Sports Direct to review dividend freeze after profits surge
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Sports Direct is on track to hit its "super-stretch" profit targets this year, passing the first hurdle that could see it hand founder Mike Ashley a bundle of shares worth £17m.
The sportswear market leader said it was now "certain" of hitting its higher underlying profits target of £225m for the year to 29 April after posting a surge in third-quarter sales.
Sports Direct said it was also reviewing its dividend policy following a hiatus stretching back to December 2008. Its growth is in stark contrast to the troubles at its loss-making rival JJB Sports.
Sports Direct posted a 9.1 per cent surge in group sales to £453.8m for the 13 weeks to 22 January, boosted by "significant" online growth.
Its chief executive Dave Forsey said: "Underlying performance in the period, particularly since December, has outperformed management's expectations.
"In light of this strong performance, the board will be reviewing the group's dividend policy at the end of this financial year." The company had suspended its dividend in 2009 as it focused on paying down debt.
Sports Direct's retail sales rose by 10.2 per cent to £409m over the quarter.
Under the "super-stretch" deal, if the retailer hits four years of profit targets by April 2015, it will hand Mr Ashley, its executive deputy chairman who also owns Newcastle United, 6 million shares, worth £17m at the current share price, in 2018. Mr Ashley has not taken a salary since its floated in March 2007.
The shares rose by 15.2p to 278p yesterday, edging it closer to its float price of 300p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments