Sports Direct preliminary retail revenue grow by 16.2%
25 Jul '07
4 min read
The Brands Division has recently concluded an agreement with Dubai based company Retail Corp that will see Lilly whites and Sports Direct stores open throughout the Middle East region and the Republic of South Africa.
The agreement, gives retail corp exclusive rights to open Lillywhites and Sports Direct stores within their designated territory of UAE, Kingdom of Saudi Arabia, Kuwait, Qatar, Bahrain, Oman, Egypt and the Republic of South Africa.
UK wholesale and other includes income on property transactions which is not regarded as being exceptional or non recurring totalling £14.7m. Brands margins increased from 42.1% to 44.1% as a result of the reduction in lower margin wholesale business and the increase in high margin licensing income.
Selling, distribution and administration costs increased as a percentage of revenue. This was a result of costs in the acquired companies and a realised foreign exchange loss of £24 million compared to a profit of £16 million in the previous period.
No dividends were paid during the year. A dividend of 1.03p per share, totalling £7.42m, will be paid on 31 July 2007 to shareholders on the register on 30 June 2007.
The Group spent £20.2m on acquisitions during the 52 weeks ended 29 April 2007. The principal acquisitions related to Kangol, Original Shoe Company and Streetwise. The net assets acquired have been analysed and separate intangible assets and the residual goodwill recognised as appropriate in accordance with IFRS3: Business Combinations As part of the acquisition, the brand name “Streetwise”, recognised on acquisition at £1.4m, has been impaired in full as we intend to re-badge the stores acquired in the short to medium term as the opportunities to do so arise.
Sports Direct is the UK's leading sports retailer by revenue and operating profit. As at 29 April 2007, the group operated out of 462 stores, of which 414 are located in the UK (excluding Northern Ireland), 33 in Belgium, 11 in Slovenia, 4 in Holland. In addition, through its 42.5% shareholding in the Heatons chain, Sports Direct has 13.
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