Source - RNS
RNS Number : 1403J
Sports Direct International Plc
07 September 2016
 

7 September 2016

 

SPORTS DIRECT INTERNATIONAL PLC

("Sports Direct" or the "Company")

 

Open Day Presentation & Trading Update

 

Sports Direct will hold its Annual General Meeting and Open Day in Shirebrook from 11am today. The Open Day Presentation includes the below trading update and statement regarding Mike Ashley's shareholding.

 

The presentation has been published on the Company's website at:

www.sportsdirectplc.com/investor-relations/reports-and-presentations/rp-2016.aspx

 

Trading update

Property investment outlook

·      As a result of the success from the initial New Generation store openings, our key focus is to elevate our portfolio through acquisitions and relocations, for the benefit of:

Our third party brand partners

Our customers

 

·      Investing in Freehold properties and development projects provides us with the flexibility to:

Secure strategic retail locations

Align our New Generation store openings with our existing lease expiries

 

·      We invest in a range of properties including:

Vacant Buildings

Development land / Redevelopment projects

Multi tenanted schemes / properties

 

·      Since 24 April 2016, we have deployed c. £250m on acquisitions, which includes Oxford St as announced on 12 April 2016

 

·      If freehold investments and development opportunities continue to meet both our retail and property criteria, we will spend potentially in excess of c. £300m p.a., utilising our own resources and bank facility of £788m

 

·      As previously disclosed, our Property team will continue to be led by Michael Murray and any remuneration will be decided at the Board's discretion

 

Outlook

·      Underlying EBITDA in FY17 is expected to be in the region of £300m, subject to:

Group sales growth of at least 9%

Group Gross margin decline of no worse than 275 bps

Increase in operating costs of no worse than 8%

No unforeseen significant items

No material acquisitions

 

·      Acceleration of elevation initiative and investment in stores, as well as alignment of policy across acquisitions and geographies, expected to impact run-rate D&A. FY17 expected to be at least £120m

 

·      Hedging policy under review - remain unhedged at this stage on USD / GBP

 

·      Expect capex to substantially increase with continued investment in freehold property and strategic investments. Expect to utilise more of our current financial resources

 

·     Executive Deputy Chairman, Mike Ashley, commits to execute strategic plan over the next 2 - 4 years.

 

Mike Ashley's shareholding

Further to the statement made in the Company's preliminary results announcement on 7 July 2016, and in response to repeated speculation, Mike Ashley has confirmed to the Board that it remains the case that he has no current intention to take the Company private, and has indicated his willingness for the Company to confirm this statement publicly.

 

Ends.

 

Sports Direct International plc

Dave Forsey, Chief Executive

Matt Pearson, Acting Chief Financial Officer

T. 0344 245 9200

 

KBA PR                                   

Keith Bishop

T. 020 7734 9995

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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