Sports Direct FY18 Underlying Pretax Profit Up 34.5%; Adj. Revenue Up 0.7%

Sports Direct International Plc (SDIPF.PK,SPD.L) reported pretax profit of 77.5 million pounds for the 52 weeks ended 29 April 2018 compared to 281.6 million pounds for the 53 weeks ended 30 April 2017. Reported profit before tax was down 72.5% largely due to: an 85.4 million pounds impact from Debenhams strategic investment due to current year fair value adjustments mitigated to some extent by investment income; and prior year investment income from the sale of JD Sports shares and disposal of the Dunlop brand. Profit to Equity holders of the Group declined to 24.5 million pounds from 229.9 million pounds, prior year. Earnings per share was 4.6 pence compared to 38.3 pence.

Fiscal year Group underlying EBITDA was up 12.2% to 306.1 million pounds from last year. Group underlying profit before tax increased 34.5% to 152.9 million pounds, due to the higher EBITDA, favourable realised FX and lower depreciation and amortisation charges. Underlying basic EPS for the year increased by 74.6% to 19.9 pence.

Fiscal year Group revenue increased by 3.5% to 3.36 billion pounds from previous year. Excluding acquisitions, disposals, 53rd week, and on a currency neutral basis, revenue increased by 0.7%. UK Sports Retail decreased by 2.0% to 2.18 billion pounds, which included USC fascia sales.

The Board has decided not to pay a dividend in relation to fiscal 2018. The Board remains of the opinion that it is in the best interests of the Group and its shareholders to preserve financial flexibility, facilitating future investments and other growth opportunities. The payment of dividends remains under review.

by RTTNews Staff Writer

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