Pre-close Trading Update

RNS Number : 6595U

Sports Direct International Plc

20 October 2010

 



20 October 2010

Sports Direct International plc

Pre-close Trading Update

Sports Direct International plc ("the Group" or "the Company") today provides an update on current trading in advance of the end of the first half of its 2010/2011 financial year.

Group total sales for the 9 weeks ending 26 September 2010 were up 5.4% to £295m (2009: £280m) and gross profit was up 5.4% to £117m (2009: £111m).

Retail division sales for the same period increased 6.9% to £264m (2009: £247m), and retail gross profit increased 6.1% to £105m (2009: £99m).

At the preliminary results on 22 July 2010 we stated that we would be targeting a net debt to underlying EBITDA ratio of between one and one and a half times, and in the IMS on 7 September 2010 we reported that we had already achieved this target. Net debt as at 24 October 2010 is expected to be in the region of £240m (25 October 2009: £362m).

Dave Forsey, Chief Executive of Sports Direct International plc, said:

"Following the first quarter of our financial year which included the World Cup tournament we remain pleased with the continuing strong underlying performance across all our divisions.

"In light of the above, our Group's first half results will be significantly above the corresponding period last year, however we believe the early part of 2011 will be extremely challenging for all retailers in the UK. The Board remains comfortable with targeting a full year underlying EBITDA of £205m before the £10m charge for the bonus share scheme.

"The Board believes that the bonus share scheme has played an important role in delivering this strong performance. The current plan is to implement a new scheme that covers the next two financial years, FY12 which is a non tournament year and FY13 which includes the London Olympics and hopefully home nation participation in the Euro 2012 tournament.

"The Company will announce its Interim Results for the 26 weeks ending 24 October 2010 on Thursday 16 December 2010."

- Ends -

For further information, please contact:

Sports Direct International plc Dave Forsey, Chief Executive Bob Mellors, Group Finance Director	0845 129 9229
Financial Dynamics Jonathon Brill Caroline Stewart Alex Beagley	0207 831 3113

 

END

 

 

TSTFFWFMUFSSEES