// Mash Holdings saw pre-tax profit plunge by almost 80%
// Mash Holdings controls Mike Ashley’s stake in Sports Direct and Newcaste United
Mike Ashley’s holding company has endured a full-year profit fall of almost 80 per cent, according to financial figures revealed today.
Mash Holdings, the company which controls Ashley’s stake in Sports Direct and Newcastle United, said profit before tax reached £20.9 million in the year ending April 2018.
The 2017 profit was boosted by the sale of Dunlop and the shares held in JD Sports, while “there was no similar income in 2018,” the company stated in accounts filed at Companies House.
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In addition, Sports Direct’s acquisition spree of House of Fraser, Evans Cycle and Sofa.com did not happen until the 2018 financial year.
Mash Holdings said Newcastle United’s media revenue went up 166 per cent to £126.4 million as the team was boosted by its promotion to the Premier League.
However, the cost of buying new players, which is levelled out over the years the player is contracted for, rose by £5.5 million to £41.3 million.
Overall revenue increased 64 per cent at Newcastle and 3.5 per cent at Sports Direct, leading to an overall rise of 5.2 per cent for Mash Holdings.
Meanwhile, Mash Holdings said it was unable to “fully protect” Sports Direct from the impact Brexit might have.
At its Shirebrook warehouse, the firm is investing in machines to replace European workers who might leave after UK divorces from the EU.
“We have been investing in some partial automation for the Shirebrook warehouse operations to make efficiencies and improve productivity on internet fulfilment orders and help mitigate any potential staffing shortfall after Brexit,” Mash Holdings said.
The retailer is also working with a network of warehouses across the continent which can help manage stock once the impacts of Brexit are fully understood.