Mike Ashley forced to slash profits forecast for Sports Direct after failing to buy up House of Fraser

By City & Finance Reporter for the Daily Mail

Published: 16:21 EST, 16 July 2015 | Updated: 16:27 EST, 16 July 2015

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Failing to buy department store group House of Fraser has forced Mike Ashley’s Sports Direct International to cut its profit forecasts for next year.

The sportswear chain posted a bumper 21 per cent rise in pre-tax profit to £300million for the year to April 26.

But a failure to make more acquisitions means it could miss previously set targets.

The sportswear chain posted a bumper 21 per cent rise in pre-tax profit to £300m for the year to April 26 with a 5.5pc rise in sport sales from its shops. Total sales rose 4.7pc to £2.83bn.

The target for its lucrative bonus scheme for 2016 will now be reduced to £420million from £480million.

Despite missing out on buying up other businesses, chief executive Dave Forsey said he will continue to look at other opportunities.

The strong results allowed the sports giant to pay staff a share of a £37million windfall.

Forsey, Sports Direct’s head of retail Karen Byers and head of buying Sean Nevitt will receive around 1 million shares each in 2017 – valued at more than £7million at yesterday’s share price.

Permanent staff will get a bonus of £18,000 in shares this September and £54,000 in 2017.

But staff on casual contracts – around 90 per cent of its UK workforce – will miss out on the pay-out. Shares rose 2p to 736.5p.