Reported pretax profit rose 15.4 percent to 361.8 million pounds.
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Underlying EBITDA shrunk 0.5% to £381.4m, with underlying profit before tax dropping 8.4% to £275.2m and underlying earnings per share retreating 8.7% to 35.5p.
“The Victorian employment practices of Transline and The Best Connection at Sports Direct’s warehouse would shame the pages of a Dickens novel and should have no place in 21st century Britain”.
Revenue in the sports retail department grew 3.9 per cent to £2.5bn, largely as a result of the acquisition of Heatons during the year.
The company also said the poor showing meant it had not hit the first underlying earnings target set by the 2015 long-term share-based staff incentive scheme and is based on the achievement of four consecutive full-year targets.
CEO Dave Forsey calls the overall performance “disappointing” in a statement, blaming “a tough trading environment in the second half across our sports retail businesses”.
Pretax profit for the year totaled GBP361.8 million, up from GBP313.4 million, on revenue of GBP2.90 billion and GBP2.83 billion, respectively.
“Since the European Union vote we expect the current political uncertainty, and potential weakness in the UK’s short to medium term economic outlook, is likely to act as a continuing drag on consumer confidence”, Forsey said.
“When combined with the structural difficulties for United Kingdom retailers, including high street footfall, and our exposure to the weakness of the pound against the USA dollar (as announced on June 24), these factors make the current outlook for full year 2017 somewhat uncertain and therefore hard to predict”.
Sports Direct said changes to pound’s exchange rate against the dollar would affect its purchases from the Far East and as a result would hit profits. He said the firm is now working on a new plan.
The shares sank 28.3p to 307.14p, and no dividend is proposed.
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Sports Direct added that in response to repeated press speculation about his intentions with regards to his shareholding, founder and Vice Chairman Mike Ashley has confirmed to the board of directors that he has no current intention of taking the company private.
