10th Sep 2007 07:03
Sports Direct International Plc10 September 2007 10th September 2007 Sports Direct International plc ("the Group" or "the Company") Interim Management Statement Sports Direct International plc, the UK's leading sports retailer, will hold itsfirst Annual General Meeting in Shirebrook at 3pm today. The Group nowannounces its Interim Management Statement relating to the period from 29thApril to 29th July 2007. Current Trading Update At the AGM today Dave Forsey, Chief Executive, will tell the meeting: "As previously stated the weather conditions in the UK have had a materialimpact on the financial performance of the UK retail business and therefore theGroup. Total sales of the Group for the 13 weeks ending 29th July 2007 amountedto £335m and a corresponding Group gross profit of £149m. The brands divisioncontinues to sign licences and the retail division has opened 13 new stores andclosed 14 smaller stores. Since the end of July trading has improved, but market conditions remaindifficult. At the time of the announcement of its preliminary results on 24th July 2007 theCompany stated that it's pre-exceptional EBITDA for 2007/8 should show limitedgrowth from the results reported in the year to 29th April 2007, and we remainof that view." Business Highlights in the Quarter The Group has acquired a 60% interest in Field and Trek, a company withexpertise in the outdoor market, with an option over the remaining 40%. The Group has a merger agreement with Everlast, a leading boxing brand withsignificant resources in the United States, which is expected to receiveapproval from their shareholders on 19th September. The Group has acquired the remaining minority interest in the retail business inSlovenia. The share-buy-back programme, announced at the time of the preliminary results,has made purchases of 43.5 million shares at a cost of £62.6m. The shares areheld in treasury. During the current year, as part of property purchases amounting to £77 millionin the UK, the Group acquired a substantial freehold office in New CavendishStreet, London for £30 million, part of which the Company will occupy as it'sLondon Office. In addition, a further freehold has been purchased for theEuropean retail business in Belgium. Also, the Group made strategic investmentsin Amer and Adidas of £82 million and £180 million respectively. In the UK the Group's first trial combined health club and retail store is inthe course of development and is due to open during FY 2008-09. A substantial proportion of the Group's imports are paid for in US dollars. Theimpact of currency movements is managed through the use of forward fixed-ratecurrency purchase contracts. At the last year end the rate of exchange with theUS dollar was 2.00. At Friday 7th September the rate was 2.02. Commenting on this statement, Dave Forsey, Chief Executive said: "This is the first Interim Management Statement for the Group. We remaincommitted to the strategy of improving retail margins, driving efficiencies andgrowth through acquisitions, opening new retail space and licensingopportunities." For further information, please contact: Dave Forsey, Chief Executive T. 0870 333 9400 Bob Mellors, Group Finance Director Sports Direct International plc Jonathon Brill / Ben Foster / Andrew Dowler T. 020 7831 3113 Financial Dynamics This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Frasers Group