UK retailer Sports Direct has reported an increase of 160% in profit before tax from £74.4m to £193.4m year-on-year for its half-year results ending 27 October 2019, due to improved trading results and profit from the sale and leaseback of its Shirebrook campus.
The UK sports retail segment revenue rose by 6.2% from £1,140.2m to £1,211.3m mostly due to the number of acquisitions made by the company in the first half of the year.
Underlying EBITDA excluding acquisitions and currency movements increased by 15.1% and including these increased by 21.8%.
Group revenue decreased by 6.4% excluding acquisitions and currency movements, which the group attributed to its continued elevation strategy..
Since acquiring House of Fraser in August this year, the company has been tackling the issues presented by integrating the company, and with efforts from the Sports Direct Group it is trying to build a ‘bright’ future for the business.
Sports Direct non-executive chair David Daly said: “I am very proud of the results we have achieved during this half year period and what the group has achieved during a very tough and challenging retail environment.
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“We are starting to see the green shoots of recovery as we continue to integrate the business into the group. We are bringing new disciplines, experience and skills to bear which is helping the turnaround. Our Frasers strategy is to create a superior shopping experience for the consumer which will be led by the original Frasers. In the coming months and years, Frasers will prove to be a vital and successful part of the group.”
Looking to the new year, the company is on track to complete its stated store elevation plan by the end of the financial year, as well as completing the purchase of the Glasgow House of Fraser store. A new head of internal audit will join the company in January, while the group hopes to move out a period of unpredictability to move into sustainable growth and a successful future.