Ashley under pressure in Sports Direct profits dive

BILLIONAIRE Mike Ashley is facing renewed calls to draft in executive heavyweights to help run his £3 billion empire as the City braces for a profits collapse.

Discount retailer Sports Direct, which has been criticised for using zero-hours staff contracts, was last summer forced to confess that it had not insured itself against a sudden drop in sterling.

City analysts said that failure combined with tough trading mean the firm will say on Thursday that annual pre-tax profits more than halved to £127 million.

Drama surrounding the company descended into farce this month after a row over an alleged £15 million deal made in a bar ended up in court.

Evidence included details of a drinking competition in which Ashley – who owns 62 per cent of the business – allegedly consumed 12 pints and chasers and then was applauded by senior management after vomiting into a fireplace.

The Mail on Sunday revealed last year that previous finance boss Matt Pearson was paid £80,000 a year, a fraction of those at similar firms. He left in October and was replaced by Herbert Monteith.

Jonathan Pritchard at stockbroker Peel Hunt said: ‘A business like this should have a serious guy in the finance department. Someone who has seen it all before, who isn’t going to be distracted and who would provide a serious counterweight to Mr Ashley.’

A City analyst, who asked not to be named, said: ‘Ashley is probably getting bored with us all telling him what to do. Ultimately, it might do everyone a favour if he took the firm off the stock market and made it private again.’