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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Sports Direct - Gross margins jump

September 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SPD
  • Price:
  • 647p
Sports Directs results for the year ended April were excellent with revenue, pretax profit and eps rising 24%, 20% and 19% respectively to £2.7bn, £249m and 32.1p. A reversal of a £15m lease provision boosted growth but this was offset by a £15m charge taken for restructuring its Republic brand in its Lifestyle division. Net debt rose by £58m to £212m reflecting two acquisitions but net debt / ebitda is just 0.64 times while its banking facility is £688m. The Sports Retail division, which stocks over 200 styles of footwear as well as replica kits of major football, rugby and cricket teams, sports and leisure equipment and clothing and apparel, grew sales 24% to £2,274m. Gross margin rose a hefty 2.6% to 42.9%, thanks to increased ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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