Frasers Group PLC - Earnings Release 2013

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RNS Number : 5812J

Sports Direct International Plc

18 July 2013

Sports Direct International plc

("Sports Direct" or "the Group")

Preliminary Results

For the 52 weeks to 28 April 2013

The Financial Year ended 28 April 2013 was a 52-week year. In order to make a comparison to last year, which was a 53-week year, all references to financial performance in respect of the income statement, cash flow and business reviews are made by reference to a pro-forma 2012 52-week basis unless otherwise specified.


	52 weeks ended 28 April 2013	Pro Forma 52 weeks 2012	52 week Change %	53 weeks ended 29 April 2012
	£m	£m		£m
Group revenue	2,186	1,807	20.9	1,836
UK Sports Retail(1)	1,575	1,342	17.3	1,368
International Retail(2)	185	154	20.1	157
Premium Lifestyle(3)	128	74	73.0	74
Brands	209	196	6.7	196
Group gross margin	40.9%	40.5%		40.5%
UK Sports Retail	41.1%	41.0%		41.0%
Underlying EBITDA(4)	287.9	235.7	22.1	240.1
Underlying profit before tax (PBT) (5)	208.1	149.1	39.6	152.6
Reported profit before tax	207.2	148.0	40.0	151.5
Underlying earnings per share (EPS) (5)	26.85p	18.74p	43.3	19.19p
Reported earnings per share	26.64p	18.24p	46.1	18.68p

Key highlights

· Group Revenue up 20.9% to £2,186m with significant growth across all divisions

· UK Sports Retail like-for-like stores gross contribution increased by 11.2%

· Strong growth in online revenue of 52.1%- now representing 15.0% of total Sports Retail sales (FY12: 11.6%)

· Underlying Group EBITDA up 22.1% to £287.9m (52 weeks FY12: £235.7m)

· Reported profit before tax up 40.0% to £207.2m (52 weeks FY12: £148.0m)

· Underlying free cash generation of £245.6m(6)

· Accelerated European expansion including post year end acquisitions in Austria and the Baltic region(2)

· Investment in inventory and strategic acquisitions while maintaining a strong balance sheet

· Shirebrook National Distribution Centre Phase 2 completed, however further enhancements underway

· First part of 2009 Employee Bonus Share Scheme vested in August 2012

o Second and final part of 2009 Employee Bonus Share Scheme vesting in August 2013(7)

Dave Forsey, Chief Executive, said:

"2012/13 was a record-breaking year for the Group and for British sport. We are pleased that both have continued to be successful this year and that our strategy of being the Consumers' Champion continues to reap rewards.

"Our colleagues have worked hard throughout the year and, as a result, we have exceeded the second underlying EBITDA target of £250m set under the 2011 Employee Bonus Share Scheme and the stretch target of £270m. This means the Group has successfully met the first two targets while there remain two more years to go under the 2011 Employee Bonus Share Scheme.

"There is no doubt that the Group's record-breaking results were in the large part down to our colleagues and their hard work. The Employee Bonus Share Schemes have continued to drive this performance and we are pleased that eligible employees will be rewarded in August as the second and final part of the 2009 Employee Bonus Share Scheme vests.

"Trading since the period end has remained strong and is ahead of management's expectations for the first quarter. Whilst 2013 is a non-tournament year, there is no doubt that our compelling offer of exceptional quality and unbeatable value continues to resonate well with our customers."


(1)	Excluding revenue from the 20 stores acquired from JJB Sports plc during the period. These revenues are included in 'UK Wholesale and Other'.
(2)	At 28 April 2013, International Retail traded from 10 countries across Europe (2012: 7). Post year end the Group is active in 19 countries, including new openings and acquisitions.
(3)	Excludes the results of Republic as the fascia had not been fully integrated into the Group by the end of the Year.
(4)	Underlying EBITDA, underlying profit before taxation and underlying EPS excludes realised foreign exchange gains/losses in selling and administration costs, exceptional costs and the profit/loss on sale of strategic investments. Underlying EBITDA also excludes the Employee Bonus Share Schemes' charge.
(5)	Underlying profit before taxation and underlying EPS also exclude profits/losses relating to the IAS 39 fair value adjustment on forward currency contracts in financing income/costs, but includes the Employee Bonus Share Schemes' charge.
(6)	Underlying free cash generation is defined as Operating cash flow before working capital, made up of underlying EBITDA before Employee Bonus Share Scheme costs, plus realised foreign exchange, less corporation tax paid.
(7)	To the extent that a significant number of eligible employees elect to sell some or all of their shares, whilst the company has no obligation to buy back the shares,, the Board will consider a number of options open to it, including whether to: (i) implement an on-market buy back of shares pursuant to the authority given by shareholders at the Company's AGM in 2012; or (ii) fund the Company's Employee Benefit Trust so as to allow it to acquire shares in the market to replace those shares transferred to eligible employees pursuant to the vesting.


Sports Direct International plc Dave Forsey, Chief Executive Bob Mellors, Group Finance Director Jeff Blue, Strategic Development Director	T: 0845 164 9229
FTI Consulting Jonathon Brill Alex Beagley	T: 0207 831 3113

Chairman's Statement

I am pleased to announce that the Group has continued to perform strongly, both operationally and financially. The rate of growth has increased across the business with revenue and EBITDA growing impressively. The Group has delivered strong cash generation and our balance sheet remains solid. Our position as the Consumers' Champion, offering an unmatched range of products at the best available prices, is now reaching more countries as we continue to expand internationally.

We are constantly looking for new ways of improving our business. We invest heavily in staff training to help them achieve their full potential. Our in-house programmes have continued in conjunction with our key partners Nike, adidas and Puma. We focus on both shop floor-based and classroom activities. They include key elements of professionalism such as product knowledge, communication, leadership and decision making. The integration of a bespoke online training platform, to provide new starters with a thorough induction to the business, is one example of innovative training techniques deployed throughout the Group.

We are pleased that construction and integration of the Phase 2 extension to the Shirebrook Distribution Centre has been completed, and the extension to the Sportsdirect.com store at Shirebrook is now underway and completion is scheduled for later in 2013.

Our Premium Lifestyle division is continuing to grow through acquisitions such as The Flannels Group in July 2012 and Republic in February 2013. We continue to nurture this division and are already seeing increases in sales from earlier acquisitions.

The Board's aim to expand further into Europe has been a key strategic driver for a number of years which has proved extremely successful. Since the start of FY13, we have organically grown our store portfolio in Europe by 19 new stores, and entered four new countries. In conjunction with the acquisitions recently announced in Austria and the Baltics, we are now active in 19 European countries.

International Retail revenue grew 20.1% in the Year and we have continued our international growth by opening stores in Poland and Spain during the first quarter of FY14.

The introduction of the Sportsdirect.com website platform in 2006 provided the Group with another route to market and means of serving our customers. We have continued to invest in this platform and the benefits are now clearly being recognised. Online sales have increased from 11.6% of our total Sports Retail revenue in FY12 to 15.0% in FY13.

Our online offering provides an excellent opportunity to expand the range and value of products available to our customers, reinforcing our position as the Consumers' Champion by delivering exceptional quality at unbeatable value. We have a dedicated web team who run the website, marketing to our customers with promotions and campaigns to encourage sales. Promotions such as daily deals have proved successful and we will continue to invest time and resources in further developing our multi-channel offering.

Employee Bonus Share Scheme

I am delighted to report that the second and final part of the 2009 Employee Bonus Share Scheme will vest to our valued employees in August 2013. I hope that all the employees who have contributed towards the Group's performance will enjoy their well-earned bonuses. Due to their hard work and dedication, the Group continues to perform so strongly. The financial rewards have already made a huge difference to so many employees. With over 2,000 colleagues eligible for the second award, it remains a key part of our employee incentivisation and remuneration strategy.

The Group is well on its way to achieving the targets set under the 2011 Employee Bonus Share Scheme with the FY12 and FY13 EBITDA targets successfully achieved. Although there are a further two targets to be met, I am delighted by the progress to date.

The 2011 Employee Bonus Share Scheme has the following targets for Group underlying EBITDA (before scheme costs):

· FY12: £215 million - ACHIEVED

· FY13: £250 million - ACHIEVED

· FY14: £260 million

· FY15: £300 million

I have no doubt this scheme will run as successfully as the 2009 Employee Bonus Share Scheme, ensuring that our staff remain incentivised.

Super-Stretch Internal Targets

The Board has decided not to propose the Super-Stretch Executive Bonus Share Scheme ("Super-Stretch Scheme") for Mike Ashley, the Company's Executive Deputy Chairman, at the upcoming Annual General Meeting. The Board will continue to focus on the Super-Stretch underlying EBITDA (before schemes costs) targets of £310m for FY14 and £360m for FY15 and these will remain internal targets going forward. However the Board has decided to review various options with regard to remunerating Mike Ashley in light of the passage of time since first considering this Scheme.

Pension Scheme

The enrolment of our employees into the Government's auto-enrolment pension scheme took place in May 2013.

The scheme is administered by The People's Pension and is available to all employees who are deemed eligible under the Government's criteria. The Group is committed to meeting the targets of a 1% contribution in 2013, a 2% contribution in 2017 and a 3% contribution in 2018. We also contribute towards a number of workplace pensions in relation to companies which we have acquired.

Dividend

The Board has decided not to propose a dividend in respect to FY13. The Board feels that it remains in the best interests of the Company and its shareholders to maintain financial and strategic flexibility, including pursuit of potential acquisition opportunities and ongoing investment in Group infrastructure and store portfolio. The payment of dividends will remain under review for consideration in future years.

Conclusion

Finally, on behalf of myself and the Board, I would like to thank all of our employees for their substantial contribution during the Year.

Keith Hellawell

Non-Executive Chairman

18 July 2013

chief executive's report and business review

Overview of financial performance

I am pleased to report a further year of strong profit growth for Sports Direct. The results for the year have benefited from the UEFA European Championships and the London Olympics, but have been achieved in a retail environment that remains challenging. The Group has grown consistently, and the resilience and flexibility of our business model continues to allow us to offer an unparalleled product range at the best available prices. We will continue to be the Consumers' Champion.

56 new Sports Retail stores opened during the year in the UK and Europe, with the Group continuing to put the consumer at the forefront of our business by offering the best combination of product range and value for money. Whilst we are the clear market leader in the UK Sports Retail sector, we are also pleased to have broadened our customer base in new areas, such as Lifestyle and Fashion, and built on our strong retail infrastructure and systems.

Our Premium Lifestyle division has continued to expand, having acquired 114 Republic stores from the administrator in February 2013. The division offers its customers an enhanced shopping experience, following the previous acquisition of companies including USC, Flannels, Cruise and Van Mildert.

Following the success of our 2009 Employee Bonus Share Scheme, the Group launched a new four-year scheme in 2011, covering the period FY12 to FY15, with challenging underlying EBITDA targets of £215m, £250m, £260m and £300m respectively. We are delighted to inform you that both the first and the second of these targets have been achieved and we would like to take this opportunity to thank our colleagues for their outstanding contributions over the past year. There is no doubt that the schemes continue to be a major contributing factor in improving the Group's staff retention. Those employees that were involved in the 2009 scheme received their first share rewards in August 2012 and we are pleased that August 2013 will see the second part of this scheme vest and we look forward to seeing our fellow colleagues well-rewarded for their efforts.

Group

The Financial Year ended 28 April 2013 ("the Year") was a 52-week year. In order to make a comparison to the previous period, which was a 53-week year, all references to financial performance in respect of the income statement, cash flow and business reviews are made by reference to a pro-forma 2012 52-week basis unless otherwise specified.

For the Year we increased Group revenue by 20.9% to £2,186m. This was primarily due to the Retail division, where we grew revenues by 22.7%, including a 17.6% growth in total Sports Retail coupled with the Premium Lifestyle division, which contributed revenues of £128m.

Group gross margin in the Year increased by 40 basis points from 40.5% to 40.9%. Total Sports Retail division gross margin increased by 20 basis points to 41.4% (FY12: 41.2%), while Brands division gross margin increased to 44.9% (FY12: 41.2%).

Group operating costs increased 22.5% to £607.9m (FY12: £496.2m). Sports Retail and Brands division operating costs were £491.0m (FY12: £400.0m) and £66.6m (FY12: £58.8m), respectively.

Reflecting the success of our approach - balancing revenues and gross margin, while maintaining a tight focus on operating costs - we grew Group underlying EBITDA (pre-scheme costs) for the Year by 22.1% to £287.9m (FY12: £235.7m). Within this underlying EBITDA, we increased the Total Retail division EBITDA by 23.8% to £260.9m (FY12: £210.7m) while the Brands division EBITDA increased by 8.0% to £27.0m (FY12: £25.0m).

Excluded from underlying EBITDA is a £22.1m (FY12: £20.7m) charge in respect of the 2009 and 2011 Employee Bonus Share Schemes and the Executive Bonus Share Schemes. This charge has been taken centrally and, except in note 4 to the accounts, is not reflected in divisional (Retail and Brands) numbers in this report.

For the Year, Group underlying profit before tax increased 39.6% to £208.1m, primarily as a result of the £52.2m increase in (pre-scheme costs) EBITDA and £9.9m decrease in depreciation and amortisation, offset by the £1.4m increase in Employee Bonus Share Scheme charges. Underlying EPS for the year increased by 43.3% to 26.85p (FY12: 18.74p).

Net debt at 28 April 2013 was £154.0m (29 April 2012: £145.2m), which is 0.58 times reported EBITDA. Reported EBITDA includes realised foreign exchange gains/losses in selling and administration costs and the Employee Bonus Share Scheme charges.

Review by business segment


	52 weeks ended 28 April 2013 (£m)	Pro Forma 52 weeks 2012 (£m)	Pro Forma 52 week Change%	53 weeks ended 29 April 2012 (£m)
Retail
Revenue:
UK Sports Retail	1,574.9	1,342.4	17.3	1,368.2
UK Wholesale and Other	88.1	41.2	113.8	41.2
Premium Lifestyle	128.4	73.5	74.7	73.5
International Retail	185.2	154.2	20.1	157.0
Total retail revenue	1,976.6	1,611.3	22.7	1,639.9

Cost of sales	(1,175.6)	(959.6)	22.5	(976.4)

Gross profit	801.0	651.7	22.9	663.5
Gross margin percentage	40.5	40.4		40.5


	52 weeks ended 28 April 2013 (£m)	Pro Forma 52 weeks 2012 (£m)	52 week Change %	53 weeks ended 29 April 2012 (£m)
Brands
Revenue:
Wholesale	178.3	168.5	5.8	168.5
Licensing	30.7	27.4	12.0	27.4
Total brands revenue	209.0	195.9	6.7	195.9

Cost of sales	(115.2)	(115.1)	0.1	(115.1)

Gross margin	93.8	80.8	16.1	80.8
Gross margin percentage	44.9	41.2		41.2

UK Sports Retail

UK Sports Retail revenue growth continues to be primarily driven by our retail and logistics skills - providing the widest choice of products at the best value with universal availability.

UK Sports Retail sales were up 17.3% to £1,574.9m (FY12: £1,342.4m). Sales and gross profit from the former JJB stores are excluded from UK Sports Retail revenue and margin and are included in UK Wholesale and Other.

Sales in the first half benefited from the UEFA European Championships and the London Olympics, although sales in the second half of the Year were still up 16.4% to £778.0m (FY12 H2: £667.7m). Gross margins for the second half of the Year improved to 39.9% (FY12 H2: 39.7%). Gross margin for the Year increased by 10 basis points to 41.1% (FY12: 41.0%). We have invested significantly in gross margin throughout the Year.

Online revenue has increased by 52.1% from £174.0m to £264.6m in the Year and represented 15.0% of total Sports Retail sales (FY12: 11.6%). We remain focused on the further development of our successful multi-channel offer. Order fulfilment and information technology solutions are developed in-house with full back-up support from our National Distribution Centre in Shirebrook, Derbyshire. The website has benefited from the Group's investment in online product range and availability, the launch of the new online platform in November 2012, and a further growth in recognition of the online brand with 376 of the UK store fascia now branded SPORTSDIRECT.com.

UK Sports Retail like-for-like gross contribution, which excludes online, increased by a record 11.2%, marking the fourth consecutive year of growth in this KPI (FY12: +0.7% / FY11: +6.6% / FY10: +3.4%). UK Sports Retail like-for-like contribution is defined as the percentage change in gross contribution in the successive 12-month period. A like-for-like store is one that has been trading for the full 12 months in both periods and has not been affected by a significant change, such as a major refurbishment. The number of stores included in this year's KPI is 275 (FY12: 290).

Operating costs increased by 18.8% to £409.4m (FY12: £344.5m). Operating costs in H2 increased by 13.9% to £214.5m (FY12 H2: £188.4m). Store wages were up 18.0% but as a percentage of sales increased only 0.2% to 8.8% (FY12: 8.6%), in spite of a substantial investment in store staff. UK Sports Retail premises costs increased by only 1.5% due to reduced rent following the purchase in the prior year of freehold properties previously rented, and the ongoing process of store relocations and rent renegotiations. Other operating costs were up 34.2% to £157.0m (FY12: £117m) which is due to increased warehouse and storage costs to support the growth in our online business and increased overheads relating to the obligations acquired from the administrator of JJB. The majority of this increase came in H1, with other operating costs in H2 only increasing by 15.1% to £84m (FY12: £73m). These costs were reduced by a release of the onerous lease provision of £14.6m due to the closure of unprofitable stores, the sub-let of previously vacant space and a strategic decision to invest in other stores previously planned for closure.

Underlying EBITDA for UK Sports Retail was £247.7m (FY12: £207.7m), an increase of 19.2% for the Year. This increase was driven by a £111.7m increase in gross profit (including UK Wholesale and Other) due to the growth in store contribution and online sales offset by the £64.9m increase in operating costs.

The Group's retail businesses performed strongly in a difficult economic environment. Our retail model, offering outstanding value to our customers, remains resilient, both in the UK and internationally. Throughout the Year, we continued to focus on offering the customer the most comprehensive product range, the best availability and value while reducing our costs wherever possible.

Employee training has undergone a significant amount of investment over the past few years. This year alone in excess of 40,000 hours have been invested into the training and development of our employees. Our training courses mainly take place at our state-of-the-art National Training Facility in Shirebrook where sessions are led by our experienced teams. We offer a wide portfolio of courses, which are continuously being changed and refined, with the ultimate aim of improving trainee product knowledge and customer experience.

The Nike Training Academy is a key part of our Shirebrook National Training Facility and the only one of its kind in the world. We are also continuing to work with adidas and Puma to provide training in order to support our in-store campaigns and to gain knowledge of specialised products. New Puma training rooms at Shirebrook were opened during April 2013.

Group marketing has continued to be a key part of our growth strategy. Investment around traditional media channels such as TV and print were intrinsic to our marketing plans around the 2012 Summer of Sport.

The Sportsdirect.com brochure was our biggest ever at 1,092 pages, which was an increase of 50% on the year before. Two million copies were distributed both in store and with the delivery of online orders.

Our in store brands marketing received significant investment, with a substantial unitary rollout for our Dunlop and Everlast brands. Our SheRunsHeRuns areas also benefited from a rollout of the Karrimor running footwear zone, featuring an integrated product information and selection panel.

Our store portfolio remains constantly under review with the performance of each store and ways of maximising performance being regularly examined. During the Year we opened 37 and closed 36 stores. We have closed 113 stores since 2008 as the mix of our portfolio continues to evolve. We increased our period end square-footage to c. 4.0m square feet (FY12: c. 3.9m).


Store Portfolio	As at 28 April 2013	As at 29 April 2012

Core	323	305
Non-core	73	90
Total	396	395

Core openings	28	12
Non-core openings	9	6
Core closed	10	13
Non-core closed	26	3

Freehold properties	52	48
SPORTSDIRECT.com fascia	376	351
Field & Trek fascia	12	17
Lillywhites fascia	1	1
Other fascia (Gilesports, Hargreaves etc.)	7	26
Area (sq. ft)	4.0m	3.9m

In the 12 months to 28 April 2013, rent reviews have been agreed on 33 stores. The average increase in rent was 2.48% (0.48% annual equivalent). There are currently 42 rent reviews outstanding with a further 40 falling due in 2013-14. Our lease expiry profile over all core stores (excluding Lillywhites Piccadilly) is now 6.0 years, allowing a significant amount of flexibility within our portfolio to adapt our format to the rapidly changing multi-channel environment.

In the current financial year, we are targeting to open 25-30 stores. We anticipate closing more stores than we open in FY14. This is in line with our aim of maintaining four million square feet of retail space, but with an increased average store size. We have already opened six in the first quarter, including two relocations.

International Retail

International Retail sales increased by 20.1% to £185.2m (FY12: £154.2m). On a currency neutral basis, the increase was 26.3%.

International Retail gross margin increased by 60 basis points in the Year to 44.0%. International Retail 52-week like-for-like stores gross contribution figure, which excludes Online Retail, increased by 7.0% during the year (FY12: 0.1%). There were 65 stores included in this KPI, consisting of core stores that have been open for the full 52 weeks in both periods and not affected by a significant change such as a major refurbishment (FY12: 46).

Operating costs within International Retail increased by 26.5% to £70.2m (FY12: £55.5m) following an investment in management resource and training ahead of the expansion into new markets. There was a 25.2% increase in floor space although much of this was from stores that opened late in the year.

Excluding income from associates (Heatons), International Retail underlying EBITDA reduced by 1.5% to £11.3m (FY12: £11.5m) Income from associates was a gain of £1.0m (FY12: loss of £0.7m) and this resulted in an increase in underlying International EBITDA of 14.0% to £12.3m (FY12: £10.8m).

The Group has a 50% shareholding in the Heatons chain which operates 14 Sports Direct stores in Northern Ireland and 26 sports stores in the Republic of Ireland. During the Year we opened a new store in Iceland through our 25% shareholding.

All of the below stores are operated by companies wholly owned by the Group, except Portugal, where the Group owns 50.1%. As part of the accelerated growth programme in our European subsidiary, we opened 19 new stores in Europe and entered four new countries. As at 28 April 2013, International Retail operated from a total retail sales space of c. 1.1m sq. ft (FY12: c. 0.895m sq. ft).


International Retail store portfolio	28 April 2013	29 April 2012

Belgium	45	43
Slovenia	15	14
Portugal	15	13
Netherlands	6	6
Cyprus	6	6
France	6	5
Slovakia	3	-
Hungary	2	-
Luxembourg	2	1
Czech Republic	2	-

Total	102	88
Area sq. ft	1.12m	0.895m

Note: Excluding Ireland & Iceland

Importantly, with all of our new and existing stores in Europe, local management are working hard to ensure that all stores are committed to the operational efficiencies and standards that exist across the UK sports stores.

Our strategy remains to identify partners in new territories while continuing to expand our operations in the countries where we currently trade. For FY14, and in line with our accelerated European expansion, we are targeting eight to 12 new stores and two to three new territories. In the first quarter, we have already opened two stores in Poland and one in Spain. In conjunction with the acquisitions recently announced in Austria and the Baltic region, we are now active in 19 countries across Europe.

UK Retail - Premium Lifestyle

During the year we have continued our expansion of the Premium Lifestyle division. In July 2012 we purchased a majority stake in The Flannels Group, and in February 2013, 114 stores and certain assets were acquired from the administrators of the fashion retailer Republic. Following negotiations with landlords, 85 Republic stores remain open. Both acquisitions have expanded the breadth of our Premium Lifestyle offering. Post year end we have also acquired the remaining 20% stake in Cruise Clothing Limited.

The results of Republic are excluded from the above analysis as the fascia had not been fully integrated into the Group by the end of the Year. For the nine weeks since acquisition, Republic made a loss of £4.5m EBITDA.

The results for FY13 include a full year's trading for USC, Cruise and Van Mildert and nine months for Flannels. The FY12 results included nine months of trading for USC and Cruise and two months for Van Mildert.

Sales for the division in the Year were £128.4m (FY12: £73.5m); gross margin was 43.4%, which is 100 basis points lower than the prior year (FY12: 44.4%). The divisional EBITDA (excluding Republic) was £5.4m, after the release of an onerous lease provision of £2.0m (FY12: loss of £7.8m).

USC online sales increased by 84.7% to £10.9m (FY12: £5.9m), driven by the adoption of the Group's fulfilment systems and online platform.

At the year end, the division traded from 74 stores with five targeted fascias:


Store Portfolio	As at 28 April 2013	As at 29 April 2012
USC	40	40
Van Mildert	10	9
Cruise	8	9
Flannels	8	-
Other	8	9
	74	67

Brands

Brands total revenue increased by 6.7% to £209.0m (FY12: £195.9m).

Wholesale revenues were up 5.8% to £178.3m (FY12: £168.5m), driven by strong performances in our North American businesses. Brands gross margin increased by 370 basis points to 44.9% (FY12: 41.2%). Wholesale gross margin rose to 35.4% (FY12: 31.7%).

In March 2012 we acquired the Firetrap brand and assets from the administrator. During FY13 the business underwent a complete customer and operational review, resulting in significant cost savings and a more streamlined operation. The Brands division remained acquisitive during the Year, acquiring Vandanel Premier Ltd, a distributor of football branded clothing and equipment and also Waterline, a wholesale fishing business.

Licensing revenues in the Year were up 12.0% to £30.7m (FY12: £27.4m). We signed 87 new licence agreements, covering multiple brands and product categories, with minimum contracted values of $53m over the life of the agreements. We remain on track for licence income to achieve a compound average growth rate (CAGR) of 11%, reaching at least $60m of licensing revenues by FY15.

Longer term, we still regard licensing as the key driver of Brands division profitability and crucial for the overall growth of the Brands business. The main growth areas are expected to be Asia Pacific and the Americas which should compensate for a tougher licensing landscape in the UK and Europe.

Operating costs increased by 19.4% to £66.6m (FY12: £55.8m) which includes a £3.0m cost for the Firetrap reorganisation. Excluding these costs Underlying EBITDA therefore increased by 8% to £27.0m (FY12: £25.0m).

We continue to focus on developing world-class products that are endorsed by leading athletes on the field of play. A recent addition to our team of key brand ambassadors is Robson Green. Robson, the face of Channel 5's Extreme Fishing, is the ambassador of the fishing range developed under our iconic Dunlop brand. The Group recognised that fishing is a sport which involves significant mass participation and therefore developed product ranges of superior quality and great value, to suit the needs and value expectations of our customers.

Outlook

The start of the FY14 has already been busy with the acquisition of majority stakes in two leading European sporting goods retailers in Austria and in the Baltic region. This means that the Group is now active in 19 countries across Europe. While management is focused on the successful integration of these businesses, we also expect to see more opportunities to grow the Group internationally.

The Group has witnessed a strong start to the year with trading ahead of management's expectations. This performance is attributable to a number of factors including the investment in gross margin made last year, increased operating efficiencies and the exceptional quality and unbeatable value Sports Direct continues to offer to its customers. However, recent out-performance versus management expectations may not continue for the full year. FY14 is a non-tournament year, which will make FY13 a tough comparator following the UEFA European Championships and the London Olympics.

With this performance in mind, we remain focused and driven to achieve our internal stretch underlying EBITDA target of £310m (before the charge for the 2011 Employee & Executive Bonus Share Schemes).

Key Performance Indicators

The Board monitors the performance of the Group by reference to a number of key performance indicators (KPIs), which are discussed in this Chief Executive's Report and in the Financial Review. The most important of these KPIs are:


	52 weeks ended 28 April 2013	Pro Forma (2) 52 weeks 2012	53 weeks ended 29 April 2012	52 weeks ended 24 April 2011

Financial KPIs
Group revenue	£2,185.6m	£1,807.2m	£1,835.8m	£1,599.2m
Underlying EBITDA (1)	£287.9m	£235.7m	£240.1m	£211.0m
UK Sports Retail gross margin	41.1%	41.0%	41.0%	41.9%
UK Sports Retail like-for-like stores gross contribution (3)	+11.2%	+0.7%	+0.7%	+6.6%
International Retail like-for-like stores gross contribution (4)	+7.0%	+0.1%	+0.1%	+8.5%
Online revenue as a percentage of total Sports Retail revenue	15.0%	11.6%	11.6%	7.0%
Underlying earnings per share (5)	26.85p	18.74p	19.19p	16.83p
Non-financial KPIs
No. of core stores (6)	323	305		306
Employee turnover	15.5%	17.0%		16.9%
Cardboard recycling	8,893 tonnes	6,622 tonnes		6,237 tonnes

(1) The method for calculating underlying EBITDA is calculated is set out in the Financial Review.

(2) The FY12 income statement has been restated to provide a 52-week pro-forma set of results.

(3) UK Sports Retail like-for-like contribution is defined as the percentage change in gross contribution in the successive 12 month period, adjusted to remove the impact of the 53-week year in 2012. A like-for-like store is one that has been trading for the full 12 months in both periods and has not been affected by a significant change, such as a major refurbishment.

(4) International Retail like-for-like contribution is defined as the percentage change in gross contribution in the successive 12 month period, adjusted to remove the impact of the 53-week year in 2012. A like-for-like store is one that has been trading for the full 12 months in both periods and has not been affected by a significant change, such as a major refurbishment.

(5) The method for calculating underlying earnings per share is calculated is set out in the Financial Review.

(6) A core store is a store acquired and fitted out by the Group or otherwise so designated.

Employees

Sports Direct has made great progress and a large proportion of this is due to the hard work and loyalty of our c. 24,000 staff throughout the business. I am overwhelmed by the contributions that have been made by our employees towards achieving an exciting future for the Group. I believe that the dedication of our employees has placed us in an extremely strong position in the market in what is most definitely a difficult time for most retailers. The past contributions from our employees makes me confident that we can replicate our successes as we look forward to the future.

The Employee Bonus Share Schemes have been a fundamental tool which the Group has used to promote, incentivise and motivate its staff. Sharing the responsibility of achieving these targets was matched by the potential benefits to employees if the targets were met. The schemes have been crucial to influencing staff behaviour and maximising the Group performance.

The 2009 Employee Bonus Share Scheme was the first scheme which we trialled, vesting in August 2012 and August 2013. All of the elements of the scheme were met and the first awards were successfully vested for eligible employees in 2012. The second award of shares will vest for eligible employees in August 2013 amounting to approximately 21 million shares. The second awards were to the value of 75% of base pay for the majority of employees, and 25% of base pay for those employees who joined the Group later but still within the rules of the scheme.

To the extent that a significant number of eligible employees elect to sell some or all of their shares, whilst the company has no obligation to buy back the shares, the Board will consider a number of options open to it, including whether to: (i) implement an on-market buy back of shares pursuant to the authority given by shareholders at the Company's AGM in 2012; or (ii) fund the Company's Employee Benefit Trust so as to allow it to acquire shares in the market to replace those shares transferred to eligible employees pursuant to the vesting.

A further incentive for our employees has been the introduction of the 2011 Employee Bonus Share Scheme. The 2011 scheme has been developed to incentivise and motivate our current employees in pursuit of our shared Group objectives. The ongoing growth and performance of the Group may be attributed to the successful adoption of the 2009 and 2011 Employee Bonus Share Schemes. Employees who have received bonuses under the 2009 scheme could be eligible for further awards under the 2011 scheme, and we hope to retain our valued employees by offering such rewards. This year 15.5% of our UK employees left the business, down from 17% in FY12.

The underlying EBITDA targets (before the costs of the scheme), of £215m in FY12 and £250m in FY13, have been achieved. The targets for FY14 and FY15 are £260m and £300m respectively. These further targets, coupled with the individual employee's satisfactory personal performance, must all be met in order for the scheme to vest in August 2015 and 2017. With approximately 6m shares due to vest in 2015 and approximately 17m shares due to vest in 2017, it is important that we continue to work together towards these shared goals.

Our strategy for growth

The Group's strategic focus is to continue to deliver sustainable long-term growth.

Within the core UK Retail business this strategy includes proactive management of our store portfolio to further reduce costs and the ongoing development of specialist collaborations such as our successful SheRunsHeRuns concept. The Group also intends to invest in store refurbishment and merchandising in order to provide our customers with an enhanced consumer experience. The ongoing collaboration with Nike, adidas and Puma for our in-store concepts is a further example of this strategy.

Online remains a significant growth opportunity for the Group. Our online business continues to benefit from the Group's brand recognition and investment in online product range and availability. Further opportunities to grow this business include the development of 'click & collect' functionality and customer credit facilities.

Our international expansion strategy remains focused on Europe. This includes identifying and working with strong local partners, which can assist the Group to expand in new territories, while we continue to expand our operations in those countries where we currently trade. We believe there is a significant opportunity to introduce the key elements of our successful business model across Europe. This strategy includes the introduction of our sourcing, buying and operational expertise in new markets, while also leveraging our Group Brand portfolio.

In order to re-enforce the heritage and authenticity of its brands, the Brands division will continue to develop core wholesale product for international brands such as Everlast and Slazenger. Going forward, the Brands division will focus on further expansion of its licensing activities in North America and Asia, leveraging the global appeal of leading brands such as Everlast, Dunlop and Slazenger. This will increase the global presence and international appeal of our Group Brands.

We believe that acquisitions and strategic investments in related businesses are beneficial to the Group and we will continue to evaluate such opportunities as they arise. The Group maintains significant financial and strategic flexibility in order to ensure that it is able to pursue such opportunities from a position of strength.

Dave Forsey

Chief Executive

18 July 2013

FINANCIAL REVIEW

The financial statements for the Group for the 52 weeks ended 28 April 2013 are presented in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. In order to make a comparison to last year, all references to financial performance in respect of the income statement, cash flow and business reviews are made by reference to a pro-forma 52-week basis unless otherwise specified.

Summary of results


	52 weeks ended 28 April 2013	Pro forma 52 week 2012	52 week Change	53 weeks ended 29 April 2012
	(£m)	(£m)	%	(£m)
Revenue	2,185.6	1,807.2	20.9	1,835.8
Underlying EBITDA	287.9	235.7	22.1	240.1
Underlying profit before tax	208.1	149.1	39.6	152.6
Reported profit before taxation	207.2	148.0	40.0	151.5
	Pence per share	Pence per share		Pence per share
Reported EPS	26.64	18.24	46.1	18.68
Underlying EPS	26.85	18.74	43.3	19.19

The Directors believe that underlying EBITDA, underlying profit before tax and underlying earnings per share provide more useful information for shareholders on the underlying performance of the business than the reported numbers and are consistent with how business performance is measured internally. They are not recognised profit measures under IFRS and may not be directly comparable with "adjusted" profit measures used by other companies.

EBITDA is earnings before investment income, finance income and finance costs, tax, depreciation and amortisation and, therefore, includes the Group's share of profit from associated undertakings and joint ventures. Underlying EBITDA is calculated as EBITDA before the impact of foreign exchange, any exceptional or other non-trading items and costs relating to the Employee Bonus Share Schemes.

EBITDA and Profit Before Tax


	EBITDA	PBT
	£m	£m

Operating profit	213.0

Depreciation, amortisation and impairment	54.8
Exceptional items	(0.6)
Share of profit of associated undertakings (excl. FV adjustments)	0.9

Reported	268.1	207.2

Bonus share scheme	22.1	-
Impairment of fixed assets	-	2.2
Exceptional items	-	(0.6)
Realised FX gain	(2.3)	(2.3)
IAS 39 FX fair value adjustment on forward currency contracts	-	2.0
Fair value adjustment within associates	-	(0.4)

Underlying	287.9	208.1

Underlying 52-week FY13 profit before tax excludes:

(i) impairments which decreased profit by £2.2m;

(ii) exceptional items which increased profit by £0.6m;

(iii) realised foreign exchange gains which increased FY13 profits by £2.3m;

(iv) IFRS revaluation of foreign currency contracts which decreased profit by £2.0m; and

(v) Fair value adjustments within associates which increased profit by £0.4m.

Revenue and margin


	52 weeks ended 28 April 2013	Pro forma 52 week 2012	Change	53 weeks ended 29 April 2012
	(£m)	(£m)	%	(£m)
Retail revenue:
UK Sports Retail	1,574.9	1,342.4	17.3	1,368.2
UK Wholesale and other	88.1	41.2	113.8	41.2
Premium Lifestyle	128.4	73.5	74.7	73.5
International Retail	185.2	154.2	20.1	157.0
Total	1,976.6	1,611.3	22.7	1,639.9
Brands revenue:
Wholesale	178.3	168.5	5.8	168.5
Licensing	30.7	27.4	12.0	27.4
Total	209.0	195.9	6.7	195.9
Total revenue	2,185.6	1,807.2	20.9	1,835.8

Compared to the previous pro-forma 52-week year, Group Revenue increased by 20.9%. Total Retail revenue in the year increased by 22.7%, with growth across all divisions. The UK accounted for 90.6% of total Retail revenues with the balance in continental European stores.

Gross margin in UK Sports Retail increased from 41.0% to 41.1%.

Our representation in both parts of Ireland is through Heatons, in which we have a non-controlling interest of 50%, the results of which continue to be reported as an associate.

Brands revenue increased by 6.7%. Within this, licensing revenue increased by 12.0%, with an increase in wholesale revenue of 5.8%. Brands overall margins increased from 41.2% to 44.9%.

Selling, distribution and administration costs

Selling, distribution and administration costs for the Group decreased as a percentage of revenue. This was as a result of cost and efficiency savings offsetting inflation and increased investment online.

Foreign exchange

The Group manages the impact of currency movements through the use of forward fixed rate currency purchase and sales contracts. The Group's policy has been to hold or hedge up to four years (with generally a minimum of six months) of anticipated purchases in foreign currency.

The realised exchange gain of £2.3m (FY12: £2.0m loss) included in administration costs has arisen from:

a) accepting Dollars and Euros at the contracted rate; and

b) the translation of Dollars and Euro denominated assets and liabilities at the period end rate or date of realisation.

The exchange loss of £2.0m (FY12: £3.5m gain) included in finance costs / income substantially represents the reduction in the mark-to-market asset made (under IFRS) for the Group's unhedged forward contracts as at 29 April 2013. A number of the forward contracts outstanding at 28 April 2013 qualify for hedge accounting and the fair value gain on these contracts of £15.6m has been credited to equity through the Consolidated Statement of Comprehensive Income. The Group has sufficient US Dollar contracts to cover the majority of purchases in UK Retail for FY14. These hedged contracts are at an average rate of USD / GBP 1.631.

The Sterling exchange rate with the US dollar was $1.626 at 29 April 2012 and $1.547 at 28 April 2013.

Finance income


	52 weeks ended 28 April 2013	53 weeks ended 29 April 2012
	(£m)	(£m)
Bank interest receivable	0.9	0.6
Other interest receivable	0.2	-
Expected return on pension plan assets	2.0	2.3
Fair value adjustment to forward foreign exchange contracts	-	3.5


	3.1	6.4

Finance costs


	52 weeks ended 28 April 2013	53 weeks ended 29 April 2012
	(£m)	(£m)
Interest on bank loans and overdrafts	(6.6)	(5.7)
Interest on other loans	(0.6)	(0.3)
Interest on retirement benefit obligations	(2.4)	(2.5)
Fair value adjustment to forward foreign exchange contracts	(2.0)	-
	(11.6)	(8.5)

The rise in interest payable is a result of the increased use of the revolving credit facility. This increase is attributable to the acquisitions during the year and the investment in working capital.

The loss on the fair value of forward foreign exchange contracts arises under IFRS as a result of marking to market at the period end those contracts that do not qualify for hedge accounting.

Exceptional items


	52 weeks ended 28 April 2013	53 weeks ended 29 April 2012
	(£m)	(£m)
Profit on sale of intangible assets	0.6	1.6
Release of regulatory cost provisions	-	2.3
Lease surrender incentive	-	0.7
Disposal of property	-	1.0
	0.6	5.6

Taxation

The effective tax rate on profit before tax in FY13 was 26.8% (FY12: 30.3%). This rate reflects depreciation on non-qualifying assets and overseas earnings being taxed at a higher rate.

Earnings


	52 weeks ended 28 April 2013	Pro forma 52 week 2012	Change	53 weeks ended 29 April 2012
	pence per share	pence per share	%	pence per share
Reported EPS (Basic)	26.64	18.24	46.1	18.68
Underlying EPS	26.85	18.74	43.3	19.19
Weighted average number of shares (actual)	568,972,000	568,591,000		568,591,000

Basic earnings per share (EPS) is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the actual financial period. Shares held in Treasury and the Employee Benefit Trust are excluded from this figure.

The underlying EPS reflects the underlying performance of the business compared with the prior year and is calculated using the weighted average number of shares. It is not a recognised profit measure under IFRS and may not be directly comparable with "adjusted" profit measures used by other companies.

The items adjusted for arriving at the underlying profit after tax and minority interests is as follows:


	Period ended 28 April 2013	Period ended 29 April 2012
	(£m)	(£m)
Profit after tax	151.7	106.2
Post tax effect of adjustment items:
Other investment income	-	7.1
Write back of provision for regulatory enquiry costs	-	(1.6)
Impairment of goodwill	2.2	1.8
Disposal of Freehold properties	-	(1.2)
Fair value adjustment to forward foreign exchange contracts	1.5	(2.5)
Realised (gain) / loss on forward foreign exchange contracts	(1.8)	1.4
Profit on sale of intangible assets	(0.5)	(1.2)
Fair value adjustment within associated undertakings	(0.3)	(0.9)
Less pro forma 2012 week 53	-	(2.5)
Underlying profit after tax - 52 weeks	152.8	106.6

Dividends

Capital expenditure

Capital expenditure amounted to £49.8m (FY12: £131.0m), which includes expenditure on licences within intangible assets. In FY12 the Group purchased Freehold Property from Mike Ashley for consideration of £86.8m.

Acquisitions

The Group made acquisitions during the year including various assets acquired from the administrators of Republic and JJB as well as a 51% stake in the Flannels Group.

Strategic investments

During the Year the Group continued to hold an 11.87% holding in JD Sports and Fashion plc. The fair value of the Group's holding at 28 April 2013 was £47.6m (29 April 2012: £46.6m). No shares were bought or sold in the year, the only movement being in the fair value of the shares held, which has been recognised directly in equity in accordance with IFRS.

Cash flow and net debt

Net debt increased by £8.8m from £145.2m at 29 April 2012 to £154.0m at 28 April 2013.

The analysis of debt at 28 April 2013 was as follows:


	At 28 April 2013	At 29 April 2012
	(£m)	(£m)
Cash and cash equivalents	141.7	69.4
Borrowings	(295.7)	(214.6)

Net debt	(154.0)	(145.2)

The Group continues to operate comfortably within its banking facilities and covenants. The Group has a £300m syndicated facility in place until March 2015. Post year end the Group's £50m and £25m bilateral facilities have been extended to March 2015.

Cash flow

Total movement is as follows:


	At 28 April 2013	At 29 April 2012
	(£m)	(£m)
Underlying 52 week EBITDA	287.9	235.7
Realised profit/(loss) on forward foreign exchange contracts	2.3	(2.0)
Taxes paid	(44.7)	(41.3)
Underlying 52 week Free cash flow	245.5	192.4
Pro forma 53rd week Underlying EBITDA	-	4.8

Invested in:-


Working capital and other	(131.2)	(31.8)
Purchase of own shares	(21.7)	-
Acquisitions (including debt)	(47.0)	(26.2)
Returns from investments	1.5	0.8
Net capital expenditure	(49.8)	(131.0)
Finance costs and other financing activities	(6.1)	(5.3)


(Increase) / decrease in net debt	(8.8)	3.7

The increase in working capital is predominantly in inventory to support the growth of the online business.

Reconciliation of movement in equity

Total equity movement is as follows:


	28 April 2013 (£m)
Total equity at 29 April 2012	471.9

Profit after tax for the 52 weeks	151.7
Share-based payment	4.0
Vesting of Employee Bonus Share Scheme	(2.1)
Current tax on share schemes	3.6
Deferred tax on share schemes	6.3
Purchase of own shares	(21.7)

Items taken directly to equity:



Exchange differences on translation of foreign operations	12.4
Exchange differences on hedged contracts - recognised in the period	15.4
Exchange differences on hedged contracts - reclassified and reported in net profit	0.2
Fair value adjustment in respect of available for sale financial assets	1.0
Actuarial loss on pension	(2.8)
Tax on items taken directly to equity	4.6

Movement in equity issues:


Movement in non controlling interests	0.2


Total equity at 28 April 2013	327.0	644.7

Pensions

The Group operates a number of closed defined benefit schemes in the Dunlop Slazenger companies. The net deficit in these schemes increased from £19.3m at 29 April 2012 to £19.9m at 28 April 2013.

Bob Mellors

Finance Director

18 July 2013

CONSOLIDATED INCOME STATEMENT FOR THE 52 WEEKS ENDED 28 APRIL 2013


		52 weeks ended 28 April 2013	53 weeks ended 29 April 2012
	Notes	£'000	£'000

Revenue	2	2,185,580	1,835,756
Cost of sales		(1,290,822)	(1,091,480)

Gross profit		894,758	744,276
Selling, distribution and administrative expenses		(689,578)	(596,383)
Other operating income		7,199	5,283
Exceptional items	3	625	5,619

Operating profit	2	213,004	158,795
Other investment income		1,473	(5,800)
Finance income		3,066	6,426
Finance costs		(11,637)	(8,481)
Share of profit of associated undertakings and joint ventures		1,320	558

Profit before taxation		207,226	151,498
Taxation	4	(55,569)	(45,867)

Profit for the period	2	151,657	105,631


Attributable to:
Equity holders of the Group		151,596	106,198
Non-controlling interest		61	(567)

Profit for the period	2	151,657	105,631

Earnings per share attributable to the equity shareholders


			Pence per share	Pence per share
---	---	---	---	---

Basic earnings per share			26.64	18.68
Diluted earnings per share			24.42	16.70
Underlying Basic earnings per share			26.85	19.19

The Consolidated Income Statement has been prepared on the basis that all operations are continuing.

The accompanying accounting policies and notes form part of these financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE 52 WEEKS ENDED 28 APRIL 2013


		52 weeks ended 28 April 2013	53 weeks ended 29 April 2012
	Notes	£'000	£'000

Profit for the period	2	151,657	105,631

Other comprehensive income
Exchange differences on translation of foreign operations		12,436	(2,301)
Exchange differences on hedged contracts - recognised in the period		15,408	(1,305)
Exchange differences on hedged contracts - reclassified and reported in net profit		196	8,086
Actuarial losses on defined benefit pension schemes		(2,818)	(5,501)
Fair value adjustment in respect of available-for-sale financial assets		1,011	(6,986)
Transfer of historic losses on available-for-sale financial assets		-	7,146
Taxation on items recognised in other comprehensive income		4,636	1,483



Total comprehensive income for the period		182,526	106,253

Attributable to:
Equity holders of the Group		182,465	106,820
Non-controlling interest		61	(567)

		182,526	106,253

The accompanying accounting policies and notes form part of these financial statements.

CONSOLIDATED BALANCE SHEET AS AT 28 APRIL 2013


		28 April 2013	29 April 2012
---	---	---	---
	Notes	£'000	£'000
---	---	---	---
ASSETS
Non-current assets
Property, plant and equipment		332,036	313,023
Intangible assets		240,420	225,150
Investments in associated undertakings and joint ventures		32,117	29,470
Available-for-sale financial assets		47,645	46,634
Deferred tax assets		47,952	32,625

		700,170	646,902

Current assets
Inventories		446,962	316,800
Trade and other receivables		96,111	83,877
Derivative financial assets		17,965	5,926
Cash and cash equivalents		147,375	78,674

		708,413	485,277

TOTAL ASSETS		1,408,583	1,132,179

EQUITY AND LIABILITIES
Share capital		64,060	64,060
Share premium		874,300	874,300
Treasury shares reserve		(56,234)	(55,839)
Permanent contribution to capital		50	50
Capital redemption reserve		8,005	8,005
Foreign currency translation reserve		38,398	25,962
Reverse combination reserve		(987,312)	(987,312)
Own share reserve		(64,375)	(57,684)
Hedging reserve		16,021	417
Retained earnings		752,018	600,431

		644,931	472,390
Non-controlling interests		(254)	(505)

Total equity		644,677	471,885

Non-current liabilities
Borrowings	7	245,627	214,587
Retirement benefit obligations		19,940	19,318
Deferred tax liabilities	4	24,978	25,789
Provisions		41,072	62,889

		331,617	322,583

Current liabilities
Derivative financial liabilities		-	1,570
Trade and other payables		320,261	282,819
Borrowings	7	55,753	9,303
Current tax liabilities	4	56,275	44,019

		432,289	337,711

Total liabilities		763,906	660,294

TOTAL EQUITY AND LIABILITIES		1,408,583	1,132,179

The accompanying accounting policies and notes form part of these financial statements. The financial statements were approved by the Board on 18 July 2013 and were signed on its behalf by:

David Forsey

Director

CONSOLIDATED CASH FLOW STATEMENT FOR THE 52 WEEKS ENDED 28 APRIL 2013


		52 weeks ended 28 April 2013	53 weeks ended 29 April 2012
	Notes	£'000	£'000

Cash inflow from operating activities	8	159,094	206,679
Income taxes paid		(44,673)	(41,253)

Net cash inflow from operating activities		114,421	165,426

Cash flow from investing activities
Proceeds on disposal of property, plant and equipment		79	1,320
Proceeds on disposal of intangible assets		625	-
Purchase of associate, net of cash acquired		(96)	-
Purchase of subsidiaries, net of cash acquired		(46,941)	(26,214)
Purchase of intangible assets		(2,282)	(2,921)
Purchase of property, plant and equipment		(48,247)	(129,402)
Purchase of listed investments		-	(523)
Investment income received		1,473	1,346
Finance income received		1,117	590

Net cash outflow from investing activities		(94,272)	(155,804)

Cash flow from financing activities
Finance costs paid		(7,196)	(5,955)
Borrowings drawn down		404,970	160,435
Borrowings repaid		(323,942)	(143,309)
Proceeds from share issues		-	5
Purchase of own shares		(21,742)	-

Net cash inflow from financing activities		52,090	11,176


Net increase in cash and cash equivalents including overdrafts		72,239	20,798
Cash and cash equivalents including overdrafts at beginning of period		69,435	48,637

Cash and cash equivalents including overdrafts at the period end		141,674	69,435

The accompanying accounting policies and notes form part of these financial statements

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE 52 WEEKS ENDED 28 APRIL 2013


	Treasury shares	Foreign currency translation	Own share reserve	Retained earnings	Other reserves	Sub-total	Non-controlling interests	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000

At 24 April 2011	(85,088)	28,263	(6,094)	440,931	(47,266)	330,746	389	331,135

Issue of ordinary shares	-	-	-	-	5	5	-	5
Share-based payments	-	-	-	20,643	-	20,643	-	20,643
Deferred tax on share schemes	-	-	-	14,176	-	14,176	-	14,176
Non-controlling interests - acquisitions	-	-	-	-	-	-	(327)	(327)
Transactions with owners	-	-	-	34,819	5	34,824	(327)	34,497
Profit for the financial period	-	-	-	106,198	-	106,198	(567)	105,631
Other comprehensive income
Market value of shares transferred to EBT	51,590	-	(51,590)	-	-	-	-	-
Difference between original cost and market value of shares transferred to EBT	(22,341)	-	-	22,341	-	-	-	-
Cash flow hedges
- recognised in the period	-	-	-	-	(1,305)	(1,305)	-	(1,305)
- reclassified and reported in net profit	-	-	-	-	8,086	8,086	-	8,086
Actuarial losses on defined benefit pension schemes	-	-	-	(5,501)	-	(5,501)	-	(5,501)
Fair value adjustment in respect of available-for-sale financial assets	-	-	-	160	-	160	-	160
Taxation	-	-	-	1,483	-	1,483		1,483
Translation differences - Group	-	80	-	-	-	80	-	80
Translation differences - associates	-	(2,381)	-	-	-	(2,381)	-	(2,381)
Total comprehensive income for the period	29,249	(2,301)	(51,590)	124,681	6,781	106,820	(567)	106,253

At 29 April 2012	(55,839)	25,962	(57,684)	600,431	(40,480)	472,390	(505)	471,885

Credit to equity for share - based payment	-	-	-	4,012	-	4,012	-	4,012
Vesting of share - based payments	-	-	14,656	(16,728)	-	(2,072)	-	(2,072)
Current tax on share schemes	-	-	-	3,581	-	3,581	-	3,581
Deferred tax on share schemes	-	-	-	6,297	-	6,297	-	6,297
Cost of shares acquired	(395)	-	-	-	-	(395)	-	(395)
Purchase of own shares	-	-	(21,347)	-	-	(21,347)	-	(21,347)
Non-controlling interests - acquisitions	-	-	-	-	-	-	190	190
Transactions with owners	(395)	-	(6,691)	(2,838)	-	(9,924)	190	(9,734)
Profit for the financial period	-	-	-	151,596	-	151,596	61	151,657
Other comprehensive income
Cash flow hedges
- recognised in the period	-	-	-	-	15,408	15,408	-	15,408
- reclassified and reported in net profit	-	-	-	-	196	196	-	196
Actuarial losses on defined benefit pension schemes	-	-	-	(2,818)	-	(2,818)	-	(2,818)
Fair value adjustment in respect of available-for-sale financial assets	-	-	-	1,011	-	1,011	-	1,011
Taxation	-	-	-	4,636	-	4,636	-	4,636
Translation differences - Group	-	11,135	-	-	-	11,135	-	11,135
Translation differences - associates	-	1,301	-	-	-	1,301	-	1,301
Total comprehensive income for the period	-	12,436	-	154,425	15,604	182,465	61	182,526

At 28 April 2013	(56,234)	38,398	(64,375)	752,018	(24,876)	644,931	(254)	644,677

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries and associates.

The Company holds 42,137,508 ordinary shares in Treasury.

1. Accounting policies

The consolidated financial statements of Sports Direct International plc (the "Company") and its subsidiaries (together the "Group") have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS").

Basis of preparation

The consolidated financial statements have been prepared in accordance with IFRS as adopted for use in the European Union (including International Accounting Standards ("IAS") and International Financial Reporting Standards Committee ("IFRSC") interpretations) and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS as adopted for use in the European Union. The consolidated financial statements have been prepared under the historical cost convention, as modified to include fair valuation of certain financial assets and derivative financial instruments.

2. Segmental analysis

IFRS 8 'Operating Segments' requires the Group's segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker to assess performance and allocate resources across each operating segment.

The chief operating decision maker has been identified as the executive directors and the operating segments are identified as the store fascia or brand, in line with the internal reporting to the executive directors.

Sales and gross profit for each operating segment, as well as underlying EBITDA, are the main measures used by the executive directors to assess performance.

In accordance paragraph 12 of IFRS 8 the Group's operating segments have been aggregated into the following reportable segments:

· UK Sports Retail - includes the results of the UK retail network of sports stores;

· Premium Lifestyle & other - includes the results of the premium retail businesses such as Republic, Cruise and USC;

· International Retail - includes the results of the Group's international retail network of stores;

· Brands - includes the results of the Group's portfolio of internationally recognised brands such as Everlast, Lonsdale and Dunlop.

Information regarding the Group's reportable segments for the 52 weeks ended 28 April 2013, as well as a reconciliation of reported profit for the period to underlying EBITDA, is presented below:

Segmental information for the 52 weeks ended 28 April 2013:


	Retail					Brands	Eliminations	Total
	UK Sports Retail	Lifestyle & Other	International Retail	Total	Total
	£'000	£'000	£'000	£'000	£'000		£'000	£'000

Sales to external customers	1,574,885	216,535	185,165	1,976,585	208,995		-	2,185,580
Sales to other segments	-	531	7,757	8,288	33,807		(42,095)	-
Revenue	1,574,885	217,066	192,922	1,984,873	242,802		(42,095)	2,185,580

Gross profit	647,147	72,392	81,397	800,936	93,822		-	894,758
Operating profit before foreign exchange and exceptional items	178,586	8,678	4,441	191,705	18,291		-	209,996
Operating profit	180,811	8,678	3,611	193,100	19,904			213,004
Other investment costs								1,473
Finance income								3,066
Finance costs								(11,637)
Share of profits of associated undertakings and joint ventures								1,320
Profit before taxation								207,226
Taxation								(55,569)
Profit for the period								151,657

Sales to other segments are priced at cost plus a 10% mark-up.

Other segment items included in the income statement for the 52 weeks ended 28 April 2013:


	Retail				Brands	Total
	UK Sports Retail	Lifestyle & Other	International Retail	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Depreciation	36,720	1,906	6,801	45,427	2,493	47,920
Amortisation	71	113	10	194	4,482	4,676
Impairment	314	-	-	314	1,903	2,217

Information regarding segment assets and liabilities as at 28 April 2013 and capital expenditure for the 52 weeks then ended:

		Retail		Brands	Eliminations	Total
	UK Sports Retail	Lifestyle & Other	International Retail
---	---	---	---	---	---	---
	£'000	£'000	£'000	£'000	£'000	£'000
---	---	---	---	---	---	---
Investments in associated undertakings and joint venture	493	-	31,624	-	-	32,117
Other assets	1,122,518	37,266	58,515	191,082	(32,915)	1,376,466
Total assets	1,123,011	37,266	90,139	191,082	(32,915)	1,408,583
Total liabilities	(608,083)	(43,914)	(42,963)	(101,861)	32,915	(763,906)
Tangible asset additions	42,046	10,284	10,845	3,888	-	67,063
Intangible asset additions	1,460	3,447	-	1,823	-	6,730
Total capital expenditure	43,506	13,731	10,845	5,711	-	73,793

Segmental information for the 53 weeks ended 29 April 2012:


	Retail				Brands	Eliminations	Total
	UK Sports Retail	Lifestyle & Other	International Retail	Total	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000

Sales to external customers	1,368,077	114,757	157,003	1,639,837	195,919	-	1,835,756
Sales to other segments	-	-	-	-	3,291	(3,291)	-
Revenue	1,368,077	114,757	157,003	1,639,837	199,210	(3,291)	1,835,756

Gross profit	560,757	34,581	68,115	663,453	80,823	-	744,276
Operating profit before foreign exchange and exceptional items	140,197	(7,560)	4,229	136,866	18,325	-	155,191
Operating profit	138,090	(6,793)	4,029	135,326	23,469	-	158,795
Other investment costs							(5,800)
Finance income							6,426
Finance costs							(8,481)
Share of profits of associated undertakings and joint ventures							558
Profit before taxation							151,498
Taxation							(45,867)
Profit for the period							105,631

Sales to other segments are priced at cost plus a 10% mark-up.

Other segment items included in the income statement for the 53 weeks ended 29 April 2012:


	Retail				Brands	Total
	UK Sports Retail	Lifestyle & Other	International Retail	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Depreciation	46,944	1,701	7,068	55,713	2,439	58,152
Amortisation	77	-	3	80	4,278	4,358
Impairment	2,473	-	-	2,473	-	2,473

Information regarding segment assets and liabilities as at 29 April 2012 and capital expenditure for the 53 weeks then ended:

	Retail			Brands	Eliminations	Total
	UK Sports Retail	Lifestyle & Other	International Retail
---	---	---	---	---	---	---
	£'000	£'000	£'000	£'000	£'000	£'000
---	---	---	---	---	---	---
Investments in associated undertakings and joint ventures	402	-	28,875	193		29,470
Other assets	868,120	22,566	62,582	246,690	(97,249)	1,102,709
Total assets	868,522	22,566	91,457	246,883	(97,249)	1,132,179
Total liabilities	(488,883)	(28,158)	(55,781)	(184,721)	97,249	(660,294)
Tangible asset additions	120,312	6,111	7,336	1,327	-	135,086
Intangible asset additions	-	-	-	23,114	-	23,114
Total capital expenditure	120,312	6,111	7,336	24,441	-	158,200

Geographic information


Segmental information for the 52 weeks ended 28 April 2013:
	UK	Non-UK	Eliminations	Total
	£'000	£'000	£'000	£'000
Segmental revenue from external customers	1,842,429	343,151	-	2,185,580
Total capital expenditure	59,556	14,237	-	73,793
Segmental assets	1,214,320	227,178	(32,915)	1,408,583

Segmental information for the 53 weeks ended 29 April 2012:


	UK	Non-UK	Eliminations	Total
	£'000	£'000	£'000	£'000
Segmental revenue from external customers	1,528,493	307,263	-	1,835,756
Total capital expenditure	148,285	9,915	-	158,200
Segmental assets	941,162	288,266	(97,249)	1,132,179

The following table reconciles the reported operating profit to the underlying EBITDA as it is one of the main measures used by the chief operating decision maker when reviewing performance:

Reconciliation of operating profit to underlying EBITDA for the 52 week period ending 28 April 2013.


	UK Sports Retail	Lifestyle & Other	International Retail	Brands	Total
	£'000	£'000	£'000	£'000	£'000

Operating profit	180,811	8,678	3,611	19,904	213,004

Depreciation	36,720	1,906	6,801	2,493	47,920
Impairment	314	-	-	1,903	2,217
Amortisation	71	113	10	4,482	4,676
Exceptional items	-	-	-	(625)	(625)
Share of profit/(loss) of associated undertakings	91	-	1,070	(210)	951

Reported	218,007	10,697	11,492	27,947	268,143

Changes for the Bonus Share Schemes	22,183	-	-	-	22,183
Realised FX (Gain)/ Loss	(2,225)	-	830	(988)	(2,383)

Underlying EBITDA	237,965	10,697	12,322	26,959	287,943

Reconciliation of operating profit to underlying EBITDA for the 53 week period ending 29 April 2012.


	UK Sports Retail	Lifestyle & Other	International Retail	Brands	Total
	£'000	£'000	£'000	£'000	£'000

Operating profit/(loss)	138,090	(6,793)	4,029	23,469	158,795

Depreciation	46,944	1,701	7,068	2,439	58,152
Impairment	2,473	-	-	-	2,473
Amortisation	77	-	3	4,278	4,358
Exceptional items	(2,309)	(724)	-	(2,586)	(5,619)
Share of loss of associated undertakings	-	-	(750)	-	(750)

Reported	185,275	(5,816)	10,350	27,600	217,409

Changes for the Bonus Share Schemes	20,643	-	-	-	20,643
Realised FX (Gain)/ Loss	4,416	(43)	200	(2,558)	2,015

Underlying EBITDA	210,334	(5,859)	10,550	25,042	240,067

Lifestyle and other includes £9,737,000 (2012: £1,991,000) relating to Wholesale trade underlying EBITDA which is included within the UK Sports and Retail figures in the Chief Executive's Report.

3. Exceptional items

	52 weeks ended 28 April 2013	53 weeks ended 29 April 2012
	£'000	£'000
---	---	---

Profit on disposal of intangible assets	625	1,624
Release of provision for costs relating to regulatory enquiries	-	2,309
Profit on disposal of leasehold property (lease surrender premium)	-	724
Profit on disposal of freehold property	-	962

	625	5,619
	-	-

The exceptional profit on disposal of leasehold property arose when an exit premium was received from a landlord for a leasehold property that had Nil net book value.

The exceptional profit on disposal of Freehold property related to a property with a net book value of £442,000 for which proceeds of £1,404,000 were received.

4. Taxation

The effective tax rate on profit before tax for 2013 was 26.8% (2012: 30.3%). This rate reflects depreciation on non-qualifying assets. Excluding the impact of non-recurring items, the effective rate of taxation for the year would be 26.7% (2012: 31.0%).

Earnings per share from total and continuing operations attributable to the equity shareholders

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders of the parent by the weighted average number of ordinary shares outstanding during the year.

For diluted earnings per share, the weighted average number of shares, 568,971,942 (2012: 568,591,423), is adjusted to assume conversion of all dilutive potential ordinary shares under the Group's bonus share schemes, being 51,852,895 (2012: 67,161,036), to give the diluted weighted average number of shares of 620,824,837 (2012: 635,752,459).

Basic and diluted earnings per share


	52 weeks ended 28 April 2013	52 weeks ended 28 April 2013	53 weeks ended 29 April 2012	53 weeks ended 29 April 2012
---	---	---	---	---
Basic £'000	Diluted £'000	Basic £'000	Diluted £'000

Profit for the period	151,596	151,596	106,198	106,198

	Number in thousands		Number in thousands

Weighted average number of shares	568,972	620,825	568,591	635,752

	Pence per share		Pence per share

Earnings per share	26.64	24.42	18.68	16.70

Underlying earnings per share

The underlying earnings per share reflects the underlying performance of the business compared with the prior year and is calculated by dividing underlying earnings by the weighted average number of shares for the period. Underlying earnings is used by management as a measure of profitability within the Group. Underlying earnings is defined as profit for the period attributable to equity holders of the parent for each financial period but excluding the post tax effect of certain non-trading items.

The directors believe that the underlying earnings before exceptional items and underlying earnings per share measures provide additional useful information for shareholders on the underlying performance of the business, and are consistent with how business performance is measured internally. Underlying earnings is not a recognised profit measure under IFRS and may not be directly comparable with "adjusted" profit measures used by other companies.

Underlying earnings per share (continued)

	52 weeks ended 28 April 2013	52 weeks ended 28 April 2013	53 weeks ended 29 April 2012	53 weeks ended 29 April 2012
	Basic £'000	Diluted £'000	Basic £'000	Diluted £'000

Profit for the period	151,596	151,596	106,198	106,198

Post tax adjustments to profit for the period for the following non-trading items:
Realised (gain)/loss on forward exchange contracts	(1,763)	(1,763)	1,431	1,431
Fair value adjustment to forward foreign exchange contracts	1,476	1,476	(2,527)	(2,527)
Other investment costs	-	-	7,146	7,146
Release of provision relating to regulatory enquiries	-	-	(1,639)	(1,639)
Profit on sale of intangible assets	(463)	(463)	(1,153)	(1,153)
Profit on disposal of property	-	-	(1,197)	(1,197)
Fair value adjustments within associated undertakings	(273)	(273)	(929)	(929)
Impairment of goodwill	2,217	2,217	1,756	1,756

Underlying profit for the period	152,790	152,790	109,086	109,086


	Number in thousands		Number in thousands

Weighted average number of shares	568,972	620,825	568,591	635,752

	Pence per share		Pence per share

Earnings per share	26.85	24.61	19.19	17.16

7. Borrowings


	28 April 2013	29 April 2012
---	---	---
	£'000	£'000
---	---	---
Non-current:
Bank and other loans	245,625	213,758
Obligations under finance leases	2	829

	245,627	214,587

Current:
Bank overdrafts	5,701	9,239
Bank and other loans	50,052	51
Obligations under finance leases	-	13

	55,753	9,303

Total borrowings:
Bank overdrafts	5,701	9,239
Bank and other loans	295,677	213,809
Obligations under finance leases	2	842

	301,380	223,890


	28 April 2013	29 April 2012
---	---	---
	£'000	£'000

Borrowings - Sterling	250,203	178,516
Borrowings - Other	45,476	36,135

	295,679	214,651

Loans are all at rates of interest ranging between 1.5% and 2.0% over the interbank rate of the country within which the borrowing entity resides.

On 7 March 2011, Sports Direct International plc and certain subsidiaries (the "Borrowers") entered into a committed, unsecured revolving facility agreement with ten financial institutions, with HSBC Bank plc acting as Agent (the "Revolving Facility"). The Revolving Facility is available to any of the Borrowers.

On 6 March 2013, the Revolving Facility was extended and its aggregate limit was increased to £300 million. At year end a total of £242 million was drawn down against this facility, this included balances in sterling and US dollar. This did not constitute a significant modification in accordance with IAS 39.

The facility is capable of being utilised by way of cash advances and/or currency borrowings. The Group is required to observe certain covenants, including undertakings relating to delivery of financial statements, and certain negative covenants, including in relation to creation of security and disposal of assets.

On 27 September 2012 Sports Direct International plc and certain subsidiaries (the "Borrowers") entered into a committed revolving facility agreement with Barclays Bank plc. The Revolving Facility is available to any of the Borrowers and may be drawn to an aggregate limit of £50 million. It is capable of being utilised by way of cash advances and/or currency borrowings. This facility is not secured against any fixed assets. The Revolving Facility is available until 26 August 2013. At year end a total of £50 million was drawn down against this facility.

On 14 December 2012 Sports Direct International plc and certain subsidiaries (the "Borrowers") entered into a committed revolving facility agreement with Handlesbanken plc. The Revolving Facility is available to any of the Borrowers and may be drawn to an aggregate limit of £25 million. It is capable of being utilised by way of cash advances and/or currency borrowings. This facility is not secured against any fixed assets. The Revolving Facility is available until 26 August 2013. At year end there was no draw down against this facility.

The Group has a £50m working capital facility with Mike Ashley which can be drawn down on request. This facility was agreed at market terms at its inception. This facility is not secured against any fixed assets. At year end there was no draw down against this facility.

The Group continues to operate comfortably within its banking facilities and covenants.

The carrying amounts and fair value of the borrowings are not materially different.

Net debt at 28 April 2013 was £154.0m (29 April 2012: £145.2m).

8. Cash inflow from operating activities


	52 weeks ended 28 April 2013	53 weeks ended 29 April 2012
---	---	---
	£'000	£'000
---	---	---

Profit before taxation	207,226	151,498
Net finance costs	8,571	2,055
Other investment (income)/costs	(1,473)	5,800
Share of profits of associated undertakings and joint ventures	(1,320)	(558)

Operating profit	213,004	158,795
Depreciation	47,920	58,152
Amortisation	4,676	4,358
Impairment	2,217	2,473
(Profit)/loss on disposal of intangibles	(625)	1,679
Defined benefit pension plan current service cost	14	7
Defined benefit pension plan employer contributions	(2,708)	(2,559)
Share based payments	22,183	20,643

Operating cash inflow before changes in working capital	286,681	243,548
(Increase)/decrease in receivables	(6,579)	17,707
Increase in inventories	(102,026)	(80,179)
(Decrease)/increase in payables	(18,982)	25,603

Cash inflow from operating activities	159,094	206,679

Acquisitions

Details of principal acquisitions for the 52 weeks ended 28 April 2013 are set out below.


(i) 4 July 2012	Acquired 51% of the ordinary share capital of The Flannels Group Limited for cash consideration of £3.7m. The primary business activity is the sale of fashion clothing and was acquired to complement existing business activities.
(ii) 14 September 2012	Acquired 100% of the ordinary share capital of Used Tackle Limited for cash consideration of £3.9m. The primary business activity is the sale of fishing equipment, and was acquired to complement existing business activities.
(iii) 1 October 2012	Acquired certain parts of the trade, assets and product brands from the administrators of JJB Sports plc ("JJB") for cash consideration of £24.0m. The primary business activity was the sale of sporting equipment and clothing, with the trade and assets acquired to complement existing business activities.
(iv) 28 February 2012	Acquired certain of the business, assets and brands from the administrators of fashion retailer, Republic (UK) Ltd and Republic (Retail) Limited ("Republic") for cash consideration of £13.2m. The primary business activity is the sale of fashion clothing, with the trade and assets acquired to complement existing business activities.

The fair value of consideration paid, assets and liabilities acquired and resulting goodwill in respect of the above acquisitions is detailed below.

	JJB	Republic	Other	Total
	£'000	£'000	£'000	£'000
---	---	---	---	---

Cash consideration	24,000	13,245	7,759	45,004
Less: fair value of net assets acquired	(24,000)	(13,245)	(1,028)	(38,273)

Goodwill	-	-	6,731	6,731

The goodwill is attributable to the premium paid to strengthen the Group's existing business segments of UK sports retail, lifestyle & other, international retail and brands, which is in line with the Group's strategy.

Legal fees relating to the above acquisitions of £500,000 were expensed through the income statement during the year and were recognised as administration expenses.

None of the other acquisitions are considered to be individually material.

The asset values at acquisition are detailed below:

	JJB	Republic	Other	Fair value of net assets acquired
	£'000	£'000	£'000	£'000
---	---	---	---	---

Property, plant and equipment	11,000	2,000	3,180	16,180
Intangible assets	1,000	3,447	1	4,448
Inventories	12,000	7,485	8,651	28,136
Trade and other receivables	-	2,954	2,701	5,655
Cash and cash equivalents	-	(415)	(1,522)	(1,937)
Trade and other payables	-	(2,226)	(11,563)	(13,789)
Deferred tax liability	-	-	(247)	(247)
Non-controlling interests	-	-	(173)	(173)

	24,000	13,245	1,028	38,273

In respect of all the acquisitions in the period there were no fair value adjustments made to carrying values of the respective assets and liabilities acquired.

The difference between the contractual value of the trade and other receivables and the fair value is not material.

Cash flows arising from the acquisitions are as follows:

	28 April 2013
	£'000
---	---

Cash consideration	45,004
Bank overdraft acquired	1,937

Net cash outflow in the cash flow statement	46,941

Since the date of acquisition the following balances have been included within the Group's financial statements for the period in respect of the above acquired entities:


	JJB	Republic	Other	Total
	£'000	£'000	£'000	£'000
Revenue	28,800	14,931	19,083	62,814
Operating loss	13,300	4,528	21	17,849
Loss before tax	13,300	4,528	21	17,849

Had the above acquisitions been included from the start of the period, £2,416,809,000 of revenue, £173,560,000 of operating profit and £111,882,000 of profit after tax would have been shown in the Group's financial statements.

There were no contingent liabilities acquired as a result of the above transactions.

11. Post balance sheet events

On 29 May 2013 Sports Direct International plc announced two acquisitions. Sports Eybl & Sports Experts AG (EAG), based in Austria, was completed on 26 June 2013. Sportland International Group (SIG), based in the Baltic region, is due to complete in the near future.

On 29 April 2013 Sportsdirect.com Retail Limited acquired the remaining 20% shareholding in Cruise Clothing Limited. As such Cruise is now a wholly owned subsidiary.

There were no other material post balance sheet events after 28 April 2013 to the date of this Annual Report.

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR GGUQAMUPWPPM

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