Sports Direct announced today that profits rose by just under 21% in the financial year to April 26th of this year.
The group, founded and majority controlled by Newcastle owner Mike Ashley, announced pre-tax pretax profits for the year of £300M, which beat forecasts of £293M, and was up from £249M a year ago.
A 5.5% rise in sport retail revenues helped push total revenues up by 4.7%.
Mike Ashley – during his Sky Sports interview on May 24th
However, Sports Direct announced today it would lower its 2015/2016 adjusted core earnings target of £480M down to £420M.
The reason for the lowering of earnings was down to not expanding revenues via acquisitions over the previous year – but all other targets for the next three years to 2019 remained unchanged.
Mike Ashley owns something above 60%, and he seems to have been successful in almost everything he has done in the business world, although he’s had his ups and downs.
A down is Newcastle United, and we’ve finished only one in the top eight in the Premier League since he became owner eight years ago .
But with the pledge he made in May that he wants Newcastle to now win something, and with big money being made available to buy new players this summer, maybe Newcastle can become successful again?
The acquisition of Georginio Wijnaldum for £14.5M from PSV was a very good start, and it seems we are close to buying Charlie Austin of QPR (probably for the full £15M).
Bookies suspended the betting on him moving to Newcastle today as his odds fell dramatically to 1/10 odds on.
If that’s true we are close to doing a deal for him then let’s hope he passes his medical at Newcastle, which he failed at Hull two years ago.
Newcastle are also reported to be close to signing another striker – Aleksandar Mitrovic of Anderlecht – and the two of them appear to be Newcastle’s top two striker targets.
If we can get these two through the door in the next week, Newcastle will be buzzing again.
And who knows we may even have a successful team again.
As a refresher, here’s what Mike Ashley said in his Sky Sports interview, just one hour before our final game kicked off against West Ham, when we were in danger of being relegated to the Championship.
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The code is 157085-73868 and readers can set up the league here.