Ashley: Sports Direct will bounce back in new year

Ashley, founder of Sports Direct, said that this year the retailer has “suffered three train wrecks”. He said: “The first was the weather, the second was England’s defeat and the third is the tough Christmas trading.”

Ashley said these three factors caused the slump in profits this year, but he added that 2008 will be better because he “can’t imagine it could get any worse for us”.

For the 26 weeks to October 28, Sports Direct’s pre-tax profit plummeted 35.2 per cent to£52 million and group revenue fell 7.1 per cent to£668.1 million.

Ashley, who has courted controversy among investors since the company was taken public in February, said his relationship with the City is getting a lot better. He said it was a “baptism of fire” at first, but that the City is starting to get a better understanding of the retailer. Sports Direct has opened a London office, which Ashley will work from a couple of days a week to make him “more accessible to the City”.

Despite speculation that Ashley would name himself as chairman, the company has still not appointed anyone to the role. Acting chairman Simon Bentley said the board is in good shape at the moment and an appointment won’t be rushed.

Ashley’s stakebuilding in Sports Direct has also led to rumours that he will soon take the company private again. However, he denied the speculation and said: “I wanted to give a date of March 2009 before I think about taking the company private again to reassure people it wouldn’t be soon, but I was advised against putting a definitive date on it.”

Mike Ashley explains the numbers

“This year we have suffered three train wrecks – the first was the weather, the second was England’s defeat and the third is the tough Christmas trading. So you could say I have a broken nose, a broken arm and a broken leg and I’m still getting on the train and will still get to my destination.”

“I have never regretted taking the company public. It was a baptism of fire, but it can’t get any worse.”

“Nike is buying Umbro because it wants to be the number one in football. I’m not sure what the real driver is behind the deal, but they know the best way to own the England team is to buy Umbro.”

“I have no intention to take the company private at the moment”

“I’m not going to buy an England away shirt if they aren’t in the World Cup and I have every England shirt. I guarantee that England will qualify for the next World Cup”