Sports Direct a buy, says Share Centre
Helal Miah, investment research analyst at The Share Centre, says the shares are attractive for medium risk investors looking for capital growth.
The retail empire of Newcastle United owner Mike Ashley has seen higher revenues and profits in spite of England’s disappointing performance at the World Cup.
Revenues rose 6.5 per cent to £1.43bn. Underlying pre-tax profits grew 9.8 per cent to £160.6m in the 26 weeks to October. Net debt decreased to £186.5m from £212m.
Miah says: “In its first half results this morning, Sports Direct reported figures that were pretty much in-line with expectations. Half year revenues, recorded up to the 26th of October, rose by 6.5 per cent to £1.4bn and the earnings per share rose by 4.1 per cent to 19.4p. These figures should be relatively pleasing given England’s early exit from the World Cup and the unseasonably warm autumn weather dampening customer footfall.
“During the period the company has rolled out large format city centre stores, signed 26 new license agreements and continued to invest in inventory optimisation and product offerings. Management remain confident of meeting full year EBITDA of £360m and continue to open new stores for which they have a target of 30-40.”