20 July 2017

Preliminary Results for the Year ended 30 April 2017

Group revenue up 11.7%; Group underlying EBITDA down 28.5%

53 weeks to

30 April 2017

52 weeks to

24 April 2016

Change

(%)

£m

£m

Group revenue

3,245.3

2,904.3

11.7

UK Sports Retail

2,136.4

2,009.3

6.3

International Sports Retail

665.6

482.3

38.0

Premium Lifestyle

202.2

181.2

11.6

Brands

241.1

231.5

4.1

Group gross margin

41.0

44.2

-320 bps

Sports Retail gross margin

41.6

44.6

-300 bps

Underlying EBITDA (pre share scheme costs)

272.7

381.4

-28.5

Underlying profit before tax (PBT)

113.7

275.2

-58.7

Reported profit before tax

281.6

361.8

-22.2

Underlying earnings per share (EPS)

11.4p

35.5p

-67.9

Reported earnings per share

39.4p

46.8p

-15.8

Net debt

182.1

99.7

KEY HIGHLIGHTS

Group revenue increased by 11.7%

o UK Sports Retail revenue increased by 6.3% Excluding acquisitions and 53 week, revenue increased by 2.6%

o UK Sports Retail like-for-like stores gross contribution was up +0.3%

International Sports Retail revenue increased by 38.0%

o Currency neutral, excluding acquisitions and 53 week, revenue increased by 5.9%

o International Sports Retail like-for-like stores gross contribution was -0.8%

Group underlying EBITDA decreased by 28.5% to £272.7m

Underlying profit before tax decreased by 58.7% to £113.7m largely due to currency movements and increased depreciation charges.

Underlying earnings per share decreased by 67.9% to 11.4p

Underlying free cash generation of £173.7m

Net debt increased to £182.1m (£99.7m at 24 April 2016)

Invested £317.0m in property assets as we execute our strategic priority to elevate our sports retail proposition

£79.9m exceptional profit on the disposal of the Dunlop brand

Mike Ashley, Chief Executive, said:

'Sports Direct is on course to become the 'Selfridges' of sport by migrating to a new generation of stores to showcase the very best products from our third party brand partners. We have invested over £300m in property over the last year, and I am pleased to report that early indications show that trading in our new flagship stores is exceeding expectations.

We will continue to invest and make decisions for the long term, whilst trying to conservatively manage the currency volatility that is reflected in our full year results. As previously announced, the devaluation of Sterling against the US dollar has led to a significant impact on EBITDA and profits in FY17. We have put in place hedging arrangements to minimise the short-term impact of currency volatility, but like many UK retailers we remain exposed to medium / long term currency fluctuations. Our results were also impacted by provisions and depreciation charges.

I would like to thank all our people at Sports Direct for ensuring that we continue to move forward together whilst elevating our retail proposition.'

Sports Direct International plc

Mike Ashley, Chief Executive

T: 0344 245 9200

KBA PR

Keith Bishop

T: 0207734 9995

CHAIRMAN'S STATEMENT

OVERVIEW

FY17 has been a transitional year for the Company and for our people, whom I would like to thank for their continued commitment and loyalty. Management stated our strategic priorities in our H1 announcement as being our people; the elevation of the Group's sports retail proposition towards our long-term aspiration to make Sports Direct the 'Selfridges' of sports; and, improving stakeholder engagement.

FY17 Underlying EBITDA was down 28.5% to £272.7m, largely as a result of the devaluation of GBP and subsequent deterioration in the Group's gross margin, and the requirement to increase the Group's inventory provisions and onerous lease provisions over the period. Underlying PBT was down 58.7% to £113.7m, and was further impacted by an increase in the depreciation charge as a result of a change in capitalisation threshold, a reduction in the useful life of certain assets, and the depreciation related to the Company's strategic property investment to elevate the sports retail business.

During the year, the Group generated free cash flow of £173.7m, and undertook capital expenditure of £419.5m, including £317.0m in freehold property acquisitions. Net Debt increased from £99.7m to £182.1m, mitigated by management's decision to divest some of its strategic investments during the period, which resulted in net proceeds on disposal of investments of £165.5m. The Group maintains substantial financial resources and a strong balance sheet.

STRATEGY AND STRATEGIC PRIORITIES

The elevation of our retail proposition continues to be a key objective. We have made good progress in laying the foundations for this in the UK and elsewhere through the management of our property portfolio. We continue to open more new generation and flagship-style stores to enhance our offering to customers and further improve our relationships with third party brands. In terms of management's plans to change the Group's approach in International Sports Retail, we have commenced developing more tailored approaches to key local markets, and have begun initially implementing this in selected countries.

Sports Direct and ASICS are excited to announce the formation of a new strategic partnership in response to the ever changing demands of the running consumer in today's Sporting Goods marketplace. The two businesses have been in dialogue over the last few months on how best to serve runners with a relaunch of ASICS statement product offer within an ASICS managed space at Sports Direct's premium flagship stores which they aim to bring to market early Spring 2018. This is an important step in Sports Direct's journey to being recognised as the 'Selfridges of Sport' and aims to build upon the retail brand's most recent positioning as 'The Home of Football' with a renewed focus on another innovative performance sports category with great potential for growth.

OUR PEOPLE AND OUR PRACTICES

We have made positive progress across the business as we continue to strive to ensure that all of our people are treated with dignity and respect. Following publication of the Working Practices Report in September 2016, the Board and senior management have continued our comprehensive review of our arrangements for staff, both in stores and at our Shirebrook campus. As part of this work, we have launched a rolling initiative to capture staff feedback called 'Your Company, Your Voice'. This enables all of our people within the UK, along with agency workers in Shirebrook, to raise any issues of concern or suggestions for improvements. All contributions are carefully monitored so that early action can be taken where appropriate. Details of other measures, including a new staff Health & Safety Committee and a staff Wellbeing Service, are included in our forthcoming Annual Report. A recent survey of workers in Shirebrook, to which 3,300 people responded, showed that an overwhelming majority of people in our warehouse currently feel they are treated with respect. We have used the results of this survey to identify any areas that require further attention. However, we recognise there is no room for complacency and our work remains ongoing. With this in mind, the Company's first UK Workers' Representative, Alex Balacki, was elected by staff, and I have no doubt that Alex's contribution will prove invaluable to the Board as the Sports Direct family continues to move forward together.

BOARD & MANAGEMENT CHANGES

The Board appointed Mike Ashley as the Chief Executive, following the departure of Dave Forsey in September 2016. I was pleased to note that Mike's appointment was positively welcomed by a number of shareholders. Our long-serving key staff members Karen Byers and Sean Nevitt were promoted, to the roles of Global Head of Operations and Global Head of Commercial respectively, alongside Mike in the senior management team. In December, we were pleased to appoint a new non-executive director, David Brayshaw. David brings to the Board over 30 years' experience in investment and commercial banking. In addition to the departure of Dave Forsey, FY17 saw the departure of Matt Pearson as Acting Chief Financial Officer. As announced by the Company this morning, we have now appointedJon Kempster as Chief Financial Officer ('CFO'). Jon will join the Company as CFO and an Executive Director on the Board on 11 September 2017. Jon joins Sports Direct with a wealth of public company experience in multinational organisationsacross multiple sectors, and has a strong track record of delivering operational performance transformation, corporate development and restructuring, strategy implementation and investor relations. Since period end, Claire Jenkins has stepped down as a Non-Executive Director and Dave Singleton has announced that he will not stand for re-election at the AGM in September 2017. We were pleased to announce David Daly as a new Non-Executive Director. Mr Daly will join the Board and the audit committee with effect from 2 October 2017.David has 30 years' international experience in the sporting goods industry working for Nike until his retirement in 2015, most recently as Senior Director for Nike's Club and Federation Business based in Amsterdam.

CORPORATE GOVERNANCE

We announced in January that a further 360 review of the Company, to include working practices and corporate governance, would be led by RPC (legal advisors to the Company). In FY17, this process primarily focused on our people, as set out above. In terms of stakeholder engagement, Mike Ashley and I have attended collective meetings with stakeholders on set dates in the financial calendar. Details of our current engagement policies are set out in our Engagement Statement on the Group website. Meanwhile, an independent third party, NJMD Corporate Services Ltd, has carried out our tri-annual Board evaluation and we intend to review the results in due course. In relation to my own position, I did not receive support from a majority of independent shareholders who voted at the 2016 AGM, and therefore I stood for re-election on 5 January 2017, when I was re-elected. I am grateful for the support that I received and I hope that the progress we have made over the last 12 months will be taken into account by shareholders prior to the next shareholder vote at our AGM in 2017.

ACQUISITIONS AND DIVESTMENT

The Group identified a number of strategic acquisitions and divestment opportunities. This included continuing to capitalise upon international opportunities where they may arise. In our FY17 H1 statement, the Group announced it had acquired the remaining 49% interest in Cacifo Comercio de Artigos de Desportos S.A., our sports retail business in Portugal. We later announced the acquisition of approximately 50 retail stores comprising Bob's Stores and Eastern Mountain Sports in the US, which completed after the year end. This acquisition will provide a footprint in US retail and a platform from which to grow US online sales. We also announced the divestment of the Dunlop brand to Sumitomo Rubber Industries Ltd. This was in line with the elevation of sports retail, as it facilitates greater bandwidth to develop our relationships with third party brands, and focus on the other distinctive brands within the Group.

LONG TERM INCENTIVES

The Group's Share Schemes are a key element to attract and motivate employees. With the 2015 Share Scheme having lapsed in FY16, the Board and management team have been working to develop a new incentive scheme for the Group, and this remains the case. The final tranche of the Share Awards relating to our 2011 Share Scheme are due to vest in September this calendar year and will result in c. 14 million shares vesting to c. 2,000 eligible participating employees. As announced at FY17 H1, as a result of the continued volatility in Sports Direct's share price, the Company has decided to commit to delivering a minimum value for the Share Awards made under the 2011 Share Scheme. The minimum value will be fixed at £3 for each share awarded to participants and is designed to reduce the impact of recent share price volatility on the financial outcomes of our people. If eligible employees choose to postpone vesting until 2018, the £3 minimum value will rise to £4.

CAPITAL MANAGEMENT

The Board has decided not to pay a dividend this year. We will continue to keep this under review. The Board ensures that sufficient capital is retained within the Group to meet its strategic objectives. We continued to conduct our Share Buyback Programme during the period, pursuant to the authority granted to us at the 2016 AGM. During the period to 30 April 2017 the Company has purchased 31,173,026 ordinary shares at a cost of £108,689,056 (excluding purchasing costs) and representing 5.80% of the issued share capital. The maximum number of shares held in treasury by the Company during the period was 79,310,534 representing 12.38% of the issued share capital. No shares have been disposed of by the Company. As at 18 July 2017 the Company has purchased an additional 31,702,877 ordinary shares at a cost of £93,482,879 (excluding purchasing costs) and representing 4.95% of the issued share capital. No shares have been disposed of by the Company to this date. The Group has invested £317.0m in FY17 in property assets, consistent with our announced intentions to invest in excess of c. £300m in property assets per annum over a 2 - 4 year period.

In respect of cash and borrowings, the Board regularly monitors the ratio of net debt to underlying EBITDA, the working capital requirements, and forecasted cash flows. While no minimum or maximum ratios are set, following careful assessment, the Board has revised our objective of keeping the ratio of net debt to underlying EBITDA, from 2.5x to 3x, in order to give the Group greater flexibility. Net debt to underlying EBITDA is currently 0.6x.

OUR ACHIEVEMENTS AND OUR VALUES

Finally, I feel it appropriate that I should conclude by recording the fact that 2017 sees the passing of ten years since Sports Direct became a public company. During that time, we have helped to change lives by paying our people around £320 million in share bonuses and other rewards on top of their normal wages. We have also contributed over £1.8 billion towards the UK economy in taxation. Over the same period, we have created c. 4,800 new jobs in the UK, as the Sports Direct family has grown. We have invested millions in our stores, which is increasingly being recognised by local councils for the rejuvenating effect that it has within communities

I am also pleased to announce that Sports Direct has recently joined the Retail Trust, the leading staff welfare charity, which enjoys the patronage of Her Majesty the Queen. It is my firm belief that Sports Direct is a company of which Britain can rightly feel very proud.

Dr. Keith Hellawell. QPM

Non-Executive Chairman

20 July 2017

OUR IMPACT SINCE 2007

We became a listed public company in 2007. In the ten years since we floated, the Group has greatly contributed to the British economy. This includes:

· c. £220 million paid in staff share bonuses*

· c. £100 million paid in sales commission to retail staff

· Created 4,800 new jobs in the UK, where we currently have 17,400 directly engaged staff.

· Contributed c. £420 million in UK Corporation Tax

· Contributed c. £1,300 million in VAT and Duty

· Contributed c. £120 million in NI employer contributions

* Figure includes shares that become eligible to vest in September 2017.

CHIEF EXECUTIVE'S REPORT AND BUSINESS REVIEW

PERFORMANCE

OVERVIEW

FY17 has been a transitional year. As anticipated, the Group has delivered full year results that show a decline in our financial performance on the prior year. This has been due to a number of factors, chief among which were currency headwinds and strategic challenges in our operations in continental Europe.

Group revenue increased by 11.7% to £3,245.3m in the year. UK Sports Retail increased by 6.3% to £2,136.4m, which includes Heaton's Northern Ireland sales. International Sports Retail increased by 38.0% to £665.6m including Heaton's Republic of Ireland. Premium Lifestyle revenue increased by 11.6%, with revenue in Brands up 4.1%.

As expected, Group gross margin in the year decreased by 320 basis points from 44.2% to 41.0%. This was due to the impact of the negative movement in the US dollar exchange rate against the pound and to an increase in provisioning for stock obsolescence as we identify higher risks in a fast changing market and supply chain. UK Sports Retail margin decreased by 330 basis points from 44.5% to 41.2% while International Sports Retail decreased 160 basis points from 44.8% to 43.2%. Premium Lifestyle's gross margin decreased by 450 basis points from 42.1% to 37.6%, which was also due to discounting of slow moving stock.

Group operating costs increased by 16.9% to £1,058.7m (FY16: £905.7m), largely as a result of the impact of increased onerous lease provisions across Europe stemming from a review of poorly performing stores where the US dollar exchange rate has reduced margins. See Financial Review for reconciliation to selling, distribution & administrative expenses.

As a result, Group underlying EBITDA (pre-Share Scheme costs) for the year was down 28.5% to £272.7m (FY16: £381.4m). UK Sports Retail underlying EBITDA was down 26.3% to £265.7m while International Sports Retail EBITDA loss increased to £19.1m from £4.9m. Premium Lifestyle EBITDA was a £0.3m loss from an EBITDA loss last year of £5.1m and Brands division underlying EBITDA decreased to £26.4m from £37.5m.

Excluded from underlying EBITDA is a £2.8m (FY16: £7.1m) charge in respect of the 2011 Share Scheme. This charge has been taken centrally and is not reflected in the divisional numbers in this report.

The depreciation and amortisation charge has increased by 54.7% to £147.9m (FY16: £95.6m) due to increased investment in our store portfolio and revisions to accounting estimates of useful economic lives of assets.

Group underlying profit before tax decreased 58.7% to £113.7m, due to lower EBITDA and higher depreciation charges. Underlying EPS for the year decreased by 67.9% to 11.4p (FY16: 35.5p).

The Group generated underlying free cash flow during the year of £173.7m, down from £309.1m in the prior year, and net debt increased by £82.5m to £182.1m at year end, mainly as a result of acquisition of freehold and long leasehold properties and the Group share buyback. These were mitigated by disposals of strategic stakes and subsidiaries. Net debt currently stands at 0.6 times reported EBITDA (24 April 2016: 0.31 times).

REVIEW BY BUSINESS SEGMENT

RETAIL REVENUE:

53 weeks ended

Pro forma 52 weeks

52 weeks ended

30 April 2017 (£'m)

April 2017 (£'m)

24 April 2016 (£'m)

Revenue

UK Sports Retail

2,136.4

2,099.8

2,009.3

International Sports Retail

665.6

658.6

482.3

Total Sports Retail Revenue

2,802.0

2,758.4

2,491.6

Cost of Sales

UK Sports Retail

(1,257.0)

(1,237.2)

(1,114.4)

International Sports Retail

(378.3)

(374.6)

(266.3)

Total Cost of Sales

(1,635.3)

(1,611.8)

(1,380.7)

Gross Profit

UK Sports Retail

879.4

862.6

894.9

International Sports Retail

287.3

284.0

216.0

Total Gross Profit

1,166.7

1,146.6

1,110.9

Gross Margin %

UK Sports Retail

41.2

41.1

44.5

International Sports Retail

43.2

43.1

44.8

Total Retail Gross Margin %

41.6

41.6

44.6

PREMIUM REVENUE:

53 weeks ended

Pro forma 52 weeks

52 weeks ended

30 April 2017 (£'m)

April 2017 (£'m)

24 April 2016 (£'m)

Revenue

202.2

200.4

181.2

Cost of sales

(126.1)

(125.1)

(105.0)

Gross Profit

76.1

75.3

76.2

Gross Margin %

37.6

37.6

42.1

BRANDS REVENUE:

53 weeks ended

Pro forma 52 weeks

52 weeks ended

30 April 2017 (£'m)

April 2017 (£'m)

24 April 2016 (£'m)

Wholesale

201.4

-

196.7

Licensing

39.7

-

34.8

Total Brands Revenue

241.1

-

231.5

Cost of Sales

(153.3)

-

(134.0)

Gross Profit

87.8

-

97.5

Gross Margin %

36.4%

-

42.1%

The 53 week has no material impact on wholesale or licensing sales.

UK SPORTS RETAIL

The UK Sports Retail segment includes all of the Group's sports retail store operations in the UK and Northern Ireland, all of the Group's Sports Online business, the Group's Fitness Division, and the Group's Shirebrook campus operations. UK Sports Retail is the main driver of the Group and accounts for 65.8% of Group revenue.

Revenue grew 6.3% to £2,136.4m, which includes the full year of Heatons Northern Ireland stores. Excluding the impact of Heatons NI, UK Sports Retail revenue growth was 4.4%. Excluding the 53 week, UK Sports Retail revenue growth was 4.5%. Excluding both Heatons NI and the 53 week, revenue growth was 2.6%.

UK Sports Retail gross margin for the second half of the year decreased to 42.0% (FY16 H2: 44.5%) largely due to the adverse impact of the US dollar exchange rate and increased inventory and other trade related provisions. The foreign currency effect on margin for FY18 is expected to stabilise based on all forecast purchases for FY18 being hedged at 1.31.

UK Sports Retail like-for-like gross contribution, increased by +0.3% compared to the prior year.

Operating expenses increased by 10.3% excluding the impact of Heatons NI, and 13.5% including the impact of Heatons in the year, to £614.1m (FY16: £541.1m). Store wages were up 6.5% in the year to £164.5m (FY16: £154.5m) and as a percentage of sales rose to 10.5% (FY16: 10.1%). Overheads increased from integration of new entities, additional legal charges and provisioning for bad debts, onerous leases and dispute settlement.

Underlying EBITDA for UK Sports Retail was £265.7m (FY16: £353.9m), a decrease of 24.9% for the year. However, early indications are that trading in our new generation flagship stores is exceeding expectations, leading to increased EBITDA in those stores.

During the year we opened 15 new stores and closed 20.

Period end square-footage now stands at c.5.2m sq. ft. (FY16: c.5.1m).

30 April 2017

24 April 2016

England

388

393

Scotland

37

35

Wales

27

30

Northern Ireland

16

15

Total

468

473

Opened

15

31

Closed

20

14

Acquired

-

15

Area (sq. ft.)

c.5.2m

c.5.1m

INTERNATIONAL SPORTS RETAIL

International Sports Retail segment includes all of the Group's sports retail store management and operations outside of the UK, including the Group's retail distribution centres in Belgium and Austria. Revenue grew 38.0% to £665.6m, including the full year of Heatons Republic of Ireland stores. Excluding the impact of Heatons, International Sports Retail revenue growth was 7.4% on a currency neutral basis.

International Sports Retail gross margin for the second half of the year increased to 46.6% (FY16 H2: 44.2%) due to a favourable EURO / USD exchange rate, hedged at 1.46. However, the margin for FY18 will now be under pressure, as we are currently hedged at 1.11.

International Sports Retail like-for-like gross contribution, decreased by -0.8% compared to the prior year.

Operating expenses increased by 29.4% excluding the impact of Heatons ROI, and 37.4% including the impact of Heatons in the year, to £306.8m (FY16: £223.3m). Store wages were flat in the year at £117.1m (FY16: £117.1m) but as a percentage of sales reduced to 17.6% (FY16: 24.3%). As a result of the ongoing strategic review, provisions were made for onerous leases in poorly performing stores of £39.7m.

During the period the Group impaired the brands acquired in the Heatons subsidiary, due to the ongoing programme of re-branding to SPORTSDIRECT.COM.

Period end square-footage now stands at c.3.9m sq. ft. (FY16: c.3.5m).

All of the following stores are operated by companies wholly owned by the Group, except Estonia, Latvia and Lithuania where the Group owns 60.0% and Malaysia where the Group owns 51%. During the year, the Group increased its shareholding in the Portuguese entity to 100%.

During the year we opened 21 new stores and closed 17. We also own a 40% shareholding in the Sports Direct business in Iceland.

SPORTS STORE PORTFOLIO

30 April 2017

24 April 2016

Belgium

39

41

Austria

36

42

Republic of Ireland

32

28

Estonia

26

25

Malaysia

25

20

Portugal

17

17

Poland

16

15

Latvia

16

14

Lithuania

16

14

Slovenia

15

15

Hungary

11

13

Czech Republic

10

7

France

6

6

Holland

6

6

Cyprus

6

6

Slovakia

6

5

Germany

2

3

Luxembourg

2

2

Spain

2

2

Switzerland

-

0

Total

289

281

Opened

21

29

Closed

17

16

Converted

4

-

Acquired

-

42

Area (sq. ft.)

c.3.9m

c.3.5m

PREMIUM LIFESTYLE

The Group's Premium Lifestyle division offers a broad range of clothing, footwear and accessories from leading global, contemporary and luxury retail brands. Premium Lifestyle sales increased by 11.6% to £202.2m (FY16: £181.2m), mostly due to increased web sales. The Premium Lifestyle gross margin for the year decreased by 450 basis points to 37.6% (FY16: 42.1%), however offset by the increase in the online business.

Premium Lifestyle operating costs decreased by 6.0% to £76.4m (FY16: £81.3m) as a result of the previous rationalisation undertaken.

We continue to strengthen our relationships with key third party suppliers and have introduced several new brands in the period.

As a result, Underlying EBITDA improved to a loss of £0.3m from a loss of £5.1m in FY16, as we continue to see the benefit of rationalisation of the businesses. We expect to see further benefits of this in future years.

At the year end, the Premium Lifestyle division traded from 73 stores under four main fascias:

30 April 2017

24 April 2016

USC

45

50

Cruise

10

10

van mildert

5

9

Flannels

13

9

Other

-

5

Total

73

83

GROUP BRANDS (wholesale & licensing)

The Brands portfolio includes a wide variety of world-famous sport and lifestyle brands. The Group's Sports Retail division sells products under these brands in its stores, and the Brands division sells the brands through its wholesale and licensing activities. The Brands division continues to sponsor a variety of prestigious events and retains a variety of globally-recognised, high-profile celebrities and sporting professionals as brand ambassadors.

The Brands division's total revenue increased by 4.1% to £241.1m (FY16: £231.5m). Wholesale revenues were up 2.4% to £201.4m (FY16: £196.7m), with growth in European and US wholesaling. Trading in the US market was in line with expectations and now represents c.35% of total wholesale sales.

Brands' gross margin decreased by 570 basis points to 36.4% (FY16: 42.1%). Wholesale gross margins decreased 800 basis points to 23.9% (FY16: 31.9%) mainly due to the impact of accruals made in relation to historic import costs.

On 3 April 2017, the division sold the Dunlop brand and related wholesale and licensing companies. The divestment of the Dunlop business is in line with Sports Direct's stated aspiration to become the 'Selfridges' of sports retail, including its renewed focus on its core UK and International business and the development of its relationships with third party brands.

Licensing revenues in the year were up 14.1% to £39.7m (FY16: £34.8m). During the year we signed 20 new licence agreements and renewed several existing licensees, covering multiple brands, product categories and geographies, with minimum contracted values of $20.1m over the life of the agreements.

Longer term, we still regard licensing as the key driver of the Brands division's profitability and central to the overall growth of the Brands business. The key growth areas are expected to include Australasia and Asia Pacific.

Brands operating costs increased by 2.3% to £61.4m (FY16: £60.0m) primarily due to bad debt provisions. Underlying EBITDA decreased by 29.6% to £26.4m (FY16: £37.5m), mainly as a result of the accruals made in relation to historic import costs.

KEY PERFORMANCE INDICATORS

The Board manages the Group's performance by reviewing a number of Key Performance Indicators (KPIs). The table below represents a summary of the Group's KPIs.

53 weeks ended

Pro forma 52 week

52 weeks ended

30 April 2017

April 2017

24 April 2016

Change %

FINANCIAL KPIs

Group revenue

£3,245.3m

£3,199.9m

£2,904.3m

+11.7

Underlying EBITDA

£272.7m

£268.3m

£381.4m

-28.5

Sports Retail gross margin

41.6%

41.6%

44.6%

Sports Retail like-for-like stores gross contribution

+0.0%

-0.8%

Underlying earnings per share

11.4p

35.5p

-67.9

Reported earnings per share

39.4p

46.8p

-15.8

OUTLOOK

We are pleased to confirm that early indications show that trading in our new generation flagship stores is exceeding our expectations. The table below shows two examples of these stores, which we have called Store X and Store Y. Store X is our highest-turnover new flagship, and Store Y is our lowest turnover new flagship. Both are delivering greater EBITDA than an average Sports Direct store.

STORE X (new generation flagship) - Sales area 35k sq. ft. - EBITDA 2.1m

STORE Y (new generation flagship) - Sales area 31k sq. ft. - EBITDA 1.0m

Sports Direct UK Average Store - Sales area 11k sq. ft. - EBITDA 0.5m

This should be balanced against the continued impact of the devaluation of sterling against the dollar, with our GBP/ USD requirements hedged at 1.31 for FY18 (compared with a historical long-term average closer to approx. 1.6).

Taking all of these factors into account, our outlook is optimistic and we aim to achieve growth in underlying EBITDA in the region of approx. 5%-15% during FY18. However, we will continue to be conservative in managing for the medium to long term, which may result in short-term fluctuations in underlying EBITDA, particularly given the continued uncertainty surrounding Brexit.

Mike Ashley

Chief Executive

20 July 2017

OPERATIONAL REVIEW

PROGRESS ON OUR STRATEGIC PRIORITIES

The Group has and is facing a number of strategic challenges and currency headwinds which continue to adversely impact the financial performance of the business. We remain committed to our organic and inorganic growth strategy and our long-term priority to elevate the Company's sports retail proposition. To address our strategic challenges, the Board and management team's medium to long term strategic priorities are:

1. One Team, One Goal: to enhance our environment for the benefit of the Sports Direct Family;

2. Elevate the Group's sports retail proposition: working to elevate the sports retail proposition over the medium to long term, initially focusing on the UK, and tailoring our retail proposition in Europe;

3. Improve stakeholder engagement: develop a plan to improve our approach to and engagement with stakeholders.

Below we have outlined the progress on our key strategic priorities over FY17.

1. ONE TEAM, ONE GOAL

We have continued to make good progress in protecting the welfare of the people who work for the Group. Details of this will be contained in a section headlined OUR PEOPLE in our forthcoming 2017 Annual Report and Accounts.

2. THE ELEVATION OF SPORTS RETAIL

The elevation of the sports retail proposition is vital to continuing to strengthen our relationships with our key third party brand partners, deliver benefits for our customers, and drive the Group's long term profitability. It spans product, stores, online, and marketing, and critical to its success is the Group's active management of its store property portfolio. As highlighted at the AGM / Open Day on 7 September 2016 and since, the Group is focused on elevating its store portfolio through acquisitions and relocations. To increase the Group's ability to secure strategic retail locations that are commercially viable, our Property division alongside senior management has the flexibility to invest in freehold properties and development projects, which can span vacant buildings, development land or re-development projects, and multi-tenanted schemes or properties. To ensure an efficient transition and reduce non-trading space, the Group seeks to align store openings with existing lease expiries where possible. This wide-ranging but controlled brief ensures the Group is able to rollout our plans while efficiently transitioning the store portfolio.

We have implemented a centralised 'cloud approach' to managing stock and other areas of the business, in order to facilitate maximum flexibility in our operations across the Group.

ONLINE

Online, the Group benefits from its investment in a single web platform which supports all of the Group's websites and e-commerce sites, maximising the efficiency of the Group's investment in elevating its online retail proposition, and the online customer experience. During the period the Group's marketing and ecommerce division significantly re-styled and elevated our fascias' and brands' online presence in line with our new generation concept. Adding to the Group's suite of ecommerce sites and websites, the Group has launched an ecommerce app for Sports Direct, which is also adapted for the Premium fascia, Flannels, and the Lifestyle brand, Firetrap. The app is driven by the Group's centralised web platform, and is compatible with both Android and iOS.

BRANDS AND MARKETING

Consistent with the elevation strategy, in Sports Retail, the Group has re-aligned its marketing style towards clean, brand- and category-led campaigns, in contrast to our previous focus on offer-led campaigns. Our key third party brand partners are supporting this elevation with greater marketing assets in-store and online, and we have collaborated on the first major co-branded campaigns which were launched in November 2016. These included a premium style of Nike CR7 football boot available in Sports Direct stores, and the adidas Ace 17 football boot. The period also saw the completion of brand showroom suites in Shirebrook which have been developed by Nike, adidas, Puma and Under Armour.

3. IMPROVING ENGAGEMENT WITH OUR STAKEHOLDERS

In our FY17 H1 Interim Results Release, we stated that we recognised the need to improve communications with stakeholders. During the year, we developed an approach to engagement which outlined how the Company intended to engage with the financial community and media, and this can be found in our Engagement Statement on the Company's website. The Group intends to continue in the spirit of being open, prudent and compliant in our approach to engagement and communications.

Strategic acquisitions and investments

The Group's acquisition and investments strategy, parameters and decision-making is performed by the Board, and delegated at a certain materiality level to be performed by the Executive Directors within the agreed strategy.

The Group is focused on opportunities that will deliver benefits for our customers, broaden or enhance our commercial relationships or retail channels, selectively grow our market share, and/or further diversify our operations. Given the breadth of our business, our strategic benefits can be varied and extensive, and the Group employs an array of mechanisms to facilitate strategic discussions with potential partners towards varied strategic goals. While this year our focus was on our people and the elevation of our sports retail proposition in our core UK business, the Group did undertake a number of strategic investments and divestments for the benefit of the Group and shareholders.

In our FY17 H1 statement, the Group announced it had acquired the remaining 49% interest in Cacifo Comercio de Artigos de Desportos S.A., our sports retail business in Portugal. We later announced the acquisition of c. 50 retail stores comprising Bob's Stores and Eastern Mountain Sports in the US, which completed after the year end. This acquisition will provide a footprint in US retail and a platform from which to grow US online sales. We also announced the divestment of the Dunlop brand to Sumitomo Rubber Industries Ltd. This was in line with the elevation of sports retail, as it facilitates greater bandwidth to develop our relationships with third party brands, and focus on the other distinctive brands within the Group.

PROPERTY REVIEW

In the UK, we have been actively focusing on elevating our store portfolio, typically through relocating smaller format stores to a new generation of stores, with a priority on securing flagship stores in strategic retail locations.

We have developed a UK & Ireland portfolio strategy that is totally aligned with the aspirations of our major third party brand partners. This is a 2-to-4 year initial strategy to move towards the 'Selfridges' of sport through elevating retail space and improving the experience for both our consumers and third party brands in order to set the landscape for the next 5 to 10 years on a rolling basis.

The strategy will involve the rationalisation of stores throughout the UK and will mean closing, some smaller stores and relocating into one flagship store. The consolidation of the Group portfolio within new generation stores will result in the number of actual stores decreasing, but the total sales area increasing and providing a more comprehensive offering, including speciality sports / fashion brands.

The Group continues to develop and roll out the Flannels concept, with the consolidation and conversion of the existing fascias under the Premium Lifestyle umbrella. The flagship Flannels store in Oxford Street is under development including the new London offices, which will open in FY18.

In Ireland, the group continues to consolidate the retail portfolio following the completion of the full acquisition of Heatons through the conversion of single fascia Heatons stores. We are currently building our Europe strategy as per each country, which is in line with our UK strategy. We have made our first flagship acquisition for Lithuania, which is also due to open in FY18.

Store Portfolio - Sports Stores - UK excluding Northern Ireland

The Group is currently operating 388 sports stores in England, 37 in Scotland and 27 in Wales. This represents a net reduction of five stores in the period as a result of 15 openings and 20 closures. However total sales area in the period increased from approximately 5.1m sq. ft. to approximately 5.2m sq. ft.

Of 11 new generation store openings in England, 4 of these comprised flagship stores at Southampton, Southport, Solihull and Sunderland, all of which are held by the group on a freehold or long leasehold basis.

Across the remaining UK portfolio (ex. Northern Ireland), there were a further two openings in Scotland, one of which was a freehold acquisition that enabled Sports Direct to maintain representation in Edinburgh and obtain a strategic retail location.

Of the 20 closures across the UK (excluding Northern Ireland), seven were as part of a relocation to new generation stores. All of the flagship store openings comprised relocations that enabled the group to elevate the retail offering with improved space in which to showcase the best products from third party brands.

The total number of new generation stores at the end of the period was in excess of 25, of which 13 were flagship stores.

Store Portfolio - Sports Direct forecasted UK openings for FY18

The Group forecasts that there will be in the region of 12 - 18 new generation stores that will open in FY18. Approximately 50% of these will be flagship stores.

In Ireland, there will be approximately 4 to 8 new stores planned for FY18, which will be split between the Republic of Ireland and Northern Ireland. Approximately 50% will be flagship stores. These include our flagship store in Dublin city centre, which was a freehold property acquisition that was purchased in FY17 and opened at the beginning of FY18.

This will bring the total number of flagships to potentially in excess of 20 during the next financial year. The Group forecasts a total of 75 to 150 store flagship stores in the coming 5 to 10 year period in the UK and Ireland. These estimates are subject to identifying appropriate opportunities, hence the need for a flexible approach.

Northern Ireland & Republic of Ireland - Store Portfolio Analysis

With the acquisition of Heatons, the group acquired 15 stores in Northern Ireland, 10 of which were dual-facia Heatons/Sports Direct stores, with the remaining 5 comprising Sports Direct only.

The acquisition also included 42 stores in the Republic of Ireland, 13 of which were single fascia Heatons stores and 29 of which were dual-fascia Heatons/Sports Direct stores.

The strategy in Ireland for the period has been the conversion of selected single and dual fascia Heatons to new generation Sports Direct stores. Moving forward, we will be rolling out new generation store format with a particular focus on flagship stores. Our store in Dublin was the first of such stores at the start of FY18, and it has been tremendously well-received by local customers and third party brands.

Store Portfolio - Europe*, USA & Malaysia

The Group is currently operating sports store in 17 countries in Europe (excl. Iceland associate).

232 Sports Retail stores in the EU

Total square footage of all fascias in Europe is 3.5m for FY17 (includes Eybl, Disport, SportsWorld, etc.)

16 openings in 7 different countries in FY17 of which 1 was a Flagship Store in Brussels Docks

17 closures in 7 countries in FY17 focused on non-performing stores and/or markets where cannibalisation was present

25 stores in Malaysia, including 5 openings in the year

49 stores in the USA (the acquisition of which was completed after year end)

We are currently building our European strategy on a per country basis, which is in line with our UK strategy. We have made our first flagship acquisition for Lithuania, which is due to open in FY18.

*excluding UK & ROI.

Store Portfolio - Premium Lifestyle

The Group continues to develop and roll out the Flannels concept, with the consolidation and conversion of the existing fascias under the Premium Lifestyle umbrella. The flagship Flannels store in Oxford Street is under development including the new London offices, which will open in Q1 2018.

The group operates 45 USC stores, 13 Flannels stores, 10 Cruise stores and 5 van mildert stores - a total of 73 stores under Premium Lifestyle.

A number of new Flannels stores have opened in conjunction with flagship sports store openings, such as in Solihull and Southport as part of the aim to create multi-fascia retailing destinations in line with the 'Selfridges' of sport concept.

Freehold / Long Leasehold Property Purchases

The property programme continued to gather pace over FY17 having completed 23 freehold / long leasehold (LLH) acquisitions with a combined purchase price of £317.0m.

The largest single transaction was the freehold on Oxford Street for £108m which is currently being extensively refurbished to provide a flagship store for Flannels and London headquarters.

The acquired properties provide a phased pipeline of stores over the coming years to transition to the new generation concept. The aspiration is to acquire up to 30 properties over the next financial year with a combined expected investment value of £200m-£300m.

Oxford Street Update - Since acquiring the property, we have refined the plans inherited from the vendor in order to suit our operation and maximise the property value. The contractor is currently on site and the team is working towards opening the store and office in 2018.

FINANCIAL REVIEW

The Financial Statements for the Group for the 53 weeks ended 30 April 2017 are presented in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU.

SUMMARY OF RESULTS

53 weeks ended

52 weeks ended

30 April 2017 (£'m)

24 April 2016 (£'m)

Revenue

3,245.3

2,904.3

Underlying EBITDA

272.7

381.4

Underlying Profit Before Tax

113.7

275.2

Reported Profit Before Taxation

281.6

361.8

Pence per share

Pence per share

Reported EPS

39.4

46.8

Underlying EPS

11.4

35.5

The Directors believe that underlying EBITDA, underlying profit before tax and underlying EPS 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, amortisation and impairment. It 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 Share Schemes.

EBITDA AND PROFIT BEFORE TAX

EBITDA (£'m)

PBT (£'m)

Operating profit

160.1

-

Depreciation, amortisation and impairment

147.9

-

Share of profit of associated undertakings (excl. FV adjustments)

0.8

-

Reported

308.8

281.6

Share Scheme

2.8

-

Subsidiary disposal

(79.9)

(79.9)

Exceptional items

17.3

17.3

Net investment income

-

(110.7)

Realised FX loss

23.7

23.7

IAS 39 FX fair value adjustment on forward currency contracts

-

(18.3)

Underlying

272.7

113.7

Underlying 53 week FY17 profit before tax excludes:

(i) exceptional items which decreased profit by £17.3m;

(ii) disposal of a subsidiary which increased profit by £79.9m;

(ii) investment income which increased profit by £110.7;

(iii) realised foreign exchange losses which decreased profit by £23.7m; and

(iv) IFRS revaluation of written options which increased profit by £18.3m.

53 weeks ended

30 April 2017 (£'m)

Group Operating costs

1,058.7

Depreciation, amortisation and impairment

147.9

Bonus Share Scheme

2.8

Realised FX loss

23.7

Other operating income

22.5

Selling, distribution & administration costs

1,255.6

Group operating costs for the purposes of management reporting:

(i) Excludes depreciation, amortisation and impairments, share scheme charges and realised FX losses; and

(ii) Includes other operating income.

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 strategy is to hold or hedge up to five years of anticipated Non-GBP denominated on-line sales and Non-GBP and Non-EUR purchases.

Following the outcome of the EU referendum, we are aware of the associated market volatility and in particular material changes to sterling/US dollar and sterling/Euro exchange rates, and the lack of transparency as to how those rates will move in the short to medium term. These factors are likely to impact US Dollar purchases in particular and therefore profitability - for which post year end the Company became fully hedged for forecast purchases into the UK in US dollars for FY18 at a rate of 1.31 and hedged in the Group's European entities in US dollars at rates of 1.11-1.21.

There is also a potential exposure in relation to the Euro forward sales contracts and written option arrangements that the Group is party to although we would highlight that the contracted rates on the forward contracts are largely in line with the underlying Euro/sterling rates experienced during FY17.

As at 30 April 2017 the Group was party to the following principal contracts - €777m of Euro forward sales contracts that qualify for hedge accounting and €1,383m of options and forward sales contracts that do not qualify for hedge accounting. The contracted forward rates for these instruments are shown in the notes to the financial statements.

The forward contracts will be covered by our forecast Euro denominated online sales over the period of cover in place. Sales that we make over and above the covered amount, and existing surplus Euros within the business will mitigate the risk associated with the written currency options.

If sterling depreciates by 10% against the Euro, a fair value loss of £8.9m would be recognised in the income statement in relation to these option contracts.

The realised exchange loss of £23.7m (FY16: £2.3mloss) included in administration costs has arisen from:

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

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

The exchange gain of £18.2m (FY16: £6.8m loss) included in finance income substantially represents the decrease in the mark-to-market liability made (under IFRS) for the Group's written option and unhedged forward contracts as at 30 April 2017. The majority of the forward contracts outstanding at 30 April 2017 qualify for hedge accounting and the fair value loss on these contracts has been debited to equity through the Consolidated Statement of Comprehensive Income. The sterling exchange rate with the US Dollar was $1.440 at 24 April 2016 and $1.294 at 30 April 2017. The sterling exchange rate with the Euro was €1.283 at 24 April 2016 and €1.188 at 30 April 2017.

Given the potential impact of commodity prices on raw material costs, the Group may hedge certain input costs, including cotton, crude oil and electricity.

EXCEPTIONAL ITEMS

53 weeks ended

52 weeks ended

30 April 2017 (£'m)

24 April 2016 (£'m)

Profit on sale of freehold properties

-

13.5

Provision against receivables and other

-

(5.8)

Impairment

(17.3)

(58.5)

Total Exceptional Items

(17.3)

(50.8)

The impairment mainly relates to intangible values of own brands which are no longer considered core brands.

In the prior year, the profit on disposal of freehold property relates to the sale of a freehold property for £44m, realising a profit of £13.5m.

TAXATION

The effective tax rate on profit before tax in FY17 was 17.7% (FY16: 22.9%). This reflects the impact of items that qualify for substantial shareholder relief as well as a one off write off of deferred tax assets from losses incurred in Europe. Excluding these items, the underlying effective rate is 29.0% (FY16: 21.3%), which reflects the impact of the increase in freehold property and related disallowable depreciation.

EARNINGS

53 weeks ended

52 weeks ended

30 April 2017

(pence per share)

24 April 2016

(pence per share)

Change (%)

Reported EPS (Basic)

39.4

46.8

(15.8)

Underlying EPS

11.4

35.5

(67.9)

Weighted average number of shares (actual)

583,501,473

592,573,254

(1.5)

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:

53 weeks ended

52 weeks ended

30 April 2017 (£'m)

24 April 2016 (£'m)

Profit after tax

229.9

277.4

Post tax effect of adjustment items:

Profit on disposal of listed investments

(141.5)

(104.5)

Fair value adjustment to forward foreign exchange contracts

(14.3)

5.2

Fair value adjustment to derivative financial instruments

24.0

(8.4)

Impairment of fixed assets

-

4.4

Realised loss/(gain) on forward foreign exchange contracts

18.5

1.8

Profit on disposal of freehold properties

-

(10.4)

Impairment and accelerated depreciation and amortisation

17.3

45.2

Write off of deferred tax assets

12.5

-

Profit on disposal of subsidiary

(79.9)

-

Underlying profit after tax

66.5

210.7

DIVIDENDS

The Board has decided not to pay a dividend in relation to FY17. The Board remains of the opinion that it is in the best interests of the Group and its shareholders to preserve financial flexibility, facilitating future investments and other growth opportunities. The payment of dividends remains under review.

CAPITAL EXPENDITURE

During the period, capital expenditure amounted to £419.5m (FY16: £207.0m), which includes £317.0m on properties (including fixtures and fittings).

ACQUISITIONS

During FY17 the Group acquired 100% of BSL Ltd, Community Bug Ltd and Vinecomb Investments Ltd. The net cash outflow for these acquisitions was £8.1m. The Group also acquired the remaining 49% of the Sports Direct business in Portugal for €5.0m.

DISPOSALS

During the period, the Group disposed of the Dunlop brand and its related wholesale and licensing activities for a total consideration of £109.5m, resulting in a gain on disposal of £79.9m. This facilitates more bandwidth for management to develop relationships with third party brands without the need to manage the Dunlop brand on an international basis.

COMMERCIAL ARRANGEMENTS

In our FY17 H1 statement, we confirmed that MM Prop Consultancy Ltd, a company owned and controlled by Michael Murray, continues to provide property consultancy services to the group. MM Prop Consultancy Ltd is primarily tasked with finding and negotiating the acquisition of new sites for both our larger format stores and our combined retail and gym units, but it also provides advice to the Company's in-house property team in relation to existing sites both in the UK and in Europe. MM Prop Consultancy Ltd fees are linked directly to value creation, which is determined by the Company's non-executive directors who independently review performance bi-annually with a view to determining, at their absolute and sole discretion, the quantum of the fee payable. Under the terms of the agreement with MM Prop Consultancy Ltd no fees are payable until at the earliest of 30 September 2018, so that the Company's independent non-executive directors have a sufficient amount of time to assess performance.

During FY17, the Company had arrangements in place with Barlin Delivery Limited, a company owned by John Ashley (the brother of Mike Ashley). This arrangement is no longer in place.

STRATEGIC INVESTMENTS

During the period the Group disposed of its remaining 9,920,000 shares in JD Sports Fashion plc and at the year-end held no interest in the company. The total economic interest held in Debenhams plc at the year-end was 16.8% representing the put option and contract for differences. On 5 May 2016 the maturity date of 30 November 2016 of the Put Option put in place on 23 January 2015 referencing 128,927,113 ordinary shares of Debenhams was extended by 12 months. The Group continues to hold an economic interest at the year-end in Goals Soccer Centres plc of 3.84% and Iconix Brand Group Inc. of 11.4%, and during the year acquired 11.2% of French Connection Group plc and 7.9% of Finish Line Inc. The Group no longer holds an economic interest in Dicks Sporting Goods Inc. The Group continues to hold a direct interest in Findel plc representing 29.90% of the issued share capital; MySale Group plc, representing 4.8% of the issued share capital; and, House of Fraser Limited representing 11.11% of the issued share capital.

These stakes allow us to develop a relationship and potential commercial partnerships with the relevant party and assist in building relationships with key suppliers and brands.

The fair value of equity derivative agreements are included within the derivative financial assets balance of £43.0m and derivative financial liabilities balance of £75.2m.

CASH FLOW AND NET DEBT

Net debt increased by £82.4m from £99.7m at 24 April 2016 to £182.1m at 30 April 2017.

The analysis of debt at 30 April 2017 was as follows:

30 April 2017 (£'m)

24 April 2016 (£'m)

Cash and cash equivalents

204.7

234.2

Borrowings

(386.8)

(333.9)

Net debt

(182.1)

(99.7)

The Revolving Credit Facility of £788m is available until September 2018 and is not secured against any of the Group's fixed assets. The Group is currently making appropriate arrangements for post-September 2018.

The Group continues to operate well within its banking covenants and the Board remains comfortable with the Group's available headroom.

CASH FLOW

Total movement is as follows:

30 April 2017 (£'m)

24 April 2016 (£'m)

Underlying EBITDA

272.7

381.4

Realised (loss)/profit on forward foreign exchange contracts

(23.7)

(2.4)

Taxes paid

(75.3)

(69.9)

Underlying free cash flow

173.7

309.1

Invested in:-

Movement in inventory

60.0

(155.4)

Working capital and other

(38.3)

(88.0)

Purchase of own shares

(109.8)

-

Acquisitions (including debt)

(22.6)

(33.1)

Proceeds on disposal of subsidiary

109.5

-

Net proceeds from investments

163.9

92.1

Net capital expenditure

(417.1)

(163.1)

Finance costs and other financing activities

(1.7)

(1.5)

Increase in net debt

(82.4)

(39.9)

The change in working capital is partly to support the growth of Sports Retail and the online business and partly due to the timing of payments around year end.

PENSIONS

The Group operates a defined benefit scheme in Sport Eybl Holding GmbH in Austria. During the year, the Group disposed of the subsidiary that held the Dunlop Slazenger pension scheme. The Group has no remaining contractual obligations in relation to the Pension scheme following the disposal. The net deficit in these schemes therefore decreased from £13.1m at 24 April 2016 to £3.4m at 30 April 2017.

CONSOLIDATED INCOME STATEMENT

For the 53 weeks ended 30 April 2017

53 weeks ended

52 weeks ended

Note

30 April 2017

(£m)

24 April 2016

(£m)

Revenue

1,2

3,245.3

2,904.3

Cost of sales

(1,914.7)

(1,619.7)

Gross profit

1,330.6

1,284.6

Selling, distribution and administrative expenses

(1,255.6)

(1,021.7)

Other operating income

22.5

11.1

Exceptional items

3

(17.3)

(50.8)

Profit on disposal of subsidiary

79.9

-

Operating profit

2

160.1

223.2

Investment income

162.5

148.1

Investment costs

(51.2)

-

Finance income

18.8

3.4

Finance costs

(9.4)

(15.3)

Share of profit of associated undertakings

0.8

2.4

Profit before taxation

281.6

361.8

Taxation

4

(49.9)

(82.8)

Profit for the period

231.7

279.0

ATTRIBUTABLE TO:

Equity holders of the Group

229.9

277.4

Non-controlling interests

1.8

1.6

Profit for the period

231.7

279.0

EARNINGS PER SHARE ATTRIBUTABLE TO THE EQUITY SHAREHOLDERS

Pence per share

Pence per share

Basic earnings per share

5

39.4

46.8

Diluted earnings per share

5

38.3

45.5

Underlying basic earnings per share

5

11.4

35.5

Diluted underlying basic earnings per share

5

11.1

34.5

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 53 weeks ended 30 April 2017

53 weeks ended

52 weeks

ended

Note

30 April 2017 (£m)

24 April 2016 (£m)

Profit for the period

2

231.7

279.0

OTHER COMPREHENSIVE INCOME

ITEMS THAT WILL NOT BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS

Actuarial losses on defined benefit pension schemes

(8.8)

-

Taxation on items recognised in other comprehensive income

1.7

-

ITEMS THAT WILL BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS

Exchange differences on translation of foreign operations

50.3

12.4

Exchange differences on hedged contracts - recognised in the period

(31.3)

(5.7)

Exchange differences on hedged contracts - reclassified and reported in sales

8.7

0.1

Exchange differences on hedged contracts - reclassified and reported in cost of sales

(18.2)

(63.8)

Exchange differences on hedged contracts - taxation taken to reserves

7.7

16.4

Fair value adjustment in respect of available-for-sale financial assets - recognised in the period

23.7

115.3

Fair value adjustment in respect of available-for-sale financial assets - reclassified in the period

(129.3)

(106.2)

Fair value adjustment in respect of available-for-sale financial assets - taxation

(1.8)

(1.8)

Other comprehensive cost for the period, net of tax

(97.3)

(33.3)

Total comprehensive income for the period

134.4

245.7

ATTRIBUTABLE TO:

Equity holders of the Group

132.6

244.1

Non-controlling interest

1.8

1.6

134.4

245.7

The accompanying accounting policies and notes form part of these Financial Statements.

CONSOLIDATED BALANCE SHEET

At 30 April 2017

Note

30 April 2017 (£m)

24 April 2016 (£m)

ASSETS - NON-CURRENT

Property, plant and equipment

842.0

585.9

Investment properties

23.1

-

Intangible assets

185.7

208.6

Investments in associated undertakings

26.4

16.6

Available-for-sale financial assets

63.9

193.4

Deferred tax assets

33.7

43.9

1,174.8

1,048.4

ASSETS - CURRENT

Inventories

629.2

702.2

Trade and other receivables

397.1

292.6

Derivative financial assets

43.0

82.5

Cash and cash equivalents

204.7

234.2

1,274.0

1,311.5

TOTAL ASSETS

2,448.8

2,359.9

EQUITY AND LIABILITIES

Share capital

64.1

64.1

Share premium

874.3

874.3

Treasury shares reserve

(329.5)

(56.2)

Permanent contribution to capital

0.1

0.1

Capital redemption reserve

8.0

8.0

Foreign currency translation reserve

77.1

26.8

Reverse combination reserve

(987.3)

(987.3)

Own share reserve

(33.7)

(33.7)

Hedging reserve

(25.1)

8.0

Retained earnings

1,591.0

1,482.3

Issued capital and reserves attributable to owners of the parent

1,239.0

1,386.4

Non-controlling interests

(0.7)

(1.7)

Total equity

1,238.3

1,384.7

LIABILITIES - NON-CURRENT

Borrowings

6

317.3

333.1

Retirement benefit obligations

3.4

13.1

Deferred tax liabilities

18.7

21.6

Provisions

130.2

66.7

469.6

434.5

LIABILITIES - CURRENT

Derivative financial liabilities

75.2

61.7

Trade and other payables

584.9

426.7

Borrowings

6

69.5

0.8

Current tax liabilities

11.3

51.5

740.9

540.7

Total liabilities

1,210.5

975.2

Total equity and liabilities

2,448.8

2,359.9

CONSOLIDATED CASH FLOW STATEMENT

For the 53 weeks ended 30 April 2017

53 weeks ended

52 weeks ended

Note

30 April 2017 (£m)

24 April 2016 (£m)

Cash inflow from operating activities

7

269.2

135.6

Income taxes paid

(75.3)

(69.9)

Net cash inflow from operating activities

193.9

65.7

CASH FLOW FROM INVESTING ACTIVITIES

Proceeds on disposal of property, plant and equipment

2.4

44.0

Proceeds on disposal of listed investments

190.2

181.3

Proceeds on disposal of subsidiary

109.5

-

Purchase of associate, net of cash acquired

(9.0)

(9.1)

Purchase of subsidiaries, net of cash acquired

(8.1)

(24.0)

Exercise of option over non-controlling interests

(5.5)

-

Purchase of property, plant and equipment

(413.5)

(207.0)

Purchase of investment properties

(6.0)

-

Purchase of intangible assets

-

(0.1)

Purchase of listed investments

(24.7)

(89.2)

Investment income received

0.5

2.8

Finance income received

0.5

3.4

Net cash outflow from investing activities

(163.7)

(97.9)

CASH FLOW FROM FINANCING ACTIVITIES

Finance costs paid

(2.6)

(7.7)

Borrowings drawn down

328.0

267.4

Borrowings repaid

(344.1)

(71.3)

Purchase of own shares

(109.8)

-

Net cash outflow from financing activities

(128.7)

188.4

Net increase / (decrease) in cash and cash equivalents including overdrafts

(98.5)

156.2

Cash and cash equivalents including overdrafts at beginning of period

233.7

77.5

Cash and cash equivalents including overdrafts at the period end

135.2

233.7

The accompanying accounting policies and notes form part of these Financial Statements.

CONSOLIDATED STATEMENT OF CHANGES

IN EQUITY

For the 53 weeks ended 30 April 2017

Treasury

shares

(£m)

Foreign currency

translation

(£m)

Own share

reserve

(£m)

Retained

earnings

(£m)

Other reserves

(£m)

Total attributable

to owners of

parent

(£m)

Non-controlling

interests

(£m)

Total

(£m)

At 26 April 2015

(56.2)

14.4

(13.3)

1,181.5

38.0

1,164.4

(2.8)

1,161.6

Credit to equity for share-based payment

-

-

-

4.2

-

4.2

-

4.2

Vesting of share based payments

-

-

9.0

(9.0)

-

-

-

-

Current tax on share scheme

-

-

-

3.2

-

3.2

-

3.2

Purchase of own shares

-

(29.4)

-

-

(29.4)

-

(29.4)

Non-controlling interests - acquisitions

-

-

-

-

-

-

(0.4)

(0.4)

Transactions with owners

-

-

(20.4)

(1.6)

-

(22.0)

(0.4)

(22.4)

Profit for the financial period

-

-

-

277.4

-

277.4

1.5

278.9

OTHER COMPREHENSIVE INCOME

Cash flow hedges - recognised in the period

-

-

-

-

(5.7)

(5.7)

-

(5.7)

Cash flow hedges - reclassified and reported in sales

-

-

-

-

0.1

0.1

-

0.1

Cash flow hedges - reclassified and reported in cost of sales

-

-

-

-

(63.8)

(63.8)

-

(63.8)

Cash flow hedges - taxation

-

-

-

-

16.3

16.3

-

16.3

Cash flow hedges - prior year taxation reclassified

-

-

-

17.7

(17.7)

-

-

-

Actuarial losses on defined benefit pension schemes

-

-

-

-

-

-

-

-

Fair value adjustment in respect of available-for-sale

financial assets- reclassified

-

-

-

(106.2)

(106.2)

-

-

(106.2)

Fair value adjustment in respect of available-for-sale

financial assets- recognised

-

-

-

115.3

-

115.3

-

115.3

Taxation

-

-

-

(1.8)

-

(1.8)

-

(1.8)

Translation differences - Group

-

12.4

-

-

-

12.4

-

12.4

Total comprehensive income for the period

-

12.4

-

302.4

(70.8)

244.0

1.5

245.5

At 24 April 2016

(56.2)

26.8

(33.7)

1,482.3

(32.8)

1,386.4

(1.7)

1,384.7

Credit to equity for share-based payment

-

-

-

1.9

-

1.9

-

1.9

Deferred tax on share schemes

-

-

-

(1.3)

-

(1.3)

-

(1.3)

Purchase of own shares

(109.8)

-

-

-

-

(109.8)

-

(109.8)

Fair valuation of share buyback

(163.5)

-

-

-

-

(163.5)

-

(163.5)

Non-controlling interests - acquisitions

-

-

-

(7.3)

-

(7.3)

(0.8)

(8.1)

Transactions with owners

(273.3)

-

-

(6.7)

-

(280.0)

(0.8)

(280.8)

Profit for the financial period

-

-

-

229.9

-

229.9

1.8

231.7

OTHER COMPREHENSIVE INCOME

Cash flow hedges - recognised in the period

-

-

-

-

(31.3)

(31.3)

-

(31.3)

Cash flow hedges - reclassified and reported in sales

-

-

-

-

8.7

8.7

-

8.7

Cash flow hedges - reclassified and reported in cost of sales

-

-

-

-

(18.2)

(18.2)

-

(18.2)

Cash flow hedges - taxation

-

-

-

-

7.7

7.7

-

7.7

Actuarial losses on defined benefit pension schemes

-

-

-

(8.8)

-

(8.8)

-

(8.8)

Fair value adjustment in respect of available-for-sale financial assets - recognised

-

-

-

23.7

-

23.7

-

23.7

Fair value adjustment in respect of available-for-sale financial assets - reclassified

-

-

-

(129.3)

-

(129.3)

-

(129.3)

Taxation

-

-

-

(0.1)

-

(0.1)

-

(0.1)

Translation differences - Group

-

50.3

-

-

-

50.3

-

50.3

Total comprehensive income for the period

-

50.3

-

115.4

(33.1)

132.6

1.8

134.4

At 30 April 2017

(329.5)

77.1

(33.7)

1,591.0

(65.9)

1,239.0

(0.7)

1,238.3

1. ACCOUNTING POLICIES

The financial information, which comprises the consolidated income statement, consolidated statement of comprehensive income, consolidated balance sheet, consolidated cash flow statement, consolidated statement of changes in equity and related notes, does not constitute full accounts within the meaning of s435 (1) and (2) of the Companies Act 2006. The auditors have reported on the Group's statutory accounts for the each of the years ended 30 April 2017 and 24 April 2016 which do not contain any statement under s498 of the Companies Act 2006 and are unqualified. The statutory accounts for the year ended 24 April 2016 have been delivered to the Registrar of Companies and the statutory accounts for the year ended 30 April 2017 will be filed with the registrar in due course.

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 Interpretations Committee ('IFRSiC') 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

Management have determined to present its segmental disclosures in a different way to that previously reported. Following our recent interaction with the Conduct Committee of the FRC in relation to this matter, and recognising the potential impact of Brexit on the economic characteristics of the countries we trade in through our European retail operations, and reconsidering the prolonged challenges this business is facing and the impact on long term financial performance expectations this will have, we have now presented our International Sports Retail segment separately from UK Sports Retail. We continue to monitor the impacts of Brexit, and the continued uncertainties this has brought relating to the political and economic environments, and market and currency volatility in the countries we operate in. European countries have been identified as operating segments and have been aggregated into a single operating segment as permitted under IFRS 8. The decision to aggregate these segments was based on the fact that they each have similar economic characteristics, similar long term financial performance expectations, and are similar in each of the following respects:

· The nature of the products

· The type or class of customer for the products; and

· The methods used to distribute the products

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

1. UK Sports Retail - includes the results of the UK retail network of sports stores along with related websites;

2. International Retail - includes the results of the International retail network of sports stores;

3. Premium Lifestyle - includes the results of the premium and lifestyle retail businesses such as USC, Cruise and Flannels; and

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

The comparative information for the period ended 24 April 2016 has been restated.

Information regarding the Group's reportable segments for the 53 weeks ended 30 April 2017, as well as a reconciliation of reported profit for the period to underlying EBITDA, is presented below.

Segmental information for the 53 weeks ended 30 April 2017:

Retail

(£m)

Brands

(£m)

Eliminations

(£m)

Total

(£m)

UK Sports Retail

International Sports Retail

Premium Lifestyle

Total

Sales to external customers

2,136.4

665.6

202.2

3,004.2

241.1

-

3,245.3

Sales to other segments

-

-

-

-

30.1

(30.1)

-

Revenue

2,136.4

665.6

202.2

3,004.2

271.2

(30.1)

3,245.3

Gross profit

879.4

287.3

76.1

1,242.8

87.8

-

1,330.6

Operating profit/(loss) before foreign exchange and exceptional items

166.6

(61.9)

(4.0)

100.7

20.5

-

121.2

Operating profit/(loss)

157.4

(69.2)

(4.2)

84.0

76.1

-

160.1

Net investment income

111.3

Finance income

18.8

Finance costs

(9.4)

Share of profits of associated undertakings

0.8

Profit before taxation

281.6

Taxation

(49.9)

Profit for the period

231.7

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 30 April 2017:

Retail

(£m)

Brands

(£m)

Total

(£m)

UK Sports Retail

International Sports Retail

Premium Lifestyle

Total

Depreciation

94.8

41.2

2.4

138.4

2.2

140.6

Amortisation

1.2

1.1

1.3

3.6

3.7

7.3

Information regarding segment assets and liabilities as at 30 April 2017 and capital expenditure for the 53 weeks then ended:

UK Sports Retail

(£m)

International Sports Retail

(£m)

Premium Lifestyle

(£m)

Brands

(£m)

Eliminations

(£m)

Total

(£m)

Investments in associated undertakings

25.8

0.6

-

-

-

26.4

Other assets

2,194.5

374.1

19.1

357.6

(522.9)

2,422.4

Total assets

2,220.3

374.7

19.1

357.6

(522.9)

2,448.8

Total liabilities

(1,008.6)

(538.6)

(64.5)

(121.7)

522.9

(1,210.5)

Tangible asset additions

399.5

14.6

3.0

2.4

-

419.5

Intangible asset additions

2.3

-

-

5.1

-

7.4

Total capital expenditure

401.8

14.6

3.0

7.5

-

426.9

Segmental information for the 52 weeks ended 24 April 2016:

Brands

(£m)

Eliminations

(£'m)

Total

(£m)

UK Sports Retail

International Sports Retail

Premium Lifestyle

Total

Total

Sales to external customers

2,009.3

482.3

181.2

2,672.8

231.5

-

2,904.3

Sales to other segments

-

-

-

-

40.5

(40.5)

-

Revenue

2,009.3

482.3

181.2

2,672.8

272.0

(40.5)

2,904.3

Gross profit

894.9

216.0

76.2

1,187.1

97.5

-

1,284.6

Operating profit /(loss) before foreign exchange and exceptional items

282.3

(28.6)

(9.7)

244.0

32.3

-

276.3

Operating profit /(loss)

274.9

(52.4)

(23.2)

199.3

23.9

-

223.2

Other investment income

148.1

Finance income

3.4

Finance costs

(15.3)

Share of profits of associated undertakings

2.4

Profit before taxation

361.8

Taxation

(82.8)

Profit for the period

279.0

Other segment items included in the income statement for the 52 weeks ended 24 April 2016:

Retail

(£m)

Brands

(£m)

Total

(£m)

UK Sports Retail

International Sports Retail

Premium Lifestyle

Total

Depreciation

65.4

17.4

4.0

86.8

2.4

89.2

Amortisation

0.8

2.2

0.7

3.7

2.7

6.4

Information regarding segment assets and liabilities as at 24 April 2016 and capital expenditure for the 52 weeks then ended:

UK Sports Retail

(£m)

International Sports Retail

(£m)

Premium Lifestyle

(£m)

Brands

(£m)

Eliminations

(£m)

Total

(£m)

Investments in associated undertakings and joint ventures

16.4

0.2

-

-

-

16.6

Other assets

2,102.5

268.6

24.3

222.8

(275.0)

2,343.2

Total assets

2,119.0

268.8

24.3

222.8

(275.0)

2,359.9

Total liabilities

(795.7)

(314.7)

(64.4)

(75.4)

275.0

(975.2)

Tangible asset additions

188.2

86.6

1.2

0.4

-

276.4

Intangible asset additions

0.1

3.9

-

-

-

4.0

Total capital expenditure

188.3

90.5

1.2

0.4

-

280.4

GEOGRAPHIC INFORMATION

Segmental information for the 53 weeks ended 30 April 2017:

UK

(£m)

Non-UK

(£m)

Eliminations

(£m)

Total

(£m)

Segmental revenue from external customers

2,408.6

836.7

-

3,245.3

Total capital expenditure

410.1

16.8

-

426.9

Non-current segmental assets*

738.9

338.3

-

1,077.2

Total segmental assets

2,350.4

573.6

(475.2)

2,448.8

*Excludes deferred tax and financial instruments.

Segmental information for the 52 weeks ended 24 April 2016:

UK

(£m)

Non-UK

(£m)

Eliminations

(£m)

Total

(£m)

Segmental revenue from external customers

2,281.1

623.2

-

2,904.3

Total capital expenditure

189.6

90.7

-

280.3

Non-current segmental assets*

464.7

346.4

-

811.1

Total segmental assets

2,151.3

439.1

(230.5)

2,359.9

*Excludes deferred tax and financial instruments.

Material non-current segmental assets - by non-UK country

USA

(£m)

Belgium

(£m)

Austria
(£m)

Estonia
(£m)

Ireland
(£m)

FY17

164.2

32.6

64.0

15.2

58.2

FY16

149.4

9.3

62.6

18.3

74.0

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 53 week period ended 30 April 2017:

UK

Sports Retail

(£m)

International Sports Retail

(£m)

Premium Lifestyle

(£m)

Brands

(£m)

Total

(£m)

Operating profit / (loss)

157.4

(69.2)

(4.2)

76.1

160.1

Depreciation

94.8

41.2

2.4

2.2

140.6

Amortisation

1.2

1.1

1.3

3.7

7.3

Share of profit of associated undertakings

0.4

0.4

-

-

0.8

Reported EBITDA

253.8

(26.5)

(0.5)

82.0

308.8

Charges for the share scheme

2.8

-

-

-

2.8

Disposal of subsidiary

-

-

-

(79.9)

(79.9)

Exceptional items

2.9

4.5

0.2

9.7

17.3

Realised FX gain / (loss)

6.2

2.9

-

14.6

23.7

Underlying EBITDA

265.7

(19.1)

(0.3)

26.4

272.7

Reconciliation of operating profit to underlying EBITDA for the 52 week period ended 24 April 2016:

UK

Sports Retail

(£m)

International Sports Retail

(£m)

Premium Lifestyle

(£m)

Brands

(£m)

Total

(£m)

Operating profit / (loss)

274.7

(52.2)

(23.2)

23.9

223.2

Depreciation

65.4

17.4

4.0

2.4

89.2

Amortisation

0.8

2.2

0.6

2.8

6.4

Share of (loss) / profit of associated undertakings

(0.1)

2.5

-

-

2.4

Reported EBITDA

340.8

(30.1)

(18.6)

29.1

321.2

Charges for the share scheme

7.1

-

-

-

7.1

Exceptional items

1.9

25.2

13.7

10.0

50.8

Realised FX (loss) / gain

4.1

-

(0.2)

(1.6)

2.3

Underlying EBITDA

353.9

(4.9)

(5.1)

37.5

381.4

3. EXCEPTIONAL ITEMS

53 weeks ended

52 weeks ended

30 April 2017

(£m)

24 April 2016

(£m)

Profit on sale of freehold property

-

13.5

Impairment

(17.3)

(58.5)

Provision against receivables

-

(5.8)

(17.3)

(50.8)

The impairment mainly relates to a review of the business and the valuation of own brands and goodwill that are no longer considered core brands, in line with the Elevation of Retail management strategy.

4. TAXATION

The effective rate of 17.7% reflected income that is not deductible for tax purposes in the period. Non-taxable income includes disposal of subsidiaries and investments that qualify for Substantial Shareholder Relief. Prior period adjustments include income that is now considered to qualify for substantial shareholder relief, and a reduction in deferred tax assets for overseas losses no longer considered recoverable. Expenses not deductible for tax purposes include non-qualifying depreciation and goodwill impairments.

5. 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, 583,501,473 (2016: 592,573,254), is adjusted to assume conversion of all dilutive potential ordinary shares under the Group's Share Schemes, being 16,667,000 (2016: 17,667,000), to give the diluted weighted average number of shares of 600,168,473 (2016: 610,240,254).

BASIC AND DILUTED EARNINGS PER SHARE

53 weeks ended

52 weeks ended

30 April 2017

Basic

(£m)

30 April 2017

Diluted

(£m)

24 April 2016

Basic

(£m)

24 April 2016

Diluted

(£m)

Profit for the period

229.9

229.9

277.4

277.4

Number in thousands

Number in thousands

Weighted average number of shares

583,501

600,168

592,573

610,240

Pence per share

Pence per share

Earnings per share

39.4

38.3

46.8

45.5

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. Tax has been calculated with reference to the effective rate of tax for the Group.

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.

53 weeks ended

52 weeks ended

30 April 2017

Basic

(£m)

30 April 2017

Diluted

(£m)

24 April 2016

Basic

(£m)

24 April 2016

Diluted

(£m)

Profit for the period

229.9

229.9

277.4

277.4

Post tax adjustments to profit for the period for the following non-trading items:

Realised loss on forward exchange contracts

18.5

18.5

1.8

1.8

Fair value adjustment to forward foreign exchange contracts

(14.3)

(14.3)

5.2

5.2

Fair value adjustment to derivative financial instruments

24.0

24.0

(8.4)

(8.4)

Profit on disposal of listed investments

(141.5)

(141.5)

(104.5)

(104.5)

Impairment of fixed assets

-

-

4.4

4.4

Profit on disposal of property

-

-

(10.4)

(10.4)

Profit on disposal of subsidiary

(79.9)

(79.9)

Impairment

17.3

17.3

45.1

45.1

Write off of deferred tax assets

12.5

12.5

-

-

Underlying profit for the period

66.5

66.5

210.6

210.6

Number in thousands

Number in thousands

Weighted average number of shares

583,501

600,168

592,573

610,240

Pence per share

Pence per share

Underlying earnings per share

11.4

11.1

35.5

34.5

6. BORROWINGS

30 April 2017

(£m)

24 April 2016

(£m)

NON-CURRENT:

Bank and other loans

317.3

333.1

CURRENT:

Bank overdrafts

69.5

0.5

Bank and other loans

-

0.3

69.5

0.8

TOTAL BORROWINGS:

Bank overdrafts

69.5

0.5

Bank and other loans

317.3

333.4

386.8

333.9

An analysis of the Group's total borrowings other than bank overdrafts is as follows:

30 April 2017

(£m)

24 April 2016

(£m)

Borrowings - Sterling

310.0

320.0

Borrowings - Other

7.3

13.4

317.3

333.4

Loans are currently at a rate of interest of 1.15% over the interbank rate of the country within which the borrowing entity resides.

The Group's Working Capital Facility is at £788m (FY16: £788m). The facility is available until September 2018 and is not secured against any of the Group's fixed assets. The overdraft is part of a Group cash pooling arrangement. 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 30 April 2017 was £182.1m (24 April 2016: £99.7m).

7. CASH INFLOW FROM OPERATING ACTIVITIES

53 weeks ended

52 weeks ended

30 April 2017

(£m)

24 April 2016

(£m)

Profit before taxation

281.6

361.8

Net finance (income)/costs

(9.4)

11.9

Investment income

(111.3)

(148.1)

Share of profits of associated undertakings

(0.8)

(2.4)

Operating profit

160.1

223.2

Depreciation

140.6

89.2

Amortisation

7.3

6.4

Impairment

17.3

58.5

Profit on disposal of property, plant & equipment

1.8

(13.5)

Profit on disposal of subsidiary

(79.9)

-

Defined benefit pension plan employer contributions

(2.4)

(2.7)

Share-based payments

2.8

7.1

Operating cash inflow before changes in working capital

247.6

368.2

Increase in receivables

(118.0)

(97.0)

Decrease / (increase) in inventories

60.0

(155.4)

Increase in payables

79.6

19.8

Cash inflows from operating activities

269.2

135.6

8. POST BALANCE SHEET EVENTS

On 21 April 2017, the Group announced that it has approval to acquire certain assets of Eastern Outfitters LLC, comprising the businesses of Bob's Stores and Eastern Mountain Sports pursuant to a s.363 sale process, following the filing by Eastern Outfitters LLC (the parent company of Bob's Stores and Eastern Mountain Stores) under Chapter 11 in the US. The businesses to be acquired include (following closures) approximately 50 retail stores in the US under the Bob's Stores and Eastern Mountain Stores fascias selling predominantly sports and casual wear, and outdoor and camping equipment and clothing. The acquisition subsequently completed on 18 May 2017.

The Company announced on 28 April 2017 that it has instructed Citigroup Global Markets Limited in relation to an irrevocable non-discretionary share buyback programme to purchase the Company's shares during the closed period commencing on 30 April 2017 and ending on 20 July 2017. In line with IAS32 the Company recognised the full redemption amount of £163.5m which is considered to be immaterially different to the present value at year end. If the contract expires without full delivery, the amount of the financial liability attributable to the undelivered shares is reclassified to equity reversing the original recognition. As at 18 July 2017, £94.1m of shares have been repurchased under the closed period share buyback program.

On 13 July 2017 the Group announced that it has acquired 44m shares in GAME Digital plc, equivalent to a 25.75% of the share capital of the Group.

The Group acquired material strategic stakes directly and/or indirectly through derivative financial instruments and/or physical share purchases - as at 19 July 2017 the Group holds the following material stakes:

· Debenhams plc 18.22%;

· Iconix Brand Group plc 13.25%

· Finish Line Inc 37.05%

Sports Direct International plc published this content on 20 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 July 2017 06:13:13 UTC.

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