Sports Direct

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Contents Page

Introduction 3
Background3
Part B
Financial Highlights 3
Cash Flow3
Part C
Chairman’s Statement4
Co-operate Governance 4
Consolidated Five Year Statement5

Part D
Current Assets
Property, Plant and Equipment6
Deferred Tax Assets6
Non-Current Assets
Inventories7
Cash and Cash Equivalents7
Conclusion
Bibliography

Introduction
In this the coursework, it will present financial information relating back from Sports Direct Annual Report 2012 alongside a brief history of Sports Direct with additional information about how the group generates revenue. Background

Sports Direct is the UK’s largest sporting retailer, sells major third party fashion brands and licensed brands, leisure equipment, footwear and accessories such as Adidas, Nike, Reebok, Lonsdale and many more for a competitive price. Sports Direct manage 395 stores in the UK alone however they operate as a group. Mike Ashley set up the company in 1982 in Maidenhead operating as Mike Ashley Sports , in the 1980’s he begun to expand by opening more shops around London. As the chain of shops began to escalate Mike Ashley had rebranded the chain to Sports Soccer In 1990’s. Mike Ashley had decided upon to purchase Lillywhites and the Lonsdale Brand in 2002. Furthermore in 2004 the company obtained Carlton, Karrimor, Slazenger and Dunlop brands. Later on in 2007/08 the group had acquired Everlast together with Field and Trek stores, next they embarked on rebranding to sportsdirect.com Part B

Financial Highlights
The Financial Year had ended on 29th April 2012 which was a 53 week year, however to make a comparison to the previous year the cash flow and financial highlights are stated to a 52 week basis. For the year 2012, Sports Direct had amplified Revenue of 13% which is a staggering £1,807m since the retail division soared to 14% also the total in sports retail increased by 8.7% with the addition to the new Premium Lifestyle division which contributed £74m. The profit rose 17.3 per cent to £162.1m in the 53 weeks to 29 April that compares with analysts forecast of 160 million pounds and £135.5m in the 2010-11 year.A substantial growth in online sales of 82% which now accumulates for 11.6% however in 2011 it was a mere 7%. The earnings before interest, taxes, depreciation, and amortization were £244m, which excludes the premium division but in 2011 it was only £211m. Furthermore there first target for the 2011 Employee Bonus Share Scheme was met. Cash Flow

Sports Direct increased cash reserves by 42.76% or £20.9m, from operations the group had earned £165.43 which is a cash flow margin of 9.01%, moreover from financing, Sports Direct had generated £11.8m cash while £155.80 was consumed on investing. (Ref: https://markets.ft.com/research//Markets/Tearsheets/Financials?s=SPD:LSE&subview=CashFlow&period=a

Part C
Chairman’s Statement
Keith Hellawell the Non-Executive Chairman is exceptionally pleased to announce that the operational and financial performance has been attained, as well as the earnings before interest, taxes, depreciation, and amortization among the revenue is emerging remarkably, the company has continuously presented a healthy cash sum and a strong balance sheet. In addition the growth of the online commerce has been satisfying. Sports Direct.com has two schemes in place, one is an employee bonus share scheme and the other is super-stretch scheme. The employee bonus share scheme is paramount for reward as 2000 staff will be given their share of awards due to meeting the targets for earnings before interest, taxes, depreciation, and amortization in 2011. As a result of meeting the objectives a meeting will be held for shareholders to seek authorization for Mike Ashley to be granted 8 million shares if two performance conditions are met: •If the group meets the targets for earnings before interest,...
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