Key highlights
Sports Retail gross margin increased by 130 basis points to 44.5%
Group underlying EBITDA increased by 10.8% to £203.1m
Underlying profit before tax up 9.8% to £160.6m
Underlying free cash generation of £161.5m (4)
Oxford Street store re-located in May 2014
Roll-out of large format city centre stores
29 new license agreements signed with contracted minimum royalties of $12m over the life of the agreements
Continued investment in inventory and strategic stakes while maintaining a strong balance sheet
Net debt decreased to £186.5m from £212.0m (27 April 2014) (5)
Dave Forsey, Chief Executive of Sports Direct International plc said:
"The results for the six months were solid considering the adverse impact on performance during the period of England's early departure from the FIFA World Cup in Brazil and the unseasonably mild weather during Autumn reducing footfall.
"However, the continued growth in Group revenues and EBITDA is testament to the hard work of our colleagues and our continued focus on providing customers with exceptional quality and unbeatable value. We are delighted that their contribution will again be recognised under the 2011 Employee Bonus Share Scheme - 25% of which is expected to vest with eligible employees in September 2015.
"Trading since the period end has been in line with management expectations and while we retain the ability to invest in margin, inventory and Group marketing to deliver long-term sustainable growth, we remain confident of achieving at least our full year internal underlying EBITDA target of £360m, before the charge for the Employee Bonus Share Schemes."
