Sports Direct, the group controlled by controversial tycoon Mike Ashley, pleased the City with a better than expected first half.
Underlying profit before tax was up 3 per cent to£51.8 million and underlying EBITDA climbed 7.4 per cent to£89.8 million on sales up 2.9 per cent to£687.7 million.
The retailer said the resilient performance was testament to its “flexible business model and focused approach towards the core principles of retailing”.
Citi stuck to its sell stance but conceded: “With the prospect of capacity withdrawal from independents exiting the market and JJB divesting stores, Sports Direct offers the prospect of market share gains.”
Investec, also retaining sell, observed: “Despite big capex reductions which look unsustainable, the cash position continues to deteriorate and the interim dividend has been cut from 2.1p to 1.2p.”
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