7th Sep 2016 06:45
LONDON (Alliance News) - Sports Direct International PLC said Chairman Keith Hellawell has been asked by the board, and by Founder and Deputy Executive Chairman Mike Ashley, to continue his role at the company.
The sporting goods retailer said Hellawell had offered to step down last weekend "in light of the shortcomings" highlighted in the company's working practices report, which was released on Tuesday. In the report, Sports Direct admitted to a number of accusations made against it relating to poor working conditions at its warehouse in Shirebrook.
On Wednesday, Sports Direct said Hellawell will stay in his role in order to assist with improving conditions at the warehouse, although several shareholders are expected to vote against his re-election at the company's annual general meeting being held on Wednesday.
In a separate statement, Sports Direct said it expects underlying earnings before interest, tax, depreciation and amortisation for its full financial year to be in the region of GBP300 million, subject to sales growth of at least 9% year-on-year, a gross margin decline of no worse than 275 basis points, and an increase in operating costs of no more than 8%.
The earnings estimate is also subject to "no unforeseen significant items" and "no material acquisitions".
Sports Direct added that it will accelerate investment in its stores and acquisitions, which will hit full-year results by at least GBP120 million.
The company also reiterated that Ashley has "no current intention" to take the company private, despite speculation over the matter.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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