Sports Direct “reasonably happy” despite near 70% profit drop

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Sports Direct is “reasonably happy” with its financial position according to its chief financial officer Jon Kempster, despite profits dropping nearly 70 per cent.

Yesterday the sportswear retailer reported a 67 per cent drop in reported pre-tax profits to £45.8 million in its half-year results.

Despite the seemingly negative financial reports, Kempster pointed out that EBITDA was up seven per cent to £156 million.

Group revenue also rose 4.7 per cent to £1.7 million and it announced plans to open 20 UK stores throughout the next year.

“Mike (Ashley) set an EBITDA range of between five per cent and 15 per cent back in July, and this [result] has landed squarely in the middle, so we’re reasonably happy,” Kempster said.

On Brexit he added: “What that will actually end up looking like will be interesting.

“There will potentially be an impact on foreign exchange rates and buying and purchasing costs, because obviously there was after the vote.

“We’ve hedged out through to April 2019 on our major US dollar purchasing, but we’re wary to do too much at the moment depending on what will happen.”

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