of the manufacturing facility in the USA.
Retail margins in the UK increased from 37.5% to 44.3%. The most significant component being the improvement in price in the second half of the year. The weakness of the dollar accounted for about 20% of margin improvement and about a further 30% came from efficiencies associated with the new distribution centre in Shirebrook, such as reduced stock loss through improved security and less write down of stock because such reductions are identified and implemented quicker and are therefore of less significant value.
Dave Forsey, Chief Executive of Sports Direct, said: “These are a good set of results in which EBITDA pre exceptional items is in line with the expectations we set during the IPO process.” The first three months of the current financial year have been exceptionally difficult with the unprecedented weather conditions having an immediate impact on sales.
“Despite this, and at this early stage in the financial year, due to the underlying strength of the business and its model, the Board believes there should be limited growth in EBITDA pre exceptional from the £191m reported today in the current financial year.”
In the 52 weeks ended 29 April 2007, the Group achieved sales growth of 12.8% taking total revenue to £1.35 billion. Group margins strengthened to 44.3% so allowing a growth in EBITDA pre exceptional items to £191 million and in underlying profit before tax to £151 million. Underlying earnings per share were up 40.4% to 14.0 pence. In accordance with the statements made at the time of the IPO, a dividend of 1.03p per share, totalling £7.4m, will be paid on 31 July 2007 to shareholders who were on the register on 30 June 2007.
Brands revenue fell overall, largely due to the loss of sales of golf balls following the closure of the golf ball factory in the USA, but licensing income grew by 22.5%, and licensing continues to be the main driver of growth within the brand division. We continue to invest in sponsorship and marketing around the core values of each brand. We are also looking to consolidate our UK-based brand businesses into the Shirebrook campus.
Retail revenue grew by 16.2%. The UK accounted for 94.6% of retail with the balance in Belgium, The Netherlands and Slovenia.
Brands revenue fell by 6.3% overall. Licensing income increased by 22.5%. The reduction in wholesale revenue of 8.7% is primarily due to the loss of sales to third parties of golf balls following the closure of the manufacturing facility in the USA.
Retail margins in the UK increased from 37.5% to 44.3%. The most significant component being the improvement in price in the second half of the year. The weakness of the dollar accounted for about 20% of margin improvement and about a further 30% came from efficiencies associated with the new distribution centre in Shirebrook, such as reduced stock loss through improved security and less write down of stock because such reductions are identified and implemented quicker and are therefore of less significant value.
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