Shares in Newcastle United owner Mike Ashley’s Sports Direct International (LON:SPD) shot up as it said results will be ahead of market expectations.
The UK's leading sports retailer said underlying earnings before tax, interest, depreciation and amortisation (EBIDTA) for the year just ended totalled £380mln, in line with forecasts, while underlying pre-tax profits and earnings per share (EPS) were ahead of expectations.
The company cited continued and prudent depreciation policy and lower interest charges as the main reasons for the improvements.
Broker Liberum said it has not changed its forecast of £300mln pre-tax profits and EPS of 37.6p, which it says is “comfortably ahead of the current consensus of £288mln and 36p”.
The broker said: “The shares have been weak performers, down 7% year-to-date against a strong retail market, so should outperform on today's announcement.”
Meanwhile, stockbroker Cantor said the unscheduled report “gives little detail on recent trading” and has decided to reiterate its ‘hold’ rating on the stock.
Shares climbed 4.15% to 685p today making it the biggest gainer on the FTSE 100 index.