For the 26 weeks to 27th October Sports Direct had increased its group revenues by 14 per cent to £2.04 billion whilst also increasing its underlying EBIDTA by 21.8 per cent to £181.2 million. The business achieved growth of 79.2 per cent from its premium lifestyle arm as further Flannels stores opened and House of Fraser had begun to show signs of recovery. It had also benefited from the sale and leaseback of its Shirebrook distribution centre to the tune of an £84 million gain.
Mike Ashley, who is pressing the newly elected Government to reform the business rates system, said: “I am very pleased with the strong underlying EBITDA growth in the context of the significant challenges facing the high street. We remain focused on our elevation strategy, which continues to go from strength to strength, benefiting all stakeholders.”
Mr Ashley also added: “We are doing as much as we can to realistically save as many jobs and stores as possible. However, despite our best efforts, there are still a number of stores which are currently paying zero rent and that are unprofitable and thus not sustainable.”
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