Sports Direct puts brave face on result

L Retailer warned in wake of the EU referendum that profits would be hit

from shareholders and MPS about corporate governance and working conditions in the UK.

“All this while the weak pound is increasing costs, and the British consumer is facing rising inflation and weak wage growth.”

Sports Direct warned in the wake of last summer’s EU referendum that profits would be hit because it failed to hedge against the fall in sterling in the immediate aftermath of the vote, meaning the weak pound impacted its productbuying power.

Meanwhile, Ashley was embroiled in a court case this summer with an investment banker over a £15m deal allegedly struck in a London pub, with the retail tycoon still awaiting the verdict.

It comes as Sports Direct alsocontinuestorecoverfrom the damage to its reputation after allegations last year over working practices at its Shirebrook headquarters in Derbyshire.

In a note, RBC Capital Markets said: “Sports Direct has appointed a new finance director, Jon Kempster, who will join on 11 September which we think is a positive development. He was previously group finance director of UK logistics and distribution group Wincanton between July 2010 and November 2012.”