Dave Forsey Chief Executive 19 July 2012 - Sports Direct International

24 / THE BUSINESS REVIEW
Chief Executive’s Report
International Retail
International Retail sales were up 16.6% to £154.2m (2011: £132.3m). On a currency
neutral basis, the increase was 15.5%.
International Retail gross margin decreased in the 52 week year by
10 basis points to 43.4%. International Retail 52 week
like-for-like stores gross contribution figure increased by 0.1%
during the year (2011: 8.6%). There were 46 stores included in this
metric, consisting of core stores that have been open for the full 12
months in both periods, adjusted for the 53 week year.
Operating costs within International Retail increased by 22.2% to
£55.5m (2011: £45.4m) due to the increased store numbers and a
corresponding 15% increase in floor space.
As expected, the second half of the year was much improved on
the same period in the previous year; EBITDA in the second half of
financial year 2012 was 61% higher at £3.7m (2011: £2.3m).
Current Presence
Territory Targets
Excluding income from associates (Heatons), International Retail
underlying EBITDA reduced by 5.7% to £11.5m (2011: £12.2m).
This reduction, along with a £1.4m decrease in income from
associates, resulted in a decrease in underlying EBITDA of 16.4%
to £10.8m (2011: £12.9m).
The Group has a 50% shareholding in the Heatons chain which
operates 13 Sports Direct stores in Northern Ireland and 26 sports
stores in the Republic of Ireland. Since the year end we have
opened a new store in Iceland with a joint venture partner.