Pre-tax profits have tumbled by almost £80m at the company owned by Mike Ashley to control his shares in Newcastle United, Sports Direct and a host of other business ventures.
Accounts for Mike Ashley’s private company MASH Holdings have been published in Companies House for the period ending April 29 2018, showing how pre-tax profits plummeted from £102.5m to £20.8m.
The accounts, which draw together all the business interests of the billionaire owner of Sports Direct and Newcastle United, highlight how the previous year’s bottom line included exceptional profit made on the sale of shares in JD Sports and Dunlop.
Mr Ashley’s overall turnover jumped 5.2% from £3.34bn to £3.51bn, and operating profit more than doubled, soaring from £79.5m to £165.5m.
Overall, he reported a comprehensive loss for the period of £24.4m, down from comprehensive income for the previous year of £93.2m.
The accounts list the firm’s many acquisitions over the year, including Evans Cycles, which was bought out of administration for £8.8m a year ago.
And on June 21 – the same day that Sports Direct completed the sale and leaseback of the firm’s Shirebrook HQ in a £120m deal – the firm snapped up Sofa.com limited and its subsidiaries for just £1, following approval from the FCA.
Days later on July 8 the Sports Direct group gained control of Game Digital, and in August the firm ceased to be listed on the London Stock Exchange.
A month later, Sports Direct took over ailing fashion firm Jack Wills, and the retail empire’s most recent deal added Brookfield Shopping Centre to its growing property portfolio on October 15 as part of a £25.4m deal
The report also highlights how Mash Holdings’ 29.7% shareholding in Debenhams – worth £85m – was written down to nil after the department store chain went into administration on April 9 this year.
Looking ahead, Mr Ashley suggests his retail spending spree is far from over, saying that the group is continuing to seek out profitable investments and development projects.
“The overall strength of our business model means that we are very well positioned for these challenges and targets.”
Mike Ashley
The report within the accounts says that Sports Direct - which is a separate London Stock Exchange listed firm – has been, since the year end, trading in line with expectations and that it would be “driven by improvements in product range and availability, optimisation of both our in-store and web offerings, the increase of Click and Collect in the Ƶ and further investment in our store portfolio.”
Mr Ashley also noted that Newcastle United “will have challenges to face as it looks to remain in the Premier League subsequent to the 2019/2020.”
