Record profits for Sports Direct

A record-breaking profits haul from retailer Sports Direct International ensured more bonus cheer for thousands of shop workers ahead of a bumper share windfall set to pay out next month.

The Sportsworld empire, controlled by Newcastle United owner Mike Ashley, reported a 40 per cent leap in pre-tax profits to £207.2m for the year to April 28 and underlying earnings jumped 22.1 per cent higher to £287.9m, clearing another hurdle under a 2011 four-year share incentive bonus scheme for around 3,000 staff.

The group is halfway through the scheme, which comes on top of a lucrative bonus plan from 2009 set to pay out thousands of shares for each eligible employee next month.

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For an employee earning a salary of £20,000 a year in 2009, next month’s payout will see them pick up 12,000 shares - worth more than £68,000.

More than 2,000 of Sports Direct’s 23,000-strong workforce will land share bonuses under the August payout.

But the group revealed today it has decided to scrap plans to resurrect the contentious “super-strench” bonus plan for founder Mr Ashley and will review “various options” ahead of its annual general meeting in September.

The previous scheme, which would have delivered a potential £26m payout, was withdrawn last summer after investors threatened to reject it in a shareholder vote.

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Sports Direct’s profit hike comes after like-for-like sales raced 11.2 per cent higher over the past financial year as the group strengthened its grip on the market following the collapse of rival JJB.

It added that trading since the year-end has remained strong and ahead of management expectations for the first quarter.

Dave Forsey, chief executive of Sports Direct, said it was a “record-breaking year for the group and for British sport”.