Mike Ashley, billionaire and founder of Sports Direct International Plc. Photo: Bloomberg
Pre-tax profits at the Irish arm of UK billionaire Mike Ashley’s Sports Direct, Frasers and BrandMax stores last year declined by 41pc to €40.9m.
New accounts show that Mr Ashley’s Heatons Limited recorded the drop in profits as revenues increased by 4pc from €202.8m to €211.13m in the 12 months to the end of April last year.
Profits were boosted during the year by a €10m reversal in an onerous lease provision, which followed a €32m onerous lease provision reversal in the previous year.
The directors state that “the provision was reduced based on current trading performance and management’s expectations for the future”.
Pre-tax profits of €40.9m followed pre-tax profits of €69.08m in 2022.
The directors state that the company “is one of the largest retailers in the country”.
They say the business “has an unrivalled product range and value for money product offering, which has made Sports Direct one of the largest sports retailers in the country”.
They also state they and management “are focused on continuously improving efficiency to minimise the cost base of the company”.
The business – which has its Irish HQ at Heaton House at the IDA Business Park in Whitetown, Tallaght – recorded post-tax profits of €35.26m after incurring a corporation tax charge of €5.64m.
The pre-tax profit last year also takes account of non-cash depreciation costs of €3.8m and foreign exchange losses of €622,321. The group’s operating lease costs last year increased from €11.96m to €14.43m.
Numbers employed last year reduced from 1,249 to 1,242 as staff costs increased from €29.27m to €31.51m.
Directors’ emoluments last year increased sharply from €346,247 to €431,468.
At the end of April 30, Heatons Ltd had shareholder funds of €110.4m that included accumulated profits of €109.72m. The company’s cash funds reduced from €11m to €7.5m.
The company received zero from the Government’s Employment Wage Subsidy Scheme (EWSS) last year after receiving €3.72m under that heading in 2022.
The firm did benefit from €2m in other operating income last year that was chiefly made up of €1.93m in management fee income.
Mike Ashley is best known outside the business world through his former involvement with Newcastle United. In 2021 he sold the club for £305m (€358m) to a Saudi-led consortium.
