Direct Golf has reported a drop in full-year sales and profits, but says it is on track for a record performance in its current financial year.
- Full-year pre-tax profits slide 48.5%
- Sales fall 12.7% to £20.8m
- Consecutive sales growth over the past 10 months
- Improvement comes after Sports Direct took stake in business
The Huddersfield-based golf retailer, which is part-owned by Mike Ashley’s Sports Direct, said for the 10 months to June it has recorded consecutive year-on-year sales growth. Sales are up 25% for the year.
However, in its last full financial year to the end of September 2014, the group reported pre-tax profits fell 48.5% to £329,003. Sales in the period slid 12.7% to £20.8m.
In a Companies House filing, Direct Golf said it has “reinvested substantially to improve the customer experience”, including new apparel and footwear departments.
The retailer, which has 21 UK stores and an ecommerce business, said it had significantly cut overheads and “streamlined” its operations.
It plans to have 40 stores by 2018, with at least one more new shop due to open in 2015. It opened its southern-most outlet in Southampton earlier this year.
Last September, Sports Direct took an undisclosed stake in the golf retailer. However, Direct Golf owner and founder, John Andrew, a PGA professional, retained majority ownership.
Rival American Golf last month reported a half-year pre-tax loss of almost a million pounds after it felt the impact of restructuring costs.