JD Sports lifts dividend after full-year profits exceed £100m

Sportswear retailer JD Sports Fashion says it will increase its dividend after reporting full-year profits of more than £100m for the first time last year, lifting the group's share price almost 5.5 per cent.

The group, which trades from almost 850 stores primarily in the UK, Ireland and mainland Europe, said its strong relationship with suppliers such as Nike and Adidas had helped it take advantage of the rising popularity of sporty footwear.

"We have the privilege of receiving exclusive products and first releases from the major brands," said Peter Cowgill, executive chairman.

Pre-tax profits, excluding £9.5m of one-off property and goodwill losses, rose 22 per cent to just over £100m for the 52 weeks to February 1, as the retailer continued its expansion into mainland Europe by opening 15 stores.

In addition to the UK and Ireland, JD trades in Spain, Germany, France, the Netherlands and, most recently, Italy. It also has small operations as far afield as Canada, Dubai and Hong Kong. Overall revenues rose 25 per cent to £1.52bn, with like-for-like sales growth of 12 per cent across its divisions.

Mr Cowgill said the retailer would continue to expand "on a cautious basis" and that it would open between 15 and 20 stores in the financial year, with the majority in mainland Europe.

"We're a low-risk operator," he added. The shares jumped almost 5.5 per cent to 537.34p by afternoon trading in London, as the company said it would increase its final dividend 4.2 per cent to 5.9p, bringing the total dividend to 7.05p, up 4.1 per cent.

Blacks and Millets, the outdoor businesses it acquired in 2012, continued to lose money but at a reduced rate, with operating losses down £3.1m to £4.9m.

The group also made a £6.3m loss on the sale of Bank Fashion in November to Hilco Capital, which subsequently put the retailer into administration. Mr Cowgill said he was committed to turning round the remaining businesses in the group.

Mark Photiades, analyst at Canaccord Genuity, said although Blacks and Millets were unlikely to break even until 2017, the group had built "a solid, well-invested and scalable platform" for growth.

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