Sports Direct has credited a “back to basics” strategy with a rise in first-half profits and said it will meet full-year profit forecasts.

The store group, controlled by controversial founder Mike Ashley, posted a 3 per cent rise in underlying interim pre-tax profit to£51.8 million on sales up 2.9 per cent to£687.7 million. Underlying EBITDA was up 7.4 per cent to£89.8 million.

Chief executive Dave Forsey said the figures, delivered despite tough trading conditions, “reflect the resilience of our flexible business model and the focused approach towards the core principles of retailing”.

He intends to concentrate on factors such as product offer, supply chain efficiencies and cost control and “ensure we are best placed for a market recovery when it happens”.

Forsey said Sports Direct is “comfortable” with full-year underlying EBITDA expectations of£135 million.

Seymour Pierce analyst Freddie George said: “The company’s strategy appears to be working, as evidenced by robust UK figures only marginally down against the previous year.

“There appears to be a greater focus on the debt, which rose slightly in the half but should be down over the year, and there is an objective of improving the value of the company’s broad stable of brands.”

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