04 sports direct at a glance
the business review 
17 chairman’s statement
18 chief executive’s report
32 financial review
 
management  governance
36 the board
38 directors’ report
41 corporate governance report
47 directors’ remuneration report
51 directors’ responsibilities statement
52 corporate responsibility report
 
financial statements  notes
56 independent auditor’s report to the  
members of sports direct international plc
57 consolidated income statement
58 consolidated statement of  
comprehensive income
59 consolidated balance sheet
60 consolidated cash flow statement
61 consolidated statement of changes in equity
62 notes to the financial statements
93 independent auditor’s report to the  
members of sports direct international plc
94 company balance sheet
95 notes to the company financial statements
97 consolidated five year record
 
additional information
98 shareholder information 
contents “201213 was a recordbreaking year for the group 
and for british sport we are pleased that both 
have continued to be successful this year and that 
our strategy of being the consumers’ champion 
continues to reap rewards
“our colleagues have worked hard throughout the year and as a result  
we have exceeded the second underlying ebitda target of £250m set 
under the 2011 employee bonus share scheme and the stretch target of 
£270m this means the group has successfully met the first two targets 
while there remain two more years to go under the 2011 employee bonus 
share scheme 
“there is no doubt that the group’s recordbreaking results were in the 
large part down to our colleagues and their hard work the employee 
bonus share schemes have continued to drive this performance and  
we are pleased that eligible employees will be rewarded in august as the 
second and final part of the 2009 employee bonus share scheme vests
“trading since the period end has remained strong and is ahead of 
management’s expectations for the first quarter whilst 2013 is a  
nontournament year there is no doubt that our compelling offer of 
exceptional quality and unbeatable value continues to resonate well  
with our customers”
dave forsey 
chief executive 
 
18 july 2013 group revenue
£2186m  
up 209
underlying ebitda
£2879m  
up 221
reported profit before tax
£2072m  
up 400
reported earnings per share
2664p 
up 461
• strong growth in online revenue of 521  now  
representing 150 of total sports r etail sales fy12 116
• underlying free cash generation of £2456m
• accelerated european expansion including post year end 
acquisitions in austria and the baltic region
• investment in inventory and strategic acquisitions while 
maintaining a strong balance sheet
• shirebrook national distribution centre phase 2 completed 
however further enhancements underway
• first part of 2009 employee bonus share scheme vested in 
august 2012
•  second and final part of 2009 employee bonus share 
scheme vesting in august 2013
key highlights who we are
sports direct is the uk’s leading sports retailer by revenue and 
operating profit and the owner of a significant number of  
worldfamous sport fashion and lifestyle brands
w e provide a full multichannel approach to the uk and european r etail markets our strategy includes identifying 
opportunities for improvement through instore specialist collaborations and acquisitions developing 
online opportunities and leveraging the sportsdirect com fascia 
the group continues to enhance its store portfolio and now operates 
out of over 500 stores in the uk and internationally the group operates through four strategic business segments uk sports retail 
international retail premium lifestyle and brands
sports direct at a glance
uk sports retail
£1575m 75 of total revenue
the group’s uk stores other than field  t rek supply a wide range of competitively priced sports and 
leisure equipment clothing footwear and accessories under a mix of brands w e stock thirdparty 
brands including adidas nike r eebok and puma groupowned brands include dunlop slazenger and 
lonsdale w e also sell licensedin brands
as at 28 april 2013 uk sports r etail operated out of 396 stores in the united kingdom excluding 
northern ireland the majority of stores trade under the sportsdirect com fascia although field  
trek stores trade under their own fascia
w e have continued to develop our specialised instore areas with a substantial unitary rollout for our 
dunlop and everlast brands our sherunsheruns areas also benefited from a rollout of the karrimor 
running footwear zone featuring an integrated product information and selection panel
international retail
£185m  
9 of total revenue
the group’s extensive interests outside the uk include wholly 
owned retail outlets joint ventures with other retailers and 
stores within another retailer’s store during the year as 
part of the accelerated growth programme in our european 
subsidiary we opened 19 new stores in europe and entered 
four new countries including a new store in iceland with a 
joint venture partner and wholly owned stores in slovakia 
hungary and the czech r epublic our strategy remains to 
identify partners in new territories while continuing to expand 
our operations in the countries where we currently trade
premium lifestyle
£128m  
6 of total revenue
during the year we have continued our expansion of the 
premium lifestyle division in july 2012 we purchased the 
flannels group and in february 2013 114 stores and certain 
assets were acquired from the administrators of the fashion 
retailer r epublic both acquisitions expand the breadth of our 
premium offering post year end we have also acquired the 
remaining 20 stake in cruise clothing limited
brands
£209m  
10 of total revenue
the group’s portfolio includes a wide variety of worldfamous 
sport fashion and lifestyle brands the group’s r etail division 
sells products under these group brands in its stores and the 
brands division exploits the brands through its wholesale  
and licensing businesses
the brands division continues to sponsor a variety of 
prestigious events and retains a base of globallyrecognised 
highprofile sportsmen and women
sports direct plc annual report 2013
4  identify brand acquisitions and property enhancement
invest store portfolio and employees
develop w ebsite and mcommerce enhanced product ranges
promote groupowned brands
achieve targets and group success
the group’s
key principles
our business model
our business model is focused on longterm sustainable growth whilst the central focus remains on growing and developing the 
core uk r etail business development of our brands and international r etail are also key priorities our offering has developed further 
in specialist sports categories and more fashionbased retailing w e are constantly refurbishing and upgrading our stores in order 
to provide our customers with a compelling consumer experience the continued development of our dedicated specialist areas and 
ongoing collaboration with nike adidas and p uma on instore concepts are further examples of this
acquisitions and strategic investments in related businesses are an important 
part of our strategy opportunities to develop into new product categories or 
markets or to strengthen our position in existing areas will continue to be 
considered on a case by case basis
w e aim to maintain our position as the market leader in the uk sports r etail 
sector the business model provides guidance for the group to implement an 
effective growth strategy to maintain and develop the success achieved so far 
it compares our recent successes with our future ambitions in order that we can 
assess how to progress in the future
the group has significant momentum and we must ensure that our product 
offering and customer proposition continue to grow and develop in order to retain 
our current customer base and to attract more customers in the future 
developing brand awareness is a key factor in ensuring a sustainable future and 
the appropriate level of investment in advertising and technology is an important 
component towards achieving this 
our international presence continues to grow through over 300 brand licensing 
partners our online presence and ongoing european store openings the group’s 
appointment of internationally recognised celebrities and sporting professionals 
as key ambassadors also promotes our brands endorsement on a global basis 
5 group brands
sports  leisure  lee westwood endorses dunlop clothing only 
lee westwood 
dunlop brand ambassador   carl froch
ibf and wba supermiddleweight champion
lonsdale brand ambassador  carl froch
ibf and wba supermiddleweight champion
lonsdale brand ambassador group brands
f ashion  lifestyle   chairman’s statement
i am pleased to announce that the group has continued to perform strongly both operationally and financially  
the rate of growth has increased across the business with revenue and ebitda growing impressively 
the group has delivered strong cash generation and our balance sheet remains 
solid our position as the consumers’ champion offering an unmatched range 
of products at the best available prices is now reaching more countries as we 
continue to expand internationally
w e are constantly looking for new ways of improving our business w e invest 
heavily in staff training to help them achieve their full potential our inhouse 
programmes have continued in conjunction with our key partners nike adidas 
and puma w e focus on both shop floorbased and classroom activities 
they include key elements of professionalism such as product knowledge 
communication leadership and decision making the integration of a bespoke 
online training platform to provide new starters with a thorough induction to the 
business is one example of innovative training techniques deployed throughout 
the group
w e are pleased that construction and integration of the phase 2 extension to 
the shirebrook distribution centre has been completed and the extension to 
the sportsdirectcom store at shirebrook is now underway and completion is 
scheduled for later in 2013 
our p remium lifestyle division is continuing to grow through acquisitions  
such as the flannels group in july 2012 and r epublic in february 2013  
w e continue to nurture this division and are already seeing increases in sales 
from earlier acquisitions
the board’s aim to expand further into europe has been a key strategic driver  
for a number of years which has proved extremely successful since the start  
of fy13 we have organically grown our store portfolio in europe by 19 new 
stores and entered four new countries in conjunction with the acquisitions 
recently announced in austria and the baltics we are now active in 19  
european countries
international r etail revenue grew 201 in the year and we have continued 
our international growth by opening stores in poland and spain during the first 
quarter of fy14
the introduction of the sportsdirectcom website platform in 2006 provided the 
group with another route to market and means of serving our customers w e 
have continued to invest in this platform and the benefits are now clearly being 
recognised online sales have increased from 116 of our total sports r etail 
revenue in fy12 to 150 in fy13
our online offering provides an excellent opportunity to expand the range and 
value of products available to our customers reinforcing our position as the 
consumers’ champion by delivering exceptional quality at unbeatable value  
w e have a dedicated web team who run the website marketing to our 
customers with promotions and campaigns to encourage sales promotions  
such as daily deals have proved successful and we will continue to invest time 
and resources in further developing our multichannel offering
employee bonus share scheme 
i am delighted to report that the second and final part of the 2009 employee 
bonus share scheme will vest to our valued employees in august 2013 
i hope that all the employees who have contributed towards the group’s 
performance will enjoy their wellearned bonuses due to their hard work and 
dedication the group continues to perform so strongly the financial rewards 
have already made a huge difference to so many employees with over 2000 
colleagues eligible for the second award it remains a key part of our employee 
incentivisation and remuneration strategy
the group is well on its way to achieving the targets set under the 2011 
employee bonus share scheme with the fy12 and fy13 underlying ebitda 
targets successfully achieved although there are a further two targets to be 
met i am delighted by the progress to date
the 2011 employee bonus share scheme has the following targets for group 
underlying ebitda before scheme costs
fy12 fy13 fy14 fy15 
£215m £250m £260m £300m
achieved achieved
i have no doubt this scheme will run as successfully as the 2009 employee 
bonus share scheme ensuring that our staff remain incentivised
super stretch internal targets 
the board has decided not to propose the super stretch executive bonus share 
scheme “super stretch scheme” for mike ashley the company’s executive 
deputy chairman at the upcoming annual general meeting the board will 
continue to focus on the superstretch underlying ebitda before schemes 
costs targets of £310m for fy14 and £360m for fy15 and these will remain 
internal targets going forward however the board has decided to review various 
options with regard to remunerating mike ashley in light of the passage of time 
since first considering this scheme
pension scheme 
the enrolment of our employees into the government’s autoenrolment pension 
scheme took place in may 2013 
the scheme is administered by the p eople’s pension and is available to all 
employees who are deemed eligible under the government’s criteria  
the group is committed to meeting the targets of a 1 contribution in 2013 
a 2 contribution in 2017 and a 3 contribution in 2018 w e also contribute 
towards a number of workplace pensions in relation to companies which we 
have acquired 
dividend 
the board has decided not to propose a dividend in respect to fy13 the  
board feels that it remains in the best interests of the company and its 
shareholders to maintain financial and strategic flexibility including pursuit 
of potential acquisition opportunities and ongoing investment in group 
infrastructure and store portfolio the payment of dividends will remain under 
review for consideration in future years
conclusion 
finally on behalf of myself and the board i would like to thank all of our 
employees for their substantial contribution during the year
keith hellawell 
nonexecutive chairman 
18 july 2013
17
the business review management  governance financial statements  notes additional information group
the financial y ear ended 28 april 2013 “the year” was a 52week year in order 
to make a comparison to the previous period which was a 53week year all 
references to financial performance in respect of the income statement cash 
flow and business reviews are made by reference to a proforma 2012 52week 
basis unless otherwise specified
for the y ear we increased group revenue by 209 to £2186m this was 
primarily due to the r etail division where we grew revenues by 227 including 
a 176 growth in total sports r etail coupled with the premium lifestyle 
division which contributed revenues of £128m
group gross margin in the year increased by 40 basis points from 405 to 
409 total sports r etail division gross margin increased by 20 basis points to 
414 fy12 412 while brands division gross margin increased to 449 
fy12 412
group operating costs increased 225 to £6079m fy12 £4962m sports 
r etail and brands division operating costs were £4910m fy12 £4000m and 
£666m fy12 £588m respectively
overview of financial performance 
i am pleased to report a further year of strong profit growth for sports direct the results for the year have benefited from the uefa 
european championships and the london olympics but have been achieved in a retail environment that remains challenging  
the group has grown consistently and the resilience and flexibility of our business model continues to allow us to offer an 
unparalleled product range at the best available prices w e will continue to be the consumers’ champion
56 new sports r etail stores opened during the year in the uk and europe with 
the group continuing to put the consumer at the forefront of our business by 
offering the best combination of product range and value for money whilst we 
are the clear market leader in the uk sports r etail sector we are also pleased to 
have broadened our customer base in new areas such as lifestyle and f ashion 
and built on our strong retail infrastructure and systems
our p remium lifestyle division has continued to expand having acquired 114 
r epublic stores from the administrator in february 2013 the division offers its 
customers an enhanced shopping experience following the previous acquisition 
of companies including usc flannels cruise and v an mildert
following the success of our 2009 employee bonus share scheme the group 
launched a new fouryear scheme in 2011 covering the period fy12 to fy15 
with challenging underlying ebitda targets of £215m £250m £260m and 
£300m respectively w e are delighted to inform you that both the first and 
the second of these targets have been achieved and we would like to take 
this opportunity to thank our colleagues for their outstanding contributions 
over the past year there is no doubt that the schemes continue to be a major 
contributing factor in improving the group’s staff retention those employees 
that were involved in the 2009 scheme received their first share rewards in 
august 2012 and we are pleased that august 2013 will see the second part of 
the 2009 bonus share scheme vest and we look forward to seeing our fellow 
colleagues wellrewarded for their efforts
chief executive’s report  business review
dave forsey  chief executive
group revenue 209
april 13 £21856m
april 12 £1807m
£1599m
£1451m
£1367m
april 11
april 10
april 09
underlying ebitda 222
april 13 £2879m
april 12 £2357m
£2110m
£1604m
£1368m
april 11
april 10
april 09
sports direct plc annual report 2013
18  r eflecting the success of our approach – balancing revenues and gross margin 
while maintaining a tight focus on operating costs – we grew group underlying 
ebitda prescheme costs for the year by 221 to £2879m fy12 £2357m 
within this underlying ebitda  we increased the total r etail division ebitda by 
238 to £2609m fy12 £2107m while the brands division ebitda increased 
by 80 to £270m fy12 £250m
excluded from underlying ebitda is a £221m fy12 £207m charge in  
respect of the 2009 and 2011 employee bonus share schemes and the 
executive bonus share schemes this charge has been taken centrally and 
except in note 4 to the accounts is not reflected in divisional r etail and brands 
numbers in this report 
for the y ear group underlying profit before tax increased 396 to £2081m 
primarily as a result of the £522m increase in prescheme costs ebitda 
and £99m decrease in depreciation and amortisation offset by the £14m 
increase in employee bonus share scheme charges underlying eps for the year 
increased by 433 to 2685p fy12 1874p 
net debt at 28 april 2013 was £1540m 29 april 2012 £1452m which is 058 
times reported ebitda  r eported ebitda includes realised foreign exchange 
gainslosses in selling and administration costs and the employee bonus share 
scheme charges
key performance indicators
the board monitors the performance of the group by reference to a number of key performance indicators kpis which are discussed in this chief executive’s r eport 
and also in the financial r eview the most important of these kpis are
52 weeks ended
28 april 2013
proforma 52 week
april 2012 
2
53 weeks ended
29 april 2012 
52 weeks ended
24 april 2011
financial kpis
group revenue £21856m £18072m £18358m £15992m
underlying ebitda 
1
£2879m £2357m £2401m £2110m
uk sports r etail gross margin 411 410 410 419
uk r etail likeforlike stores gross contribution 
3
112 07 07 66
international r etail likeforlike stores gross contribution 
4
70 01 01 85
online revenue as a percentage of t otal sports r etail revenue 150 116 116 70
underlying earnings per share 
5
2685p 1874p 1919p 1683p
nonfinancial kpis
no of core stores 
6
323 305 306
employee turnover 155 170 169
cardboard recycling 8893 tonnes 6622 tonnes 6237 tonnes
1
 the method for calculating underlying ebitda is set out in the financial r eview
2
 the fy12 income statement has been restated to provide a 52week proforma set of results
3
 uk sports r etail likeforlike contribution is defined as the percentage change in gross contribution in the successive 12 month period adjusted to remove the impact of the 53week year in 2012 a likeforlike store is 
one that has been trading for the full 12 months in both periods and has not been affected by a significant change such as a major refurbishment 
4
 international r etail likeforlike contribution is defined as the percentage change in gross contribution in the successive 12 month period adjusted to remove the impact of the 53week year in 2012 a likeforlike store is 
one that has been trading for the full 12 months in both periods and has not been affected by a significant change such as a major refurbishment 
5
 the method for calculating underlying earnings per share is set out in the financial r eview
6
 a core store is a store acquired and fitted out by the group or otherwise so designated
19
the business review management  governance financial statements  notes additional information chief executive’s report  business review continued
review by business segment 
retail revenue
52 weeks ended 
28 april 2013 £’m
proforma
 52 weeks 2012 £’m
52 week 
change 
53 weeks ended 
29 april 2012 £’m
uk sports r etail 15749 13424 173 13682
uk wholesale and other 881 412 1138 412
premium lifestyle 1284 735 747 735
international r etail 1852 1542 201 1570
total r etail revenue 19766 16113 227 16399
cost of sales 11756 9596 225 9764
gross profit 8010 6517 229 6635
gross margin percentage 405 404 405
 
brands revenue
52 weeks ended 
28 april 2013 £’m
proforma 
52 weeks 2012 £’m
52 week 
change 
53 weeks ended 
29 april 2012 £’m
wholesale 1783 1685 58 1685
licensing 307 274 120 274
total brands revenue 2090 1959 67 1959
cost of sales 1152 1151 01 1151
gross margin 938 808 161 808
gross margin percentage 449 412 412
 
uk sports retail 
uk sports r etail revenue growth continues to be primarily driven by our retail and logistics skills – providing the widest choice of 
products at the best value with universal availability
uk sports r etail sales were up 173 to £15749m fy12 £13424m sales and gross profit from the former jjb stores are 
excluded from uk sports r etail revenue and margin and are included in uk wholesale and other
sales in the first half benefited from the uefa european championships and 
the london olympics although sales in the second half of the y ear were still up 
164 to £7780m fy12 h2 £6677m gross margins for the second half of the 
year improved to 399 fy12 h2 397 gross margin for the y ear increased 
by 10 basis points to 411 fy12 410 w e have invested significantly in 
gross margin throughout the year
uk sports r etail likeforlike gross contribution which excludes online increased 
by a record 112 marking the fourth consecutive year of growth in this kpi 
fy12 07  fy11 66  fy10 34 uk sports r etail likeforlike 
contribution is defined as the percentage change in gross contribution in the 
successive 12month period a likeforlike store is one that has been trading 
for the full 12 months in both periods and has not been affected by a significant 
change such as a major refurbishment the number of stores included in this 
year’s kpi is 275 fy12 290
operating costs increased by 188 to £4094m fy12 £3445m operating 
costs in h2 increased by 139 to £2145m fy12 h2 £1884m store wages 
were up 180 but as a percentage of sales increased only 02 to 88 
fy12 86 in spite of a substantial investment in store staff uk sports 
r etail premises costs increased by only 15 due to reduced rent following 
the purchase in the prior year of freehold properties previously rented and the 
ongoing process of store relocations and rent renegotiations 
other operating costs were up 342 to £1570m fy12 £117m which is due 
to increased warehouse and storage costs to support the growth in our online 
business and increased overheads relating to the obligations acquired from 
the administrator of jjb the majority of this increase came in h1 with other 
operating costs in h2 only increasing by 151 to £84m fy12 £73m
operating costs were also reduced by a release of the onerous lease provision  
of £146m due to the closure of unprofitable stores the sublet of previously 
vacant space and a strategic decision to invest in other stores previously 
planned for closure
underlying ebitda for uk sports r etail was £2477m fy12 £2077m an 
increase of 192 for the year this increase was driven by a £1117m increase 
in gross profit including uk wholesale and other due to the growth in store 
contribution and online sales offset by the £649m increase in operating costs
the group’s retail businesses performed strongly in a difficult economic 
environment our retail model offering outstanding value to our customers 
remains resilient both in the uk and internationally throughout the y ear  
we continued to focus on offering the customer the most comprehensive 
product range the best availability and value while reducing our costs  
wherever possible
sports direct plc annual report 2013
20  employee training has undergone a significant amount of investment over the 
past few years this year alone in excess of 40000 hours have been invested 
into the training and development of our employees our training courses mainly 
take place at our stateoftheart national t raining f acility in shirebrook where 
sessions are led by our experienced teams w e offer a wide portfolio of courses 
which are continuously being changed and refined with the ultimate aim of 
improving trainee product knowledge and customer experience
the nike t raining academy is a key part of our shirebrook national t raining 
f acility and the only one of its kind in the world w e are also continuing to 
work with adidas and puma to provide training in order to support our instore 
campaigns and to gain knowledge of specialised products new p uma training 
rooms at shirebrook were opened during april 2013
group marketing has continued to be a key part of our growth strategy 
investment around traditional media channels such as tv and print were intrinsic 
to our marketing plans around the 2012 summer of sport
the sportsdirectcom brochure was our biggest ever at 1092 pages which was 
an increase of 50 on the year before two million copies were distributed both 
in store and with the delivery of online orders
online revenue has increased by 521 from £1740m to 
£2646m in the year and represented 150 of total sports 
r etail sales fy12 116 
w e remain focused on the further development of our successful multichannel 
offer order fulfilment and information technology solutions are developed 
inhouse with full backup support from our national distribution centre in 
shirebrook derbyshire the website has benefited from the group’s investment 
in online product range and availability the launch of the new online platform in 
november 2012 and a further growth in recognition of the online brand with 376 
of the uk store fascia now branded sportsdirect com
april 13
april 12 £1740m
£957m
£486m
£151m
april 11
april 10
april 09
£2646m
online revenue 521
fy09
15
45
70
116
150
fy10 fy11 fy12 fy13
online  total sports sales
21
the business review management  governance financial statements  notes additional information chief executive’s report  business review continued
uk sports retail continued
our store portfolio remains constantly under review with the performance of 
each store and ways of maximising performance being regularly examined 
during the year we opened 37 and closed 36 stores w e have closed 113  
stores since 2008 as the mix of our portfolio continues to evolve w e increased 
our period end squarefootage to c 40m square feet fy12 c 39m
in the 12 months to 28 april 2013 rent reviews have been agreed on 33 stores 
the average increase in rent was 248 048 annual equivalent there are 
currently 42 rent reviews outstanding with a further 40 falling due in 201314 
our lease expiry profile over all core stores excluding lillywhites p iccadilly  
is now 6 years allowing a significant amount of flexibility within our portfolio to 
adapt our format to the rapidly changing multichannel environment 
in the current financial year we are targeting to open 2530 stores w e 
anticipate closing more stores than we open in fy14 this is in line with our 
aim of maintaining four million square feet of retail space but with an increased 
average store size w e have already opened six in the first quarter including  
two relocations
uk sports retail fascias
store portfolio 
28 april 2013 29 april 2012
core 323 305
noncore 73 90
total 396 395
core openings 28 12
noncore openings 9 6
core closed 10 13
noncore closed 26 3
f reehold properties 52 48
sportsdirect com fascias 376 351
field  t rek fascias 12 17
lillywhites fascias 1 1
other fascias sports w orld hargreaves 7 26
area sq ft 40m 39m
instore  
w e have continued to develop our specialised instore areas our instore brands marketing received significant investment with a substantial unitary rollout for our 
dunlop and everlast brands our sherunsheruns areas also benefited from a rollout of the karrimor running footwear zone featuring an integrated product information 
and selection panel
sports direct plc annual report 2013
22 
dedicated instore areas international r etail gross margin increased by 60 basis points in the year to 
440 international r etail 52week likeforlike stores gross contribution figure 
which excludes online r etail increased by 70 during the year fy12 01 
there were 65 stores included in this kpi consisting of core stores that have 
been open for the full 52 weeks in both periods and not affected by a significant 
change such as a major refurbishment fy12 46
operating costs within international r etail increased by 265 to £702m  
fy12 £555m following an investment in management resource and training 
ahead of the expansion into new markets there was a 252 increase in floor 
space although much of this was from stores that opened late in the year
excluding income from associates heatons international r etail underlying 
ebitda reduced by 15 to £113m fy12 £115m income from associates 
was a gain of £10m fy12 loss of £07m and this resulted in an increase in 
underlying international ebitda of 140 to £123m fy12 £108m
international retail
international r etail sales increased by 201 to £1852m fy12 £1542m 
on a currency neutral basis the increase was 263 
key
schengen area eu
schengen area noneu
set to implement later
eu states outside eu
international retail sales 201
april 13 £1852m
april 12 £1542m
£1323m
£1199m
£1203m
april 11
april 10
april 09
store portfolio excluding ireland  iceland
28 april 2013 29 april 2012
belgium 45 43
slovenia 15 14
portugal 15 13
netherlands 6 6
cyprus 6 6
f rance 6 5
slovakia 3 
hungary 2 
luxembourg 2 1
czech r epublic 2 
total 102 88
area sq ft 112m 0895m
23
the business review management  governance financial statements  notes additional information uk retail  premium lifestyle 
during the year we have continued our expansion of the premium lifestyle 
division in july 2012 we purchased a majority stake in the flannels group 
and in february 2013 114 stores and certain assets were acquired from the 
administrators of the fashion retailer r epublic following negotiations with 
landlords 85 r epublic stores remain open both acquisitions have expanded the 
breadth of our premium lifestyle offering p ost year end we have also acquired 
the remaining 20 stake in cruise
the results of r epublic are excluded from the above analysis as the fascia had 
not been fully integrated into the group by the end of the year for the nine 
weeks since acquisition r epublic made a loss of £45m ebitda 
the results for fy13 include a full year’s trading for usc cruise and v an mildert 
and nine months for flannels the fy12 results included nine months of trading 
for usc and cruise and two months for v an mildert
sales for the division in the year were £1284m fy12 £735m gross margin 
was 434 which is 100 basis points lower than the prior year fy12 444 
the divisional ebitda excluding r epublic was £54m after the release of an 
onerous lease provision of £20m fy12 loss of £78m
usc online sales increased by 847 to £109m fy12 £59m driven by the 
adoption of the group’s fulfilment systems and online platform
at the year end the division traded from 74 stores with five targeted fascias
store portfolio
28 april 2013 29 april 2012
usc 40 40
van mildert 10 9
cruise 8 9
flannels 8 
other 8 9
total 74 67
international retail continued
the group has a 50 shareholding in the heatons chain which operates 14 
sports direct stores in northern ireland and 26 sports stores in the r epublic  
of ireland during the year we opened a new store in iceland through our  
25 shareholding 
all of the stores in the previous table are operated by companies wholly owned 
by the group except portugal where the group owns 501 as part of the 
accelerated growth programme in our european subsidiary we opened 19 
new stores in europe and entered four new countries as at 28 april 2013 
international r etail operated from a total retail sales space of c 11m sq ft 
fy12 c 0895m sq ft
importantly with all of our new and existing stores in europe local management 
are working hard to ensure that all stores are committed to the operational 
efficiencies and standards that exist across the uk sports stores
our strategy remains to identify partners in new territories while continuing 
to expand our operations in the countries where we currently trade for fy14 
and in line with our accelerated european expansion we are targeting eight to 
12 new stores and two to three new territories in the first quarter we have 
already opened two stores in poland and one in spain in conjunction with the 
acquisition recently announced in austria and the baltic region we are now 
active in 19 countries across europe
premium lifestyle sales 747
april 13 £1284m
april 12 £735m
chief executive’s report  business review continued
sports direct plc annual report 2013
24  in march 2012 we acquired the firetrap brand and assets from the administrator 
during fy13 the business underwent a complete customer and operational 
review resulting in significant cost savings and a more streamlined operation 
the brands division remained acquisitive during the y ear acquiring vandanel 
premier a distributor of football branded clothing and equipment and also 
w aterline a wholesale fishing business
licensing revenues in the y ear were up 120 to £307m fy12 £274m 
w e signed 87 new licence agreements covering multiple brands and product 
categories with minimum contracted values of 53m over the life of the 
agreements w e remain on track for licence income to achieve a compound 
average growth rate cagr of 11 reaching at least 60m of licensing 
revenues by fy15
longer term we still regard licensing as the key driver of brands division 
profitability and crucial for the overall growth of the brands business the main 
growth areas are expected to be asia p acific and the americas which should 
compensate for a tougher licensing landscape in the uk and europe
operating costs increased by 194 to £666m fy12 £558m which includes 
a £30m cost for the firetrap reorganisation excluding these costs underlying 
ebitda therefore increased by 80 to £270m fy12 £250m
brands wholesale revenue 58
april 13 £1783m
april 12 £1685m
£1620m
£1673m
£2036m
april 11
april 10
april 09
brands licensing revenue 120
april 13 £307m
april 12 £274m
£257m
£232m
£269m
april 11
april 10
april 09
brands
brands total revenue increased by 67 to £2090m fy12 £1959m 
wholesale revenues were up 58 to £1783m fy12 £1685m driven by strong performances in our north american businesses 
brands gross margin increased by 370 basis points to 449 fy12 412 wholesale gross margin rose to 354 fy12 317
w e continue to focus on developing worldclass products that 
are endorsed by leading athletes on the field of play a recent 
addition to our team of key brand ambassadors is r obson 
green r obson the face of channel 5’s extreme fishing is the 
ambassador of the fishing range developed under our iconic 
dunlop brand 
the group recognised that fishing is a sport which involves 
significant mass participation and therefore developed 
product ranges of superior quality and great value to suit the 
needs and value expectations of our customers
25
the business review management  governance financial statements  notes additional information
dunlop brand ambassador  r obson green employees
sports direct has made great progress and a large proportion of this is due to 
the hard work and loyalty of our c 24000 staff throughout the business  
i am overwhelmed by the contributions that have been made by our employees 
towards achieving an exciting future for the group i believe that the dedication 
of our employees has placed us in an extremely strong position in the market in 
what is most definitely a difficult time for most retailers the past contributions 
from our employees make me confident that we can replicate our successes as 
we look forward to the future
the employee bonus share schemes have been a fundamental tool which 
the group has used to promote incentivise and motivate its staff sharing the 
responsibility of achieving these targets was matched by the potential benefits 
to employees if the targets were met the schemes have been crucial to 
influencing staff behaviour and maximising the group performance 
the 2009 employee bonus share scheme was the first scheme which we 
trialled vesting in august 2012 and august 2013 all of the elements of the 
scheme were met and the first awards were successfully vested for eligible 
employees in 2012 the second award of shares will vest for eligible employees 
in august 2013 amounting to approximately 21 million shares the second 
awards were to the value of 75 of base pay for the majority of employees and 
25 of base pay for those employees who joined the group later but still within 
the rules of the scheme
to the extent that a significant number of eligible employees elect to sell 
some or all of their shares whilst the company has no obligation to buy back 
the shares the board will consider a number of options open to it including 
whether to i implement an onmarket buy back of shares pursuant to the 
authority given by shareholders at the company’s agm in 2012 or ii fund the 
company’s employee benefit t rust so as to allow it to acquire shares in the 
market to replace those shares transferred to eligible employees pursuant to  
the vesting
a further incentive for our employees has been the introduction of the 2011 
employee bonus share scheme the 2011 scheme has been developed 
to incentivise and motivate our current employees in pursuit of our shared 
group objectives the ongoing growth and performance of the group may be 
attributed to the successful adoption of the 2009 and 2011 employee bonus 
share schemes employees who have received bonuses under the 2009 scheme 
could be eligible for further awards under the 2011 scheme and we hope to 
retain our valued employees by offering such rewards this year 155 of our  
uk employees left the business down from 17 in fy12
the underlying ebitda targets before the costs of the scheme of £215m in 
fy12 and £250m in fy13 have been achieved the targets for fy14 and fy15 
are £260m and £300m respectively these further targets coupled with the 
individual employee’s satisfactory personal performance must all be met in 
order for the scheme to vest in august 2015 and 2017 with approximately 6m 
shares due to vest in 2015 and approximately 17m shares due to vest in 2017  
it is important that we continue to work together towards these shared goals
2011 employee bonus share scheme
ebitda targets of
• £215m in fy12 achieved £2357m
• £250m in fy13 achieved £2879m
• £260m in fy14
• £300m in fy15
all four targets have to be met maximum award of 23m shares to include  
c 3000 employees
chief executive’s report  business review continued
fy12
350
300
250
200
150
100
fy13 fy14 fy15
target               achieved
bonus share scheme key performance indicators
salaried staff turnover 
since fy09
fy12
17
fy13
155
17
fy11
17
fy10
29
fy09
30
0
pay versus turnover cost index 
since fy09 base year
fy12
89
fy13
98
89
fy11
100
fy10
100
fy09
100
80
indexed
store stock loss cost index 
since fy09 base year
fy12
77
fy13
71
78
fy11
77
fy10
100
fy09
100
indexed
60
energy consumption per sq ft cost 
index since fy09 base year
fy12
78
fy13
82
83
fy11
92
fy10
100
fy09
100
indexed
70
£215m
£250m
£236m
£288m
£260m
£300m
sports direct plc annual report 2013
26  our strategy
objective so far what next
identify
instore the group focuses on its stores to ensure the best presentation of our product 
range our product collections provide a ‘goodbetterbest’ presentation to 
ensure our customers find the right product at the right price our specialist 
collaborations with sherunsheruns and soccer scene  the boot r oom 
provide a high level of customer service our multichannel approach also 
gives flexibility to our customers
the group continues to enhance its instore offering with further dedicated 
areas for specialist product collections
• european golf
• swimshopcouk
• w aterline
• dragoncarp direct
• field  t rek
acquisitions in fy13 the group acquired the key assets of jjb including the distribution 
centre in wigan and the slazenger golf brand the group also acquired a 51 
stake in the flannels group for the p remium lifestyle division and added used 
tackle and w aterline to expand the fishing product offering 
in february 2013 the group acquired various assets of the fashion retailer 
r epublic including the stock 114 stores and the website
the group continues to identify suitable opportunities to expand the product 
range our specialist collaborations and the premium lifestyle division
invest
store portfolio since april 2012 uk sports r etail has opened 28 core stores and closed 10 
core stores the group also opened nine and closed 26 noncore stores 
during fy13 international r etail opened 19 new stores and closed five as at 
28 april 2013 international r etail operated wholly owned subsidiaries in nine 
countries and a 501 partnership in portugal
the group also opened a new store in iceland as a joint venture and has a 50 
stake in the heatons chain in northern ireland and r epublic of ireland
the group intends to continue to enhance its store portfolio in both the uk and 
internationally the group will continue with the strategy to identify strategic 
partners in new territories while expanding operations in those countries 
where we currently have a presence plans are in place to expand international 
r etail operations into all countries that have adopted the euro
people our employees have contributed substantially towards our growth and 
success w e are consistently investing in the training and development of 
our employees to ensure that they are incentivised and recognised for their 
contribution the 2009 and 2011 employee bonus share schemes are an 
important contributor to employee motivation and group performance the 
targets of the 2009 employee bonus share scheme were achieved and the 
second award is due to vest in august 2013 the 2011 employee bonus share 
scheme has been embraced by our employees and they have worked hard to 
contribute towards the ebitda targets to date if the additional group targets 
are achieved members of the 2011 scheme will be rewarded with shares in 
the group
due to the success of the first bonus share scheme we continue to 
encourage and motivate employees with the 2011 employee bonus  
share scheme 
develop
website online r etail sales currently represent 150 of total sports r etail revenue up 
from 116 in fy12
aided by the new platform launched in november 2012 our monthly unique 
visitors have risen 509 on fy12 and the average basket size has risen 46 
to £5950
our conversion ratio of unique visitors who go on to make a purchase has 
risen from 54 to 57
online revenue continues to be an area of significant growth and the group 
continues to look at opportunities to develop this revenue stream further the 
website has benefited from the group’s investment in online product range and 
availability and from recognition of the online brand now that 376 stores have 
the sportsdirect com fascia
the launch of sportsdirectnews com in november 2012 provides a further 
opportunity to drive incremental visitors to our website
promote
brands the group’s portfolio includes a wide variety of world famous sport fashion 
and lifestyle brands the group’s r etail division sells products under these 
group brands in its stores and the brands division exploits the brands through 
its wholesale and licensing businesses
the brands division wholesale business sells the brands’ core products  
such as dunlop tennis rackets and slazenger tennis balls to wholesale 
customers and distributors throughout the world this results in far wider 
distribution of the products than would be the case if their sale was restricted 
to group stores
the wholesale business also wholesales childrenswear and apparel the 
licensing business licenses third parties to apply groupowned brands to 
noncore products manufactured and distributed by those third parties w e 
currently have in excess of 300 licensees in over 100 countries the brands 
division manages these licensees to ensure global brand consistency and the 
international success of our group brands
the brands division is closely involved in the development of licensed products 
and monitors licensees and their manufacturers to ensure product quality 
presentation and consistency with the appropriate brand strategy the brands 
division continues to sponsor a variety of prestigious events and retains a 
portfolio of globallyrecognised highprofile athletes
the brands division strategy includes further expansion into asia as well 
as the americas such expansion will provide us with more opportunities to 
expand the global presence and international appeal of our group brands
in order to maintain brand awareness and authenticity the brands division 
will continue to invest in the development of core products for wholesale 
customers and distributors throughout the world
27
the business review management  governance financial statements  notes additional information main trends and factors likely to affect the future 
development and performance of the group ’s businesses
the group’s retail businesses will undoubtedly be affected by the economic 
climate and changes therein movements in interest rates and exchange rates 
affect the businesses directly and consumer confidence and spending is affected 
by a wide range of factors including employment tax and interest rates house 
prices and the general ‘feelgood factor’ factors beyond the group’s influence 
all of the above apply equally to our brands businesses both wholesale and 
licensing r eduction in customer demand is reflected in the wholesaling and 
licensing business as orders and royalties are affected moreover in difficult 
economic times suppliers come under increasing pressure to reduce their prices 
to their customers and all suppliers run the risk of their customers ceasing to 
trade or reducing demand for their products 
difficult economic conditions can also make it difficult for suppliers to obtain 
credit insurance in respect of some customers leaving the supplier with a 
difficult question of whether or not to supply and if they do with the attendant 
risk of bad debts
later in this report we comment on risks and uncertainties that relate to the 
group’s businesses and while we manage to reduce risks where possible the 
likelihood of their occurring and their impact if they do are factors that could 
influence the group or part of it
the group applies hedge accounting which is in line with other major retailers 
this reduces an element of potential volatility in reported profit
chief executive’s report  business review continued
risks and uncertainties relating to the group’s business 
internal controls and risk management  
the board has a responsibility to govern the group in the interest of the 
shareholders the board is responsible for setting strategic objectives and part 
of this involves assessing the risks involved risks are an inherent part of the 
business world and due to the nature of the business the group is exposed to 
a wide variety of these in order to minimise the effect of potentially damaging 
effects to the group the board ensures these are managed and monitored 
effectively via a framework of controls and robust procedures
the group’s approach to risk 
the identification and management of risk is a continuous process and the 
group’s system of internal controls and the business continuity programmes are 
key elements of that the group maintains a system of controls to manage the 
business and to protect its assets with the development of contingency plans 
and rapid response to changing circumstances and does much to mitigate the 
risks facing the group the group continues to invest in people systems and in 
it to manage the group’s operations and its finances effectively and efficiently
executive management teams are responsible for the identification analysis 
evaluation and mitigation of the significant risks applicable to their areas of 
business these comprise of directors as well as of senior managers
the teams meet regularly to discuss the identified risks and how these 
should be reviewed and monitored the board ensures that the appropriate 
arrangements are in place under which employees can raise concerns about 
possible financial or other impropriety which are then appropriately investigated 
these arrangements include formal grievance procedures and employee 
confidential hotlines
the board is assisted by the audit committee in fulfilling its overview 
responsibilities reviewing the reporting of financial and nonfinancial information 
to shareholders and the audit process satisfying itself that appropriate systems 
of internal control and risk management are in place and are serving to identify 
and manage risk
the group operates a r etail support unit which provides strong operational 
internal audit services in the r etail division and there are procedures in place in 
the brands division to monitor and control licensees
the external auditors are invited to attend all meetings of the audit committee 
save for those parts of any meeting when the committee reviews the 
performance of the auditors and when the committee is having separate 
discussions with the group finance director
with the exception of heatons who are the group’s only material associate  
the group’s system of internal control and risk management and its 
effectiveness is monitored and reviewed by the board the audit committee  
and management and the board believes that the group has maintained 
throughout the year and up to the date of approval of the annual report and 
accounts an effective embedded system of internal control and has complied 
with the turnbull guidance
the systems of internal control and risk management are designed to manage 
rather than eliminate the risk of failing to achieve business objectives
risk policies and procedures 
business plans and budgets for each business include financial and strategic 
targets against which performance is monitored monitoring includes the 
examination of and changes to rolling annual and quarterly forecasts monthly 
measurement of actual achievement against key performance targets and plans 
and weekly reviews of performance
the group has clear procedures for the approval and control of expenditure 
strategic investment decisions involving both capital and revenue expenditure 
are subject to formal detailed appraisal and review according to approval  
levels set by the board operating expenditure is controlled within each  
business with approval levels for such expenditure being determined by the 
individual businesses
the group has a formal whistleblowing policy for employees who wish to raise 
any issues or concerns relating to the group’s activities on a confidential basis
1 the risks are identified
2 the risks are evaluated
3 action is taken to manage the risk
4 the practices are reviewed and monitored to limit the risk
1
2 3
4
sports direct plc annual report 2013
28  key risks 
control environment 
the group’s operating procedures include a comprehensive system for reporting 
financial and nonfinancial information to the board including
• preparation of three years of strategy plans for business development
• preparation and review of annual budgets and
• review of the business at each board meeting focussing on any new risks 
arising for example key changes in the market
control procedures 
detailed operational procedures have been developed for each of the group’s 
operating businesses that embody key controls the implications of changes in 
law and regulations are taken into account within these procedures
financial reporting process 
the group has in place internal control and risk management systems in 
relation to the group’s financial reporting process and the group’s process for 
the preparation of consolidated accounts these include clearly defined lines 
of accountability and delegation of authority policies and procedures that 
cover financial planning and reporting preparing consolidated accounts capital 
expenditure project governance and information security
the audit committee is responsible for overseeing and monitoring these 
processes which are designed to ensure that the group complies with 
relevant regulatory reporting and filing provisions as at the end of the period 
covered by this r eport the audit committee with the participation of the chief 
executive and group finance director evaluated the effectiveness of the design 
and operation of disclosure controls and procedures designed to ensure that 
information required to be disclosed in financial reports is recorded processed 
summarised and reported within specified time periods
monitoring process 
the groups’s approach to monitoring the system of key controls is set out in this 
section of the chief executive’s r eport
principal risks affecting the group 
the group has identified the following factors as potential risks to and 
uncertainties concerning the successful operation of its business the group is 
however exposed to a wider range of risks than discussed below but these are 
the principal risks that have recently been discussed by the board and audit 
committee and are of primary concern
area risk mitigation
supply chain
the group operates internationally so is reliant on 
the successful distribution of goods from when 
they are distributed by the manufacturer to when 
they are sold in the stores
the group is reliant on manufacturers in 
developing countries as the majority of the group’s 
products are sourced from outside the uk 
the group is therefore subject to the risks associated 
with international trade and transport as well as 
those relating to exposure to different legal and other 
standards risks including cost increases energy 
shortages natural disasters working practices and 
product safety could all cause significant problems
the group requires all suppliers to sign up to the group’s code of ethicssupply p olicy which enables 
the group to monitor and benchmark the performance of the supplier it allows the group to carry out 
inspections of premises to ensure compliance with the group’s codes for continuity and quality of 
supply this is an ongoing process and inspections occur on a random basis
many risks relating to the supply chain reliance on nonuk suppliers and to the reputation of the 
group’s brands are managed and mitigated by the implementation of these policies strong service 
level agreements and maintaining relationships with all parties involved in the supply chain also 
mitigate these risks
key suppliers
the group is reliant on good relationships with 
its major manufacturers key brands or brand 
suppliers
a failure to replace any of its major manufacturers 
or suppliers on commercially reasonable terms could 
have an adverse effect on the group’s business 
operating profit or overall financial condition it may 
mean that customers shop elsewhere if stores cannot 
supply the required product
the group follows policies of forging long term relationships with suppliers and of utilising two leading 
supply chain companies to procure much of the group’s own branded goods this close relationship 
brings a better understanding of the supplier’s resources enabling the group to react quickly to changes 
in the international supply market 
treasury and financial risk
the group operates internationally the majority of 
foreign contracts relating to the sourcing of group 
branded goods are denominated in us dollars 
and the euro thus leaving exposure to foreign 
exchange risk
the group has net borrowings which are 
principally at floating interest rates linked to bank 
base rates or libor 
the group is exposed to foreign exchange risk arising 
from various currency exposures and a strengthening 
of the us dollar or a weakening of the pound sterling 
making goods more expensive
foreign exchange risk arises when future commercial 
transactions or recognised assets or liabilities are 
denominated in a currency that is not the entity’s 
functional currency as exchange rates move this 
could significantly reduce profitability
the group seeks to mitigate the expenses and fx fluctuations by hedging via forward foreign currency 
contracts which are designated as cash flow hedges
the group also holds assets overseas in local currency and these assets are revalued in accordance 
with currency movements this currency risk is not hedged
the group is cash generative and is now targeting its debt levels to mitigate interest rate risk and 
currently has debt levels of less than 1 x underlying ebitda 
credit and liquidity risk
the group primarily the brands division provides 
credit to some of its customers
f unding and liquidity for the group’s operations 
are provided through bank loans overdrafts and 
shareholders’ funds 
the group could have a credit risk if credit evaluations 
were not performed on all customers requiring credit 
over a certain amount
the group’s objective is to maintain sufficient funding 
and liquidity for its requirements but the availability 
of adequate cash resources from bank facilities and 
achieving continuity of funding in the current financial 
climate could be a risk to the group in future years
the group may not be able to purchase  
essential acquisitions
the group does not require collateral in respect of financial assets
the group’s key suppliers also face credit risk and as such the group regularly assesses the viability of 
its suppliers and ensures there are plans to source from alternative businesses should key suppliers fail
rigorous procedures are in place to mitigate this credit risk the group has a credit policy in place and 
the exposure to risk is monitored on an ongoing basis
credit evaluations are performed on all customers requiring credit over a certain amount and 
concentration of credit risk is managed
investment of cash surplus borrowings and derivative investments are made through banks and 
companies which have credit ratings and investment criteria approved by the board
the group mitigates liquidity risk by keeping debt levels low and the current finance facility is held with 
a club of 10 banks thereby spreading the risk
the group works with a number of trusted advisors
29
the business review management  governance financial statements  notes additional information chief executive’s report  business review continued
risks and uncertainties relating to the group’s business continued
area risk mitigation
investment risk
the group holds shares in  
publiclylisted companies
fluctuations in publiclylisted companies’ share prices will have a financial impact on 
the business or results
the group has chosen to limit further purchases of publiclylisted company 
shares in order to reduce the potential risk to the business although current 
investments are in known business sectors and are not deemed to be in 
volatile companies
succession planning
the group’s directors and key management 
employees ensure that the current level of 
success is maintained
illness injury or resignation of key individuals could change the whole dynamic  
of the group
succession plans in place where appropriate
key individuals working ”on the ground” to assess the strengths of  
fellow employees
r egular appraisals to ensure that employees are developing and training is 
given when necessary
market forces
the sports r etail industry is highly 
competitive and the group currently 
competes at national and local levels with a 
wide variety of retailers of varying sizes who 
may have competitive advantages and new 
competitors may enter the market
the competition continues to place pressure on the group’s pricing strategy margins 
and profitability
the group has a discount pricing policy to help reduce the risk of increased 
competition in the industry the group has an incredibly strong property 
portfolio and owns a very large number of key brands external suppliers often 
consider the group as a very large account
pensions
some subsidiaries in the group make 
contributions to certain occupational defined 
benefits pension schemes
an increase in the schemes’ funding needs or changes to obligations in respect of the 
schemes could have an adverse impact on its business
although the group is unable to mitigate any change in legislation regarding 
contributions the schemes are historical and closed to new entrants the 
group does not intend to enter into any further final salary arrangements 
going forward
operational
the group is reliant on the divisional head 
offices and the national distribution centre 
at shirebrook operating without disruption 
along with the uninterrupted running of the 
group’s fleet of vehicles
the majority of the group’s revenue is derived 
from the uk 
any disruption to the head offices the national distribution centre and the fleet 
of vehicles might significantly impact the group’s ability to manage its operations 
distribute products to its stores and maintain its supply chain
any long term interruption of the group’s it systems would have a significant impact 
on the group’s operation particularly in the r etail division
terrorist attacks armed conflicts government actions or adverse weather affecting 
the road networks within the uk could result in a significant reduction in consumer 
confidence which would in turn have an adverse affect on sales in stores
the group has a strong business continuity plan that is regularly reviewed 
to address operational risks the last review and testing of this took place 
during the most recent financial year fy13
the board is confident that as far as it is practical the risks and uncertainties 
that face the group are being monitored and managed and that where 
required appropriate action is being taken
the group constantly monitors the business environment and the nature  
of the business model allows for the group to act swiftly under  
extraordinary circumstances
the group ensures that health and safety maintenance and staff training is 
actively monitored and enforced
health  safety
health and safety is key to the group as 
the implementation of policies in this regard 
protects our employees and customers
f ailure to create and maintain environments which are safe for both employees and 
customers incidents leading to injuries trauma or fatalities could result from poor 
compliance with essential health and safety regulations
health and safety is a priority for the group incidents are recorded and steps 
are put in place to minimise the risk of these recurring
as health and safety requirements vary from country to country we  
ensure that each company in the relevant countries are fully trained in the 
standards required
legal
the group’s trade marks patents designs 
and other intellectual property rights are 
central to the value of the group’s brands
the group believes that its licensees suppliers agents and distributors are in 
material compliance with employment environmental and other laws the violation 
or allegations of a violation of such laws or regulations by any of the group’s 
licensees suppliers agents or distributors could lead to adverse publicity and a 
decline in public demand for the group’s products or require the group to incur 
expenditure or make changes to its supply chain and other business arrangements to 
ensure compliance
the group may need to resort to litigation in the future to enforce its intellectual 
property rights and any litigation could result in substantial costs and a diversion  
of resources
third parties may try to challenge the ownership or counterfeit the group’s  
intellectual property
the group has an inhouse specialist trade mark and license legal 
department that administers all registrations and regulations this inhouse 
expertise is vital in mitigating any or all such issues
sales
the group’s retail businesses are subject 
to seasonal peaks the incidence and 
participation in major sporting events  
will have a particular impact on the uk  
r etail business
prolonged unseasonal weather conditions or temporary severe weather during peak 
trading seasons could have a material adverse effect on the group’s businesses the 
group are dependent upon the store portfolio and consumers’ spending habits
although unable to mitigate environmental conditions the group are able to 
influence the retail portfolio and therefore constantly monitor development  
of stores and the group’s aim to increase the square footage through 
viable new retail space by monitoring stock levels correctly through sales 
forecasting the group can manage the peaks in demand and trading profiles 
can be predicted
sports direct plc annual report 2013
30  area risk mitigation
consumer
the group’s success and sales are 
dependent in part on the strength and 
reputation of the brands it sells and are 
subject to consumers’ perceptions of the 
group and of its products which can fall  
out of favour
adverse publicity concerning any of the group’s brands manufacturers or  
suppliers could lead to substantial erosion in the reputation of or value associated 
with the group 
the dedicated legal department monitors usage of the group’s own brands to 
ensure they are used in the correct manner
specific individuals in the media are chosen to promote brands  
the group carefully selects individuals who will fit with the products and  
the target market
environmental
the group is subject to the negative effects 
that environmental disasters can have on the 
business environment
environmental disasters have highlighted how it is impossible to predict how an 
environmental occurrence will affect businesses
the group constantly updates systems to mitigate any delay or loss of goods 
in transit or the absence of any employee or large numbers of employees that 
may or may not be altered by acts of nature
contracts essential to the business of the group
the group has longestablished relationships with nike and adidas the major 
suppliers of thirdparty branded sporting goods particularly footwear and 
considers that continued supplies from these companies are critical to the 
business of the group
environmental matters 
the corporate r esponsibility r eport is on pages 52 to 55 and a review of 
the assessment of the group’s impact on the environment is included in the 
corporate r esponsibility r eport on pages 53 and 54
research and development
the group’s success depends on the strength of the group brands and to a 
lesser extent the licensedin brands the group’s efforts to continually develop 
or obtain brands in a timely manner or at all may be unsuccessful 
outlook
the start of the fy14 has already been busy with the acquisition of majority 
stakes in two leading european sporting goods retailers in austria and in  
the baltic region this means that the group is now active in 19 countries across 
europe while management is focused on the successful integration  
of these businesses we also expect to see more opportunities to grow the 
group internationally
the group has witnessed a strong start to the year with trading ahead of 
management’s expectations this performance is attributable to a number of 
factors including the investment in gross margin made last year increased 
operating efficiencies and the exceptional quality and unbeatable value sports 
direct continues to offer to its customers however recent outperformance 
versus management expectations may not continue for the full year fy14 is a 
nontournament year which will make fy13 a tough comparator following the 
uefa european championships and the london olympics 
with this performance in mind we remain focused and driven to achieve our 
internal stretch underlying ebitda target of £310m before the charge for the 
2011 employee and executive bonus share schemes
dave forsey 
chief executive
18 july 2013
31
the business review management  governance financial statements  notes additional information financial review
summary of results
52 weeks ended
28 april 2013 £’m 
proforma 
52 week 2012 £’m 
52 week 
change 
53 weeks ended
29 april 2012 £’m 
r evenue 21856 18072 209 18358
underlying ebitda 2879 2357 221 2401
underlying p rofit before t ax 2081 1491 396 1526
r eported profit before t axation 2072 1480 400 1515
pence per share pence per share pence per share pence per share
r eported eps 2664 1824 461 1868
underlying eps 2685 1874 433 1919
the directors believe that underlying ebitda  underlying profit before tax and underlying earnings per share provide more useful information for shareholders on the 
underlying performance of the business than the reported numbers and are consistent with how business performance is measured internally they are not recognised 
profit measures under ifrs and may not be directly comparable with “adjusted” profit measures used by other companies
ebitda is earnings before investment income finance income and finance costs tax depreciation and amortisation and therefore includes the group’s share of 
profit from associated undertakings and joint ventures underlying ebitda is calculated as ebitda before the impact of foreign exchange any exceptional or other 
nontrading items and costs relating to the employee bonus share schemes
 
revenue and margin
52 weeks ended
28 april 2013 £’m
proforma 
52 week 2012 £’m change 
53 weeks ended
29 april 2012 £’m 
retail revenue
uk sports r etail 15749 13424 173 13682
uk wholesale and other 881 412 1138 412
premium lifestyle 1284 735 747 735
international r etail 1852 1542 201 1570
total 19766 16113 227 16399
brands revenue
wholesale 1783 1685 58 1685
licensing 307 274 120 274
total 2090 1959 67 1959
total revenue 21856 18072 209 18358
compared to the previous proforma 52week year group r evenue increased by 209 total r etail revenue in the year increased by 227 with growth across all 
divisions the uk accounted for 906 of t otal r etail revenues with the balance in continental european stores
gross margin in uk sports r etail increased from 410 to 411
our representation in both parts of ireland is through heatons in which we have a noncontrolling interest of 50 the results of which continue to be reported  
as an associate
brands revenue increased by 67 within this licensing revenue increased by 120 with an increase in wholesale revenue of 58 brands overall margins 
increased from 412 to 449
the financial statements for the group for the 52 weeks ended 28 april 2013 are presented in accordance with international financial 
r eporting standards ifrs as adopted by the eu  in order to make a comparison to last year all references to financial performance 
in respect of the income statement cash flow and business reviews are made by reference to a proforma 52week basis unless 
otherwise specified
sports direct plc annual report 2013
32  ebitda and profit before tax ebitda £’m pbt £’m
operating profit 2130
depreciation amortisation and impairment 548
exceptional items 06
share of profit of associated undertakings  
excl fv adjustments
09
reported 2681 2072
bonus share scheme 221 
impairment of fixed assets  22
exceptional items  06
r ealised fx loss 23 23
ias 39 fx fair value adjustment on forward 
currency contracts
 20
f air value adjustment within associates  04
underlying 2879 2081
underlying 52 week fy13 profit before tax excludes 
i impairments which decreased profit by £22m 
ii exceptional items which increased profit by £06m
iii  realised foreign exchange gains which increased fy13 profits by £23m 
iv ifrs revaluation of foreign currency contracts which decreased profit by £20m and
v f air value adjustments within associates which increased profit by £04m
 
selling distribution and administration costs 
selling distribution and administration costs for the group decreased as a 
percentage of revenue this was as a result of cost and efficiency savings 
offsetting inflation and increased investment online
 
foreign exchange
the group manages the impact of currency movements through the use of 
forward fixed rate currency purchase and sales contracts the group’s policy 
has been to hold or hedge up to four years with generally a minimum of six 
months of anticipated purchases in foreign currency
the realised exchange gain of £23m fy12 £20m loss included in 
administration costs has arisen from
a accepting dollars and euros at the contracted rate and
b the translation of dollars and euro denominated assets and liabilities at the 
period end rate or date of realisation
the exchange loss of £20m fy12 £35m gain included in finance costs  
income substantially represents the reduction in the marktomarket asset 
made under ifrs for the group’s unhedged forward contracts as at 29 april 
2013 a number of the forward contracts outstanding at 28 april 2013 qualify 
for hedge accounting and the fair value gain on these contracts of £156m has 
been credited to equity through the consolidated statement of comprehensive 
income the group has sufficient us dollar contracts to cover the majority of 
purchases in uk r etail for fy14 these hedged contracts are at an average rate 
of usd  gbp 1631
the sterling exchange rate with the us dollar was 1626 at 29 april 2012 and 
1547 at 28 april 2013
finance income
52 weeks ended 
28 april 2013 £’m
53 weeks ended 
29 april 2012 £’m
bank interest receivable 09 06
other interest receivable 02 
expected return on pension plan assets 20 23
f air value adjustment to forward foreign 
exchange contracts
 35
31 64
 
finance costs
52 weeks ended
28 april 2013 £’m 
53 weeks ended
29 april 2012 £’m 
interest on bank loans and overdrafts 66 57
interest on other loans 06 03
interest on retirement benefit obligations 24 25
f air value adjustment to forward foreign 
exchange contracts
20 
116 85
the rise in interest payable is a result of the increased use of the revolving credit 
facility this increase is attributable to the acquisitions during the year and the 
investment in working capital
the loss on the fair value of forward foreign exchange contracts arises under 
ifrs as a result of marking to market at the period end those contracts that do 
not qualify for hedge accounting
 
exceptional items
52 weeks ended 
28 april 2013 £’m
53 weeks ended 
29 april 2012 £’m
profit on sale of intangible assets 06 16
r elease of regulatory cost provisions  23
lease surrender incentive  07
profit on disposal of property  10
06 56
tax ation
the effective tax rate on profit before tax in fy13 was 268 fy12 303 this 
rate reflects depreciation on nonqualifying assets and overseas earnings being 
taxed at a higher rate
33
the business review management  governance financial statements  notes additional information financial review continued
the items adjusted for arriving at the underlying profit after tax and minority 
interests are as follows 
 
period ended
28 april 213 £’m
period ended
29 april 212 £’m
profit after tax 1517 1062
posttax effect of exceptional items
other investment income  71
w rite back of provision for regulatory 
enquiry costs
 16
impairment of goodwill 22 18
disposal of freehold properties  12
f air value adjustment to forward foreign 
exchange contracts
15 25
r ealised gain  loss on forward foreign 
exchange contracts
18 14
profit on sale of intangible assets 05 12
f air value adjustment within associated 
undertakings
03 09
less proforma 2012 week 53  25
underlying profit after tax  52 weeks 1528 1066
 
dividends
the board has decided not to propose a dividend in respect to fy13 the board 
feels that it remains in the best interests of the company and its shareholders 
to maintain financial and strategic flexibility including pursuit of potential 
acquisition opportunities and ongoing investment in group infrastructure 
and store portfolio the payment of dividends will remain under review for 
consideration in future years
capital expenditure
capital expenditure amounted to £498m fy12 £1310m which includes 
expenditure on licences within intangible assets in fy12 the group purchased 
freehold property from mike ashley for a consideration of £868m
 
acquisitions
the group made acquisitions during the year including various assets acquired 
from the administrators of the fashion retailer r epublic and jjb as well as a 51 
stake in the flannels group
 
strategic investments
during the year the group continued to hold an 1187 holding in jd sports and 
f ashion plc the fair value of the group’s holding at 28 april 2013 was £476m 
29 april 2012 £466m no shares were bought or sold in the year the only 
movement being in the fair value of the shares held which has been recognised 
directly in equity in accordance with ifrs 
 
cash flow and net debt
net debt increased by £88m from £1452m at 29 april 2012 to £1540m at  
28 april 2013
the analysis of debt at 28 april 2013 was as follows
28 april 2013
£’m
29 april 2012
£’m
cash and cash equivalents 1417 694
borrowings 2957 2146
net debt 1540 1452
the group continues to operate comfortably within its banking facilities and 
covenants the group has a £300m syndicated facility in place until march 
2015 post year end the group’s £50m and £25m bilateral facilities have been 
extended to march 2015
earnings
52 weeks ended 28 april 2013
pence per share
proforma 52 week 2012
pence per share change 
53 weeks ended 29 april 2012
pence per share
r eported eps basic 2664 1824 461 1868
underlying eps 2685 1874 433 1919
w eighted average number of shares actual 568972000 568591000 568591000
basic earnings per share eps is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares 
outstanding during the actual financial period shares held in t reasury and the employee benefit t rust are excluded from this figure
the underlying eps reflects the underlying performance of the business compared with the prior year and is calculated using the weighted average number of shares 
it is not a recognised profit measure under ifrs and may not be directly comparable with “adjusted” profit measures used by other companies
sports direct plc annual report 2013
34  cash flow
total movement is as follows 
 
28 april 2013
£’m
 29 april 2012
£’m
underlying 52 week ebitda 2879 2357
r ealised profit  loss on forward foreign 
exchange contracts
23 20
taxes paid 447 413
underlying 52 week free cash flow 2455 1924
proforma 53
rd
 week underlying ebitda  48
invested in 
w orking capital and other 1312 318
purchase of own shares 217 
acquisitions including debt 470 262
r eturns from investments 15 08
net capital expenditure 498 1310
finance costs and other financing activities 61 53
increase  decrease in net debt 88 37
the increase in working capital is predominantly in inventory to support the 
growth of the online business
 
reconciliation of movement in equity
total equity movement is as follows
28 april 2013
£’m
total equity at 29 april 2012 4719
profit after tax for the 52 weeks 1517
sharebased payment 40
vesting of employee bonus share scheme 21
current tax on share schemes 36
deferred tax on share schemes 63
purchase of own shares 217
items taken directly to equity
exchange differences on translation of foreign operations 124
exchange differences on hedged contracts  recognised in 
the period
154
exchange differences on hedged contracts  reclassified and 
reported in net profit
02
f air value adjustment in respect of available for sale financial 
assets
10
actuarial loss on pension 28
tax on items taken directly to equity 46
movement in equity issues
movement in noncontrolling interests 02
total equity at 29 april 2012 6447
pensions
the group operates a number of closed defined benefit schemes in the dunlop 
slazenger companies the net deficit in these schemes increased from £193m 
at 29 april 2012 to £199m at 28 april 2013
bob mellors 
finance director 
18 july 2013
35
the business review management  governance financial statements  notes additional information the board
dr keith hellawell qpm 
nonexecutive chairman chairman of nomination committee
appointed 24 november 2009
previous roles prior to joining the team at sports direct international plc dr hellawell spent over 40 years in 
public sector management being a former chief constable of two british police forces while working directly 
for the prime minister between 1998 and 2002 he wrote and coordinated the united kingdom national and 
international antidrugs policy
present roles dr hellawell has been involved in the private sector since 1998 when he joined evans of leeds 
a fully listed property company since then he has served on the boards of both dalkia plc and sterience limited 
subsidiaries of the f rench company veolia env dr hellawell is currently a nonexecutive director of mortice 
plc a singapore based facilities management company and a director of the superleague team huddersfield 
giants he was nonexecutive chairman of goldshield group plc a marketing led pharmaceutical and consumer 
health company from may 2006 to its sale in december 2009 he has held a number of other nonexecutive 
board positions in private companies including vehicle manufacturing and it he also runs his own management 
and training consultancy company
key skillsstrengths dr hellawell has worked in both the public and private sector for over 50 years 
throughout this time he has built up a wealth of experience which he brings to the group to ensure the 
successful and effective operation of the board
 
mike ashley 
executive deputy chairman
appointed 1982 founder
previous roles mike established the business of the group on leaving school in 1982 and was the sole owner 
until the group’s listing in march 2007 
key skillsstrengths mike was the founder of the group and has the necessary skills for formulating the vision 
and strategy of the group with over 30 years in the sports retail business with sports direct he is invaluable to 
the group
 
dave forsey 
chief executive
appointed 1984
key skillsstrengths dave has been with the business for over 28 years during which time he has acquired 
significant knowledge and experience of the sports retail business in conjunction with the deputy chairman he 
agrees strategy appropriate objectives and policies for each of the businesses dave has overall responsibility 
for the daily management of the group
 
bob mellors 
group finance director
appointed 2004
previous roles a graduate in economics he qualified with p ricewaterhousecoopers in london before joining 
eacott w orrall where sports direct became a client in 1982 he was managing p artner and head of corporate 
finance at eacott w orrall before joining the group 
key skillsstrengths bob qualified as a chartered accountant with p ricew aterhousecoopers and has 
extensive financial experience bob has extensive knowledge of mergers and acquisitions
audit committee
r emuneration committee
nomination committee
sports direct plc annual report 2013
36  simon bentley 
senior independent nonexecutive director chairman of the audit committee
appointed 02 march 2007
previous roles simon qualified as a chartered accountant in 1980 and in 1987 joined blacks leisure group plc where he was chairman and chief 
executive for 12 years
present roles simon chairs and is on the board of a range of companies and organisations among these he is chairman of the hair brand umberto 
giannini is the principal owner and chairman of the leading mobile atm operator cash on the move and is chairman of y ad vashem – uk foundation
key skillsstrengths he has lengthy experience of the sporting goods industry
 
david singleton 
nonexecutive director chairman of remuneration committee
appointed 27 october 2007
previous roles dave spent 25 years with r eebok international limited he stepped down in april 2007 having assisted with the successful integration 
of r eebok following its acquisition by adidas group in january 2006 for eight years he was vice p resident of northern europe r egion  uk and then was 
senior vice p resident of europe middle east  africa
present roles dave is chairman of bolton lads  girls club chairman of bolton community leisure t rust and a t rustee at bolton w anderers  
community t rust
key skillsstrengths dave has an extensive senior management record and brings valuable experience of international sports brand operations
 
charles mccreevy 
nonexecutive director
appointed 31 march 2011
previous roles charles is a highly experienced politician who previously served as eu commissioner for internal markets and services between 2004
2010 and has held positions in several irish government ministerial offices including minister for finance between 19972004 minister for t ourism  
trade between 19931994 and minister for social w elfare from 19921993 
present roles charles currently holds nonexecutive director positions at ryanair holdings plc sentenial limited celsius f unds plc grove limited and 
barchester holdco jersey limited 
key skillsstrengths charles has extensive allround business knowledge with particular relevance to the european union
 
claire jenkins 
nonexecutive director
appointed 25 may 2011
previous roles until recently claire was group director corporate affairs and a member of the executive leadership t eam responsible for the company’s 
sustainability and communications activities at r exam plc a leading global beverage can maker and a major player in rigid plastic packaging prior to that 
she was a member of the management committee of international tobacco company gallaher group plc acquired by japan t obacco in 2007 where she 
was responsible for investor relations and group planning claire has also gained corporate experience in various consulting roles at laing  cruickshank 
and as a nonexecutive director of r etro classics f und 
present roles claire is chairman of amicus and a nonexecutive director of media for development
key skillsstrengths claire has excellent allround business experience and in addition has particular corporate governance and communication skills
37
the business r eview management  governance financial statements  notes additional information directors’ report
the directors of sports direct international plc present their annual r eport and accounts for the year ended 28 april 2013 
principal activities and business review
the chief executive’s r eport on pages 18 to 31 provides a detailed review of 
the group’s current activities and potential future developments together with 
factors likely to affect future development performance and conditions there 
is also a table of the principal risks and uncertainties likely to affect the group 
the financial position of the group its cash flow liquidity position and borrowing 
facilities are described in the financial r eview on pages 32 to 35 the corporate 
r esponsibility r eport on pages 52 to 55 reports on environmental matters 
including the impact of the group’s businesses on the environment the group’s 
employees and on social and community issues
the principal activities of the group during the y ear remained unchanged  
and were
• retailing of sports and leisure clothing footwear and equipment
• wholesale distribution and sale of sports and leisure clothing footwear and 
equipment under groupowned or licensed brands and
• licensing of group brands
f urther information of the group’s principal activities is set out in the front of this 
document and in the chief executive’s r eport on pages 18 to 31
results for the year and dividends
r evenue for the 52 weeks ended 28 april 2013 was £21856m and profit before 
tax was £2072m compared with £18358m and £1515m in the prior year the 
trading results for the year and the group’s financial position as at the end of the 
year are shown in the attached financial statements and discussed further in 
the chief executive’s r eport and business r eview and in the financial r eview 
on pages 18 to 31 and 32 to 35 respectively
the board has determined not to recommend a dividend this year
share capital and control
the authorised share capital of the company is £100000000 divided into 
999500010 ordinary shares of 10p each and 499990 redeemable preference 
shares of 10p each
f urther information regarding the group’s issued share capital can be found on 
page 78 of the financial statements
details of executive and employee share schemes are also set out on page 78 
no votes are cast in respect of the shares held in the employee benefit t rust and 
dividends would be waived
there are 640602369 ordinary shares of 10p in issue and fully paid of which 
42137508 are currently held in t reasury
there are no specific restrictions on the transfer of shares which are  
governed both by the general provisions of the articles of association and 
prevailing legislation
the directors are not aware of any agreements between holders of the 
company’s shares that may result in restrictions on the transfer of securities or 
on voting rights
the directors were authorised to allot shares in the capital of the group up to an 
aggregate nominal amount of £19953412 being approximately one third of the 
then issued share capital for the period expiring at 11 september 2013 the date 
of the next 2013 annual general meeting
in line with guidance from the association of british insurers the company was 
also granted authority to issue a further third of the issued share capital to a 
nominal amount of £39906824 being approximately 35 of the issued share 
capital in connection with a rights issue 
a further authority to allot shares up to a maximum nominal value of £2993011 
being approximately 5 of the then issued share capital as if statutory pre
emption rights did not apply was also approved
the authorities expire at the close of the next annual general meeting of the 
company but a contract to allot shares under these authorities may be made 
prior to the expiry of the authority and concluded in whole or part after the 
annual general meeting and at that meeting similar authorities will be sought 
from shareholders
the group was authorised to make market purchases of ordinary shares of 
10p each in the company of up to a maximum aggregate number 59855236 
representing 10 of the company’s issued ordinary share capital at the 2012 
annual general meeting the above authority expires at the close of the next 
annual general meeting of the company and at that meeting a similar authority 
will be sought from shareholders
shareholders
no shareholder enjoys any special control rights and except as set out below 
there are no restrictions in the transfer of shares or of voting rights
mike ashley has entered into a r elationship agreement with the company 
under the terms of the agreement mike ashley undertook that for so long as he 
is entitled to exercise or to control the exercise of 15 or more of the rights to 
vote at general meetings of the company he will
• conduct all transactions and relationships with any member of the group on 
arm’s length terms and on a normal commercial basis and with the approval 
of the nonexecutive directors
• exercise his voting rights or other rights in support of the company being 
managed in accordance with the listing rules and the principles of good 
governance set out in the uk corporate governance code and not exercise 
any of his voting or other rights and powers to procure any amendment to 
the articles of association of the company
• other than through his interest in the company not have any interest in 
any business which sells sports apparel and equipment subject to certain 
rights after notification to the company to acquire any such interest of less 
than 20 of the business concerned and certain other limited exceptions 
without receiving the prior approval of the nonexecutive directors and not 
solicit for employment or employ any senior employee of the company
sports direct plc annual report 2013
38  as at 18 july 2013 the company has been advised that the following parties had a significant direct or indirect shareholding in the shares of the company
number of shares held
percentage of issued ordinary share 
capital with voting rights held nature of holding
mash holdings limited 
1
385400000 6440 direct
odey asset management 
2
44245793 739 direct
schroders plc 28194000 471 direct
suppliers
the group understands the importance of maintaining good relationships with 
suppliers and it is group policy to agree appropriate terms and conditions for its 
transactions with suppliers ranging from standard written terms to individually 
negotiated contracts and for payment to be made in accordance with these 
terms provided the supplier has complied with its obligations
trade creditors of the group’s uk operations as at 28 april 2013 were 28 days 
2012 29 days
contracts essential to the business of the company
the chief executive’s r eport on pages 18 to 31 details information about 
persons with whom the group has contractual or other arrangements and are 
deemed essential or material to the business of the group
takeovers 
the directors do not believe that there are any significant contracts that may 
change in the event of a successful takeover of the company details of the 
impact of any successful takeover of the group on the directors’ bonus and 
share schemes are set out in the director’s r emuneration r eport on pages  
47 to 50
employee share schemes
details of the executive bonus share schemes are set out in the directors’ 
r emuneration r eport on page 48 and details of the employee bonus share 
schemes on page 52 of the corporate r esponsibility r eport
employee invol vement
the success which the group has enjoyed is largely a result of the loyalty 
and enthusiasm of our c 24000 employees both the 2009 employee bonus 
share scheme and the 2011 employee bonus share scheme have incentivised 
employees and provided them with an opportunity to own shares in the listed 
company while working towards a shared target the schemes are subject 
to a number of conditions including personal performance conditions the 
purpose of the schemes has been to encourage hard work in our employees 
in order that the group achieves the requisite underlying ebitda targets and 
the employee achieves a bonus the schemes have also assisted the group to 
retain key employees whose skills and expertise are necessary to the success 
of the group the first part of the 2009 employee bonus share scheme vested 
in august 2012 and the second part of the scheme is due to vest in august 
2013 these awards will provide many employees with lifechanging sums the 
2011 employee bonus share scheme vests in september 2015 and september 
2017 this scheme has four essential underlying ebitda targets two of which 
have already been achieved both of these bonus share schemes will operate in 
addition to the current workplace bonus schemes which are directly related to 
specific workplace performance
f urther information on relationships with employees can be found in the 
corporate r esponsibility r eport on page 52
equal opportunities
the group’s policy for employees and all applicants for employment is to match 
the capabilities and talents of each individual to the appropriate job f actors 
such as gender race religion or belief sexual orientation age disability or 
ethnic origin should be ignored and any decision which is made with regard to 
candidates should be irrespective of these discrimination in any form will not be 
tolerated under any circumstances within the group
applications for employment by disabled persons are given full and fair 
consideration for all vacancies and are assessed in accordance with their 
particular skills and abilities the group does all that is practicable to meet its 
responsibilities towards the training and employment of disabled people and 
to ensure that training career development and promotion opportunities are 
available to all employees 
the group makes every effort to provide continuity of employment where 
current employees become disabled attempts are made in every circumstance 
to provide employment whether this involves adapting the current job role 
and remaining in the same job or moving to a more appropriate job role job 
retraining and job adaptation are just two examples of how the group works 
in the interests of employees to promote equal opportunities in order that the 
employee’s employment within the group may continue the group values 
the knowledge and expertise that employees have gained throughout their 
employment with us and therefore does not wish to lose valued employees
research and development
the group designs clothing and some footwear for sale in stores and has 
arrangements with suppliers for the research and development of goods for the 
brands division
charitable and political donations
during the year the group made charitable donations of £25132 2012 
£30060 in the uk  no political donations were made 2012 nil there have 
been a number of further donations of sporting equipment made to worthy 
causes and these are set out on pages 54 to 55
1 
mash holdings limited is wholly owned by mike ashley 
2 
odey asset management indirectly held 3476023 shares in a contract for difference account
39
the business r eview management  governance financial statements  notes additional information directors’ report continued
directors
details of current directors dates of appointment their roles responsibilities 
and significant external commitments are set out on pages 36 and 37
although the company’s articles of association require retirement by rotation of 
one third of directors each year the group has chosen to comply with the 2012 
uk corporate governance code and at each annual general meeting all of the 
directors will retire and stand for reappointment
information on service contracts and details of the interests of the directors and 
their families in the share capital of the company at 28 april 2013 and at the 
date of this r eport is shown in the directors’ r emuneration r eport on pages  
48 and 49
copies of the service contracts of executive directors and of the appointment 
letters of the chairman and nonexecutive directors are available for inspection 
at the company’s registered office during normal business hours and at the 
annual general meeting
no director has a directorship in common or other significant links with 
any other director except in the case of the executive directors holding 
directorships of subsidiary companies of the group
directors’ conflicts of interest
the board has formal procedures to deal with directors’ conflicts of interest 
during the year the board reviewed and where appropriate approved certain 
situational conflicts of interest that were reported to it by directors and a 
register of those situational conflicts is maintained and reviewed the board 
noted any transactional conflicts of interest concerning directors that arose and 
were declared no director took part in the discussion or determination of any 
matter in respect of which he had disclosed a transactional conflict of interest
directors’ indemnities
the group have granted the directors with qualifying third p arty indemnity 
provisions within the meaning given to the term by sections 234 and 235 of  
the 2006 act this is in respect of liabilities to which they may become liable  
in their capacity as director of the company and of any company within the 
group such indemnities were in force throughout the financial year and will 
remain in force
annual general meeting
the 2013 annual general meeting will be held on 11 september 2013 at unit d  
brook park east shirebrook ng20 8ry  the meeting will commence at 300pm 
the board encourages shareholders to attend and participate in the meeting
going concern
the company’s business activities together with the factors likely to affect 
its future development performance and position are set out in the business 
r eview on pages 18 to 31
the financial position of the company its cash flows liquidity position and 
borrowing facilities are described in the finance director’s r eview on pages 30 
to 34 in addition the financial statements include the company’s objectives 
policies and processes for managing its capital its financial risk management 
objectives details of its financial instruments and hedging activities and its 
exposures to credit risk and liquidity risk
the group is profitable highly cash generative and has considerable financial 
resources the group is able to operate comfortably within its banking facilities 
and covenants which run until march 2015 and is well placed to take 
advantage of strategic opportunities as they arise 
as a consequence the directors believe that the group is well placed to  
manage its business risks successfully despite the continued uncertain 
economic outlook 
the group’s forecast and projections taking account of reasonable possible 
changes in trading performance show that the group should be able to operate 
within the level of the current facility
the directors have thoroughly reviewed the group’s performance and position 
and the directors are therefore confident that the group will continue in 
operational existence for the foreseeable future on this basis the directors 
continue to adopt the going concern basis for the preparation of the annual 
r eport and financial statements
accountability and audit
a statement by the auditor can be found on page 56 detailing their reporting 
responsibilities the directors fulfil their responsibilities and these are set out in 
the responsibility statement on page 51
auditor
grant thornton uk llp have expressed a willingness to continue in office in 
accordance with section 489 4 of the companies act 2006 resolutions to 
determine remuneration are to be agreed at the agm
by order of the board 
rebecca tyleebirdsall 
company secretary 
18 july 2013
sports direct plc annual report 2013
40  corporate governance report
chairman’s introduction
i am pleased to introduce the corporate governance statement which contains 
details of the activities of the board and its committees and how the group 
complied with the uk corporate governance code 2012 for the 52week period 
ended 28 april 2013 the annual r eport is regarded as the cornerstone of the 
groups’ communication with shareholders this report is aimed at providing a 
clear understanding of the governance in the group
our diverse board remains committed to ensuring that corporate governance 
is maintained in the current challenging climate the structure of the board has 
remained constant for some time now and the group has found that this has 
led to a higher degree of trust and uniformity when it has come to making tough 
business decisions
in line with the recommendations of the t yson r eport the group wholeheartedly 
agrees that board diversity should ultimately benefit shareholders following 
on from the davies r eport in february 2011 the group’s board excluding the 
chairman is made up of 14 women this is in excess of the figures provided 
from the cranfield r eport in april 2013 which stood at 133 and also bears 
comparison to the number of senior women in the public sector diversity in our 
boardroom is a major consideration to the group as is merit and these will be 
key objectives when appointing future board members as and when suitable 
vacancies arise however due to the geographical locations complexity and  
the nature of the operations of the group ensuring that we have the correct  
level of relevant knowledge skills and experience in the boardroom is the 
immediate priority
w e are aware of the european commission proposal on 14 november 2012  
for a gender diversity directive which aims for 40 of board members to be 
made up by women by 2020 and lord davies’ recommendation that ftse 350 
companies should aim towards voluntary targets as a result of these over 
the forthcoming year we have set a voluntary target in line with the european 
commission proposal which is both fair and achievable however we do not 
agree with the t rades union congress’ proposal to impose compulsory quotas 
as we feel that this will be both prejudicial to women and detrimental  
to businesses 
across the group we employ thousands of individuals from a wealth of 
backgrounds w e aim to employ individuals based on relevant skills knowledge 
and criteria rather than based on age race or gender w e are looking to 
replicate our success of women in the business to senior management and  
the boardroom 
succession planning is extremely important to the group in order to mitigate risk 
and build on the strengths skills and competencies which we currently possess 
although our current structure remains appropriate at present we aim to share 
the knowledge of key individuals in order that when they leave the skills that 
they have learnt remain in the group under our forwardlooking approach we 
aim to utilise the resources from our own talent pool w e offer a large variety 
of activities including site visits and specialised training to improve personal 
development and to progress our colleagues to the next step in their careers 
within the group current and future vacancies are advertised both internally and 
externally to ensure that the largest range of individuals view it and can apply in 
the hope that the appointment is awarded to the most suitable individual
the group is actively considering how to make management roles more 
attractive in future we are looking at how to attract the highest calibre of 
individuals including exploring familyfriendly working and graduate training 
schemes w e hope to encourage both men and women of all backgrounds to 
senior positions within the group
compliance with the uk corporate governance code
the overall responsibility for the group’s risk management and internal controls 
systems sits with the board this is an ongoing process which relates to the 
identification evaluation management and monitoring of significant risks this 
complies with the uk corporate governance code 
the board is subject to the latest corporate governance code which was 
issued in september 2012 the main principles of the code are
leadership
effectiveness
accountability
remunerations
relations with shareholders
the board has reviewed the company’s corporate governance processes and 
policies and has concluded that during the 52 weeks ended 28 april 2013 the 
year the company complied with the provisions of the code except as set out 
below
provision b11 states “the board should state its reasons if it determines that 
a director is independent notwithstanding the existence of relationships or 
circumstances which may appear relevant to its determination including if the 
director has received or receives additional remuneration from the company 
apart from a director’s fee participates in the company’s share option or a 
performancerelated pay scheme or is a member of the company’s pension 
scheme” keith hellawell the group’s chairman has the option to buy 50000 
shares for the nominal value of £010 per share in the group on an annual 
basis the board and r emuneration committee are satisfied that the additional 
remuneration does not impair his independence this year as with last year 
keith hellawell has opted to waive his right to take the shares
the board
the board consists of a nonexecutive chairman keith hellawell the deputy 
chairman mike ashley two other executive directors and four further non
executive directors the names skills and short biographies of each member of 
the board are set out on pages 34 and 35
the size and composition of the board are regularly reviewed by the board to 
ensure that there is the appropriate balance of skills and experience
role of the board 
the role of the board is to ensure the overall longterm success of the group 
this is achieved through the review development and implementation of 
the group’s strategy the board also maintains responsibility for corporate 
responsibility accountability and to ensure effective leadership is delegated to 
management for the day to day running of the group and ensures an appropriate 
strategy is in place for succession planning
the board has a programme in place to enable it to discharge its responsibility 
of providing effective and entrepreneurial leadership to the group within a 
framework of prudent and effective controls
the board plans to meet on a formal basis six times during the year with up to 
four additional strategy meetings at convenient times throughout the year when 
broader issues concerning the strategic future of the group will be discussed 
the board will meet on other occasions as and when the business demands 
during the year the board met on five occasions
the group is committed to high standards of corporate governance the following section will detail how the uk corporate 
governance code has been applied during the year 
41
the business r eview management  governance financial statements  notes additional information the board continued
a detailed agenda is established for each meeting and appropriate 
documentation is provided to directors in advance of the meeting r egular  
board meetings provide an agenda that will include reports from the chief 
executive the group finance director reports on the performance of the 
business and current trading reports on meetings with investors reports from 
committees of the board and specific proposals where the approval of the board 
is sought the board will monitor and question monthly performance and review 
anticipated results
presentations are also given on business or strategic issues where appropriate 
and the board will consider at least annually the strategy for the group minutes 
of the meetings of committees of the board are circulated to all members of 
the board unless a conflict of interest arises to enable all directors to have 
oversight of those matters delegated to committees and copies of analysts’ 
reports and brokers’ notes are provided to directors
it is the responsibility of the directors to ensure that the accounts are prepared 
and submitted having assessed the current annual r eport along with the 
accounts the directors confirm that taken as a whole they are fair balanced 
and understandable the directors authorise that these documents provide 
the necessary information in order for shareholders to assess the group’s 
performance business model and strategy
key activities
• ensuring the longterm success of the group
• considering the obligations to shareholders and other stakeholders
• considering the effect the group’s activities have on the environment and 
community in which it operates
• maintaining a high business reputation
• maintaining relationships with suppliers customers and the wider community
there is a formal schedule of matters that require board approval they are 
matters that could have significant strategic financial or reputational effects on 
the group as a whole
matters reserved for the board
• sets budgets
• monitors and reviews strategy and business performance
• approves acquisitions expansions into other regions  countries
• appointments and removal of board members
• succession planning
• overall responsibility for internal control and risk management as described 
on pages 28 to 31
the chairman and executive directors 
the division of responsibilities between the nonexecutive chairman the 
executive deputy chairman and the chief executive is in writing and has been 
agreed by the board however they work closely together to ensure effective 
decisionmaking and the successful delivery of the group’s strategy
the chairman is responsible for leadership of the board ensuring its 
effectiveness and that all directors are able to play a full part in the activities of 
the company he ensures that the directors receive accurate timely and clear 
information the chairman officiates effective communication with shareholders 
and that the board understands the views of major investors and is available to 
provide advice and support to members of the executive team
the executive deputy chairman is an ambassador for the company he takes 
the lead in the strategic development of the company formulating the vision and 
strategy which he does in conjunction with the chief executive
the company has entered into a r elationship agreement with mike ashley the 
executive deputy chairman whose wholly owned company mash holdings 
limited currently holds approximately 6440 of the issued share capital of 
the company excluding treasury shares this agreement is described in the 
directors’ r eport on pages 38 to 39
the chief executive is responsible for the running of the group’s business for 
the delivery of the strategy leading the management team and implementing 
specific decisions made by the board to help meet shareholder expectations 
the chief executive reports to each board meeting on all material matters 
affecting the group’s performance no one individual has unfettered power  
of decision
given the structure of the board the fact that the chairman and chief executive 
roles are fulfilled by two separate individuals and the terms of the r elationship 
agreement with mike ashley the board believes that no individual or small 
group of individuals can dominate the board’s decision making
the nonexecutive directors 
the board consists of four nonexecutive directors and the chairman the role 
of the nonexecutive directors is to understand the group in its entirety and 
constructively challenge strategy and management performance set executive 
remuneration levels and ensure an appropriate succession planning strategy is 
in place they must also ensure they are satisfied with the accuracy of financial 
information and that thorough risk management processes are in place
the nonexecutive directors have excellent experience from a wide range of 
sectors the nonexecutive directors assist the board with issues such as 
governance internal control remuneration and risk management
simon bentley is the senior independent nonexecutive director he supports 
the chairman and nonexecutive directors and is available to shareholders if 
they have concerns
the nonexecutive directors – external appointments 
nonexecutive directors are required to disclose prior appointments and other 
significant commitments to the board and are required to inform the board 
of any changes to or additional commitments details of the nonexecutives 
directors external appointments can be found on pages 36 and 37
before accepting new appointments nonexecutive directors are required to 
obtain approval from the chairman and the chairman requires the approval of 
the whole board it is essential that no appointment causes a conflict of interest 
or jeopardises the nonexecutive director’s commitment and time spent with 
the group in their existing appointment
the nonexecutive directors – independence 
the group considers the nonexecutive directors to be independent in 
accordance with the 2012 uk corporate governance code
claire jenkins had been a consultant for the company on an ad hoc basis for 
approximately fifteen days each year between 2007 and 2010 notwithstanding 
this involvement the board still believes that she is independent in character 
and judgement
executive and nonexecutive directors  conflicts of interest 
the board has set procedures to deal with directors’ conflicts of interest that 
arise during the year the board reviewed and where appropriate approved 
certain situational conflicts of interest that were reported to it by directors and 
a register of those situational conflicts is maintained and reviewed the board 
noted any transactional conflicts of interest concerning directors that arose and 
were declared no director took part in the discussion or determination of any 
matter in respect of which he had disclosed a transactional conflict of interest
corporate governance report continued
sports direct plc annual report 2013
42  executive and nonexecutive directors  reelection 
the group complies with the 2012 uk corporate governance code and all 
directors offer themselves for reelection every year 
the board have determined that all directors must put themselves forward 
for election or reelection at the 2013 agm to comply with the uk corporate 
governance code r etiring directors may seek reappointment if willing and 
eligible to do so and if so recommended by the nomination committee all 
directors appointed by the board are appointed after consideration of the 
recommendations of the nomination committee and those so appointed must 
stand for reappointment at the following annual general meeting
details of executive directors’ service contracts and of the chairman’s and the 
nonexecutive directors’ appointment letters are given on page 49 copies of 
service contracts and of appointment letters are available for inspection at the 
company’s registered office during normal business hours and at the annual 
general meeting
executive and nonexecutive  training and development 
all newly appointed directors are provided with a tailored induction programme 
based on their existing skills and experience the board is also informed of any 
material changes to laws and regulations affecting the group’s business 
all directors have access to the advice and services of the company secretary 
and each director and each board committee may take independent professional 
advice at the company’s expense subject to prior notification to the other 
nonexecutive directors and the company secretary the company maintains 
appropriate directors and officers insurance
executive and nonexecutive directors  performance evaluation 
there is a formal process in place for the performance evaluation of the board 
its committees and individual directors each director is given the opportunity 
to express their views on the organisation and operation of the board and its 
committees their effectiveness and contribution to the business and on any 
other matter they consider relevant
the chairman holds regular development reviews with each director and an 
internal board evaluation was facilitated by the chairman who provided the 
other members of the board with a confidential questionnaire the findings were 
presented to the board
the evaluation did not highlight any areas of concern and the directors are 
satisfied the board and its committees are operating effectively
the board and the nomination committee will consider the output from the 
evaluation programme in their evaluation of the skills knowledge and experience 
of the board and in formulating development plans
board committees
to assist the board with their duties there are three principal board 
committees being the audit committee the r emuneration committee and the 
nomination committee the committees are governed by terms of reference 
which provide detail of matters delegated to each committee and the authority 
they have to make decisions f ull terms of reference are available on request and 
on the company’s website
attendance by directors at board and committee meetings during the y ear and 
the total number of meetings that they could have attended are set out in the 
table below all directors attended all meetings of the board and of committees 
of the board of which they were members unless prevented from doing so 
by prior commitments the board is satisfied that currently no one director 
exercises a disproportionate influence
 a number of audit committee r emuneration committee and nomination committee meetings were attended by board members who were not members of the committees the board members concerned attended 
these meetings at the invitation of the committee members
board  
meetings
audit  
committee meetings
remuneration  
committee meetings
nomination  
committee meetings
keith hellawell 99 33 44 22
mike ashley 69  14 
simon bentley 69 23 34 22
dave forsey 99 33 44 22
claire jenkins 99 33 44 22
charles mccreevy 99 33 24 22
bob mellors 89 33 44 
dave singleton 99 33 44 22
43
the business r eview management  governance financial statements  notes additional information corporate governance report continued
audit committee
attendance at meetings of committees is set out on page 43 
directors who served on the committee during the y ear were 
 
simon bentley chairman
dave singleton 
charles mccreevy
claire jenkins
simon bentley the chairman of the audit committee is a chartered accountant 
has relevant financial experience and is supported by the rest of the committee 
all of the members of the committee are considered independent ensuring that 
the interests of the shareholders are properly protected in relation to financial 
reporting and internal control
in addition to the committee members the external auditors are invited to 
attend meetings of the committee save for those parts of any meeting when the 
committee reviews the performance of the auditors and when the committee is 
having separate discussions with the group finance director who also attends 
when requested the committee meets the auditors in the absence of executive 
management at least twice a year and the chairman of the audit committee 
meets with the auditors as and when it is needed
where requested by the board the audit committee can provide advice on 
whether the annual r eport and accounts taken as a whole is fair balanced 
and understandable and provides the information necessary for shareholders to 
assess the company’s performance business model and strategy
the committee met on three occasions during the y ear the audit committee 
will meet not less than three times a year this could be increased depending on 
the group’s requirements
the committee’s programme is preplanned to ensure that each aspect of its 
responsibilities is discharged as part of an annual cycle during the company’s 
financial year
the main responsibilities of the audit committee include
• assisting the board with the discharge of its responsibilities in relation to 
internal and external audits and controls 
• agreeing the scope of the annual audit and the annual audit plan and 
monitoring the same
• r eviewing and monitoring the independence of the external auditors and 
relationships with them and in particular agreeing and monitoring the extent 
of the nonaudit work that may be undertaken
• monitoring making judgements and recommendations on the financial 
reporting process and the integrity and clarity of the group’s financial 
statements
• r eviewing and monitoring the effectiveness of the internal control and risk 
management policies and systems in place
• monitoring the audit of the annual and consolidated accounts
• r eporting to the board on how it has discharged its responsibilities
what has the committee done during the year 
• monitored the effectiveness of internal controls and also considered the 
current economic climate and its likely impact on the group
• considered the reappointment of the auditors
• r eviewed accounting policies presentations and the financial statements
• approved policy for nonaudit work
on an annual basis the audit committee considers the reappointment of the 
auditors and their remuneration and makes recommendations to the board the 
auditors are appointed each year at the annual general meeting the committee 
consider the level of service provided by the auditors and their independence
the committee recommend the reappointment of grant thornton uk llp for 
fy14 the committee believes their independence the objectivity of the external 
audit and the effectiveness of the audit process is safeguarded and remains 
strong this is displayed through their robust internal processes their continuing 
challenge their focused reporting and their discussions with both management 
and the audit committee
to maintain the objectivity of the audit process the external auditors are 
required to rotate audit partners for the group audit every five years and the 
current lead partner has been in place for four years under the corporate 
governance code 2012 audit services must be put to tender at least every  
ten years or else we must explain why we have not done so our current 
auditors namely grant thornton uk llp  have been in place since the listing  
in february 2007
the committee has approved a policy on the engagement of the external 
auditors for nonaudit work in order to ensure that the objectivity of the auditors’ 
opinion on the group’s financial statements is not or may not be seen to be 
impaired and has established a process to monitor compliance
the policy identified three categories of potential work
auditor authority type of work
w ork the auditor may not provide as 
completing the task could create a threat  
to independence
the work includes the preparation of accounting entries or financial statements it systems design and 
implementation management of projects and tax planning where the outcome would have a material impact 
on the financial statements or where the outcome is dependent upon accounting treatment
w ork the auditor may undertake with  
the consent of the chairman of the  
audit committee
corporate finance services acquisition due diligence management consultancy and secondment of staff other 
than for the preparation of accounting entries or financial statements
w ork the auditor may undertake there are services that the auditors may provide as the work is clearly audit related and there is no potential 
threat to independence including regulatory reporting and acting as reporting accountants the company is 
satisfied that its policy falls within the requirements of the auditing p ractices board
sports direct plc annual report 2013
44  remuneration committee
directors who served on the committee during the y ear were
dave singleton chairman
simon bentley
keith hellawell
charles mccreevy
claire jenkins
the r emuneration committee assists the board to ensure appropriate levels of 
pay and benefits are in place for executive and nonexecutive directors a key 
priority is to ensure that remuneration policy is aligned with strategy to achieve 
the long term success of the group the committee ensures that it complies 
with the requirements of regulatory and governance bodies including the uk 
code whilst meeting shareholder and employee expectations all members of 
the committee are nonexecutive directors and are considered independent
the responsibilities of the remuneration committee include
• determining the company’s policy on executive remuneration including  
the design of bonus schemes and targets and payments made thereunder
• determining the levels of remuneration for the chairman and each of the 
executive directors
• monitoring the remuneration of senior management and making 
recommendations in respect thereof 
•  agreeing any compensation for loss of office of any executive director 
the r emuneration committee meets at least three times a year and met on 
three occasions during the year
a report on the remuneration of directors appears on pages 48 to 50 
what has the committee done during the year
• r eviewed executive remuneration to include salaries and bonuses
• r eviewed and approved the directors’ r emuneration r eport contained  
on pages 47 to 50
f ull details of directors’ remuneration can be found in the r emuneration r eport 
on pages 48 and 49
nomination committee
members of the nomination committee during the y ear were 
keith hellawell chairman
simon bentley
dave singleton 
charles mccreevy
 
the nomination committee will meet at least once a year and will also meet 
when appropriate the committee met on two occasions during the y ear 
all of the nomination committee members are nonexecutive directors and 
considered independent
the responsibilities of the nomination committee include
• r eview the board’s structure
• r eview the composition and make up of the board including evaluating the 
balance of skills knowledge and experience of the members of the board
• give consideration to succession planning for directors
• prepare a description of the role and capabilities required for any  
board appointment
• make recommendations to the board concerning the standing for 
reappointment of directors
• identify potential candidates to be appointed as directors and make 
recommendations to the board as the need may arise
the board has established a nomination committee to ensure a formal rigorous 
and transparent procedure for the appointment of new directors to the board 
the composition of that committee and a description of its terms of reference 
are set out on the sports direct international plc website
the nomination committee also determines succession plans for the chairman 
and the chief executive who are not present at meetings when the matter is 
discussed succession plans are reviewed by the nomination committee at 
least once a year
dave forsey the chief executive will usually attend meetings of the nomination 
committee unless the nomination committee is dealing with matters relating to 
him or with the appointment of his successor 
the board believes that the board and its committees as currently constituted 
are working well
45
the business r eview management  governance financial statements  notes additional information corporate governance report continued
uk bribery act
following the introduction of the uk bribery act all policies and procedures 
have been reviewed to ensure that they comply with the act and measures are 
in place to prevent employees accepting bribes
business model 
our business model which sets out the basis on which the company generates 
or preserves value over the longer term and the strategy for delivering the 
objectives of the company can be found at page 5
whistleblowing 
the group has a formal whistleblowing policy for employees who wish to raise 
any issues or concerns relating to the company’s or group’s activities on a 
confidential basis
going concern 
the company’s business activities together with the factors likely to affect 
its future development performance and position are set out in the business 
r eview on pages 18 to 31
the financial position of the company its cash flows liquidity position and 
borrowing facilities are described in the finance director’s r eview on pages 
32 to 35 in addition notes 27 and 28 of the financial statements include the 
group’s objectives policies and processes for managing its capital its financial 
risk management objectives details of its financial instruments and hedging 
activities and its exposures to credit risk and liquidity risk
the company is profitable highly cash generative and has considerable financial 
resources the company continues to operate comfortably within its banking 
facilities and covenants which run until march 2015 the company is well
placed to take advantage of strategic opportunities as they arise 
as a consequence the directors believe that the company is wellplaced 
to manage its business risks successfully despite the continued uncertain 
economic outlook the directors have a reasonable expectation that the 
company has adequate resources to continue in operational existence for the 
foreseeable future thus they continue to adopt the going concern basis of 
accounting in preparing the annual financial statements
relations with shareholders
the board recognise the importance of communicating with shareholders this 
is done through the annual r eport and financial statements interim statements 
and trading updates all directors are available at the annual general meeting 
when shareholders have the opportunity to ask questions
the chairman chief executive and finance director regularly meet with the 
company’s institutional shareholders to discuss the group’s strategy and 
financial performance within the constraints of information already available to 
the public the senior independent nonexecutive director is also available to 
meet with shareholders
keith hellawell david singleton and claire jenkins met with shareholders and 
institutions to discuss various topics throughout the year and to gain a better 
understanding of the views of shareholders
the company’s website is an important method of communication and holds 
all material information reported to the london stock exchange together with 
copies of financial reports interim management statements and trading updates
remuneration
the r emuneration committee is responsible for determining and reviewing 
remuneration policy and setting remuneration levels see r emuneration r eport 
on pages 47 to 50
share dealing code 
the group has adopted the model code as published in the uk listing rules
anyone deemed to have ‘insider information’ must seek consent before dealing 
in the group’s shares
the executive directors require the consent of the chairman or the senior 
independent director and the chairman requires consent from the chief 
executive and the senior independent nonexecutive director any other 
employees with ‘insider information’ must gain the consent of the chief 
executive or company secretary before dealing in the group’s shares
details concerning the share capital structure of the company can be found in 
the director’s r eport on pages 38 to 40
risks and uncertainties
the key features of the group’s system of internal control and risk management 
systems in relation to the financial reporting process and the preparation of the 
group accounts are set out below or crossreferred to other parts of the annual 
r eport where relevant
the board of directors has overall responsibility for determining the nature 
and extent of the significant risks it is willing to take in achieving its strategic 
objectives and for maintaining sound risk management and internal control 
systems and for reviewing their effectiveness the risk management process 
and systems of internal control are designed to manage rather than eliminate the 
risk of failures to achieve the company’s objectives it should be recognised that 
such systems can only provide reasonable but not absolute assurance against 
material misstatement or loss
assessment of business risk
a system to identify assess and evaluate business risk is embedded within 
the management processes throughout the group strategic risks are regularly 
reviewed by the board risks relating to the key activities within the subsidiary 
operating units are assessed continuously
f urther details of the risks and uncertainties relating to the group’s business 
and how the group seeks to mitigate these can be found on pages 28 to 31
by order of the board 
rebecca tyleebirdsall 
company secretary 
18 july 2013
sports direct plc annual report 2013
46  directors’ remuneration report
the remuneration package for senior executives is highly performancebased 
with the performance element paid in shares which encourages the growth 
and longterm success of the group the executive directors’ basic salaries 
have been set at a level well below the lower quartile for a business of the size 
and complexity of the group and have remained the same since 2002 senior 
executive salaries will not increase in 2013  2014 the senior executives enjoy 
no additional benefits
the executive and employee bonus share schemes are closely aligned and 
reflective of the “one t eam” ethos to drive sustained business performance 
instead of granting smaller awards on an annual basis larger upfront awards are 
granted which only vest if significant and consistent growth is delivered year 
on year the extended time horizon for vesting of awards for the 2011 executive 
share bonus scheme is six years in 2017 
clear published and stretching performance targets must be fully satisfied 
before any proportion of the share awards vest aligned to the company’s 
performance culture the executive and employee share schemes are designed 
on the basis that awards should vest in full for achieving the upper end of stretch 
targets ie with an ‘all or nothing’ vesting schedule rather than providing for 
a lower level of vesting for meeting a threshold target rising to full vesting for 
achieving the stretch targets ie a scaled vesting schedule 
in 2014 the r emuneration committee intend to raise the required shareholding 
value of executive directors to two times annual salary while employed by  
the company 
the r emuneration committee strongly believes that this simple and transparent 
incentive framework is aligned with the company strategy for growth w e 
believe that this remuneration strategy has also directly driven historic 
outperformance of the stretch targets set by the r emuneration committee 
cemented a “one t eam” culture across all levels of the company supported 
the group’s success and has clearly led to increased shareholder value since 
inception in 2009 in this regard our remuneration arrangements are tailored 
to the culture and strategy of the company take account of the current and 
forecasted economic climate and are already providing a strong platform for the 
ongoing longterm success of the company
this report has been prepared in accordance with the requirements of r egulation 
ii and schedule 8 of the large and mediumsized companies and groups 
accounts and r eports r egulations 2008 the r egulations and of the corporate 
governance code
the remuneration policy of the company is very closely aligned to its commercial strategy for long term profitable growth its very 
strong employee performance culture and a reward ethos of “one t eam”
the business r eview management  governance financial statements  notes additional information
the remuneration committee
the r emuneration committee consists of simon bentley dave singleton claire 
jenkins and charles mccreevy who are independent nonexecutive directors 
and keith hellawell who is the nonexecutive chairman
the role and main responsibilities of the committee are detailed in the corporate 
governance r eport on page 45
attendance at the meetings held during the year is detailed on page 43
advisers
dave forsey the chief executive bob mellors the group finance director and 
mike ashley the executive deputy chairman have also advised or materially 
assisted the committee when requested
remuneration policy
the aim of the group is to achieve longterm success and increase shareholder 
value this is underpinned by the main principles of the r emuneration 
committee to ensure policies and practices are in place to encourage 
performance which will in turn help achieve this success
the committee has endorsed the provisions of section d of the uk corporate 
governance code and has had those provisions in mind when determining 
remuneration policies for the past current and future years
the retail environment in which the group operates is highly competitive so 
the committee ensures that the level and form of remuneration is sufficient to 
attract retain and motivate directors and senior managers of the quality and 
talent required to run the group successfully
the remuneration policy for executive directors is highly performancebased 
which links the executive directors’ reward to the growth and longterm success 
of the group all performancebased remuneration is paid in shares to align the 
interest of the executive directors with the interest of shareholders
basic salaries have been set at a level well below the lower quartile for a 
business of the size and complexity of the group and have remained the 
same since 2002 during the year the performancerelated elements of the 
remuneration packages consisted of participation in the executive bonus share 
scheme although there are no other benefits f ull details are on page 48
mike ashley does not receive a salary for his role and has not received a bonus
the committee consults major shareholders and representative groups where 
appropriate concerning remuneration matters
the committee is at all times mindful of the company’s social ethical and 
environmental responsibilities and is satisfied that current remuneration 
arrangements do not inadvertently encourage irresponsible behaviour
the committee has reviewed the salaries other remuneration and other 
employment conditions of senior and middle managers throughout the group 
and has taken them into account in considering directors’ salaries and the 
creation of new incentive schemes in order to create a sense of common 
purpose and sharing of success the executive bonus share scheme 
performance targets mirror those to be applied to awards under the bonus share 
scheme which will apply to all uk permanent employees of the group in uk 
r etail brands and head office on the same basis
the committee is mindful that any bonus arrangements are balanced against 
delivering sustainable growth in earnings for shareholders
the committee’s remuneration policy in respect of the nonexecutive directors 
is to pay annual fees which reflect the responsibilities and duties placed upon 
them while also having regard to market practice
47 directors’ remuneration report continued
basic salary
basic salaries are reviewed annually in the review in 2013 the committee 
decided again not to alter executive directors’ salaries executive directors’ 
salaries have now been at the same level since 2002
the basic salaries of executive directors at the y ear end and at 18 july  
2013 the latest practicable date before the printing of this report were  
as shown below
at 18 july 2013 at 28 april 2013
mike ashley  
dave forsey £150000 £150000
bob mellors £150000 £150000
 
annual bonus scheme 
the committee has determined that no annual bonus scheme will be  
operated for executive directors while the executive bonus share scheme is 
being operated 
executive bonus share scheme
the executive bonus share scheme was approved at the company’s  
annual general meeting in september 2010 to motivate and help improve the 
retention of the executives and to drive underlying group ebitda in line with 
group strategy
subject to continued employment each executive and two members of senior 
management will have the right to exercise their options to acquire one million 
shares each in the company from august 2013 as the company has attained the 
following targets
• underlying ebitda of £195m net of the cost of the scheme in 20102011 
and
• underlying ebitda net debt ratio of 2 or less at the end of 201011
a further executive bonus share scheme is currently in operation each 
executive and two members of senior management have been granted an 
award of one million shares each which will vest if the company attains all the 
following targets 
• underlying ebitda of £215m in 2012
• underlying ebitda of £250m in 2013
• underlying ebitda of £260m in 2014
• underlying ebitda of £300m in 2015
• individual satisfactory employment performance
the bonus will vest in 2017 subject to continuous employment to this date the 
targets and vest dates are in line with the employee bonus share scheme
in respect of each relevant year the committee will adjust reported underlying 
group ebitda for the purpose of the scheme to ensure consistency in the 
calculation of underlying ebitda and to ensure that underlying ebitda is a fair 
comparison year by year for example by eliminating the impact of acquisitions 
where the cost of acquisitions is not reflected in underlying ebitda 
underlying ebitda is as defined on page 33 and is not at constant foreign 
currency exchange rates
in the event of a takeover scheme of arrangement other than a scheme to 
create a new holding company for the company having substantially the same 
shareholders as the company or voluntary windingup of the company share 
awards will vest in full following such an event to the extent the performance 
conditions have been met if the performance conditions have not been met the 
awards will lapse
pension
the executive directors are entitled to participate in a stakeholder pension 
scheme under which the company makes a contribution although they have 
opted out of this 
share ownership policy 
the board believes it is important that executive directors have a significant 
holding in the capital of the company
in order to participate in the executive bonus share scheme there are current 
internal guidelines that the executive directors will be required to maintain a 
minimum level of shareholding in the company equivalent to one year’s salary 
while they remain employed by the company however these guidelines can 
be waived with the permission of the board the board applied their discretion 
during 2013 and allowed dave forsey and bob mellors to sell their remaining 
shares permission to sell the shares was granted by the board as they had the 
knowledge that both dave forsey and bob mellors would shortly receive a large 
number of shares due to the vesting of the executive bonus share scheme
the sale of the shares by the directors was reported in an rns announcement 
and also on the company’s website
service contracts
all executive directors are employed on a rolling 12 month contract which is 
terminable by either party on 12 months’ written notice the company may elect 
to terminate the employment of dave forsey andor bob mellors by making a 
payment in lieu of notice equal to the basic salary that the director would have 
received during the notice period or if notice has already been given during the 
remainder thereof 
details of the letters of appointment are set out below
contract date
unexpired term  
notice period 
proper law
mike ashley 11022007 12 months england  w ales
dave forsey 11022007 12 months england  w ales
bob mellors 11022007 12 months england  w ales 
any entitlement to benefits under any sharerelated incentive scheme is 
determined in accordance with the rules of that scheme
each executive director’s service contract automatically terminates on the date 
that the director reaches such age as is determined by the board from time to 
time as the retirement age for executive directors
sports direct plc annual report 2013
48  nonexecutive directorships
the nonexecutive directors enter into an agreement with the group for a 
period of three years the appointments of the nonexecutive directors may be 
terminated by either party on one month’s written notice and in accordance with 
the articles of association of the company t ermination would be immediate in 
certain circumstances including the bankruptcy of the nonexecutive director
nonexecutive directors do not and are not entitled to participate in any bonus 
or share scheme for more information see chairman’s option on page 50
nonexecutive directors are subject to confidentiality undertakings without 
limitation in time nonexecutive directors are not entitled to receive any 
compensation on the termination of their appointment
fees for nonexecutive directors are set out on page 50
details of the letters of appointment are set out below
position
annual fee 
£’000
date of letter of 
appointment
keith hellawell nonexecutive chairman 155 24112009
simon bentley nonexecutive director 50 02032007
dave singleton nonexecutive director  50 25102007
charles mccreevy nonexecutive director 50 31032011
claire jenkins nonexecutive director 50 25052011
performance graph
the following graph shows the company’s performance measured by the t otal shareholder r eturn compared with the performance of the ftse 250 index excluding 
investment trusts
the committee considered this an appropriate index against which to compare the company’s performance as it is widely accepted as a national measure and 
includes the companies that investors are likely to consider alternative investments 
historic total shareholder return
£20
£0
£40
£60
£80
£100
£120
£140
£160
£180
£200
£220
£240
30apr07 29apr08 29apr09 26apr10 24apr11 29apr12 26apr13
ftse 250 ex investment trusts                     sports direct
the business r eview management  governance financial statements  notes additional information
49 directors’ remuneration report continued
auditor’s report
the auditors are required to report on the information contained in the  
following section of this report other than in respect of nonexecutive  
directors’ shareholding
directors’ remuneration 2013
the following pages set out an analysis of directors’ emoluments and  
annual bonus entitlements under the executive bonus share scheme  
and shareholdings 
directors’ emoluments
an analysis of directors’ emoluments relating to salary and directors fees 
annual bonus and other benefits other than entitlements under the executive 
bonus share scheme and in respect of pensions for the y ear is set out below
salaries 
 fees 
£’000
bonus
£’000
other 
benefits
£’000
total
£’000
total 2012
£’000
mike ashley     
simon bentley 50   50 50
dave forsey 150   150 150
keith hellawell 155   155 277
bob mellors 150   150 150
dave singleton 50   50 50
charles mccreevy 50   50 50
claire jenkins 50   50 47
executive directors dave forsey and bob mellors have 1000000 share options 
each which vest in august 2013 these have not been inserted into the table as 
they have not yet been earned by the directors due to this the directors have 
not had the option to take the shares during the year
the aggregate of directors’ emoluments in the y ear was £655000  
2012 £774000
for further details on the executive bonus share scheme refer to page 48
chairman’s option
as part of his fee keith hellawell is entitled each year to exercise an option to 
acquire 50000 shares for £010 per share f rom the 30 april 2012 keith opted 
to permanently waive his share entitlement
annual bonus scheme
there is currently no annual bonus scheme in place
directors’ shareholdings
the beneficial interests of the directors in office on 28 april 2013 and of their 
families in both cases at the beginning of the year or at the date of appointment 
if later and at the end of the year in the share capital of the company are  
shown below
ordinary shares 
29 april 2012
ordinary shares 
28 april 2013
mike ashley 410400000 385400000
simon bentley 50000 50000
dave forsey 803922 
keith hellawell 130000 130000
claire jenkins 20000 20000
charles mccreevy  
bob mellors 803922 
dave singleton 153621 153621
 
 
dave singleton 
chairman of the r emuneration committee 
18 july 2013
 
sports direct plc annual report 2013
50  directors’ responsibilities and r esponsibility statement
directors’ responsibilities 
the directors are responsible for preparing the annual r eport the r emuneration 
r eport and the company and group financial statements in accordance with 
applicable law and regulations
company law requires the directors to prepare financial statements for each 
financial year under that law the directors are required to prepare the group 
financial statements in accordance with international financial r eporting 
standards ifrss as adopted by the european union
the directors have elected to prepare the company financial statements in 
accordance with united kingdom generally accepted accounting p ractices  
uk gaap
under company law the directors must not approve the financial statements 
unless they are satisfied that they give a true and fair view of the state of affairs 
and profit or loss of the company and group for that period in preparing the 
financial statements the directors are required to
• select suitable accounting policies and then apply them consistently
• make judgements and estimates that are reasonable and prudent
•  for the group financial statements state whether applicable ifrss have 
been followed subject to any material departures disclosed and explained 
in the financial statement
•  for the company financial statements state whether applicable uk 
accounting standards have been followed subject to any material 
departures disclosed and explained in the financial statements and
•  prepare the financial statements on the going concern basis unless it is 
inappropriate to presume that the company and group will continue in 
business
the directors are responsible for keeping adequate accounting records 
that are sufficient to show and explain the company’s transactions and 
disclose with reasonable accuracy at any time the financial position of the 
company and enable them to ensure that the financial statements and the 
r emuneration r eport comply with the companies act 2006 and article 4 of 
the ias r egulation they are also responsible for safeguarding the assets of the 
company and hence for taking reasonable steps for the prevention and detection 
of fraud and other irregularities
the directors confirm that
• so far as each director is aware there is no relevant audit information of 
which the company’s auditors are unaware and 
• the directors have taken all steps that they ought to have taken to make 
themselves aware of any relevant audit information and to establish that the 
auditors are aware of that information
the directors are responsible for the maintenance and integrity of the corporate 
and financial information included on the company’s website legislation in 
the united kingdom governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions
to the best of our knowledge 
a the financial statements prepared in accordance with the applicable set of 
accounting standards give a true and fair view of the assets liabilities financial 
position and profit of the company and of the undertakings included in the 
consolidation taken as a whole 
and
b the management report includes a fair review of the development and 
performance of the business and the position of the company and the 
undertakings included in the consolidation taken as a whole together with a 
description of the principal risks and uncertainties that they face
on behalf of the board
dave forsey  bob mellors 
chief executive  group finance director
18 july 2013
the business r eview management  governance financial statements  notes additional information
51 corporate responsibility report
employees
our people are at the very heart of our business and as we continue to grow 
it is the skill and enthusiasm of our c 24000 employees that are key to our 
success our ability to attract retain and develop the best people is crucial to 
achieving our strategic objectives w e have an established bonus share scheme 
that is applicable to employees at every level of our business and robust training 
initiatives to ensure our employees best understand the essential role they play 
in driving the business forward
key highlights
total employees 24000
hours invested in training 40000
 
attracting our people  
in no small measure the progress we continue to make is down to the 
dedication and expertise of our staff w e believe that performancebased 
rewards motivate colleagues help improve employee retention and align the 
interests of employees and shareholders w e incentivise our staff by enabling 
them to share in the business’ success through the bonus share scheme if the 
group reaches the ebitda targets detailed in the table below and employees 
performance is deemed satisfactory eligible employees will receive sports 
direct shares
2012 underlying ebitda of £215m
2013 underlying ebitda of £250m
2014 underlying ebitda of £260m
2015 underlying ebitda of £300m
 
approximately 27 million shares will be distributed between eligible employees 
upon successful completion of the scheme c6 million shares will vest in 2015 
and c21 million in 2017
retaining our people 
employee retention is extremely important in order for us to retain expertise and 
measure employee satisfaction for this reason it is one of our key performance 
indicators this year 155 of our uk employees left the business down from 
17 in 2012 the vast majority of them were from our stores
salaried staff turnover since fy09
fy12
17
fy13
155
17
fy11
17
fy10
29
fy09
30
0
 
the group also has several policies and systems to in place to ensure employee 
welfare is monitored and maintained these are laid out in the diagram below
 
 
developing our people 
sports direct is committed to encouraging and developing our people w e 
believe that offering the right training and development for our staff will not only 
help each individual progress but will also enhance productivity and the overall 
customer experience w e have invested significantly in training over the last few 
years and in 2012 alone over 40000 hours were spent on training at  
sports direct
w e are proud to offer a great portfolio of training courses all housed in state of 
the art facilities at our shirebrook campus this ensures every member of our 
team has the opportunity to be inspired stimulated motivated and to be better 
in their role
corporate r esponsibility is central to our vision to be an industry leader our established corporate r esponsibility framework focuses 
on five key areas employees health and safety the environment customers and the community sports direct has developed key 
performance indicators kpis to ensure we deliver on our commitments these kpis are further discussed in this report and in the 
chief executive’s r eport and business r eview and are based solely on our uk operations
equal opportunity  
diversity policy
staff forum
right to a  
trade union
tailored employee 
handbook
sports direct plc annual report 2013
52  w e have extensive operational and skills training at sports direct as well as 
general job performance and management development courses our operational 
and skills training takes place in four specialised training environments at our 
shirebrook campus focused on running football women’s and sku sports 
knowledge underground these specialised environments ensure that our staff 
are equipped with the most uptodate knowledge to enable them to confidently 
advise customers on specific product choices such as the most relevant trainer 
for their running style
nike training 
our international nike academy is the only such facility in the world and offers 
an unrivalled training experience
sports direct uses an online training programme in conjunction with nike called 
sku sports knowledge underground f ull completion of the academy training 
programme means that staff have invested 15 hours of their time in learning 
about nike products nike technology and how best to sell it w e are the world 
number one in terms of the percentage completion for a multiple door retailer
key highlights of training programme include
• 32 specialist nike training days have taken place since august 2010
• 252 staff have progressed to graduate level
• 64 graduates have also attended a bespoke postgraduate training day
• f urther product and graduate training will take place in 2013
adidas and puma and training 
w e also work closely with adidas and puma to create extensive training 
programmes to support instore initiatives and products in 2012 358 people 
attended adidas sessions on product knowledge and selling skills this year we 
opened new puma training rooms at our shirebrook campus and throughout 
2013 will continue to offer training to capture new product releases
induction training 
all of our managers attend a twoweek residential induction programme at 
shirebrook to ensure that they are able to perform their job effectively the 
modules covered consist of a mixture of shop floorbased training and classroom 
activities and focus on merchandising product training administration delivery 
process health and safety shop closure procedure and retail business skills
management development training 
w e have an internal promotion programme aimed at fulltime staff and 
supervisors who are aspiring to move into management positions as part 
of this we hold a 5day residential programme at our shirebrook campus 
which consists of a combination of trainerled modules the modules focus on 
operational training and the skills and behaviour measures that form part of 
an employee’s role covering areas such as communication leadership and 
decisionmaking
the future of training 
2013 is set to be another groundbreaking year as we work to develop a bespoke 
online training platform that will form the basis of every new starter’s induction 
to the business designed to be informative interactive and fun the platform will 
be available on any mobile device and will provide knowledge consistency and 
improved selling and service skills to all employees
the business r eview management  governance financial statements  notes additional information
health and safety
sports direct is committed to appropriate standards of health and safety  
our board has ultimate responsibility for health and safety across the group  
and we regularly review our procedures to ensure safety management is robust  
the continued emphasis on in the business has improved awareness of 
reporting and recording of incidents
key figures
• no environmental prosecutions or work related fatalities
• in fy13 1854 2012 1711 accidents were reported to head office  
of which 67 2012 65 were reportable to the health and safety executive
• 63 of accidents occurred in store and 29 were slips trips and falls
the increase in accident figures has coincided with the increase in  
store portfolio
53
nike t raining academy  shirebrook environment
w e recognise that we have a responsibility to manage the impact our business 
has on the environment and we are committed to reducing this both now and 
in the future w e continue to comply with the government’s carbon r eduction 
commitment and have identified key areas where we can make a difference in 
particular energy usage in our stores transport and waste management
carbon footprint  
w e are continuously aiming to reduce our carbon footprint the single most 
significant element is electricity which makes up 83 of the footprint the 
carbon footprint spread across all uk sites is detailed in the chart below
carbon footprint analysis 1st april 2012  31 march 2013
 
 
electricity 834
diesel 129
other 10 
the effect of increased trading hours in the run up to the olympics has 
contributed to a small increase in energy consumption across 239 like stores 
and therefore an unavoidable increase in the amount of electricity used w e set 
our energy efficient benchmarks against fy08 year compared to which we have 
made significant reductions of 25 across the like stores
energy consumption indexed on 2008 kwh per ‘000 sq ft
the table below details electricity vs sales and shows a pro rata saving of 5 
across the year 
carbon footprint report across 239 sports direct like stores crc statement period  
01 april 2012  31 march 2013
year 2012 2013
co
2
 emissions from electricity tonnes 29353 30952
electricity vs sales turnover index 100 95
the emissions for electricity and gas are based on crc scheme methodology 
and only include co
2
 emissions the emissions declared are for the period 1 
april 2012 – 31 march 2013 in line with the crc protocol
waste reduction 
w e are actively reducing the amount of waste we send to landfill and segregate 
waste to ensure that we recycle as much as possible 
this year we recycled
6425 units of electrical equipment 2012 5546 units
58 tonnes of waste paper 2012 55 tonnes
8893 tonnes of cardboard 2012 6622 tonnes
107 tonnes of metal 2012 127 tonnes
508 tonnes of plastic 2012 453 tonnes
all stores now use biodegradable carrier bags and provide the option of “a  
bag for life” this is actively promoted instore through high levels of  
employee engagement
looking ahead we will continue our commitment to minimise waste and 
improve energy efficiency across our stores
customers
customer service is at the forefront of our business w e aim to provide 
customers with an enjoyable experience both instore and online and ensure all 
our products are safe and fit for purpose 
monitoring customer satisfaction and responding to queries is a continuous 
process all written complaints are recorded including an analysis of the nature 
of the complaint so that trends can be assessed and appropriate action taken
w e have an online customer contact form that reduces the time it takes for 
our customers to contact us and increases the volume of contact online 
communication has reduced the amount of time it takes for us to respond to 
queries thereby increasing our service levels while reducing the print and 
postage costs for both the group and customers
w e are continuously working to improve customer service at all levels within the 
group from the retail stores head office and through to our website
community
supply chain  
w e are committed to responsible business practices in our own business 
and within our supply chain w e continue to procure merchandise from 
manufacturers who have proved to uphold ethical employment and trading 
practices and we have a strict code of ethics that we require every supplier to 
adhere to the code provides for the fair treatment of workers ensuring a safe 
environment in accordance with the local and national laws where workers are 
treated with respect and paid fairly for what they do the code also ensures 
there is no child labour and no use of illegal means or materials in the production 
of goods
w e have longstanding relationships with our suppliers who have demonstrated 
that their work practices are consistent with the sports direct’s standards 
approximately 40 of our current suppliers have been working with the 
company for 10 years or more
w e have worked with two leading supply chain companies in singapore and 
south korea for a number of years using their local knowledge and experience 
helps benefit the business and the communities in which they operate both 
businesses have the highest social and business ethics code which aligns 
with our own code of ethics the bsci code of conduct which is based upon 
the united nations declaration of human rights iso9001 and the social 
accountability 8000 sa8000 code
0
10
20
30
40
50
60
70
80
90
100
2008 2009 2010 2011 2012 2013
corporate responsibility report continued
sports direct plc annual report 2013
54  sports direct relies on those supply chain companies to inspect the premises of 
all suppliers and manufacturers f requent inspections are carried out randomly 
to ensure that goods meet our quality standards as well as assessing continued 
compliance with sa8000 and our code of ethics w e cease immediately to work 
with suppliers who do not meet our criteria
w e comply with an internationally recognised list of chemicals that are banned 
for use in fabrics the supply chain companies conduct random tests on fabric 
which are then taken to a recognised laboratory for quality testing and to ensure 
that banned chemicals are not being used
charity 
sport is our passion w e believe that everyone should have a chance to 
participate in sports and enjoy the health and lifestyle benefits it brings w e 
provide a wide range of equipment and clothing to promote sports participation 
amongst people of all abilities including those who would not normally have 
access to equipment and facilities
slazenger ‘chance to shine’ 
slazenger are the exclusive cricket equipment supplier to the country’s most 
recognised grassroots cricket development programme ‘chance to shine 
supported by brit insurance’ each project provides structured coaching and a 
competition programme for a group of schools who would not have otherwise 
had the chance to participate in the sport 
by 2012 the programme had reached one third of all primary and secondary 
schools amounting to almost 7000 schools and has supported two million 
young people almost half of whom are girls over £500000 worth of cricket 
equipment has been supplied by slazenger to enable the programme to  
run successfully
dunlop 
dunlop works together with its sponsored professional golfers lee w estwood 
and darren clarke to supply clothing to their ‘golf schools’ these are junior 
player development schemes which provide qualified coaching and mentoring  
to youngsters 
over £20000 worth of clothing has been provided through sponsorship to the 
schemes so far
lonsdale 
lonsdale is the official equipment and fight sports apparel supplier for all  
three individual armed services in the uk consisting of the raf  the army and 
the r oyal navy p roduct to the value of £10000 is provided each year and used 
in competitions
at a grassroots level lonsdale is also a sponsor of the amateur boxing 
association’s junior and school boy finals and provides 100 pairs of golden 
gloves worth £2500 to the finalists
everlast 
everlast supplied usa boxing the national governing body of amateur olympic
style boxing with training and competition apparel footwear and equipment for 
the 2012 olympic games in london everlast contributed over 200000 to help 
the women’s and men’s teams prepare for and compete in the summer games
everlast will continue to support the new y ork golden gloves the most 
prestigious amateur boxing competition in the us  in 2013 late last year 
the golden gloves headquarters were flooded during hurricane sandy and all 
equipment and ring dressings were lost everlast supplied the new y ork  
golden gloves with over 30000 worth of apparel footwear and equipment in 
order to replace what was lost or damaged in the storm everlast also provided 
approximately 5000 worth of equipment to local area gyms affected by  
the storm
everlast is also a major supporter of the dr theodore a  atlas foundation a non
profit organisation that provides financial support to those in need particularly 
children in 2012 everlast gave 10000 in charitable donations everlast has 
also been a proud supporter of the breast cancer r esearch foundation® 
bcrf since 2006 each year everlast donates a portion of sale proceeds from 
select everlast pink products to help the foundation raise money for clinical and 
genetic research in 2012 for the second consecutive year everlast made its 
largest donation to date handing over a cheque for 122000 to the foundation
antigua group 
also in the us  the antigua group has been a consistent supporter of a number 
of charitable efforts including the salvation army cystic fibrosis r esearch 
men against p rostate cancer the t eddy atlas foundation for hurricane sandy 
r elief and the phoenix children’s hospital
the antigua group also provides significant support for junior golf in arizona 
junior player initiatives include the junior golf association of america “girls 
golf” through the lpga foundation and the antigua national high school golf 
invitational
the business r eview management  governance financial statements  notes additional information
55 independent auditor’s report
this report is made solely to the company’s members as a body in accordance 
with chapter 3 of part 16 of the companies act 2006 our audit work has been 
undertaken so that we might state to the company’s members those matters we 
are required to state to them in an auditor’s report and for no other purpose to 
the fullest extent permitted by law we do not accept or assume responsibility to 
anyone other than the company and the company’s members as a body for our 
audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditor 
as explained more fully in the directors’ r esponsibilities statement the 
directors are responsible for the preparation of the group financial statements 
and for being satisfied that they give a true and fair view our responsibility is to 
audit and express an opinion on the group financial statements in accordance 
with applicable law and international standards on auditing uk and ireland 
those standards require us to comply with the auditing p ractices board’s 
apb ’s ethical standards for auditors
scope of the audit of the financial statements 
a description of the scope of an audit of financial statements is provided on the 
apb ’s website at wwwfrcorgukapbscopeprivatecfm
opinion on financial statements 
in our opinion the group financial statements
• give a true and fair view of the state of the group’s affairs as at 28 april 2013 
and of its profit for the 52 week period then ended 
• have been properly prepared in accordance with ifrss as adopted by the 
european union and
• have been prepared in accordance with the requirements of the companies 
act 2006 and article 4 of the ias r egulation
opinion on other matters prescribed by the companies act 2006 
in our opinion
• the information given in the directors’ r eport for the financial year for which 
the group financial statements are prepared is consistent with the group 
financial statements and
• the information given in the corporate governance statement set out on 
pages 39 to 44 with respect to internal control and risk management systems 
in relation to financial reporting processes and about share capital structures 
is consistent with the financial statements 
matters on which we are required to report by exception 
w e have nothing to report in respect of the following
under the companies act 2006 we are required to report to you if in our 
opinion
• certain disclosures of directors’ remuneration specified by law are not made 
or
• we have not received all the information and explanations we require for our 
audit or
• a corporate governance statement has not been prepared by the company
under the listing rules we are required to review
• the directors’ statement set out on page 38 in relation to going concern
• the part of the corporate governance statement relating to the company’s 
compliance with the nine provisions of the uk corporate governance code 
2010 specified for our review and
• certain elements of the report to shareholders by the board on directors’ 
remuneration
other matter 
w e have reported separately on the parent company financial statements of 
sports direct international plc for the 52 week period ended 28 april 2013 and 
on the information in the directors’ r emuneration r eport that is described as 
having been audited 
paul etherington bsc fca cf   
senior statutory auditor 
for and on behalf of grant thornton uk llp 
statutory auditor chartered accountants 
london 
18 july 2013
w e have audited the group financial statements of sports direct international plc for the 52 week period ended 28 april 2013 which 
comprise the consolidated income statement the consolidated statement of comprehensive income the consolidated balance sheet 
the consolidated cash flow statement the consolidated statement of changes in equity and the related notes the financial reporting 
framework that has been applied in their preparation is applicable law and international financial r eporting standards ifrss as 
adopted by the european union
to the members of sports direct international plc
sports direct plc annual report 2013
56  consolidated income statement
note
52 weeks ended 
28 april 2013
 £’000
53 weeks ended 
29 april 2012
£’000
revenue 14 2185580 1835756
cost of sales 1290822 1091480
gross profit 894758 744276
selling distribution and administrative expenses 689578 596383
other operating income 5 7199 5283
exceptional items 6 625 5619
operating profit 4 7 213004 158795
other investment income 9 1473 5800
finance income 10 3066 6426
finance costs 11 11637 8481
share of profit of associated undertakings and joint ventures 16 1320 558
profit before taxation 207226 151498
taxation 12 55569 45867
profit for the period 4 151657 105631
attributable to
equity holders of the group 151596 106198
noncontrolling interests 61 567
profit for the period 4 151657 105631
earnings per share attributable to the equity shareholders
pence per share pence per share
basic earnings per share 13 2664 1868
diluted earnings per share 13 2442 1670
underlying basic earnings per share 13 2685 1919
 
the consolidated income statement has been prepared on the basis that all operations are continuing  
 
the accompanying accounting policies and notes form part of these financial statements
for the 52 weeks ended 28 april 2013
57
the business r eview management  governance financial statements  notes additional information note
52 weeks ended 
28 april 2013
 £’000
53 weeks ended 
29 april 2012
£’000
profit for the period 4 151657 105631
other comprehensive income
exchange differences on translation of foreign operations 12436 2301
exchange differences on hedged contracts  recognised in the period 27 15408 1305
exchange differences on hedged contracts  reclassifiied and reported in net profit 27 196 8086
actuarial losses on defined benefit pension schemes 24 2818 5501
f air value adjustment in respect of availableforsale financial assets 17 1011 6986
transfer of historic losses on availableforsale financial assets  7146
taxation on items recognised in other comprehensive income 25 4636 1483
total comprehensive income for the period 182526 106253
attributable to
equity holders of the group 182465 106820
noncontrolling interest 61 567
182526 106253
 
the accompanying accounting policies and notes form part of these financial statements
consolidated statement of comprehensive income
for the 52 weeks ended 28 april 2013a
sports direct plc annual report 2013
58  note
28 april 2013
£’000
29 april 2012
£’000
assets  noncurrent
property plant and equipment 14 332036 313023
intangible assets 15 240420 225150
investments in associated undertakings and joint ventures 16 32117 29470
a vailableforsale financial assets 17 47645 46634
deferred tax assets 25 47952 32625
700170 646902
assets  current
inventories 18 446962 316800
trade and other receivables 19 96111 83877
derivative financial assets 27 17965 5926
cash and cash equivalents 20 147375 78674
708413 485277
total assets 1408583 1132179
equity and liabilities
share capital 21 64060 64060
share premium 874300 874300
treasury shares reserve 56234 55839
permanent contribution to capital 50 50
capital redemption reserve 8005 8005
foreign currency translation reserve 38398 25962
r everse combination reserve 987312 987312
own share reserve 64375 57684
hedging reserve 16021 417
r etained earnings 752018 600431
644931 472390
noncontrolling interests 254 505
total equity 644677 471885
liabilities  noncurrent
borrowings 23 245627 214587
r etirement benefit obligations 24 19940 19318
deferred tax liabilities 25 24978 25789
provisions 26 41072 62889
331617 322583
liabilities  current
derivative financial liabilities 27  1570
trade and other payables 28 320261 282819
borrowings 23 55753 9303
current tax liabilities 56275 44019
432289 337711
total liabilities 763906 660294
total equity and liabilities 1408583 1132179
 
the accompanying accounting policies and notes form part of these financial statements the financial statements were approved by the board on 18 july 2013 and 
were signed on its behalf by
david forsey 
director 
consolidated balance sheet
the business r eview management  governance financial statements  notes additional information
for the 52 weeks ended 28 april 2013
59 note
52 weeks ended 
28 april 2013 
£’000
53 weeks ended 
29 april 2012
£’000
cash inflow from operating activities 30 159094 206679
income taxes paid 44673 41253
net cash inflow from operating activities 114421 165426
cash flow from investing activities
proceeds on disposal of property plant and equipment 79 1320
proceeds on disposal of intangible assets 625 
purchase of associate net of cash acquired 96 
purchase of subsidiaries net of cash acquired 29 46941 26214
purchase of intangible assets 2282 2921
purchase of property plant and equipment 14 48247 129402
purchase of listed investments  523
investment income received 1473 1346
finance income received 1117 590
net cash outflow from investing activities 94272 155804
cash flow from financing activities
finance costs paid 7196 5955
borrowings drawn down 404970 160435
borrowings repaid 323942 143309
proceeds from share issues  5
purchase of own shares 21742 
net cash inflow from financing activities 52090 11176
net increase in cash and cash equivalents including overdrafts 72239 20798
cash and cash equivalents including overdrafts at beginning of period 69435 48637
cash and cash equivalents including overdrafts at the period end 20 141674 69435
 
the accompanying accounting policies and notes form part of these financial statements
consolidated cash flow statement
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
60  treasury 
shares 
£’000
foreign 
currency 
translation
£’000
own 
share 
reserve 
£’000
retained 
earnings 
£’000
other 
reserves 
£’000
subtotal 
£’000
non
controlling 
interests 
£’000
total 
£’000
at 24 april 2011 85088 28263 6094 440931 47266 330746 389 331135
issue of ordinary shares     5 5  5
sharebased payments    20643  20643  20643
deferred tax on share schemes    14176  14176  14176
noncontrolling interests  acquisitions       327 327
transactions with owners    34819 5 34824 327 34497
profit for the financial period    106198  106198 567 105631
other comprehensive income
market value of shares transferred to ebt 51590  51590     
difference between original cost and market value of shares transferred 
to ebt 22341   22341    
cash flow hedges
 recognised in the period     1305 1305  1305
 reclassified and reported in net profit     8086 8086  8086
actuarial losses on defined benefit pension schemes    5501  5501  5501
f air value adjustment in respect of availableforsale financial assets    160  160  160
taxation    1483  1483  1483
translation differences  group  80    80  80
translation differences  associates  2381    2381  2381
total comprehensive income for the period 29249 2301 51590 124681 6781 106820 567 106253
at 29 april 2012 55839 25962 57684 600431 40480 472390 505 471885
credit to equity for sharebased payment    4012  4012  4012
vesting of sharebased payment   14656 16728  2072  2072
current tax on share schemes    3581  3581  3581
deferred tax on share schemes    6297  6297  6297
cost of shares acquired 395     395  395
purchase of own shares   21347   21347  21347
noncontrolling interests  acquisitions       190 190
transactions with owners 395  6691 2838  9924 190 9734
profit for the financial period    151596  151596 61 151657
other comprehensive income
cash flow hedges
 recognised in the period     15408 15408  15408
 reclassified and reported in net profit     196 196  196
actuarial losses on defined benefit pension schemes    2818  2818  2818
f air value adjustment in respect of availableforsale financial assets    1011  1011  1011
taxation    4636  4636  4636
translation differences  group  11135    11135  11135
translation differences  associates  1301    1301  1301
total comprehensive income for the period  12436  154425 15604 182465 61 182526
at 28 april 2013 56234 38398 64375 752018 24876 644931 254 644677
 
the foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries and 
associates
the company holds 42137508 ordinary shares in t reasury
consolidated statement of changes in equity
for the 52 weeks ended 28 april 2013
the business r eview management  governance financial statements  notes additional information
61 notes to the financial statements
1 accounting policies
the consolidated financial statements of sports direct international plc the 
“company” and its subsidiaries together the “group” have been prepared in 
accordance with international financial r eporting standards as adopted by the 
european union “ifrs”
basis of preparation 
the consolidated financial statements have been prepared in accordance 
with ifrs as adopted for use in the european union including international 
accounting standards “ias” and international financial r eporting standards 
committee “ifrsc” interpretations and with those parts of the companies 
act 2006 applicable to companies reporting under ifrs as adopted for use in 
the european union the consolidated financial statements have been prepared 
under the historical cost convention as modified to include fair valuation of 
certain financial assets and derivative financial instruments
consolidation 
the consolidated financial statements consolidate the revenues costs assets 
liabilities and cash flows of the company and its subsidiaries being those 
entities in relation to which the company has the power to govern the financial 
and operating policies generally achieved by a share of more than 50 of the 
voting rights
on acquisition the assets and liabilities and contingent liabilities of a subsidiary 
are measured at their fair values at the date of acquisition any excess of fair 
value of the consideration transferred over the fair values of the identifiable 
net assets acquired is recognised as goodwill any deficiency of fair value of 
consideration transferred below the fair values of the identifiable net assets 
acquired is credited to the consolidated income statement in the period of 
acquisition the noncontrolling interest is stated at the noncontrolling interest’s 
proportion of the fair values of the assets liabilities and contingent liabilities 
recognised costs incurred relating to acquisitions are expensed to the income 
statement
the results of subsidiaries acquired or disposed of during the year are included 
in the consolidated income statement from the effective date of acquisition or up 
to the effective date of disposal as appropriate
intercompany transactions balances and unrealised gains and losses on 
transactions between group companies are eliminated 
associates and joint ventures 
associates are entities over which the group has significant influence but not 
control generally accompanied by a share of between 20 and 50 of the 
voting rights 
a joint venture is an entity in which the group holds an interest on a long 
term basis and which is jointly controlled by the group and one or more other 
venturers under a contractual agreement
the group’s share of the results of associates and joint ventures is included 
in the group’s consolidated income statement using the equity method of 
accounting investments in associates and joint ventures are carried in the 
group’s consolidated balance sheet at cost plus post acquisition changes in the 
group’s share of the net assets of the associates and joint ventures less any 
impairment in value the carrying values of investments in associates and joint 
ventures include acquired goodwill
if the group’s share of losses in an associate or joint venture equals or exceeds 
its investment in the associate or joint venture the group does not recognise 
further losses unless it has incurred obligations to do so or made payments on 
behalf of the associate or joint venture
unrealised gains arising from transactions with associates and joint ventures are 
eliminated to the extent of the group’s interest in the entity
investments  
a vailableforsale investments are initially recognised at fair value where fair 
value is different to cost this is recognised in the income statement on initial 
recognition subsequent gains and losses arising from changes in fair value are 
recognised in the statement of other comprehensive income when the security 
is disposed of derecognised or is determined to be impaired the cumulative 
gain or loss previously recognised in other comprehensive income is reclassified 
from equity to the income statement as a reclassification adjustment within 
other comprehensive income 
acquisitions 
for business combinations achieved in stages the group remeasures its 
previously held equity interest in the acquiree at its acquisitiondate fair value 
and recognises the resulting gain or loss if any in the income statement as 
appropriate
goodwill  
goodwill arising on consolidation is recognised as an asset and reviewed for 
impairment at least annually or when a change in circumstances or situation 
indicates that the goodwill has suffered an impairment loss the need for 
impairment is tested by comparing the market value of the cashgenerating unit 
cgu to the carrying value any impairment is recognised immediately in the 
income statement impairment losses on goodwill are not reversed gains and 
losses on the disposal of a business include the amount of goodwill relating to 
that business  
when the noncontrolling interest of an existing subsidiary is acquired the 
carrying value of the noncontrolling interests in the balance sheet is eliminated 
any difference between the amount by which the noncontrolling interest is 
adjusted and the fair value of the consideration paid is recognised directly in 
equity
other intangible assets  
brands trade marks and licences that are internally generated are not recorded 
on the balance sheet  acquired brands trade marks and licences are initially 
carried on the balance sheet at cost  the fair value of brands trade marks and 
licences that are acquired by virtue of a business combination is determined at 
the date of acquisition and is subsequently assessed as being the deemed cost 
to the group
expenditure on advertising and promotional activities is recognised as an 
expense as incurred
no amortisation is charged on those brands trade marks or perpetualrenewable 
licences with an indefinite life as the group believes that the value of these 
brands and trade marks can be maintained indefinitely  the group carries out 
an impairment review of indefinite life intangibles at least annually or when 
a change in circumstances or situation indicates that those intangibles have 
suffered an impairment loss  impairment is measured by comparing the carrying 
amount of the intangible asset as part of the cashgenerating unit cgu with the 
recoverable amount of the cgu  that is the higher of its fair value less costs to 
sell and its value in use  value in use is calculated by using a pretax discount 
rate that reflects current market assessments of the time value of money and 
the risks specific to the asset for which the estimates of future cash flows have 
not been adjusted
amortisation is provided on other brands trade marks and licences with a 
definite life on a straight line basis over their useful economic lives of 10 to 15 
years and is accounted for within the selling distribution and administrative 
expenses category within the income statement 
property plant and equipment  
property plant and equipment are stated at historical cost less depreciation less 
any recognised impairment losses cost includes expenditure that is directly 
attributable to the acquisition or construction of these items subsequent costs 
are included in the asset’s carrying amount only when it is probable that future 
economic benefits associated with the item will flow to the group and the costs 
can be measured reliably 
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
62  all other costs including repairs and maintenance costs are charged to the 
income statement in the period in which they are incurred 
depreciation is provided on all property plant and equipment other than freehold 
land and is calculated on a reducing balance basis or straightline basis 
whichever is deemed by the directors to be more appropriate to allocate cost 
less assessed residual value other than assets in the course of construction 
over the estimated useful lives as follows 
f reehold buildings  2 per annum  straight line
longtermshortterm   over the terms of the lease  straight line 
leasehold improvments 
plant and equipment   between 5 and 33 per annum  reducing balance
the assets’ useful lives and residual values are reviewed and if appropriate 
adjusted at each balance sheet date 
the gain or loss arising on disposal or scrapping of an asset is determined as 
the difference between the sales proceeds net of selling costs and the carrying 
amount of the asset and is recognised in the income statement 
impairment of assets other than goodwill and intangible assets with an 
indefinite life  
at each balance sheet date the directors review the carrying amounts of the 
group’s tangible and intangible assets other than goodwill and intangible assets 
with an indefinite life to determine whether there is any indication that those 
assets have suffered an impairment loss if any such indication exists the 
recoverable amount of the asset is estimated in order to determine the extent of 
the impairment loss if any where the asset does not generate cash flows that 
are independent from other assets the group estimates the recoverable amount 
of the cashgenerating unit cgu to which the asset belongs with respect to 
property plant and equipment each store is considered to be a cgu and where 
onerous leases are noted the assets of each individual store are individually 
assessed for impairment
r ecoverable amount is the higher of fair value less costs to sell and value in 
use in assessing value in use the estimated future cash flows are discounted 
to their present value using a pretax discount rate that reflects current market 
assessments of the time value of money and the risks specific to the asset for 
which the estimates of future cash flows have not been adjusted 
if the recoverable amount of an asset or cgu is estimated to be less than 
its carrying amount the carrying amount of the asset cgu is reduced to 
its recoverable amount an impairment loss is recognised as an expense 
immediately unless the relevant asset is carried at a revalued amount in  
which case the impairment loss is treated as a revaluation decrease 
impairment losses recognised for cgus to which goodwill has been allocated 
are credited initially to the carrying amount of goodwill any remaining 
impairment loss is charged pro rata to the other assets in the cgu  
where an impairment loss subsequently reverses the carrying amount of the 
asset cgu is increased to the revised estimate of its recoverable amount but 
so that the increased carrying amount does not exceed the carrying amount that 
would have been determined had no impairment loss been recognised for the 
asset cgu in prior periods a reversal of an impairment loss is recognised in 
the income statement immediately 
revenue recognition  
r evenue is measured at the fair value of the consideration received or 
receivable and represents amounts receivable for goods supplied stated net of 
discounts returns and value added taxes
in the case of goods sold through retail stores revenue is recognised at the point 
of sale of a product to the customer less provision for returns accumulated 
experience is used to estimate and provide for such returns at the time of the 
sale r etail sales are usually in cash by debit card or by credit card 
in the case of good sold on the internet revenue is recognised at the point that 
the risks and rewards of the inventory have passed to the customer which is 
the point of delivery to the customer transactions are settled by credit card 
or payment card provisions are made for internet credit notes based on the 
expected level of returns which in turn is based upon the historical rate of 
returns
in the case of income generated from trade marks and licences revenue is 
recognised on an accruals basis in accordance with the relevant agreements or 
on a transactional basis when revenue is linked to sale or purchase volumes 
exceptional items 
the group presents as exceptional items on the face of the income statement 
those significant items of income and expense which because of their size 
nature and infrequency of the events giving rise to them merit separate 
presentation to allow shareholders to understand better the elements of financial 
performance in the year so as to facilitate comparison with prior periods to 
assess trends in financial performance more readily
interest income 
interest income is reported on an accrual basis using the effective interest 
method 
government grants and similar income 
income from government grants that compensate the group for the cost of 
an asset is recognised in the balance sheet as a deduction in arriving at the 
carrying amount of the related asset this is considered to reflect the true 
cost of the asset to the group the amount is recognised in the consolidated 
income statement over the life of the depreciable asset by way of a reduced 
depreciation charge to date the group has not received government grants in 
compensation for expenses charged in the consolidated income statement
foreign currencies  
the presentational currency of the group is sterling the functional currency of 
the company is also sterling  foreign currency transactions are translated into 
sterling using the exchange rates prevailing on the dates of the transactions 
exchange differences of the company arising on the settlement of monetary 
items and on the retranslation of monetary items are included in the income 
statement for the period exchange differences arising on the retranslation of 
nonmonetary items carried at fair value are included in the income statement 
for the period except for differences arising on the retranslation of non
monetary items in respect of which gains and losses are recognised in other 
comprehensive income for such nonmonetary items any exchange component 
of that gain or loss is also recognised directly in other comprehensive income  
monetary assets and liabilities denominated in foreign currencies are translated 
at the rate of exchange ruling at the balance sheet date  
on consolidation the assets and liabilities of foreign operations which have a 
functional currency other than sterling are translated into sterling at foreign 
exchange rates ruling at the balance sheet date the revenues and expenses of 
these subsidiary undertakings are translated at average rates applicable in the 
period all resulting exchange differences are recognised in other comprehensive 
income and documented in a separate component of equity
when a foreign operation is sold the cumulative exchange differences that have 
been recognised as a separate component of equity are reclassified from equity 
to the income statement when disposal is recognised 
in order to mitigate its exposure to certain foreign exchange risks the group 
enters into forward contracts see chief executive’s r eport and the cash flow 
hedging accounting policy on page 65 
inventories  
inventories are valued at lower of cost and net realisable value cost includes the 
purchase price of the manufactured products materials direct labour transport 
costs and a proportion of applicable overheads cost is calculated using fifo 
first in first out net realisable value is based on the estimated selling price 
less all estimated selling costs 
the business r eview management  governance financial statements  notes additional information
63 1 accounting policies continued
the company receives trade discounts and rebates from suppliers based upon 
the volume of orders placed in a given time window and as a contribution 
towards marketing costs where there is sufficient certainty that a discount 
or rebate will be received in the future that relates to historic purchases this is 
reflected in the cost of inventories
loans and receivables  
loans and receivables are recognised initially at fair value plus transaction 
costs and subsequently measured at amortised cost under the effective interest 
method less provision for impairment provision for impairment is established 
when there is objective evidence that the group will not be able to collect 
amounts due according to the original terms of the receivable the amount of 
the impairment is the difference between the asset’s carrying amount and the 
present value of the estimated future cash flows discounted at the original 
effective interest rate
cash and cash equivalents  
cash and cash equivalents include cash in hand and deposits held on call 
together with other short term highly liquid investments that are readily 
convertible to known amounts of cash and which are subject to an insignificant 
risk of changes in value
trade and other payables  
trade and other payables are initially measured at fair value and are 
subsequently measured at amortised cost using the effective interest method 
deferred taxation  
deferred taxation is calculated using the liability method on temporary 
differences arising between the tax bases of assets and liabilities and their 
carrying amounts in the consolidated financial statements however if the 
deferred tax arises from the initial recognition of goodwill or initial recognition of 
an asset or liability in a transaction other than a business combination that at the 
time of the transaction affects neither accounting nor taxable profit or loss it is 
not accounted for deferred tax on temporary differences associated with shares 
in subsidiaries and joint ventures is not provided if reversal of these temporary 
differences can be controlled by the group and it is probable that reversal will 
not occur in the foreseeable future in addition tax losses available to be carried 
forward as well as other income tax credits to the group are assessed for 
recognition as deferred tax assets deferred tax is determined using tax rates 
and laws that have been enacted or substantively enacted by the balance 
sheet date and are expected to apply when the related deferred tax asset is 
realised or the deferred tax liability is settled 
deferred tax liabilities are provided in full 
deferred tax assets are recognised to the extent that it is probable that future 
taxable profits will be available against which the temporary differences can be 
utilised 
changes in current and deferred tax assets or liabilities are recognised as a 
component of tax expense in the income statement except where they relate 
to items that are charged or credited directly to equity in which case the related 
deferred tax is also charged to other comprehensive income or credited directly 
to equity 
pensions  
the group operates pension plans for the benefit of certain employees including 
both defined contribution and defined benefit plans 
in relation to its defined contribution plans the group makes contributions to 
independently administered plans the contributions being recognised as an 
expense when they fall due the group has no legal or constructive obligation to 
make any further payments to the plans other than the contributions due 
in relation to its defined benefit schemes the group recognises in its balance 
sheet the present value of its defined benefit obligations less the fair value of 
plan assets the current service cost is charged against operating profit interest 
on the schemes liabilities is included in finance costs and the expected return on 
schemes assets is included in finance income 
the defined benefit obligation is calculated at each period end by independent 
actuaries using the projected unit credit method the present value of the 
obligation is determined by discounting the estimated future cash outflows 
using interest rates of high quality corporate bonds that are denominated 
in the currency in which the benefits will be paid and which have terms to 
maturity approximating the terms of the related pension liabilities actuarial 
gains and losses arising from experience adjustments and changes in actuarial 
assumptions are reflected in the other comprehensive income in the period in 
which they arise 
borrowings and borrowing costs  
borrowings are recognised initially at fair value net of transaction costs 
incurred and subsequently at amortised cost any difference between the 
proceeds net of transaction costs and the redemption value is recognised 
in the income statement over the period of the borrowings using the effective 
interest method 
borrowings are classified as current liabilities unless the group has an 
unconditional right to defer settlement of the liability for at least 12 months from 
the balance sheet date 
borrowing costs being interest and other costs incurred in connection with the 
servicing of borrowings are recognised as an expense when incurred 
provisions  
a provision is recognised when the group has a present legal or constructive 
obligation as a result of a past event it is probable that an outflow of resources 
will be required to settle the obligation and a reliable estimate can be made of 
the amount of the obligation 
the group provides for its legal responsibility for dilapidation costs following 
advice from chartered surveyors and previous experience of exit costs the 
estimated cost of fulfilling the leasehold dilapidations obligations is discounted 
to present value and analysed between noncapital and capital components the 
capital element is recognised as a decommissioning cost and depreciated over 
the life of the asset the noncapital element is taken to the income statement 
in the first year of the lease where the cost it represents is of no lasting benefit 
to the group or its landlord ‘ w ear and tear’ costs are expensed to the income 
statement provisions for onerous lease contracts are recognised when the 
group believes the unavoidable costs of meeting the lease obligations exceed 
the economic benefits expected to be received under the lease 
leases  
leases of property plant and equipment where the group has substantially all 
the risks and rewards of ownership are classified as finance leases finance 
leases are capitalised at the lease’s inception at the lower of the fair value of the 
leased asset and the present value of the minimum lease payments each lease 
payment is allocated between the liability and finance charges so as to achieve 
a constant rate on the finance balance outstanding the asset subject to the 
finance lease is depreciated over the shorter of its useful life and the lease term 
the corresponding rental obligations net of finance charges are included as a 
liability 
leases of property plant and equipment where the group does not have 
substantially all the risks and rewards of ownership are classified as operating 
leases payments made under operating leases are charged to the income 
statement on a straightline basis over the lease term incentives provided by 
the lessor are credited to the income statement on a straightline basis over the 
minimum lease term 
contingent rental payments above standard payments are conditional on 
the group’s operating performance derived from the lease item eg turnover 
levels these are expensed in the period in which they are incurred 
r ental income from operating leases where the group acts as a lessor is 
recognised on a straightline basis over the term of the relevant lease 
notes to the financial statements
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
64  derivative financial instruments and hedge accounting 
the most significant exposure to foreign exchange fluctuations relates to 
purchases made in foreign currencies principally the us dollar the group’s 
policy is to reduce substantially the risk associated with purchases denominated 
in foreign currencies by using forward fixed rate currency purchase contracts 
taking into account any foreign currency cash flows 
derivative financial instruments are measured at fair value where derivatives 
do not qualify for hedge accounting any gains or losses on remeasurement 
are immediately recognised in the income statement where derivatives qualify 
for hedge accounting recognition of any resultant gain or loss depends on the 
nature of the hedge relationship and the item being hedged
in order to qualify for hedge accounting the group is required to document 
from inception the relationship between the item being hedged and the 
hedging instrument the group is also required to document and demonstrate 
an assessment of the relationship between the hedged item and the hedging 
instrument which shows that the hedge will be highly effective on an ongoing 
basis this effectiveness testing is performed at each period end to ensure that 
the hedge remains highly effective
cash flow hedging  
derivative financial instruments are classified as cash flow hedges when 
they hedge the group’s exposure to variability in cash flows that are either 
attributable to a particular risk associated with a recognised asset or liability or 
a highly probable forecast transaction
the effective element of any gain or loss from remeasuring the derivative 
instrument is recognised directly in other comprehensive income
the associated cumulative gain or loss is reclassified from other comprehensive 
income in the same period or periods during which the hedged transaction 
affects the profit or loss the reclassification of the effective portion when 
recognised in the income statement is the same as the classification of the 
hedged transaction any element of the remeasurement of the derivative 
instrument which does not meet the criteria for an effective hedge is recognised 
immediately in the income statement within finance income or costs 
hedge accounting is discontinued when the hedging instrument expires or 
is sold terminated or exercised or no longer qualifies for hedge accounting 
at that point in time any cumulative gain or loss on the hedging instrument 
recognised in equity is retained in equity until the forecasted transaction occurs 
if a hedged transaction is no longer expected to occur the net cumulative gain 
or loss recognised in other comprehensive income is reclassified from equity to 
the income statement as a reclassification adjustment 
treasury shares 
the purchase price of the group’s own shares that it acquires is recognised as 
‘treasury shares’ within equity when shares are transferred out of t reasury the 
difference between the market value and the average purchase price of shares 
sold out of treasury is transferred to retained earnings
employee benefit trust 
the cost of shares acquired by the sports direct employee benefit t rust is 
recognised within ‘own sharereserve’ in equity 
sharebased payments  
the group issues equitysettled sharebased payments to certain directors 
and employees these are measured at fair value at the date of grant which is 
expensed to the consolidated income statement on a straightline basis over the 
vesting period with the corresponding credit going to equity
non market vesting conditions are not taken into account in determining grant 
date fair value instead they are taken into account by adjusting the number of 
equity instruments to vest
f air value is based on the market share price on the grant date the expected 
staff numbers used in the model has been adjusted based on management’s 
best estimate for the effects of nontransferability exercise restrictions and 
behavioural considerations  a sharebased payment charge of £22183000 was 
recognised in selling distribution and administrative expenses for the 52 weeks 
ended 28 april 2013 the key details in respect of the share scheme charges are 
set out in note 21
the credit for the share based payment charge does not equal the charge per 
the income statement as it excludes amounts recognised in the balance sheet 
in relation to the expected national insurance contributions for the shares and a 
transfer of accrued national insurance contributions in respect of previous years’ 
charges which had previously been recognised in equity the amount transferred 
is not material to the financial statements
equity instruments  
an equity instrument is any contract that evidences a residual interest in the 
assets of the group after deducting all of its liabilities equity instruments issued 
by the group are recorded at the proceeds received net of any direct issue 
costs 
dividends  
dividends are recognised as a liability in the group’s financial statements and 
as a deduction from equity in the period in which the dividends are declared 
where such dividends are proposed subject to the approval of shareholders 
the dividends are regarded as declared once shareholder approval has been 
obtained 
materiality 
in preparing the financial statements the board considers both quantitative and 
qualitative factors in forming its judgements and related disclosures and are 
mindful of the need to best serve the interests of its stakeholders and to avoid 
unnecessary clutter borne of the disclosure of immaterial items 
in making this assessment the board considers the nature of each item as well 
as its size in assessing whether any disclosure omissions or misstatements 
could influence the decisions of users of the financial statements
international financial reporting standards “standards” in issue but not 
yet effective  
at the date of authorisation of these consolidated financial statements the 
international accounting standards board “iasb ” and international financial 
r eporting standards committee “ifrsc” have issued the following standards 
and interpretations which are effective for annual accounting periods beginning 
on or after the stated effective date these standards and interpretations are not 
effective for and have not been applied in the preparation of the consolidated 
financial statements
• ifrs 9 financial instruments effective 1 january 2015 
• ifrs 10 consolidated financial statements effective 1 january 2014 
• ifrs 11 joint arrangements effective 1 january 2014 
• ifrs 12 disclosure of interests in other entities effective 1 january 2014 
• ifrs 13 f air value measurement effective 1 january 2013 
• ias 19 r evised employee benefits effective 1 january 2013
• ias 27 r evised separate financial statements effective 1 january 2013 
• ias 28 r evised investments in associates and joint v entures effective 1 
january 2013 
• deferred t ax r ecovery of underlying assets  amendments to ias 12 income 
taxes effective 1 january 2012 
• annual improvements 20092011 cycle effective 1 january 2013
the directors anticipate that the adoption of these standard and interpretations 
in future periods will have no material impact on the financial statements of 
the group except for the treatment of the acquisition of subsidiaries in future 
accounting periods
the business r eview management  governance financial statements  notes additional information
65 2 critical accounting estimates and judgements
the critical accounting estimates and judgements made by the group regarding 
the future or other key sources of estimation uncertainty and judgement that 
may have a significant risk of giving rise to a material adjustment to the carrying 
values of assets and liabilities within the next financial year are 
impairment of goodwill  
the calculation for considering the impairment of the carrying amount of 
goodwill requires a comparison of the present value of the cgus to which the 
goodwill has been allocated to the value of goodwill and associated assets in 
the balance sheet the calculation of present values requires an estimation of 
the future cash flows expected to arise from the cgus and the selection of a 
suitable discount rate the key assumptions made in relation to the impairment 
review of goodwill are set out in note 15
impairment of other intangible assets  
the calculation for considering the impairment of the carrying amount of other 
intangible assets with an indefinite life specifically brands trade marks and 
licences requires a comparison of the present value of the related cash flows to 
the value of the other intangible assets in the balance sheet the calculation of 
present value requires an estimation of the future cash flows expected to arise 
from the other intangible assets and the selection of a suitable discount rate the 
key assumptions made in relation to the impairment review of other intangible 
assets are set out in note 15
useful economic life of intangible assets  
for intangible assets which have a finite life the directors revisit their estimate 
of useful economic life at each period end and revise accordingly licences and 
trade marks typically have a life of between 10 and 15 years 
identification and valuation of acquired intangible assets  
on acquisition each material separable intangible asset is identified and valued 
by the directors with assistance from a professional third party any such 
calculation is judgemental in nature as it is based on a valuation methodology 
brand valuations are typically valued using the relief from royalty valuation 
methodology 
the nature and carrying amounts of these assets are set out in note 15
impairment of tangible assets  
the directors review the carrying amounts of the group’s tangible assets to 
determine whether there is any indication that those assets have suffered an 
impairment loss the key assumptions made in relation to the impairment review 
of tangible assets carried out in the period are set out in note 16
provision for obsolete slow moving or defective inventories  
the directors have applied their knowledge and experience of the sports retail 
industry in determining the level and rates of provisioning required in calculating 
the appropriate inventory carrying values
financial position of retirement benefit plans  
the net defined benefit pension plan assets or liabilities are recognised in the 
group’s balance sheet the determination of the financial position requires 
assumptions to be made regarding inter alia future salary increases mortality 
discount rates and inflation the key assumptions made in relation to the 
pension plan are set out in note 24
provision for dilapidations and onerous lease contracts 
the basis of the estimation of the provisioning for dilapidations and onerous 
lease contracts is detailed in the provision accounting policy and note 26 
estimates and judgements are continually evaluated and are based on historical 
experience external advice and other factors including expectations of future 
events that are believed to be reasonable under the circumstances 
where an onerous lease has been identified the assets dedicated to that 
contract are impaired
calculation of bonus share scheme charge 
a sharebased payment charge is recognised in respect of share awards 
based on the directors’ best estimate of the number of shares that will vest 
the charge is calculated based on the fair value on the grant date which is 
deemed to be the date on which the entity and counterparty reached a shared 
understanding of the scheme the key details in respect of the share scheme 
charges are set out in note 21
 
3 financial risk management
the group’s current activities result in the following financial risks and set out 
below are management’s responses to those risks in order to minimise any 
resulting adverse effects on the group’s financial performance 
foreign exchange risk  
the group is exposed to foreign exchange risk principally via
a transactional exposure from the cost of future purchases of goods for 
resale where those purchases are denominated in a currency other than the 
functional currency of the purchasing company transactional exposures that 
could significantly impact the income statement are hedged these exposures 
are hedged via forward foreign currency contracts which are designated as 
cash flow hedges the notional and fair value of these contracts is shown in 
note 27
b net investment exposure from the fair value of net investments outside 
the uk  the group hedges its international investments via foreign currency 
transactions and borrowings in matching currencies
c loans to nonuk subsidiaries these are hedged via foreign currency 
transactions and borrowings in matching currencies which are not formally 
designated as hedges as gains and losses on hedges and hedged loans will 
naturally offset
interest rate risk  
the group has net borrowings which are principally at floating interest rates 
linked to bank base rates or libor  the group does not use interest rate 
financial instruments to hedge its exposure to interest rate movements the 
group regularly monitors and reacts accordingly to any exposure to fluctuations 
in interest rates and the impact on its monetary assets and liabilities 
credit risk  
the directors have a credit policy in place and the exposure to credit risk 
is monitored on an ongoing basis credit evaluations are performed on all 
customers requiring credit over a certain amount the group does not require 
collateral in respect of financial assets 
at each balance sheet date there were no significant concentrations of credit 
risk the maximum exposure to credit risk is represented by the carrying amount 
of each financial asset in the balance sheet 
investments of cash surpluses borrowings and derivative instruments are made 
through banks and companies which must fulfil credit rating and investment 
criteria approved by the board
liquidity risk  
the availability of adequate cash resources is managed by the group through 
utilisation of its revolving bank and other facilities together with equity and 
retained profits thereby achieving continuity of funding and shortterm flexibility
capital management 
a description of the group’s objectives policies and processes for managing 
capital are included in note 27
notes to the financial statements
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
66  4 segmental analysis
ifrs 8  ‘ operating segments’ requires the group’s segments to be identified on the basis of internal reports about components of the group that are regularly 
reviewed by the chief operating decision maker to assess performance and allocate resources across each operating segment 
the chief operating decision maker has been identified as the executive directors and the operating segments are identified as the store fascia or brand in line with 
the internal reporting to the executive directors 
sales and gross profit for each operating segment as well as underlying ebitda  are the main measures used by the executive directors to assess performance
in accordance with paragraph 12 of ifrs 8 the group’s operating segments have been aggregated into the following reportable segments 
• uk sports r etail – includes the results of uk retail network of sports stores
• premium lifestyle  other – includes the results of the premium retail businesses such as r epublic cruise and usc 
• international r etail – includes the results of the group’s international retail network of stores and
• brands – includes the results of the group’s portfolio of internationally recognised brands such as everlast lonsdale and dunlop
information regarding the group’s reportable segments for the 52 weeks ended 28 april 2013 as well as a reconciliation of reported profit for the period to underlying 
ebitda  is presented below
segmental information for the 52 weeks ended 28 april 2013 
retail £’000 brands £’000 eliminations £’000 total £’000
uk sports retail lifestyle  other international retail total total
sales to external customers 1574885 216535 185165 1976585 208995  2185580
sales to other segments  531 7757 8288 33807 42095 
r evenue 1574885 217066 192922 1984873 242802 42095 2185580
gross profit 647147 72392 81397 800936 93822  894758
operating profit before foreign exchange 
and exceptional items 178586 8678 4441 191705 18291  209996
operating profit 180811 8678 3611 193100 19904  213004
other investment costs   1473
finance income   3066
finance costs   11637
share of profits of associated undertakings 
and joint ventures 
1320
profit before taxation   207226
taxation   55569
profit for the period   151657
sales to other segments are priced at cost plus a 10 markup
other segment items included in the income statement for the 52 weeks ended 28 april 2013
retail £’000 brands £’000 total £’000
uk sports retail lifestyle  other international retail total
depreciation 36720 1906 6801 45427 2493 47920
amortisation 71 113 10 194 4482 4676
impairment 314   314 1903 2217
 
the business r eview management  governance financial statements  notes additional information
67 4 segmental analysis continued
information regarding segment assets and liabilities as at 28 april 2013 and capital expenditure for the 52 weeks then ended
uk sports retail  
£’000
lifestyle  other
£’000
international retail  
£’000
brands 
£’000
eliminations 
£’000
total
 £’000
investments in associated undertakings and joint ventures 493  31624   32117
other assets 1122518 37266 58515 191082 32915 1376466
total assets 1123011 37266 90139 191082 32915 1408583
total liabilities 608083 43914 42963 101861 32915 763906
tangible asset additions 42046 10284 10845 3888  67063
intangible asset additions 1460 3447  1823  6730
total capital expenditure 43506 13731 10845 5711  73793
 
segmental information for the 53 weeks ended 29 april 2012
retail
 £’000
brands
 £’000
eliminations 
£’000
total
 £’000
uk sports retail lifestyle  other international retail total total
sales to external customers 1368077 114757 157003 1639837 195919  1835756
sales to other segments     3291 3291 
r evenue 1368077 114757 157003 1639837 199210 3291 1835756
gross profit 560757 34581 68115 663453 80823  744276
operating profit  loss before foreign 
exchange and exceptional items
140197 7560 4229 136866 18325  155191
operating profit  loss 138090 6793 4029 135326 23469  158795
other investment costs 5800
finance income 6426
finance costs   8481
share of profits of associated undertakings 
and joint ventures 
558
profit before taxation   151498
taxation   45867
profit for the period   105631
sales to other segments are priced at cost plus a 10 markup
other segment items included in the income statement for the 53 weeks ended 29 april 2012
retail 
£’000
brands 
£’000
total 
£’000
uk sports retail lifestyle  other international retail total
depreciation 46944 1701 7068 55713 2439 58152
amortisation 77  3 80 4278 4358
impairment 2473   2473  2473
 
 
information regarding segment assets and liabilities as at 29 april 2012 and capital expenditure for the 53 weeks then ended
uk sports retail
 £’000
lifestyle  other 
£’000
international retail 
£’000
brands
 £’000
eliminations 
£’000
total
 £’000
investments in associated undertakings and joint ventures 402  28875 193  29470
other assets 868120 22566 62582 246690 97249 1102709
total assets 868522 22566 91457 246883 97249 1132179
total liabilities 488883 28158 55781 184721 97249 660294
tangible asset additions 120312 6111 7336 1327  135086
intangible asset additions    23114  23114
total capital expenditure 120312 6111 7336 24441  158200
 
notes to the financial statements
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
68  geographic information  
segmental information for the 52 weeks ended 28 april 2013
uk 
£’000
nonuk 
£’000
eliminations
 £’000
total
 £’000
segmental revenue from external customers 1842429 343151  2185580
total capital expenditure 59556 14237  73793
segmental assets 1214320 227178 32915 1408583
 
segmental information for the 53 weeks ended 29 april 2012
uk 
£’000
nonuk 
£’000
eliminations
 £’000
total
 £’000
segmental revenue from external customers 1528493 307263  1835756
total capital expenditure 148285 9915  158200
segmental assets 941162 288266 97249 1132179
 
the following table reconciles the reported operating profit to the underlying ebitda as it is one of the main measures used by the chief operating decision maker 
when reviewing performance
reconciliation of operating profit to underlying ebitda for the 52 week period ending 28 april 2013
uk sports retail 
£’000
lifestyle  other 
£’000
international retail
£’000
brands
£’000
total
£’000
operating profit 180811 8678 3611 19904 213004
depreciation 36720 1906 6801 2493 47920
impairment 314   1903 2217
amortisation 71 113 10 4482 4676
exceptional items    625 625
share of profit  loss of associated undertakings 91  1070 210 951
r eported 218007 10697 11492 27947 268143
changes for the bonus share scheme 22183    22183
r ealised fx gain  loss 2225  830 988 2383
underlying ebitda 237965 10697 12322 26959 287943
 
reconciliation of operating profit to underlying ebitda for the 53 week period ending 29 april 2012
uk sports retail 
£’000
lifestyle  other 
£’000
international retail
£’000
brands
£’000
total
£’000
operating profit  loss 138090 6793 4029 23469 158795
depreciation 46944 1701 7068 2439 58152
impairment 2473    2473
amortisation 77  3 4278 4358
exceptional items 2309 724  2586 5619
share of profit  loss of associated undertakings   750  750
r eported 185275 5816 10350 27600 217409
changes for the bonus share scheme 20643    20643
r ealised fx gain  loss 4416 43 200 2558 2015
underlying ebitda 210334 5859 10550 25042 240067
 
lifestyle  other includes £9737000 2012 £1991000 relating to wholesale trade which is included within the uk sports and r etail figures in the chief executive’s 
r eport
the business r eview management  governance financial statements  notes additional information
69 5 other operating income
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
r ent receivable 4249 2731
other 2950 2552
7199 5283
 
6 exceptional items
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
profit on disposal of intangible asset 625 1624
r elease of provision for costs relating to regulatory enquiries  2309
profit on disposal of leasehold property lease surrender premium  724
profit on disposal of freehold property  962
625 5619
 
the exceptional profit on disposal of leasehold property arose when an exit premium was received from a landlord for a leasehold property that had nil net book value
the exceptional profit on disposal of f reehold property relates to a property with a net book value of £442000 for which proceeds of £1404000 were received
 
7 operating profit
operating profit for the period is stated after charging  crediting
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
foreign exchange gains  losses 2383 2015
depreciation of property plant and equipment
 owned assets 47920 58152
amortisation of intangible assets 4676 4358
impairment of intangible assets 2217 2473
operating lease rentals
 land and buildings 93320 99924
 other 699 786
loss on disposal of fixed assets 2636 
 
services provided by the group’s auditor
for the 52 weeks ended 28 april 2013 the remuneration of the auditors grant thornton uk llp and associated firms was as detailed below 
 
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
audit services
audit of the company’s and the consolidated financial statements 83 90
nonaudit services
audit of subsidiary companies’ financial statements 585 650
other services relating to taxation 260 311
all other services 86 53
notes to the financial statements
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
70  8 employee costs
the average monthly number of employees including executive directors employed by the group during the period was
52 weeks ended 
28 april 2013 
number
53 weeks ended
29 april 2012 
number
r etail stores 11078 9358
distribution administration and other 2998 2787
14076 12145
 
the aggregate payroll costs of the employees including executive directors were as follows
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
w ages and salaries 204885 169309
social security costs 15407 12588
pension costs 811 677
221103 182574
 
a sharebased payment charge of £22183000 2012 £20643000 was recognised in respect of share awards during the year
aggregate emoluments of the directors of the company are summarised below
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
aggregate emoluments 655 774
 
f urther details of directors’ remuneration are given in the directors’ r emuneration report on pages 47 to 50
details of certain key management remuneration are given in note 34
 
9 other investment income  costs
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
transfer of historic losses on availableforsale financial assets  7146
dividend income from investments 1473 1346
1473 5800
 
10 finance income
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
bank interest receivable 915 583
other interest receivable 202 7
expected return on pension plan assets note 24 1949 2277
f air value adjustment to forward foreign exchange contracts 
1
 3559
3066 6426
1
 the fair value adjustment to forward foreign exchange contracts relates to differences between the fair value of forward foreign currency contracts not designated for hedge accounting from one period end to the next
the business r eview management  governance financial statements  notes additional information
71 notes to the financial statements
11 finance costs
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
interest on bank loans and overdrafts 6606 5658
interest on other loans and finance leases 590 297
interest on retirement benefit obligations note 24 2446 2526
f air value adjustment to forward foreign exchange contracts 
1
1995 
11637 8481
1
 the fair value adjustment to forward foreign exchange contracts relates to differences between the fair value of forward foreign currency contracts not designated for hedge accounting from one period end to the next
 
12 tax ation
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
current tax 59298 51935
adjustment in respect of prior periods 1476 1219
60774 53154
deferred tax note 25 5205 7287
55569 45867
tax reconciliation
profit before taxation 207226 151498
taxation at the standard rate of tax in the uk of 24 2012 26 49734 39839
tax effects of
income  expenses not deductible for tax purposes 1669 4108
capital gain  loss not deductible for tax purposes 150 1858
other tax adjustments 1584 450
adjustments in respect of prior periods  current tax 1476 1219
adjustments in respect of prior periods  deferred tax 1256 707
55569 45867
 
13 earnings per share from total and continuing operations attributable to the equity shareholders
basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders of the parent by the weighted average number of ordinary shares 
outstanding during the year 
for diluted earnings per share the weighted average number of shares 568971942 2012 568591423 is adjusted to assume conversion of all dilutive 
potential ordinary shares under the group’s bonus share schemes being 51852895 2012 67161036 to give the diluted weighted average number of shares of 
620824837 2012 635752459
basic and diluted earnings per share 
 
 
52 weeks ended 
28 april 2013 
basic £’000
52 weeks ended 
28 april 2013
diluted £’000
53 weeks ended
29 april 2012
basic £’000
53 weeks ended
29 april 2012
diluted £’000
profit for the period 151596 151596 106198 106198
number in thousands number in thousands
w eighted average number of shares 568972 620825 568591 635752
pence per share pence per share
earnings per share 2664 2442 1868 1670
underlying earnings per share 
the underlying earnings per share reflects the underlying performance of the business compared with the prior year and is calculated by dividing underlying earnings 
by the weighted average number of shares for the period underlying earnings is used by management as a measure of profitability within the group underlying 
earnings is defined as profit for the period attributable to equity holders of the parent for each financial period but excluding the post tax effect of certain nontrading 
items
the directors believe that the underlying earnings before exceptional items and underlying earnings per share measures provide additional useful information for 
shareholders on the underlying performance of the business and are consistent with how business performance is measured internally underlying earnings is not a 
recognised profit measure under ifrs and may not be directly comparable with “adjusted” profit measures used by other companies 
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
72   
52 weeks ended 
28 april 2013 
basic £’000
52 weeks ended 
28 april 2013
diluted £’000
53 weeks ended
29 april 2012
basic £’000
53 weeks ended
29 april 2012
diluted £’000
profit for the period 151596 151596 106198 106198
post tax adjustments to profit for the period for the following nontrading items
r ealised gain  loss on forward exchange contracts 1763 1763 1431 1431
f air value adjustment to forward foreign exchange contracts 1476 1476 2527 2527
other investment costs   7146 7146
r elease of provision relating to regulatory enquiries   1639 1639
profit on sale of intangible assets 463 463 1153 1153
profit on disposal of property   1197 1197
f air value adjustments within associated undertakings 273 273 929 929
impairment of goodwill 2217 2217 1756 1756
underlying profit for the period 152790 152790 109086 109086
number in thousands number in thousands
w eighted average number of shares 568972 620825 568591 635752
pence per share pence per share
underlying earnings per share 2685 2461 1919 1716
 
14 property plant and equipment
freehold land 
and buildings 
£’000
longterm
leasehold
improvements
£’000
longterm
leasehold
improvements 
£’000
plant and 
equipment 
£’000
total 
£’000
cost
at 24 april 2011 125625 11532 110067 327119 574343
exchange differences 1179 314  5806 4941
acquisitions 9 168 1123 4384 5684
additions 94410  4554 30438 129402
eliminated on disposals 1689  2514 13092 17295
at 29 april 2012 219534 11386 113230 343043 687193
exchange differences 289 16  3706 4011
acquisitions 8173  2811 5196 16180
additions 9692 815  40376 50883
eliminated on disposals 200 256 7963 5066 13485
at 28 april 2013 237488 11961 108078 387255 744782
accumulated depreciation and impairment
at 24 april 2011 32820 4770 62217 238439 338246
exchange differences 936 57  5260 6253
charge for the period 2047 79 12698 43328 58152
eliminated on disposals 1247  1658 13070 15975
at 29 april 2012 32684 4792 73257 263437 374170
exchange differences 93 15  1318 1426
charge for the period 731 95 6742 40352 47920
eliminated on disposals 4 88 5612 5066 10770
at 28 april 2013 33504 4814 74387 300041 412746
net book amount
at 28 april 2013 203984 7147 33691 87214 332036
at 29 april 2012 186850 6594 39973 79606 313023
assets held under finance leases have a net book amount of £nil 2012 £nil
additions do not reconcile directly to the purchase of property plant and equipment per the consolidated cash flow statement due to noncash additions
the business r eview management  governance financial statements  notes additional information
73 notes to the financial statements
15 intangible assets
goodwill 
£’000
trademarks and 
licences 
£’000
brands 
£’000
total 
£’000
cost
at 24 april 2011 120733 29257 78339 228329
arising on business combinations 10495   10495
additions through business combinations  20193  20193
other additions  2921  2921
disposals  1679 2300 3979
exchange adjustment 5084 655  4429
at 29 april 2012 136312 50037 76039 262388
arising on business combinations 6731   6731
additions through business combinations  4448  4448
other additions  2282  2282
exchange adjustment 3895 1128 4952 9975
at 28 april 2013 146938 57895 80991 285824
amortisation and impairment
at 24 april 2011 9917 11062 2300 23279
amortisation charge  4358  4358
impairment 2473   2473
disposals   2300 2300
acquisitions  7889  7889
exchange adjustment 2191 652  1539
at 29 april 2012 14581 22657  37238
amortisation charge  4676  4676
impairment 2217   2217
exchange adjustment 335 938  1273
at 28 april 2013 17133 28271  45404
net book amount
at 28 april 2013 129805 29624 80991 240420
at 29 april 2012 121731 27380 76039 225150
amortisation is charged to selling distribution and administrative expenses in the consolidated income statement 
the carrying value of goodwill and brands that are considered to have an indefinite life are allocated to the group’s operating segments before aggregation with the 
exception of everlast none of the individual cashgenerating units cgus are considered material to goodwill or indefinite life intangibles brands the carrying value 
of goodwill and brands allocated to the group’s cgus as aggregated except in the case of everlast is shown below 
 
goodwill 
£’000
brands
 £’000
uk sports r etail 9051 8500
lifestyle  other 13288 
international r etail 6747 
brands excl everlast 46281 2437
everlast 54438 70054
129805 80991
 
the group tests the carrying amount of goodwill and assets with an indefinite life annually for impairment or more frequently if there are indications that their carrying 
value might be impaired the carrying amounts of other intangible assets are reviewed for impairment if there is an indication of impairment 
impairment is calculated by comparing the carrying amounts to the value in use derived from discounted cash flow projections for each cgu to which the intangible 
assets are allocated a cgu is deemed to be an individual fascia these have been grouped together into similar classes for the purpose of formulating operating 
segments as reported in note 4 
value in use calculations are based on 5 year management forecasts with a terminal growth rate applied thereafter representing management’s estimate of the long 
term growth rate of the sector served by the cgus
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
74  the key assumptions which are equally applicable to each cgu  in the cash flow projections used to support the carrying amount of goodwill and intangibles with 
indefinite lives as at 28 april 2013 were as follows 
 
uk sport 
retail
lifestyle  
other
international 
retail
brands excl 
everlast everlast
sales growth 6 4 6 6 1  5
terminal sales growth 2 2 2 2 2
gross margin 35  40 40  50 40  45 15  50 25  30
capital expenditure nil  £1m nil  £1m nil  £1m nil  £1m nil  £1m
discount rates 1185 1185 1185 1185 1200
the key assumptions are based on management’s historical experience and future plans for each cgu  
a reasonably possible change in any key assumption would not cause the carrying value of any cgu to exceed its recoverable amount 
the intangible assets that have an indefinite life are brands and trading names and are considered to have an indefinite life on the grounds of the proven longevity of 
the brands and trading names and the group’s commitment to maintaining those brands
all key assumptions are consistent with known external sources of information
 
16 investments in associated undertakings and joint ventures
the group uses the equity method of accounting for associates and joint ventures the following table shows the aggregate movement in the group’s investment in 
associates and joint ventures 
 
associates 
£’000
joint ventures 
£’000
total 
£’000
at 24 april 2011 31259 7088 38347
exchange differences 2381  2381
additions  7054 7054
f air value adjustments to financial instruments 1308  1308
share of loss 716 34 750
at 29 april 2012 29470  29470
exchange differences 1301  1301
additions 26  26
f air value adjustments to financial instruments 369  369
share of profit 951  951
at 28 april 2013 32117  32117
      
associates  
the business activity of heatons is that of household sporting and leisure goods retail heatons operates in the r epublic of ireland and northern ireland the directors 
do not consider that they have significant influence over the financial and operating policies of w arrnambool the parent company of heatons and so will continue to 
account for the company as an associate
the remaining associates are not material in the context of the group accounts 
the group’s share of associates’ assets liabilities and income statement which is included in the consolidated financial statements is as follows 
 
28 april 2013 £’000 29 april 2012 £’000
share of noncurrent assets 44108 42971
share of current assets 18889 17301
share of noncurrent liabilities 19153 19826
share of current liabilities 11727 10976
32117 29470
the business r eview management  governance financial statements  notes additional information
75 notes to the financial statements
16 investments in associated undertakings and joint ventures continued
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
income 97791 84755
expenses 95991 85950
profit  loss before taxation 1800 1195
taxation 849 479
profit  loss for the period 951 716
heatons has a coterminous year end with the group there are no significant restrictions on the ability of associated undertakings to transfer funds to the parent 
other than those imposed by legal requirements
as stated in the group’s accounting policies the directors review the carrying amounts of the group’s fixed assets to determine whether there is any indication that 
those assets have suffered an impairment loss if any such indication exists the recoverable amount of the asset is estimated in order to determine the extent of the 
impairment loss if any 
r ecoverable amount is the higher of fair value less costs to sell and value in use in assessing value in use the estimated future cash flows are discounted to their 
present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to these assets 
indicators of impairment exist for certain of the freehold properties held within our associate accordingly an impairment review has been performed in accordance 
with the above policy 
value in use calculations have been prepared based on 5 year management forecasts with a terminal growth rate of 2 applied thereafter representing management’s 
estimate of the long term growth rate of the sector served by these assets 
these cash flows have been discounted at a risk adjusted pretax weighted average cost of capital of 119
no impairment charge has been recognised as a result of the review performed 
joint ventures 
on 25 july 2011 the group acquired the remaining 50 of no fear international limited
the group’s share of its joint ventures’ assets liabilities and income statement which is included in the consolidated financial statements is as follows
28 april 2013 £’000 29 april 2012 £’000
share of noncurrent assets  
share of current assets  
share of noncurrent liabilities  
share of current liabilities  
 
 
 
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
income  205
expenses  239
loss before taxation  34
taxation  
loss for the period  34
 
17 availablefor sale financial assets
28 april 2013 £’000 29 april 2012 £’000
a vailableforsale financial assets 47645 46634
 
the fair value of the availableforsale investments is based on bid quoted market prices at the balance sheet date
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
76  the following table shows the aggregate movement in the group’s financial assets during the year
28 april 2013 £’000 29 april 2012 £’000
at beginning of period 46634 53097
additions  523
r evaluation through other comprehensive income 1011 6986
at end of period 47645 46634
the financial assets at 28 april 2013 relate to a strategic investment held of 1187 in share capital 
at 28 april 2013 the group had no investments in excess of 20 of share capital 
 
18 inventories
28 april 2013 £’000 29 april 2012 £’000
r aw materials 3861 4103
w ork in progress  864
goods for resale 443101 311833
446962 316800
 
the following inventory costs have been recognised in cost of sales
28 april 2013 £’000 29 april 2012 £’000
cost of inventories recognised as an expense 1290822 1088381
 
19 trade and other receivables
28 april 2013 £’000 29 april 2012 £’000
trade receivables 50417 44122
amounts owed by related undertakings 7564 445
other debtors 8804 9405
prepayments 29326 29905
96111 83877
 
the directors consider that the carrying amount of trade and other receivables approximates to their fair value the maximum exposure to credit risk at the reporting 
date is the carrying value of each class of asset above plus any cash balances
ageing of trade receivables
28 april 2013 £’000 29 april 2012 £’000
current 36786 31414
030 days past due 5513 7318
3060 days past due 1759 2224
6090 days past due 2082 466
over 90 days past due 4277 2700
50417 44122
the credit quality of assets neither past due nor impaired is considered to be good
the business r eview management  governance financial statements  notes additional information
77 notes to the financial statements
19 trade and other receivables continued
the movement in the bad debt provision can be analysed as follows 
 
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
opening position 4061 4683
amounts charged to the income statement 3322 2174
amounts written off as uncollectible 520 644
amounts recovered during the year 189 2152
closing position 6674 4061
the group has no significant concentration of credit risk with exposure spread over a large number of customers these bad debt provisions  charges have been 
determined by reference to past default experience and knowledge of the individual circumstances of certain receivables 
the other classes within trade and other receivables do not include impaired assets
 
20 cash and cash equivalents
28 april 2013 £’000 29 april 2012 £’000
cash in bank and in hand  sterling 106617 59679
cash in bank and in hand  us dollars 17309 7777
cash in bank and in hand  euros 22706 10912
cash in bank and in hand  other 743 306
147375 78674
bank overdraft note 23 5701 9239
cash and cash equivalents including overdrafts at period end 141674 69435
 
21 share capital
28 april 2013 £’000 29 april 2012 £’000
authorised
999500010 ordinary shares of 10p each 99950 99950
499990 redeemable preference shares of 10p each 50 50
100000 100000
allotted called up and fully paid
640602369 2012 640602369 ordinary shares of 10p each 64060 64060
share capital
at 29 april 2012 64060 64055
issue of shares  5
at 28 april 2013 64060 64060
the group holds 42137508 shares in t reasury on 6 august appleby t rust jersey limited as trustee of the sports direct employee benefit t rust the “the trust” 
purchased 7115754 ordinary shares at a price of 30000 pence per share representing all the ordinary shares which the sports direct employees elected to sell on 
vesting of their awards under the 2009 bonus share scheme the “share scheme” a further 506245 shares vested and were distributed to relevant staff
contingent share awards
the executive bonus share scheme 
under the terms of the executive bonus share scheme which was approved by shareholders on 10 september 2010 and is a r evenue approved scheme the board 
may make share awards in respect of the ordinary shares in the company a wards may be made to executives and persons discharging managerial r esponsibilities 
over a fixed number of shares subject to performance conditions f urther details are set out in the r emuneration r eport on pages 47 to 50
an award of 8073036 shares was granted on 10 september 2010 at a share price of 1255 pence and none of these shares have since lapsed these shares will only 
vest if the performance conditions ebitda targets and service conditions continued employment and are met no consideration is payable in respect of  
these awards
the bonus share scheme 
under the terms of the 2009 bonus share scheme which was approved by the shareholders on 9 september 2009 the board may make share awards in respect of 
the ordinary shares in the company to employees based on a percentage of salary and subject to performance conditions no consideration is payable by employees 
in respect of these awards f urther details are set out in the corporate r esponsibility r eport on page 52 
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
78  the first awards of 34898000 shares were granted on 19 november 2009 at an average price of 995 pence on 6 august 2012 7621999 shares vested under 
the 2009 bonus share scheme at 28 april 2013 21108000 29 april 2012 29088000 awards were outstanding under the scheme with the decrease in the year 
being attributable to shares vesting and leavers these shares will only vest if the service conditions continued employment are met 
the 2011 bonus share scheme was approved by the board on 10 september 2010 the first award of 30000000 shares were granted on 10 september 2010 at 
an average price of 1255 pence at 28 april 2013 22672000 29 april 2012 30000000 remained outstanding these shares will only vest if the performance 
conditions ebitda targets and service conditions continued employment and are met over the next 3 years
a sharebased payment charge of £22183000 was recognised in respect of these share awards for the 52 weeks ended 28 april 2013 based on the directors’ best 
estimate of the number of shares that will vest the charge is calculated based on the fair value on the grant date which is deemed to be the date on which the entity 
and counterparty reached a shared understanding of the scheme 
a number of employees sold their shares upon vesting to the sports direct international plc employee benefit t rust the 2009 bonus share scheme has been 
accounted for as an equity settled share scheme this has been decided based on the following
• the rules of the scheme are that the awards will be settled in equity and this has not changed
• upon vesting the company entered into a separate contract with the employees to buy their shares although the company only facilitated the sale of shares on 
behalf of employees 
• the company only communicated to the employees that the company would arrange the sale of the shares and not that the company would buy the shares
• the employee does not have a choice of settlement under the scheme rules
• upon vesting the default settlement option if an employee failed to notify the company was to receive the shares and
•  there is no obligation on the group to buy the shares upon future vesting of the share schemes
 
22 other reserves
share 
capital
£’000
share 
premium
£’000
permanent 
contribution to 
capital
 £’000
capital redemption 
reserve 
£’000
reserve 
combination 
reserve
 £’000
hedging 
reserve
£’000
total other 
reserves
£’000
at 24 april 2011 64055 874300 50 8005 987312 6364 47266
issue of ordinary shares 5      5
cash flow hedges
 recognised in the period      1305 1305
 reclassified and reported in net profit      8086 8086
at 29 april 2012 64060 874300 50 8005 987312 417 40480
issue of ordinary shares       
cash flow hedges
 recognised in the period      15408 15408
 reclassified and reported in net profit      196 196
at 28 april 2013 64060 874300 50 8005 987312 16021 24876
the share premium account is used to record the excess proceeds over nominal value on the issue of shares
the permanent contribution to capital relates to a cash payment of £50000 to the company on 8 february 2007 under a deed of capital contribution
the capital redemption reserve arose on the redemption of the company’s redeemable preference shares of 10p each at par on 2 march 2007
the reverse combination reserve exists as a result of the adoption of the principles of reverse acquisition accounting in accounting for the group restructuring 
which occurred on 2 march 2007 and 29 march 2007 between the company and sports w orld international limited brands holdings limited international brand 
management limited and cds holdings sa with sports w orld international limited as the acquirer 
the hedging reserve represents the cumulative amount of gains and losses on hedging instruments deemed effective in cash flow hedges the cumulative deferred 
gain or loss on the hedging instrument is recognised in the income statement only when the hedged transaction impacts the income statement or is included as a 
basis adjustment to the nonfinancial hedged item consistent with the applicable accounting policy 
other balance sheet reserves
the foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries and 
associates
the own shares and treasury shares reserve represent the cost of shares in sports direct international plc purchased in the market and held by sports direct 
international plc employee benefit t rust to satisfy options under the group’s share options scheme see note 21
the business r eview management  governance financial statements  notes additional information
79 notes to the financial statements
23 borrowings
28 april 2013 £’000 29 april 2012 £’000
noncurrent  
bank and other loans 245625 213758
obligations under finance leases 2 829
 245627 214587
current
bank overdrafts 5701 9239
bank and other loans 50052 51
obligations under finance leases  13
 55753 9303
total borrowings
bank overdrafts 5701 9239
bank and other loans 295677 213809
obligations under finance leases 2 842
 301380 223890
 
an analysis of the group’s total borrowings other than bank overdrafts is as follows 
28 april 2013 £’000 29 april 2012 £’000
borrowings — sterling 250203 178516
borrowings — other 45476 36135
 295679 214651
 
 
loans are all at rates of interest ranging between 15 and 20 over the interbank rate of the country within which the borrowing entity resides 
on 7 march 2011 sports direct international plc and certain subsidiaries the “borrowers” entered into a committed unsecured revolving facility agreement with ten 
financial institutions with hsbc bank plc acting as agent the “r evolving f acility” the r evolving f acility is available to any of the borrowers 
on 6 march 2013 the r evolving f acility was extended until 6 march 2015 and its aggregate limit was increased to £300 million at year end a total of £242 million 
was drawn down against this facility this included balances in sterling and us dollar this did not constitute a significant modification in accordance with ias 39  
“financial instruments”
the facility is capable of being utilised by way of cash advances andor currency borrowings the group is required to observe certain covenants including 
undertakings relating to delivery of financial statements and certain negative covenants including in relation to creation of security and disposal of assets 
on 27 september 2012 sports direct international plc and certain subsidiaries the “borrowers” entered into a committed revolving facility agreement with barclays 
bank plc the r evolving f acility is available to any of the borrowers and may be drawn to an aggregate limit of £50 million it is capable of being utilised by way of 
cash advances andor currency borrowings this facility is not secured against any fixed assets the r evolving f acility is available until 26 august 2013 at year end a 
total of £50 million was drawn down against this facility
on 14 december 2012 sports direct international plc and certain subsidiaries the “borrowers” entered into a committed revolving facility agreement with 
handlesbanken plc the r evolving f acility is available to any of the borrowers and may be drawn to an aggregate limit of £25 million it is capable of being utilised by 
way of cash advances andor currency borrowings this facility is not secured against any fixed assets the r evolving f acility is available until 26 august 2013 at 
year end there was no draw down against this facility
the group has a £50m working capital facility with mike ashley which can be drawn down on request this facility was agreed at market terms at its inception this 
facility is not secured against any fixed assets at year end there was no draw down against this facility
the group continues to operate comfortably within its banking facilities and covenants
the carrying amounts and fair value of the borrowings are not materially different
net debt at 28 april 2013 was £1540m 29 april 2012 £1452m
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
80  24 retirement benefit obligations
the group’s defined benefit pension obligations relate to dunlop slazenger group holdings limited “dsghl ” which was acquired on 28 january 2004 dsghl 
operates a number of plans worldwide the largest of which is of the funded defined benefit type the scheme has been closed to new members since 2005 
the amounts for the current and previous four periods following the acquisition of dsghl are as follows
28 april 2013 
£’000
29 april 2012 
£’000
24 april 2011 
£’000
25 april 2010
£’000
26 april 2009
£’000
total fair value of plan assets 47411 40105 36858 33149 27440
present value of plan liabilities 67351 59423 53044 52888 39764
net plan obligations 19940 19318 16186 19739 12324
experience adjustments on plan liabilities 7190 5539 869 12645 5887
experience adjustments on plan assets 4372 38 1208 4461 6336
the cumulative amount of actuarial gains and losses recognised in other comprehensive income as at 28 april 2013 was an actuarial loss of £13519000 2012 
actuarial loss of £10701000
there were no unrecognised actuarial gains or losses or past service costs as at 29 april 2012 or 28 april 2013 
amounts recognised in the income statement are as follows
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
current service cost 14 7
interest on retirement benefit obligations 2446 2526
expected return on plan assets 1949 2277
 511 256
the current service cost is included within cost of sales the interest on retirement benefit obligations and the expected return on plan assets are included within 
finance costs and finance income respectively 
amounts recognised in other comprehensive income is as follows
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
actual less expected return on assets 4372 38
actuarial losses relating to plan liabilities 7190 5539
 2818 5501
 
the actual return on plan assets for the 52 weeks ended 28 april 2013 was a gain of £6321000 2012 gain of £2315000
the movements in the fair value of plan assets are as follows 
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
at the start of the period 40105 36858
expected return on plan assets 1949 2277
actuarial gain 4372 38
employer contributions 2708 2559
employee contributions 11 9
benefits paid out 1734 1636
at the end of the period 47411 40105
the group expects to contribute £2708000 to its defined benefit pension plans for the 52 weeks ended 27 april 2014
the business r eview management  governance financial statements  notes additional information
81 notes to the financial statements
24 retirement benefit obligations continued
the assumptions used to determine the expected return on assets reflects the underlying asset allocation at each period end the plan asset mix and the expected 
returns on the assets are as follows 
 
28 april 2013 £’000 29 april 2012 £’000
equities 23555 20669
bonds 23149 18694
cash and other 707 742
 47411 40105
equities 625 625
bonds 46 325
cash and other 05 05
the overall expected rate of return on the scheme’s assets has been derived by considering the expected rate of return on each major asset class of investments at 
the start of the year and weighting these rates of return by the proportion of the total investments that the class represents at the start of the year
the principal assumptions underlying the actuarial assessments of the present value of the plan liabilities are
28 april 2013  29 april 2012 
inflation rate 33 32
f uture pension increases 33 32
discount rate 40 46
 
mortality assumptions
28 april 2013 £’000 29 april 2012 £’000
life expectancy at 65 at period end
f uture pensioners – male 876 875
f uture pensioners – female 898 897
current pensioners – male 862 861
current pensioners – female 883 882
 
the movements in the present value of the plan liabilities are as follows 
 
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
at the start of the period 59423 53044
current service cost 14 7
interest cost 2446 2526
actuarial loss 7190 5539
employee contributions 11 9
benefits paid out 1734 1636
exchange loss  gain 1 66
at the end of the period 67351 59423
 
the net movements in the net present value of the plan liabilities were as follows
52 weeks ended 
28 april 2013 £’000
53 weeks ended
29 april 2012 £’000
net liability at the start of the period 19318 16186
movement in fair value of plan assets 7306 3247
movements in the present value of the plan liabilities 7928 6379
net liability at the end of the period 19940 19318
 
in addition to the amounts recognised in relation to the defined benefit retirement plans amounts of £187000 and £519000 have been recognised in the income 
statement in the periods ended 29 april 2012 and 28 april 2013 in relation to defined contribution retirement benefit plans 
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
82  25 deferred tax asset and liabilities
accounts depreciation
exceeding tax depreciation 
£’000
tax losses
recoverable 
£’000
pension plan
liabilities 
£’000
other temporary 
differences
£’000
total
£’000
at 24 april 2011 3746 900 5132 17081 14795
credited to the income statement 5066 375 350 2946 7287
credited to the statement of other comprehensive income   1430 53 1483
credited to reserves in respect of bonus share scheme    14176 14176
foreign exchange adjustments    1315 1315
at 29 april 2012 1320 525 6212 1221 6836
credited  charged to the income statement 1080 986 259 5370 5205
credited to the statement of other comprehensive income   648 3988 4636
credited to reserves in respect of bonus share scheme    6297 6297
at 28 april 2013 2400 461 6601 14434 22974
28 april 2013 £’000 29 april 2012 £’000
deferred tax assets 47952 32625
deferred tax liabilities 24978 25789
net deferred tax balance 22974 6836
the tax rate used to measure the deferred tax assets and liabilities was 23 on the basis this was the tax rate that was substantively enacted at the balance sheet 
date
deferred tax assets are recognised for tax losses recoverable and pension plan liabilities to the extent that realisation of the related tax benefit is probable on the basis 
of the group’s current expectations of future taxable profits 
included within other temporary differences is a deferred tax asset in relation to the bonus share scheme and a deferred tax liability recognised on other intangible 
assets upon acquisition
the deferred tax effects of the acquisitions made in the year were considered and determined that there was no material impact on the group or the fair value of net 
assets acquired 
 
26 provisions
dilapidations
£’000
onerous contracts 
and other 
property costs
 £’000
total
£’000
at 29 april 2012 32630 30259 62889
amounts provided 1911 840 2751
amounts utilised 313 1358 1671
amounts reversed 2390 20507 22897
at 28 april 2013 31838 9234 41072
 
the dilapidations provision is the best estimate of the present value of expenditure expected to be incurred by the group in order satisfy its obligations to restore its 
leasehold premises to the condition required under the lease agreements at the end of the lease discounted at 4 per annum the provision is expected to be utilised 
over the period to the end of each specific lease 
the provision in respect of onerous lease contracts represents the net cost of fulfilling the group’s obligations over the terms of these contracts discounted at 5 
per annum the provision is expected to be utilised over the period to the end of each specific lease p rovision is also made for the strategic rationalisation of certain 
properties the onerous lease provision has reduced in the current year due to the closure of loss making stores improved performance at other loss making stores 
the sublet of previously vacant space and a strategic decision to invest in other stores previously planned for closure 
the unwinding of the discount on provision over time passes through the income statement
the business r eview management  governance financial statements  notes additional information
83 27 financial instruments
a financial assets and liabilities by category 
the carrying values of financial assets and liabilities which are principally denominated in sterling or us dollars were as follows
loans and 
receivables 
£’000
assets at fair
value through 
profit and loss 
£’000
available for sale 
financial assets 
£’000
nonfinancial assets
£’000
total
£’000
assets  2013
property plant and equipment    332036 332036
intangible assets    240420 240420
investments in associated undertakings and joint ventures    32117 32117
a vailableforsale financial assets   47645  47645
deferred tax assets    47952 47952
inventories    446962 446962
derivative financial assets  17965   17965
trade and other receivables 66785   29326 96111
cash and cash equivalents 147375    147375
 214160 17965 47645 1128813 1408583
assets  2012
property plant and equipment    313023 313023
intangible assets    225150 225150
investments in associated undertakings and joint ventures    29470 29470
a vailableforsale financial assets   46634  46634
deferred tax assets    32625 32625
inventories    316800 316800
derivative financial assets  5926   5926
trade and other receivables 53972   29905 83877
cash and cash equivalents 78674    78674
 132646 5926 46634 946973 1132179
loans and 
payables
 £’000
liabilities at fair 
value through 
profit and loss
£’000
nonfinancial 
liabilities
£’000
total
£’000
liabilities  2013
noncurrent borrowings 245625  2 245627
r etirement benefit obligations   19940 19940
deferred tax liabilities   24978 24978
provisions   41072 41072
trade and other payables 263943  56318 320261
current borrowings 55753   55753
current tax liabilities   56275 56275
 565321  198585 763906
liabilities  2012
noncurrent borrowings 214587   214587
r etirement benefit obligations   19318 19318
deferred tax liabilities   25789 25789
provisions   62889 62889
derivative financial liabilities  1570  1570
trade and other payables 235690  47129 282819
current borrowings 9303   9303
current tax liabilities   44019 44019
 459580 1570 199144 660294
carrying values do not materially differ from fair value
notes to the financial statements
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
84  fair value hierarchy  
the group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique
• level 1 quoted unadjusted prices in active markets for identical assets or liabilities
• level 2 other techniques for which all inputs which have a significant effect on the recorded fair value are observable either directly or indirectly and
• level 3 techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable mark et data
as at 28 april 2013 the only financial instruments were derivative financial assets and liabilities which are classified as level 2 and a vailableforsale financial 
assets which are classified as level 1
b derivatives foreign currency forward purchase contracts  
the most significant exposure to foreign exchange fluctuations relates to purchases made in foreign currencies principally the us dollar the group’s policy is to 
reduce substantially the risk associated with foreign currency spot rates by using forward fixed rate currency purchase contracts taking into account any foreign 
currency cash flows the group does not hold or issue derivative financial instruments for trading purposes however if derivatives do not qualify for hedge accounting 
they are accounted for as such and accordingly any gain or loss is recognised immediately in the income statement 
the carrying values of forward foreign currency purchase contracts were as follows 
 
28 april 2013 £’000 29 april 2012 £’000
f air value of derivative financial instruments  assets 17965 4356
the sterling principal amounts of forward foreign currency purchase contracts and contracted forward rates were as follows 
 
28 april 2013 £’000 29 april 2012 £’000
us dollar purchases 285000 371986
contracted rates 163 161165
us dollar sales  40000
contracted rates  153154
euro sales 44031 24678
contracted rates 113114 113114
at 28 april 2013 £285m of forward us dollar purchase contracts qualified for hedge accounting and the profit on fair valuation of these contracts of £156m has 
therefore been recognised in other comprehensive income this amount is split between a profit of £154m recognised in the period a gain of £25m reclassified and 
reported in net profit and a loss of £23m recognised in inventories 
forward foreign currency purchase and sale contracts generally have a maturity at inception of approximately 12 months at 28 april 2013 £nil of purchase contracts 
and £nil of sale contracts had a maturity at inception of greater than 12 months 2012 £60 million of purchase contracts and £35m of sale contracts 
c sensitivity analysis 
foreign currency sensitivity analysis
the group’s principal foreign currency exposures are to us dollars and the euro the table below illustrates the hypothetical sensitivity of the group’s reported profit 
and equity to a 5 increase and decrease in the us dollar  sterling and euro  sterling exchange rates at the year end date assuming all other variables remain 
unchanged the figures have been calculated by comparing the fair values of outstanding foreign currency contracts at the current exchange rate to those if exchange 
rates moved as illustrated the income statement figures include the profit effect of any relevant derivatives which are not in a designated cash flow hedge the 
impact on us dollar related hedging instruments is included in equity
positive figures represent an increase  decrease in profit or equity
income statement equity
28 april 2013 £’000 29 april 2012 £’000 28 april 2013 £’000 29 april 2012 £’000
sterling strengthens by 5
us dollar 1 810 1783 4284
euro 34 559 34 559
sterling weakens by 5
us dollar 702 851 1872 4498
euro 35 587 35 587
the business r eview management  governance financial statements  notes additional information
85 27 financial instruments continued
interest rate sensitivity analysis
the table below illustrates the hypothetical sensitivity of the group’s reported profit and equity to a 05 increase or decrease in interest rates assuming all other 
variables were unchanged 
the analysis has been prepared using the following assumptions
• for floating rate assets and liabilities the amount of asset or liability outstanding at the balance sheet date is assumed to have been outstanding for the  
whole year
• fixed rate financial instruments that are carried at amortised cost are not subject to interest rate risk for the purpose of this analysis
positive figures represent a decrease  increase in profit or equity
income statement equity
28 april 2013 £’000 29 april 2012 £’000 28 april 2013 £’000 29 april 2012 £’000
interest rate increase of 05 1507 1119 1507 1119
interest rate decrease of 05 1507 1119 1507 1119
 
d liquidity risk 
the table below shows the maturity analysis of the undiscounted remaining contractual cash flows of the group’s financial liabilities
less than 1 year
£’000
1 to 2 years
£’000
2 to 5 years
£’000
over 5 years
£’000
total
£’000
2013
bank loans and overdrafts 50450 102 250228 2256 303036
obligations under finance leases  1 1  2
trade and other payables 169976    169976
derivative financial liabilities
cash inflows 344439    344439
cash outflows 327087    327087
203074 103 250229 2256 455662
2012
bank loans and overdrafts 9290 220168   229458
obligations under finance leases 13 541 284 29 867
trade and other payables 155468    155468
derivative financial liabilities
cash inflows 418502    418502
cash outflows 415637    415637
161906 220709 284 29 382928
 
capital management 
the capital structure of the group consists of equity attributable to the equity holders of the parent compromising issued share capital share premium and retained 
earnings and cash and borrowings
it is the group’s policy to maintain a strong capital base so as to maintain investor creditor and market confidence and to sustain the development of the business
in respect of equity the board have decided that in order to maximise flexibility in the near term with regards to a number of inorganic growth opportunities under 
review not to return any cash by way of a dividend at this time
the board is committed to keeping this policy under constant review and that it would look to evaluate alternative methods of returning cash to shareholders when 
appropriate
the objective of the bonus share scheme is to encourage employee share ownership and to link employee’s remuneration to the performance of the company it is 
not designed as a means of managing capital
in respect of cash and borrowings the board regularly monitors the ratio of net debt to underlying ebitda  the working capital requirements and forecasted cash 
flows however no minimum or maximum ratios are set the ratio for net debt to reported underlying ebitda  excluding charges for the bonus share schemes is 058 
2012068 the objective is to keep this figure below 20
based on this analysis the board determines the appropriate return to equity holders whilst ensuring sufficient capital is retained within the group to meet it’s 
strategic objectives including but not limited to acquisition opportunities
these capital management policies have remained unchanged from prior year
notes to the financial statements
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
86  28 trade and other payables
28 april 2013 £’000 29 april 2012 £’000
trade payables 169976 155468
amounts owed to related undertakings 167 
other taxes including social security costs 23684 6855
other payables 32634 40274
accruals 93800 80222
 320261 282819
the directors consider that the carrying amount of trade and other payables approximates to their fair value 
 
29 acquisitions
details of principal acquisitions for the 52 weeks ended 28 april 2013 are set out below 
i 4 july 2012  acquired 51 of the ordinary share capital of the flannels group limited for cash consideration of £37m the primary business  
   activity is the sale of fashion clothing and was acquired to complement existing business activities
ii 14 september 2012 acquired 100 of the ordinary share capital of used t ackle limited for cash consideration of £39m the primary business activity  
   is the sale of fishing equipment and was acquired to complement existing business activities
iii 1 october 2012  acquired certain parts of the trade assets and product brands from the administrators of jjb sports plc “ jjb ” for cash  
   consideration of £240m the primary business activity was the sale of sporting equipment and clothing with the trade and assets  
   acquired to complement existing business activities
iv 28 february 2012  acquired certain of the business assets and brands from the administrators of fashion retailer r epublic uk ltd and r epublic  
   r etail limited “r epublic” for cash consideration of £132m the primary business activity is the sale of fashion clothing with  
   the trade and assets acquired to complement existing business activities
the fair value of consideration paid assets and liabilities acquired and resulting goodwill in respect of the above acquisitions is detailed below   
 
jjb 
£’000
republic 
£’000
other 
£’000
total 
£’000
cash consideration 24000 13245 7759 45004
less fair value of net assets acquired 24000 13245 1028 38273
goodwill   6731 6731
the goodwill is attributable to the premium paid to strengthen the group’s existing business segments of uk sports r etail lifestyle  other international r etail and 
brands which is in line with the group’s strategy
legal fees relating to the above acquisitions of £500000 were expensed through the income statement during the year and were recognised as  
administration expenses
none of the other acquisitions are considered to be individually material
the asset values at acquisition are detailed below
jjb
 £’000
republic
£’000
other
£’000
fair value of net 
assets acquired
£’000
property plant and equipment 11000 2000 3180 16180
intangible assets 1000 3447 1 4448
inventories 12000 7485 8651 28136
trade and other receivables  2954 2701 5655
cash and cash equivalents  415 1522 1937
trade and other payables  2226 11563 13789
deferred tax liability   247 247
noncontrolling interests   173 173
24000 13245 1028 38273
in respect of all the acquisitions in the period there were no fair value adjustments made to carrying values of the respective assets and liabilities acquired
the difference between the contractual value of the trade and other receivables and the fair value is not material
the business r eview management  governance financial statements  notes additional information
87 29 acquisitions continued
cash flows arising from the acquisition are as follows 
28 april 2013
£’000
cash consideration 45004
bank overdraft acquired 1937
net cash outflow in the cash flow statement 46941
 
since the date of acquisition the following balances have been included within the group’s financial statements for the period in respect of the above acquired entities
jjb
 £’000
republic
£’000
other
£’000
total
£’000
r evenue 28800 14931 19083 62814
operating loss 13300 4528 21 17849
loss before tax 13300 4528 21 17849
had the above acquisitions been included from the start of the period £2416809000 of revenue £173560000 of operating profit and £111882000 of profit after 
tax would have been shown in the group’s financial statements
there were no contingent liabilities acquired as a result of the above transactions
a detailed postacquisition review of each entity has not highlighted any previously unidentified intangible assets 
on 29 may 2013 sports direct international plc announced two further acquisitions sports eybl  sports experts ag eag based in austria was completed on 26 
june 2013 sportland international group sig based in the baltic region is due to complete in the near future
due to the proximity of these acquisitions to the year end there is insufficient information available to complete a full disclosure under ifrs 3  
 “business combinations” 
 
30 cash inflow from operating activities
52 weeks ended 
28 april 2013
£’000
53 weeks ended 
29 april 2012
£’000
profit before taxation 207226 151498
net finance costs 8571 2055
other investment income  costs 1473 5800
share of profits of associated undertakings and joint ventures 1320 558
operating profit 213004 158795
depreciation 47920 58152
amortisation 4676 4358
impairment 2217 2473
profit  loss on disposal of intangibles 625 1679
defined benefit pension plan current service cost 14 7
defined benefit pension plan employer contributions 2708 2559
sharebased payments 22183 20643
operating cash inflow before changes in working capital 286681 243548
increase  decrease in receivables 6579 17707
increase in inventories 102026 80179
decrease  increase in payables 18982 25603
cash inflows from operating activities 159094 206679
notes to the financial statements
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
88  31 operating lease arrangements
as at 28 april 2013 the group had outstanding commitments for future minimum lease payments under noncancellable operating leases which fall due as follows 
  
28 april 2013 
£’000
29 april 2012 
£’000
land and buildings  
within one year 88044 77748
in the second to fifth years inclusive 306390 278149
after five years 245896 333742
 640330 689639
the leases have varying terms escalation clauses and renewal rights there are no clauses in relation to restrictions concerning dividends additional debt and further 
leasing within our portfolio contingent rents are payable on certain store leases based on store revenue for those leases that are turnoverrelated leases the annual 
net lease commitment is calculated using the estimated lease liability and any changes in the rental charge are accounted for when known amounts of £5641000 
2012 £4388000 were charged to the income statement in relation to contingent rent
the group sublets certain standalone retail stores which are no longer operated by the group the property rental income earned during the 52 weeks ended 28 april 
2013 was £4249000 2012 £2730000 
as at 28 april 2013 the group had contracts with subtenants for the following future minimum lease rentals
28 april 2013 
£’000
29 april 2012
£’000
land and buildings  
within one year 3851 4050
in the second to fifth years inclusive 13147 12898
after five years 15124 15961
 32122 32909
 
32 capital commitments
the group had capital commitments of £58 million as at 28 april 2013 2012 £45 million 
 
33 contingent assets and liabilities 
there were no material contingent assets or liabilities at the balance sheet date  
the business r eview management  governance financial statements  notes additional information
89 notes to the financial statements
34 related party transactions 
the group has taken advantage of the exemptions contained within ias 24  “r elated party disclosures” from the requirement to disclose transactions between group 
companies as these have been eliminated on consolidation 
the group entered into the following material transactions with related parties 
52 weeks ended 28 april 2013
relationship
sales
£’000
purchases
£’000
trade and other 
receivables
£’000
trade and other 
payables
£’000
related party
heatons associate 26820  3816 
brasher leisure limited associate 11023 4554 2611 136
nds ehf associate 3130  998 
newcastle united football club connected persons 498   
queensdown associates associate 1019   
 
53 weeks ended 29 april 2012
relationship
sales
£’000
purchases
£’000
trade and other 
receivables 
£’000
trade and other 
payables
£’000
related party
heatons associate 23182 29 5242 
brasher leisure limited associate 58 633 4 25
mike ashley leased certain properties to various companies in the group which operated as retail and distribution premises a commercial rent is charged in respect 
of these leases  
 
28 april 2013 £’000 29 april 2012 £’000
key management executive and nonexecutive director compensation
salaries and shortterm benefits 1497 1589
sharebased payments 2069 1990
total 3566 3579
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
90  35 principal subsidiary undertakings 
the principal subsidiary undertakings of the company at 28 april 2013 were as follows 
country of 
incorporation
percentage of issued 
share capital held nature of business
name
antigua enterprises inc usa 100 sporting and leisure goods wholesale and brand licensing
brands  f ashion nv belgium 100 brand management and licensing
brands inc limited england 100 brand management and licensing
brands holdings limited england 100 brand management and licensing
cds holdings sa belgium 100 sporting and leisure goods retail
cruise clothing limited  scotland 80 f ashion retail
delima limited  england 100 f ashion retail
donnay international sa belgium 100 sporting and leisure goods wholesale and brand licensing
dunlop slazenger group limited england 100 sporting and leisure goods wholesale and brand licensing
everlast w orldwide inc usa 100 sporting and leisure goods wholesale and brand licensing
field  t rek uk limited england 100 sporting and leisure goods retail
firetrap limited england 100 f ashion retail
flannels group england 52 f ashion retail
international brand management limited england 100 brand management
kangol holdings limited england 100 f ashion and leisure goods wholesale and brand licensing
karrimor limited england 100 f ashion and leisure goods wholesale and brand licensing
lillywhites limited england 100 sporting and leisure goods retail
lonsdale boxing limited england 100 f ashion and leisure goods wholesale and brand licensing
lonsdale sports limited england 100 sporting and leisure goods wholesale and brand licensing
ski and outdoor limited england 100 sporting and leisure goods retail
smith and brooks holdings limited england 100 sporting and leisure goods wholesale and brand licensing
sports essentials limited england 100 sporting and leisure goods wholesale and brand licensing
sportsdirectcom r etail limited england 100 sporting and leisure goods retail
sports 2000 sportne t rogovine slovenia 100 sporting and leisure goods retail
the t rademark licensing company limited england 100 brand licensing
universal cycles limited england 86 cycling wholesaler
used t ackle limited england 100 sporting and leisure goods retail
vandanel limited england 51 f ashion retail
w est coast capital usc limited  scotland 100 f ashion retail
 
 held by an intermediate subsidiary 
all subsidiaries have coterminous year ends all principal subsidiary undertakings operate in their country of incorporation
a full list of the group’s operating subsidiary undertakings will be annexed to the next annual r eturn filed at companies house
there are no significant restrictions on the ability of the subsidiary undertakings to transfer funds to the parent other than those imposed by the legal requirements
the business r eview management  governance financial statements  notes additional information
91 sports direct international plc will provide a parental guarantee for the following companies allowing exemption from statutory audit
company name company number company name company number
douglas greg keighley limited 06260239 sdi new cavendish street limited 06306917
j w myers limited 03352462 sdi newark limited 07853470
sdi aberwystwyth limited 02789996 sdi newton abbot limited 06836666
sdi ashford limited 07848460 sdi northampton limited 07852272
sdi ashington limited 07849231 sdi nuneaton limited 07852249
sdi a yr limited 05528267 sdi oswestry limited 07852363
sdi bangor limited 05529705 sdi p aisley limited 02933408
sdi barrow in f urness limited 07851574 sdi p enzance limited 07852297
sdi basildon limited 08512592 sdi p eterlee limited 07852401
sdi beddgelert limited 08577551 sdi p oole limited 05656295
sdi berwick limited 02739957 sdi r amsgate limited 07852250
sdi betwsy coed limited 06836673 sdi r edcar limited 02731452
sdi birkenhead limited 07849198 sdi r olle st limited 07852669
sdi bishop auckland limited 03004246 sdi scarborough limited 06328463
sdi bridgwater limited 07852061 sdi scunthorpe limited 07852055
sdi burton limited 08495632 sdi slough limited 07852417
sdi carlisle limited 07851959 sdi southampton limited 08512480
sdi chatham limited 06836679 sdi st austell limited 07852284
sdi clacton limited 07852078 sdi st helens limited 07852281
sdi colchester limited 05632790 sdi stafford limited 08568681
sdi dunfermline limited 08483679 sdi stoke longton limited 07853877
sdi epsom limited 06372181 sdi stoke newington limited 07852207
sdi exmouth limited 06328505 sdi strood limited 07852251
sdi f ulham limited 07852037 sdi t aunton limited 07852191
sdi gainsborough limited 06338907 sdi w akefield limited 08483711
sdi galashiels limited 07852091 sdi w alsall limited 07852289
sdi gloucester limited 07852067 sdi w eymouth limited 06716652
sdi kendal limited 06338918 sdi coatbridge limited 06656368
sdi kilmarnock limited 07853433 sdi p roperty limited 02767493
sdi kirkcaldy limited 07852097 sdi wishaw limited 06656365 
sdi lowestoft limited 07852265 stirlings argyle street limited sc088108
sdi neath limited 07853548 queensdown associates 04298804
 
36 ultimate controlling party 
the group is controlled by mike ashley through his 100 shareholding in mash holdings limited which has a 64 shareholding in the company
 
37 post balance sheet events 
on 29 may 2013 sports direct international plc announced two acquisitions sports eybl  sports experts ag eag based in austria was completed on 26 june 
2013 sportland international group sig based in the baltic region is due to complete in the near future
on 29 april 2013 sportsdirectcom r etail limited acquired the remaining 20 shareholding in cruise clothing limited as such cruise is now a wholly owned 
subsidiary
there were no other material post balance sheet events after 28 april 2013 to the date of this annual r eport
notes to the financial statements
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
92  respective responsibilities of directors and auditor 
as explained more fully in the directors’ r esponsibilities statement the 
directors are responsible for the preparation of the group financial statements 
and for being satisfied that they give a true and fair view our responsibility is to 
audit and express an opinion on the group financial statements in accordance 
with applicable law and international standards on auditing uk and ireland 
those standards require us to comply with the auditing p ractices board’s 
apb ’s ethical standards for auditors
scope of the audit of the financial statements 
a description of the scope of an audit of financial statements is provided on the 
apb ’s website at wwwfrcorgukapbscopeprivatecfm
opinion on financial statements 
in our opinion the parent company financial statements
• give a true and fair view of the state of the company’s affairs as at 28 april 
2013 
• have been properly prepared in accordance with united kingdom generally 
accepted accounting p ractice and
• have been prepared in accordance with the requirements of the companies 
act 2006
opinion on other matters prescribed by the companies act 2006 
in our opinion
• the part of the directors’ r emuneration r eport to be audited has been 
properly prepared in accordance with the companies act 2006 and
•  the information given in the directors’ r eport for the financial year for which 
the financial statements are prepared is consistent with the parent company 
financial statements
matters on which we are required to report by exception 
w e have nothing to report in respect of the following matters where the 
companies act 2006 requires us to report to you if in our opinion
• adequate accounting records have not been kept by the parent company 
or returns adequate for our audit have not been received from branches not 
visited by us or
• the parent company financial statements and the part of the directors’ 
r emuneration r eport to be audited are not in agreement with the accounting 
records and returns or
• certain disclosures of directors’ remuneration specified by law are not made 
or
• we have not received all the information and explanations we require for our 
audit
other matter 
w e have reported separately on the group financial statements of sports direct 
international plc for the 52 week period ended 28 april 2013 
paul etherington bsc fca cf   
senior statutory auditor 
for and on behalf of grant thornton uk llp 
statutory auditor chartered accountants 
london 
18 july 2013
w e have audited the parent company financial statements of sports direct international plc for the 52 week period ended 28 april 
2013 which comprise the parent company balance sheet and the related notes the financial reporting framework that has been 
applied in their preparation is applicable law and united kingdom accounting standards united kingdom generally accepted 
accounting p ractice
this report is made solely to the company’s members as a body in accordance with chapter 3 of p art 16 of the companies act 
2006 our audit work has been undertaken so that we might state to the company’s members those matters we are required to 
state to them in an auditor’s report and for no other purpose to the fullest extent permitted by law we do not accept or assume 
responsibility to anyone other than the company and the company’s members as a body for our audit work for this report or for the 
opinions we have formed
independent auditor’s report
to the members of sports direct international plc
the business r eview management  governance financial statements  notes additional information
93 company balance sheet
notes
2013 
£’000
2012 
£’000
fixed assets
investments 2 1066026 1040282
current assets
debtors 3 1953 1676
cash at bank and in hand 139 63
2092 1739
creditors amounts falling due within one year 4 89141 38581
net current liabilities 87049 36842
net assets 978977 1003440
capital and reserves
called up share capital 5 64060 64060
share premium 6 874300 874300
treasury shares reserve 6 56234 55839
permanent contribution to capital 6 50 50
capital redemption reserve 6 8005 8005
own share reserve 6 64375 57684
profit and loss account 6 153171 170548
shareholders’ funds 7 978977 1003440
 
the accompanying accounting policies and notes form part of these financial statements
the financial statements were approved by the board on 18 july 2013 and were signed on its behalf by
 
dave forsey 
director 
as at 28 april 2013
sports direct plc annual report 2013
94  notes to the company financial statements
1 accounting policies
accounting policies 
these accounts have been prepared in accordance with applicable united 
kingdom accounting standards a summary of the material accounting policies 
adopted are described below
basis of accounting 
the accounts have been prepared under the historical cost convention
as permitted by section 408 of the companies act 2006 a profit and loss 
account of the company is not presented the company’s loss after taxation for 
the 52 week period 28 april 2013 was £3249000 2012 £2015000 loss
investments 
fixed asset investments are stated at cost less any provision for impairment
cost represents cash consideration or the amount of ordinary shares issued by 
the company at nominal value after taking account of merger relief available 
under s612 of the companies act 2006 plus related acquisition costs capitalised 
at fair value
deferred taxation 
deferred tax is provided for on a full provision basis on all timing differences 
which have arisen but not reversed at the balance sheet date no timing 
differences are recognised in respect of gains on sale of assets where those 
gains have been rolled over into replacement assets a deferred tax asset is not 
recognised to the extent that the transfer of economic benefit in future is more 
unlikely than not
deferred tax is calculated on a nondiscounted basis at the tax rates that are 
expected to apply in the periods in which timing differences reverse based on 
tax rates and laws enacted or substantively enacted at the balance sheet date
foreign currencies 
items arising from transactions denominated in foreign currencies are translated 
at the rate of exchange ruling at the date of the transaction at the balance sheet 
date all monetary assets and liabilities denominated in foreign currencies are 
translated at the closing rate or at the rate of exchange at which the transaction 
is contracted to be settled in the future all exchange differences are recognised 
in the profit and loss account
dividends 
dividends on the company’s ordinary shares are recognised as a liability in the 
company’s financial statements and as a deduction from equity in the period in 
which the dividends are declared where such dividends are proposed subject 
to the approval of the company’s shareholders the dividends are only declared 
once shareholder approval has been obtained
equity instruments 
an equity instrument is any contract that evidences a residual interest in the 
assets of the company after deducting all of its liabilities equity instruments 
issued by the company with the exception of those accounted for via merger 
relief available under s612 of the companies act 2006 are recorded at the 
proceeds received net of any direct issue costs
income from group undertakings 
income from group undertakings is recognised when qualifying consideration is 
received from the group undertaking
related party transactions 
the company has taken advantage of the exemption contained in frs 8 and has 
therefore not disclosed transactions or balances with wholly owned subsidiaries 
which form part of the group
sharebased payments  
the company has applied the requirements of frs 20 “sharebased p ayments” 
the company issues equitysettled sharebased payments to certain directors 
and employees of the company and its subsidiaries these are measured at fair 
value at the date of grant which is expensed to the profit and loss on a straight
line basis over the vesting period based on the group’s estimate of shares that 
will eventually vest
the expected life used in the model has been adjusted based on management’s 
best estimate for the effects of nontransferability exercise restrictions and 
behavioural considerations a sharebased payment charge of £22183000 was 
recognised for the 52 weeks ended 28 april 2013 based on the directors’ best 
estimate of the number of shares that will vest £21345000 of this sharebased 
payment was recharged to subsidiary undertakings of the company
 
2 investments
2013
 £’000
shares in group undertakings
as at 29 april 2012 1040282
additions
capital contribution in subsidiary 25510
other additions 234
as at 28 april 2013 1066026
none of the company’s investments are listed
the company is the principal holding company of the group the principal 
subsidiary undertakings of the company are set out in note 35 to the group 
financial statements
during the year and existing intercompany loan in a subsidiary entity 
sportsdirectcom r etail europe sa  was converted to an investment in equity
 
3 debtors
2013 
£’000
2012 
£’000
amounts owed by group undertakings 318 979
other debtors 995 41
other taxes and social security costs  61
prepayments 640 595
1953 1676
 
4 creditors amounts falling due within one year
2013
£’000
2012
£’000
trade creditors 1138 156
amounts owed to group undertakings 87774 38183
accruals 190 242
other taxes and social security costs 39 
89141 38581
the business r eview management  governance financial statements  notes additional information
for the 52 weeks ended 28 april 2013
95 5 called up share capital
2013 
£’000
2012
£’000
authorised 
999500010 ordinary shares of 10p each 99950 99950
499990 redeemable preference shares of 10p each 50 50
100000 100000
called up and fully paid
640602369 2012 640602369 ordinary shares of 10p each 64060 64060
share capital  
at 29 april 2012 64060 64055
issue of shares  5
at 28 april 2013 64060 64060
 
6 reserves
share premium 
account
 £’000
treasury share 
reserve 
£’000
permanent 
contribution to 
capital 
£’000
capital redemption 
reserve 
£’000
own share reserve 
£’000
profit and loss 
account 
£’000
at 29 april 2012 874300 55839 50 8005 57684 170548
loss for the financial period      3249
sharebased payments      528
share scheme vesting     14656 14656
purchase of own shares  395   21347 
at 28 april 2013 874300 56234 50 8005 64375 153171
the company holds 42137508 ordinary shares in t reasury 
the credit for the sharebased payment charge does not equal the charge per the profit and loss account as it excludes amounts recognised in the balance sheet in 
relation to the expected national insurance contributions for the shares
 
7 reconciliation of movement on shareholders’ funds
2013 
£’000
opening shareholders’ funds 1003440
loss for the financial period 3249
sharebased payments 21214
closing shareholders’ funds 978977
 
8 post balance sheet events
no material post balance sheet events occurred after 28 april 2013 to the date of this annual r eport
notes to the company financial statements continued
for the 52 weeks ended 28 april 2013
sports direct plc annual report 2013
96  consolidated five year record 
 
52 weeks ifrs 
28 april 2013
£’000
53 weeks ifrs 
29 april 2012
£’000
52 weeks ifrs 
24 april 2011
£’000
52 weeks ifrs 
25 april 2010
£’000
52 weeks ifrs 
26 april 2009
£’000
continuing operations
revenue 2185580 1835756 1599237 1451621 1367321
cost of sales 1290822 1091480 940330 862490 809685
gross profit 894758 744276 658907 589131 557636
selling distribution and administrative expenses 689578 594368 527273 524611 463297
other operating income 7199 3268 5289 3493 4004
r egulatory enquiries    7800 
legal dispute  2309 3128 2186 
impairment of intangible fixed assets     14832
impairment of f reehold property     15682
profit on disposal of leasehold property  724   
profit on disposal of freehold property  962   
profit on disposal of intangible asset  1624 876  
exceptional items 625 5619 2252 9986 30514
operating profit 213004 158795 134671 58027 67829
investment costs  income 1473 5800 9481 24653 51949
finance income 3066 6426 2560 40150 15927
finance costs 11637 8481 8953 10528 23633
share of profit of associated undertakings and joint ventures 1320 558 8 7200 2482
profit before taxation 207226 151498 118789 119502 10656
taxation 55569 45867 35566 30286 26164
profit for the period 151657 105631 83223 89216 15508
equity holders of the group 151596 106198 84173 89433 15838
noncontrolling interests 61 567 950 217 330
profit for the period 151657 105631 83223 89216 15508
 
notes to the consolidated income statement five year record
1 all information is presented under ifrs  
2 the five year record has been prepared on the same basis as the financial statements for the 52 weeks ended 28 april 2013 as set out in note 1 basis of 
preparation of the consolidated financial statements 
unaudited income statement
the business r eview management  governance financial statements  notes additional information
97 shareholder information
registrar and transfer office 
computershare investor services plc 
the p avilions 
bridgwater r oad 
bristol 
bs13 8ae
company secretary and registered office 
sports direct international plc 
unit a  brook park east 
shirebrook 
ng20 8ry 
telephone 0845 129 9200 
sports direct international plc is registered in england and w ales no 6035106
solicitors 
f reshfields bruckhaus derringer 
65 fleet street 
london 
ec4y 1hs
brokers 
espirito santo investment bank 
10 paternoster square 
london  
ec4m 7al
oriel securities limited 
150 cheapside 
london 
ec2v 6et
principal bankers 
barclays bank plc 
5 the north colonnade 
canary wharf 
london 
e14 4bb
hsbc bank plc 
8 canada square 
london 
e14 5hq
auditors 
grant thornton uk llp 
grant thornton house 
melton street 
euston square 
london 
nw1 2ep
annual general meeting 
the annual general meeting of the company will be held at 300pm on 
w ednesday 11 september 2013 at sports direct international plc the 
auditorium unit d  brook park east shirebrook ng20 8ry  each shareholder 
is entitled to attend and vote at the meeting the arrangements for which are 
described in a separate notice 
results 
for the year to 27 april 2014 
interim management statement 11 september 2013 
half year results announced 12 december 2013 
interim management statement 20 february 2014 
preliminary announcement of full year results july 2014 
annual report circulated july  august 2014
shareholder helpline 
the sports direct shareholder register is maintained by computershare who are 
responsible for making dividend payments and updating the register including 
details of changes to shareholders’ addresses if you have a query about your 
shareholding in sports direct you should contact computershare’s sports 
direct shareholder helpline on 0870 707 4030 calls are charged at standard 
geographic rates although network charges may vary
address the p avilions bridgwater r oad bristol bs99 6zz  
w ebsite wwwcomputersharecom
website 
the sports direct website at wwwsportsdirectplccom provides news 
and details of the company’s activities plus information for shareholders 
and contains real time share price data as well as the latest results and 
announcements
unsolicited mail 
the company is obliged by law to make its share register publicly available and 
as a consequence some shareholders may receive unsolicited mail including 
from unauthorised investment firms
for more information on unauthorised investment firms targeting uk investors 
visit the website of the financial services authority at wwwfsagovuk
if you wish to limit the amount of unsolicited mail you receive contact
the mailing p reference service 
dma house 
70 margaret street 
london 
w1w 8ss
telephone 020 7291 3310 
f ax 020 7323 4226 
email mpsdmaorguk or register online at  
wwwmpsonlineorguk
sports direct plc annual report 2013
98  sports direct international plc unit a brook park east shirebrook ng20 8ry 0845 129 9200
wwwsportsdirectplccom


Summary:
 group
the financial y ear ended 28 april 2013 “the year” was a 52week year in order 
to make a comparison to the previous period which was a 53week year all 
references to financial performance in respect of the income statement cash 
flow and business reviews are made by reference to a proforma 2012 52week 
basis unless otherwise specified
for the y ear we increased group revenue by 209 to £2186m this was 
primarily due to the r etail division where we grew revenues by 227 including 
a 176 growth in total sports r etail coupled with the premium lifestyle 
division which contributed revenues of £128m
group gross margin in the year increased by 40 basis points from 405 to 
409 total sports r etail division gross margin increased by 20 basis points to 
414 fy12 412 while brands division gross margin increased to 449 
fy12 412
group operating costs increased 225 to £6079m fy12 £4962m sports 
r etail and brands division operating costs were £4910m fy12 £4000m and 
£666m fy12 £588m respectively
overview of financial performance 
i am pleased to report a further year of strong profit growth for sports direct the results for the year have benefited from the uefa 
european championships and the london olympics but have been achieved in a retail environment that remains challenging  
the group has grown consistently and the resilience and flexibility of our business model continues to allow us to offer an 
unparalleled product range at the best available prices w e will continue to be the consumers’ champion
56 new sports r etail stores opened during the year in the uk and europe with 
the group continuing to put the consumer at the forefront of our business by 
offering the best combination of product range and value for money whilst we 
are the clear market leader in the uk sports r etail sector we are also pleased to 
have broadened our customer base in new areas such as lifestyle and f ashion 
and built on our strong retail infrastructure and systems
our p remium lifestyle division has continued to expand having acquired 114 
r epublic stores from the administrator in february 2013 the division offers its 
customers an enhanced shopping experience following the previous acquisition 
of companies including usc flannels cruise and v an mildert
following the success of our 2009 employee bonus share scheme the group 
launched a new fouryear scheme in 2011 covering the period fy12 to fy15 
with challenging underlying ebitda targets of £215m £250m £260m and 
£300m respectively w e are delighted to inform you that both the first and 
the second of these targets have been achieved and we would like to take 
this opportunity to thank our colleagues for their outstanding contributions 
over the past year there is no doubt that the schemes continue to be a major 
contributing factor in improving the group’s staff retention those employees 
that were involved in the 2009 scheme received their first share rewards in 
august 2012 and we are pleased that august 2013 will see the second part of 
the 2009 bonus share scheme vest and we look forward to seeing our fellow 
colleagues wellrewarded for their efforts
chief executive’s report  business review
dave forsey  chief executive
group revenue 209
april 13 £21856m
april 12 £1807m
£1599m
£1451m
£1367m
april 11
april 10
april 09
underlying ebitda 222
april 13 £2879m
april 12 £2357m
£2110m
£1604m
£1368m
april 11
april 10
april 09
sports direct plc annual report 2013
18  r eflecting the success of our approach – balancing revenues and gross margin 
while maintaining a tight focus on operating costs – we grew group underlying 
ebitda prescheme costs for the year by 221 to £2879m fy12 £2357m 
within this underlying ebitda  we increased the total r etail division ebitda by 
238 to £2609m fy12 £2107m while the brands division ebitda increased 
by 80 to £270m fy12 £250m
excluded from underlying ebitda is a £221m fy12 £207m charge in  
respect of the 2009 and 2011 employee bonus share schemes and the 
executive bonus share schemes this charge has been taken centrally and 
except in note 4 to the accounts is not reflected in divisional r etail and brands 
numbers in this report 
for the y ear group underlying profit before tax increased 396 to £2081m 
primarily as a result of the £522m increase in prescheme costs ebitda 
and £99m decrease in depreciation and amortisation offset by the £14m 
increase in employee bonus share scheme charges underlying eps for the year 
increased by 433 to 2685p fy12 1874p 
net debt at 28 april 2013 was £1540m 29 april 2012 £1452m which is 058 
times reported ebitda  r eported ebitda includes realised foreign exchange 
gainslosses in selling and administration costs and the employee bonus share 
scheme charges
key performance indicators
the board monitors the performance of the group by reference to a number of key performance indicators kpis which are discussed in this chief executive’s r eport 
and also in the financial r eview the most important of these kpis are
52 weeks ended
28 april 2013
proforma 52 week
april 2012 
2
53 weeks ended
29 april 2012 
52 weeks ended
24 april 2011
financial kpis
group revenue £21856m £18072m £18358m £15992m
underlying ebitda 
1
£2879m £2357m £2401m £2110m
uk sports r etail gross margin 411 410 410 419
uk r etail likeforlike stores gross contribution 
3
112 07 07 66
international r etail likeforlike stores gross contribution 
4
70 01 01 85
online revenue as a percentage of t otal sports r etail revenue 150 116 116 70
underlying earnings per share 
5
2685p 1874p 1919p 1683p
nonfinancial kpis
no of core stores 
6
323 305 306
employee turnover 155 170 169
cardboard recycling 8893 tonnes 6622 tonnes 6237 tonnes
1
 the method for calculating underlying ebitda is set out in the financial r eview
2
 the fy12 income statement has been restated to provide a 52week proforma set of results
3
 uk sports r etail likeforlike contribution is defined as the percentage change in gross contribution in the successive 12 month period adjusted to remove the impact of the 53week year in 2012 a likeforlike store is 
one that has been trading for the full 12 months in both periods and has not been affected by a significant change such as a major refurbishment 
4
 international r etail likeforlike contribution is defined as the percentage change in gross contribution in the successive 12 month period adjusted to remove the impact of the 53week year in 2012 a likeforlike store is 
one that has been trading for the full 12 months in both periods and has not been affected by a significant change such as a major refurbishment 
5
 the method for calculating underlying earnings per share is set out in the financial r eview
6
 a core store is a store acquired and fitted out by the group or otherwise so designated
19
the business review management  governance financial statements  notes additional information chief executive’s report  business review continued
review by business segment 
retail revenue
52 weeks ended 
28 april 2013 £’m
proforma
 52 weeks 2012 £’m
52 week 
change 
53 weeks ended 
29 april 2012 £’m
uk sports r etail 15749 13424 173 13682
uk wholesale and other 881 412 1138 412
premium lifestyle 1284 735 747 735
international r etail 1852 1542 201 1570
total r etail revenue 19766 16113 227 16399
cost of sales 11756 9596 225 9764
gross profit 8010 6517 229 6635
gross margin percentage 405 404 405
 
brands revenue
52 weeks ended 
28 april 2013 £’m
proforma 
52 weeks 2012 £’m
52 week 
change 
53 weeks ended 
29 april 2012 £’m
wholesale 1783 1685 58 1685
licensing 307 274 120 274
total brands revenue 2090 1959 67 1959
cost of sales 1152 1151 01 1151
gross margin 938 808 161 808
gross margin percentage 449 412 412
 
uk sports retail 
uk sports r etail revenue growth continues to be primarily driven by our retail and logistics skills – providing the widest choice of 
products at the best value with universal availability
uk sports r etail sales were up 173 to £15749m fy12 £13424m sales and gross profit from the former jjb stores are 
excluded from uk sports r etail revenue and margin and are included in uk wholesale and other
sales in the first half benefited from the uefa european championships and 
the london olympics although sales in the second half of the y ear were still up 
164 to £7780m fy12 h2 £6677m gross margins for the second half of the 
year improved to 399 fy12 h2 397 gross margin for the y ear increased 
by 10 basis points to 411 fy12 410 w e have invested significantly in 
gross margin throughout the year
uk sports r etail likeforlike gross contribution which excludes online increased 
by a record 112 marking the fourth consecutive year of growth in this kpi 
fy12 07  fy11 66  fy10 34 uk sports r etail likeforlike 
contribution is defined as the percentage change in gross contribution in the 
successive 12month period a likeforlike store is one that has been trading 
for the full 12 months in both periods and has not been affected by a significant 
change such as a major refurbishment the number of stores included in this 
year’s kpi is 275 fy12 290
operating costs increased by 188 to £4094m fy12 £3445m operating 
costs in h2 increased by 139 to £2145m fy12 h2 £1884m store wages 
were up 180 but as a percentage of sales increased only 02 to 88 
fy12 86 in spite of a substantial investment in store staff uk sports 
r etail premises costs increased by only 15 due to reduced rent following 
the purchase in the prior year of freehold properties previously rented and the 
ongoing process of store relocations and rent renegotiations 
other operating costs were up 342 to £1570m fy12 £117m which is due 
to increased warehouse and storage costs to support the growth in our online 
business and increased overheads relating to the obligations acquired from 
the administrator of jjb the majority of this increase came in h1 with other 
operating costs in h2 only increasing by 151 to £84m fy12 £73m
operating costs were also reduced by a release of the onerous lease provision  
of £146m due to the closure of unprofitable stores the sublet of previously 
vacant space and a strategic decision to invest in other stores previously 
planned for closure
underlying ebitda for uk sports r etail was £2477m fy12 £2077m an 
increase of 192 for the year this increase was driven by a £1117m increase 
in gross profit including uk wholesale and other due to the growth in store 
contribution and online sales offset by the £649m increase in operating costs
the group’s retail businesses performed strongly in a difficult economic 
environment our retail model offering outstanding value to our customers 
remains resilient both in the uk and internationally throughout the y ear  
we continued to focus on offering the customer the most comprehensive 
product range the best availability and value while reducing our costs  
wherever possible
sports direct plc annual report 2013
20  employee training has undergone a significant amount of investment over the 
past few years this year alone in excess of 40000 hours have been invested 
into the training and development of our employees our training courses mainly 
take place at our stateoftheart national t raining f acility in shirebrook where 
sessions are led by our experienced teams w e offer a wide portfolio of courses 
which are continuously being changed and refined with the ultimate aim of 
improving trainee product knowledge and customer experience
the nike t raining academy is a key part of our shirebrook national t raining 
f acility and the only one of its kind in the world w e are also continuing to 
work with adidas and puma to provide training in order to support our instore 
campaigns and to gain knowledge of specialised products new p uma training 
rooms at shirebrook were opened during april 2013
group marketing has continued to be a key part of our growth strategy 
investment around traditional media channels such as tv and print were intrinsic 
to our marketing plans around the 2012 summer of sport
the sportsdirectcom brochure was our biggest ever at 1092 pages which was 
an increase of 50 on the year before two million copies were distributed both 
in store and with the delivery of online orders
online revenue has increased by 521 from £1740m to 
£2646m in the year and represented 150 of total sports 
r etail sales fy12 116 
w e remain focused on the further development of our successful multichannel 
offer order fulfilment and information technology solutions are developed 
inhouse with full backup support from our national distribution centre in 
shirebrook derbyshire the website has benefited from the group’s investment 
in online product range and availability the launch of the new online platform in 
november 2012 and a further growth in recognition of the online brand with 376 
of the uk store fascia now branded sportsdirect com
april 13
april 12 £1740m
£957m
£486m
£151m
april 11
april 10
april 09
£2646m
online revenue 521
fy09
15
45
70
116
150
fy10 fy11 fy12 fy13
online  total sports sales
21
the business review management  governance financial statements  notes additional information chief executive’s report  business review continued
uk sports retail continued
our store portfolio remains constantly under review with the performance of 
each store and ways of maximising performance being regularly examined 
during the year we opened 37 and closed 36 stores w e have closed 113  
stores since 2008 as the mix of our portfolio continues to evolve w e increased 
our period end squarefootage to c 40m square feet fy12 c 39m
in the 12 months to 28 april 2013 rent reviews have been agreed on 33 stores 
the average increase in rent was 248 048 annual equivalent there are 
currently 42 rent reviews outstanding with a further 40 falling due in 201314 
our lease expiry profile over all core stores excluding lillywhites p iccadilly  
is now 6 years allowing a significant amount of flexibility within our portfolio to 
adapt our format to the rapidly changing multichannel environment 
in the current financial year we are targeting to open 2530 stores w e 
anticipate closing more stores than we open in fy14 this is in line with our 
aim of maintaining four million square feet of retail space but with an increased 
average store size w e have already opened six in the first quarter including  
two relocations
uk sports retail fascias
store portfolio 
28 april 2013 29 april 2012
core 323 305
noncore 73 90
total 396 395
core openings 28 12
noncore openings 9 6
core closed 10 13
noncore closed 26 3
f reehold properties 52 48
sportsdirect com fascias 376 351
field  t rek fascias 12 17
lillywhites fascias 1 1
other fascias sports w orld hargreaves 7 26
area sq ft 40m 39m
instore  
w e have continued to develop our specialised instore areas our instore brands marketing received significant investment with a substantial unitary rollout for our 
dunlop and everlast brands our sherunsheruns areas also benefited from a rollout of the karrimor running footwear zone featuring an integrated product information 
and selection panel
sports direct plc annual report 2013
22 
dedicated instore areas international r etail gross margin increased by 60 basis points in the year to 
440 international r etail 52week likeforlike stores gross contribution figure 
which excludes online r etail increased by 70 during the year fy12 01 
there were 65 stores included in this kpi consisting of core stores that have 
been open for the full 52 weeks in both periods and not affected by a significant 
change such as a major refurbishment fy12 46
operating costs within international r etail increased by 265 to £702m  
fy12 £555m following an investment in management resource and training 
ahead of the expansion into new markets there was a 252 increase in floor 
space although much of this was from stores that opened late in the year
excluding income from associates heatons international r etail underlying 
ebitda reduced by 15 to £113m fy12 £115m income from associates 
was a gain of £10m fy12 loss of £07m and this resulted in an increase in 
underlying international ebitda of 140 to £123m fy12 £108m
international retail
international r etail sales increased by 201 to £1852m fy12 £1542m 
on a currency neutral basis the increase was 263 
key
schengen area eu
schengen area noneu
set to implement later
eu states outside eu
international retail sales 201
april 13 £1852m
april 12 £1542m
£1323m
£1199m
£1203m
april 11
april 10
april 09
store portfolio excluding ireland  iceland
28 april 2013 29 april 2012
belgium 45 43
slovenia 15 14
portugal 15 13
netherlands 6 6
cyprus 6 6
f rance 6 5
slovakia 3 
hungary 2 
luxembourg 2 1
czech r epublic 2 
total 102 88
area sq ft 112m 0895m
23
the business review management  governance financial statements  notes additional information uk retail  premium lifestyle 
during the year we have continued our expansion of the premium lifestyle 
division in july 2012 we purchased a majority stake in the flannels group 
and in february 2013 114 stores and certain assets were acquired from the 
administrators of the fashion retailer r epublic following negotiations with 
landlords 85 r epublic stores remain open both acquisitions have expanded the 
breadth of our premium lifestyle offering p ost year end we have also acquired 
the remaining 20 stake in cruise
the results of r epublic are excluded from the above analysis as the fascia had 
not been fully integrated into the group by the end of the year for the nine 
weeks since acquisition r epublic made a loss of £45m ebitda 
the results for fy13 include a full year’s trading for usc cruise and v an mildert 
and nine months for flannels the fy12 results included nine months of trading 
for usc and cruise and two months for v an mildert
sales for the division in the year were £1284m fy12 £735m gross margin 
was 434 which is 100 basis points lower than the prior year fy12 444 
the divisional ebitda excluding r epublic was £54m after the release of an 
onerous lease provision of £20m fy12 loss of £78m
usc online sales increased by 847 to £109m fy12 £59m driven by the 
adoption of the group’s fulfilment systems and online platform
at the year end the division traded from 74 stores with five targeted fascias
store portfolio
28 april 2013 29 april 2012
usc 40 40
van mildert 10 9
cruise 8 9
flannels 8 
other 8 9
total 74 67
international retail continued
the group has a 50 shareholding in the heatons chain which operates 14 
sports direct stores in northern ireland and 26 sports stores in the r epublic  
of ireland during the year we opened a new store in iceland through our  
25 shareholding 
all of the stores in the previous table are operated by companies wholly owned 
by the group except portugal where the group owns 501 as part of the 
accelerated growth programme in our european subsidiary we opened 19 
new stores in europe and entered four new countries as at 28 april 2013 
international r etail operated from a total retail sales space of c 11m sq ft 
fy12 c 0895m sq ft
importantly with all of our new and existing stores in europe local management 
are working hard to ensure that all stores are committed to the operational 
efficiencies and standards that exist across the uk sports stores
our strategy remains to identify partners in new territories while continuing 
to expand our operations in the countries where we currently trade for fy14 
and in line with our accelerated european expansion we are targeting eight to 
12 new stores and two to three new territories in the first quarter we have 
already opened two stores in poland and one in spain in conjunction with the 
acquisition recently announced in austria and the baltic region we are now 
active in 19 countries across europe
premium lifestyle sales 747
april 13 £1284m
april 12 £735m
chief executive’s report  business review continued
sports direct plc annual report 2013
24  in march 2012 we acquired the firetrap brand and assets from the administrator 
during fy13 the business underwent a complete customer and operational 
review resulting in significant cost savings and a more streamlined operation 
the brands division remained acquisitive during the y ear acquiring vandanel 
premier a distributor of football branded clothing and equipment and also 
w aterline a wholesale fishing business
licensing revenues in the y ear were up 120 to £307m fy12 £274m 
w e signed 87 new licence agreements covering multiple brands and product 
categories with minimum contracted values of 53m over the life of the 
agreements w e remain on track for licence income to achieve a compound 
average growth rate cagr of 11 reaching at least 60m of licensing 
revenues by fy15
longer term we still regard licensing as the key driver of brands division 
profitability and crucial for the overall growth of the brands business the main 
growth areas are expected to be asia p acific and the americas which should 
compensate for a tougher licensing landscape in the uk and europe
operating costs increased by 194 to £666m fy12 £558m which includes 
a £30m cost for the firetrap reorganisation excluding these costs underlying 
ebitda therefore increased by 80 to £270m fy12 £250m
brands wholesale revenue 58
april 13 £1783m
april 12 £1685m
£1620m
£1673m
£2036m
april 11
april 10
april 09
brands licensing revenue 120
april 13 £307m
april 12 £274m
£257m
£232m
£269m
april 11
april 10
april 09
brands
brands total revenue increased by 67 to £2090m fy12 £1959m 
wholesale revenues were up 58 to £1783m fy12 £1685m driven by strong performances in our north american businesses 
brands gross margin increased by 370 basis points to 449 fy12 412 wholesale gross margin rose to 354 fy12 317
w e continue to focus on developing worldclass products that 
are endorsed by leading athletes on the field of play a recent 
addition to our team of key brand ambassadors is r obson 
green r obson the face of channel 5’s extreme fishing is the 
ambassador of the fishing range developed under our iconic 
dunlop brand 
the group recognised that fishing is a sport which involves 
significant mass participation and therefore developed 
product ranges of superior quality and great value to suit the 
needs and value expectations of our customers
25
the business review management  governance financial statements  notes additional information
dunlop brand ambassador  r obson green employees
sports direct has made great progress and a large proportion of this is due to 
the hard work and loyalty of our c 24000 staff throughout the business  
i am overwhelmed by the contributions that have been made by our employees 
towards achieving an exciting future for the group i believe that the dedication 
of our employees has placed us in an extremely strong position in the market in 
what is most definitely a difficult time for most retailers the past contributions 
from our employees make me confident that we can replicate our successes as 
we look forward to the future
the employee bonus share schemes have been a fundamental tool which 
the group has used to promote incentivise and motivate its staff sharing the 
responsibility of achieving these targets was matched by the potential benefits 
to employees if the targets were met the schemes have been crucial to 
influencing staff behaviour and maximising the group performance 
the 2009 employee bonus share scheme was the first scheme which we 
trialled vesting in august 2012 and august 2013 all of the elements of the 
scheme were met and the first awards were successfully vested for eligible 
employees in 2012 the second award of shares will vest for eligible employees 
in august 2013 amounting to approximately 21 million shares the second 
awards were to the value of 75 of base pay for the majority of employees and 
25 of base pay for those employees who joined the group later but still within 
the rules of the scheme
to the extent that a significant number of eligible employees elect to sell 
some or all of their shares whilst the company has no obligation to buy back 
the shares the board will consider a number of options open to it including 
whether to i implement an onmarket buy back of shares pursuant to the 
authority given by shareholders at the company’s agm in 2012 or ii fund the 
company’s employee benefit t rust so as to allow it to acquire shares in the 
market to replace those shares transferred to eligible employees pursuant to  
the vesting
a further incentive for our employees has been the introduction of the 2011 
employee bonus share scheme the 2011 scheme has been developed 
to incentivise and motivate our current employees in pursuit of our shared 
group objectives the ongoing growth and performance of the group may be 
attributed to the successful adoption of the 2009 and 2011 employee bonus 
share schemes employees who have received bonuses under the 2009 scheme 
could be eligible for further awards under the 2011 scheme and we hope to 
retain our valued employees by offering such rewards this year 155 of our  
uk employees left the business down from 17 in fy12
the underlying ebitda targets before the costs of the scheme of £215m in 
fy12 and £250m in fy13 have been achieved the targets for fy14 and fy15 
are £260m and £300m respectively these further targets coupled with the 
individual employee’s satisfactory personal performance must all be met in 
order for the scheme to vest in august 2015 and 2017 with approximately 6m 
shares due to vest in 2015 and approximately 17m shares due to vest in 2017  
it is important that we continue to work together towards these shared goals
2011 employee bonus share scheme
ebitda targets of
• £215m in fy12 achieved £2357m
• £250m in fy13 achieved £2879m
• £260m in fy14
• £300m in fy15
all four targets have to be met maximum award of 23m shares to include  
c 3000 employees
chief executive’s report  business review continued
fy12
350
300
250
200
150
100
fy13 fy14 fy15
target               achieved
bonus share scheme key performance indicators
salaried staff turnover 
since fy09
fy12
17
fy13
155
17
fy11
17
fy10
29
fy09
30
0
pay versus turnover cost index 
since fy09 base year
fy12
89
fy13
98
89
fy11
100
fy10
100
fy09
100
80
indexed
store stock loss cost index 
since fy09 base year
fy12
77
fy13
71
78
fy11
77
fy10
100
fy09
100
indexed
60
energy consumption per sq ft cost 
index since fy09 base year
fy12
78
fy13
82
83
fy11
92
fy10
100
fy09
100
indexed
70
£215m
£250m
£236m
£288m
£260m
£300m
sports direct plc annual report 2013
26  our strategy
objective so far what next
identify
instore the group focuses on its stores to ensure the best presentation of our product 
range our product collections provide a ‘goodbetterbest’ presentation to 
ensure our customers find the right product at the right price our specialist 
collaborations with sherunsheruns and soccer scene  the boot r oom 
provide a high level of customer service our multichannel approach also 
gives flexibility to our customers
the group continues to enhance its instore offering with further dedicated 
areas for specialist product collections
• european golf
• swimshopcouk
• w aterline
• dragoncarp direct
• field  t rek
acquisitions in fy13 the group acquired the key assets of jjb including the distribution 
centre in wigan and the slazenger golf brand the group also acquired a 51 
stake in the flannels group for the p remium lifestyle division and added used 
tackle and w aterline to expand the fishing product offering 
in february 2013 the group acquired various assets of the fashion retailer 
r epublic including the stock 114 stores and the website
the group continues to identify suitable opportunities to expand the product 
range our specialist collaborations and the premium lifestyle division
invest
store portfolio since april 2012 uk sports r etail has opened 28 core stores and closed 10 
core stores the group also opened nine and closed 26 noncore stores 
during fy13 international r etail opened 19 new stores and closed five as at 
28 april 2013 international r etail operated wholly owned subsidiaries in nine 
countries and a 501 partnership in portugal
the group also opened a new store in iceland as a joint venture and has a 50 
stake in the heatons chain in northern ireland and r epublic of ireland
the group intends to continue to enhance its store portfolio in both the uk and 
internationally the group will continue with the strategy to identify strategic 
partners in new territories while expanding operations in those countries 
where we currently have a presence plans are in place to expand international 
r etail operations into all countries that have adopted the euro
people our employees have contributed substantially towards our growth and 
success w e are consistently investing in the training and development of 
our employees to ensure that they are incentivised and recognised for their 
contribution the 2009 and 2011 employee bonus share schemes are an 
important contributor to employee motivation and group performance the 
targets of the 2009 employee bonus share scheme were achieved and the 
second award is due to vest in august 2013 the 2011 employee bonus share 
scheme has been embraced by our employees and they have worked hard to 
contribute towards the ebitda targets to date if the additional group targets 
are achieved members of the 2011 scheme will be rewarded with shares in 
the group
due to the success of the first bonus share scheme we continue to 
encourage and motivate employees with the 2011 employee bonus  
share scheme 
develop
website online r etail sales currently represent 150 of total sports r etail revenue up 
from 116 in fy12
aided by the new platform launched in november 2012 our monthly unique 
visitors have risen 509 on fy12 and the average basket size has risen 46 
to £5950
our conversion ratio of unique visitors who go on to make a purchase has 
risen from 54 to 57
online revenue continues to be an area of significant growth and the group 
continues to look at opportunities to develop this revenue stream further the 
website has benefited from the group’s investment in online product range and 
availability and from recognition of the online brand now that 376 stores have 
the sportsdirect com fascia
the launch of sportsdirectnews com in november 2012 provides a further 
opportunity to drive incremental visitors to our website
promote
brands the group’s portfolio includes a wide variety of world famous sport fashion 
and lifestyle brands the group’s r etail division sells products under these 
group brands in its stores and the brands division exploits the brands through 
its wholesale and licensing businesses
the brands division wholesale business sells the brands’ core products  
such as dunlop tennis rackets and slazenger tennis balls to wholesale 
customers and distributors throughout the world this results in far wider 
distribution of the products than would be the case if their sale was restricted 
to group stores
the wholesale business also wholesales childrenswear and apparel the 
licensing business licenses third parties to apply groupowned brands to 
noncore products manufactured and distributed by those third parties w e 
currently have in excess of 300 licensees in over 100 countries the brands 
division manages these licensees to ensure global brand consistency and the 
international success of our group brands
the brands division is closely involved in the development of licensed products 
and monitors licensees and their manufacturers to ensure product quality 
presentation and consistency with the appropriate brand strategy the brands 
division continues to sponsor a variety of prestigious events and retains a 
portfolio of globallyrecognised highprofile athletes
the brands division strategy includes further expansion into asia as well 
as the americas such expansion will provide us with more opportunities to 
expand the global presence and international appeal of our group brands
in order to maintain brand awareness and authenticity the brands division 
will continue to invest in the development of core products for wholesale 
customers and distributors throughout the world
27
the business review management  governance financial statements  notes additional information main trends and factors likely to affect the future 
development and performance of the group ’s businesses
the group’s retail businesses will undoubtedly be affected by the economic 
climate and changes therein movements in interest rates and exchange rates 
affect the businesses directly and consumer confidence and spending is affected 
by a wide range of factors including employment tax and interest rates house 
prices and the general ‘feelgood factor’ factors beyond the group’s influence 
all of the above apply equally to our brands businesses both wholesale and 
licensing r eduction in customer demand is reflected in the wholesaling and 
licensing business as orders and royalties are affected moreover in difficult 
economic times suppliers come under increasing pressure to reduce their prices 
to their customers and all suppliers run the risk of their customers ceasing to 
trade or reducing demand for their products 
difficult economic conditions can also make it difficult for suppliers to obtain 
credit insurance in respect of some customers leaving the supplier with a 
difficult question of whether or not to supply and if they do with the attendant 
risk of bad debts
later in this report we comment on risks and uncertainties that relate to the 
group’s businesses and while we manage to reduce risks where possible the 
likelihood of their occurring and their impact if they do are factors that could 
influence the group or part of it
the group applies hedge accounting which is in line with other major retailers 
this reduces an element of potential volatility in reported profit
chief executive’s report  business review continued
risks and uncertainties relating to the group’s business 
internal controls and risk management  
the board has a responsibility to govern the group in the interest of the 
shareholders the board is responsible for setting strategic objectives and part 
of this involves assessing the risks involved risks are an inherent part of the 
business world and due to the nature of the business the group is exposed to 
a wide variety of these in order to minimise the effect of potentially damaging 
effects to the group the board ensures these are managed and monitored 
effectively via a framework of controls and robust procedures
the group’s approach to risk 
the identification and management of risk is a continuous process and the 
group’s system of internal controls and the business continuity programmes are 
key elements of that the group maintains a system of controls to manage the 
business and to protect its assets with the development of contingency plans 
and rapid response to changing circumstances and does much to mitigate the 
risks facing the group the group continues to invest in people systems and in 
it to manage the group’s operations and its finances effectively and efficiently
executive management teams are responsible for the identification analysis 
evaluation and mitigation of the significant risks applicable to their areas of 
business these comprise of directors as well as of senior managers
the teams meet regularly to discuss the identified risks and how these 
should be reviewed and monitored the board ensures that the appropriate 
arrangements are in place under which employees can raise concerns about 
possible financial or other impropriety which are then appropriately investigated 
these arrangements include formal grievance procedures and employee 
confidential hotlines
the board is assisted by the audit committee in fulfilling its overview 
responsibilities reviewing the reporting of financial and nonfinancial information 
to shareholders and the audit process satisfying itself that appropriate systems 
of internal control and risk management are in place and are serving to identify 
and manage risk
the group operates a r etail support unit which provides strong operational 
internal audit services in the r etail division and there are procedures in place in 
the brands division to monitor and control licensees
the external auditors are invited to attend all meetings of the audit committee 
save for those parts of any meeting when the committee reviews the 
performance of the auditors and when the committee is having separate 
discussions with the group finance director
with the exception of heatons who are the group’s only material associate  
the group’s system of internal control and risk management and its 
effectiveness is monitored and reviewed by the board the audit committee  
and management and the board believes that the group has maintained 
throughout the year and up to the date of approval of the annual report and 
accounts an effective embedded system of internal control and has complied 
with the turnbull guidance
the systems of internal control and risk management are designed to manage 
rather than eliminate the risk of failing to achieve business objectives
risk policies and procedures 
business plans and budgets for each business include financial and strategic 
targets against which performance is monitored monitoring includes the 
examination of and changes to rolling annual and quarterly forecasts monthly 
measurement of actual achievement against key performance targets and plans 
and weekly reviews of performance
the group has clear procedures for the approval and control of expenditure 
strategic investment decisions involving both capital and revenue expenditure 
are subject to formal detailed appraisal and review according to approval  
levels set by the board operating expenditure is controlled within each  
business with approval levels for such expenditure being determined by the 
individual businesses
the group has a formal whistleblowing policy for employees who wish to raise 
any issues or concerns relating to the group’s activities on a confidential basis
1 the risks are identified
2 the risks are evaluated
3 action is taken to manage the risk
4 the practices are reviewed and monitored to limit the risk
1
2 3
4
sports direct plc annual report 2013
28  key risks 
control environment 
the group’s operating procedures include a comprehensive system for reporting 
financial and nonfinancial information to the board including
• preparation of three years of strategy plans for business development
• preparation and review of annual budgets and
• review of the business at each board meeting focussing on any new risks 
arising for example key changes in the market
control procedures 
detailed operational procedures have been developed for each of the group’s 
operating businesses that embody key controls the implications of changes in 
law and regulations are taken into account within these procedures
financial reporting process 
the group has in place internal control and risk management systems in 
relation to the group’s financial reporting process and the group’s process for 
the preparation of consolidated accounts these include clearly defined lines 
of accountability and delegation of authority policies and procedures that 
cover financial planning and reporting preparing consolidated accounts capital 
expenditure project governance and information security
the audit committee is responsible for overseeing and monitoring these 
processes which are designed to ensure that the group complies with 
relevant regulatory reporting and filing provisions as at the end of the period 
covered by this r eport the audit committee with the participation of the chief 
executive and group finance director evaluated the effectiveness of the design 
and operation of disclosure controls and procedures designed to ensure that 
information required to be disclosed in financial reports is recorded processed 
summarised and reported within specified time periods
monitoring process 
the groups’s approach to monitoring the system of key controls is set out in this 
section of the chief executive’s r eport
principal risks affecting the group 
the group has identified the following factors as potential risks to and 
uncertainties concerning the successful operation of its business the group is 
however exposed to a wider range of risks than discussed below but these are 
the principal risks that have recently been discussed by the board and audit 
committee and are of primary concern
area risk mitigation
supply chain
the group operates internationally so is reliant on 
the successful distribution of goods from when 
they are distributed by the manufacturer to when 
they are sold in the stores
the group is reliant on manufacturers in 
developing countries as the majority of the group’s 
products are sourced from outside the uk 
the group is therefore subject to the risks associated 
with international trade and transport as well as 
those relating to exposure to different legal and other 
standards risks including cost increases energy 
shortages natural disasters working practices and 
product safety could all cause significant problems
the group requires all suppliers to sign up to the group’s code of ethicssupply p olicy which enables 
the group to monitor and benchmark the performance of the supplier it allows the group to carry out 
inspections of premises to ensure compliance with the group’s codes for continuity and quality of 
supply this is an ongoing process and inspections occur on a random basis
many risks relating to the supply chain reliance on nonuk suppliers and to the reputation of the 
group’s brands are managed and mitigated by the implementation of these policies strong service 
level agreements and maintaining relationships with all parties involved in the supply chain also 
mitigate these risks
key suppliers
the group is reliant on good relationships with 
its major manufacturers key brands or brand 
suppliers
a failure to replace any of its major manufacturers 
or suppliers on commercially reasonable terms could 
have an adverse effect on the group’s business 
operating profit or overall financial condition it may 
mean that customers shop elsewhere if stores cannot 
supply the required product
the group follows policies of forging long term relationships with suppliers and of utilising two leading 
supply chain companies to procure much of the group’s own branded goods this close relationship 
brings a better understanding of the supplier’s resources enabling the group to react quickly to changes 
in the international supply market 
treasury and financial risk
the group operates internationally the majority of 
foreign contracts relating to the sourcing of group 
branded goods are denominated in us dollars 
and the euro thus leaving exposure to foreign 
exchange risk
the group has net borrowings which are 
principally at floating interest rates linked to bank 
base rates or libor 
the group is exposed to foreign exchange risk arising 
from various currency exposures and a strengthening 
of the us dollar or a weakening of the pound sterling 
making goods more expensive
foreign exchange risk arises when future commercial 
transactions or recognised assets or liabilities are 
denominated in a currency that is not the entity’s 
functional currency as exchange rates move this 
could significantly reduce profitability
the group seeks to mitigate the expenses and fx fluctuations by hedging via forward foreign currency 
contracts which are designated as cash flow hedges
the group also holds assets overseas in local currency and these assets are revalued in accordance 
with currency movements this currency risk is not hedged
the group is cash generative and is now targeting its debt levels to mitigate interest rate risk and 
currently has debt levels of less than 1 x underlying ebitda 
credit and liquidity risk
the group primarily the brands division provides 
credit to some of its customers
f unding and liquidity for the group’s operations 
are provided through bank loans overdrafts and 
shareholders’ funds 
the group could have a credit risk if credit evaluations 
were not performed on all customers requiring credit 
over a certain amount
the group’s objective is to maintain sufficient funding 
and liquidity for its requirements but the availability 
of adequate cash resources from bank facilities and 
achieving continuity of funding in the current financial 
climate could be a risk to the group in future years
the group may not be able to purchase  
essential acquisitions
the group does not require collateral in respect of financial assets
the group’s key suppliers also face credit risk and as such the group regularly assesses the viability of 
its suppliers and ensures there are plans to source from alternative businesses should key suppliers fail
rigorous procedures are in place to mitigate this credit risk the group has a credit policy in place and 
the exposure to risk is monitored on an ongoing basis
credit evaluations are performed on all customers requiring credit over a certain amount and 
concentration of credit risk is managed
investment of cash surplus borrowings and derivative investments are made through banks and 
companies which have credit ratings and investment criteria approved by the board
the group mitigates liquidity risk by keeping debt levels low and the current finance facility is held with 
a club of 10 banks thereby spreading the risk
the group works with a number of trusted advisors
29
the business review management  governance financial statements  notes additional information chief executive’s report  business review continued
risks and uncertainties relating to the group’s business continued
area risk mitigation
investment risk
the group holds shares in  
publiclylisted companies
fluctuations in publiclylisted companies’ share prices will have a financial impact on 
the business or results
the group has chosen to limit further purchases of publiclylisted company 
shares in order to reduce the potential risk to the business although current 
investments are in known business sectors and are not deemed to be in 
volatile companies
succession planning
the group’s directors and key management 
employees ensure that the current level of 
success is maintained
illness injury or resignation of key individuals could change the whole dynamic  
of the group
succession plans in place where appropriate
key individuals working ”on the ground” to assess the strengths of  
fellow employees
r egular appraisals to ensure that employees are developing and training is 
given when necessary
market forces
the sports r etail industry is highly 
competitive and the group currently 
competes at national and local levels with a 
wide variety of retailers of varying sizes who 
may have competitive advantages and new 
competitors may enter the market
the competition continues to place pressure on the group’s pricing strategy margins 
and profitability
the group has a discount pricing policy to help reduce the risk of increased 
competition in the industry the group has an incredibly strong property 
portfolio and owns a very large number of key brands external suppliers often 
consider the group as a very large account
pensions
some subsidiaries in the group make 
contributions to certain occupational defined 
benefits pension schemes
an increase in the schemes’ funding needs or changes to obligations in respect of the 
schemes could have an adverse impact on its business
although the group is unable to mitigate any change in legislation regarding 
contributions the schemes are historical and closed to new entrants the 
group does not intend to enter into any further final salary arrangements 
going forward
operational
the group is reliant on the divisional head 
offices and the national distribution centre 
at shirebrook operating without disruption 
along with the uninterrupted running of the 
group’s fleet of vehicles
the majority of the group’s revenue is derived 
from the uk 
any disruption to the head offices the national distribution centre and the fleet 
of vehicles might significantly impact the group’s ability to manage its operations 
distribute products to its stores and maintain its supply chain
any long term interruption of the group’s it systems would have a significant impact 
on the group’s operation particularly in the r etail division
terrorist attacks armed conflicts government actions or adverse weather affecting 
the road networks within the uk could result in a significant reduction in consumer 
confidence which would in turn have an adverse affect on sales in stores
the group has a strong business continuity plan that is regularly reviewed 
to address operational risks the last review and testing of this took place 
during the most recent financial year fy13
the board is confident that as far as it is practical the risks and uncertainties 
that face the group are being monitored and managed and that where 
required appropriate action is being taken
the group constantly monitors the business environment and the nature  
of the business model allows for the group to act swiftly under  
extraordinary circumstances
the group ensures that health and safety maintenance and staff training is 
actively monitored and enforced
health  safety
health and safety is key to the group as 
the implementation of policies in this regard 
protects our employees and customers
f ailure to create and maintain environments which are safe for both employees and 
customers incidents leading to injuries trauma or fatalities could result from poor 
compliance with essential health and safety regulations
health and safety is a priority for the group incidents are recorded and steps 
are put in place to minimise the risk of these recurring
as health and safety requirements vary from country to country we  
ensure that each company in the relevant countries are fully trained in the 
standards required
legal
the group’s trade marks patents designs 
and other intellectual property rights are 
central to the value of the group’s brands
the group believes that its licensees suppliers agents and distributors are in 
material compliance with employment environmental and other laws the violation 
or allegations of a violation of such laws or regulations by any of the group’s 
licensees suppliers agents or distributors could lead to adverse publicity and a 
decline in public demand for the group’s products or require the group to incur 
expenditure or make changes to its supply chain and other business arrangements to 
ensure compliance
the group may need to resort to litigation in the future to enforce its intellectual 
property rights and any litigation could result in substantial costs and a diversion  
of resources
third parties may try to challenge the ownership or counterfeit the group’s  
intellectual property
the group has an inhouse specialist trade mark and license legal 
department that administers all registrations and regulations this inhouse 
expertise is vital in mitigating any or all such issues
sales
the group’s retail businesses are subject 
to seasonal peaks the incidence and 
participation in major sporting events  
will have a particular impact on the uk  
r etail business
prolonged unseasonal weather conditions or temporary severe weather during peak 
trading seasons could have a material adverse effect on the group’s businesses the 
group are dependent upon the store portfolio and consumers’ spending habits
although unable to mitigate environmental conditions the group are able to 
influence the retail portfolio and therefore constantly monitor development  
of stores and the group’s aim to increase the square footage through 
viable new retail space by monitoring stock levels correctly through sales 
forecasting the group can manage the peaks in demand and trading profiles 
can be predicted
sports direct plc annual report 2013
30  area risk mitigation
consumer
the group’s success and sales are 
dependent in part on the strength and 
reputation of the brands it sells and are 
subject to consumers’ perceptions of the 
group and of its products which can fall  
out of favour
adverse publicity concerning any of the group’s brands manufacturers or  
suppliers could lead to substantial erosion in the reputation of or value associated 
with the group 
the dedicated legal department monitors usage of the group’s own brands to 
ensure they are used in the correct manner
specific individuals in the media are chosen to promote brands  
the group carefully selects individuals who will fit with the products and  
the target market
environmental
the group is subject to the negative effects 
that environmental disasters can have on the 
business environment
environmental disasters have highlighted how it is impossible to predict how an 
environmental occurrence will affect businesses
the group constantly updates systems to mitigate any delay or loss of goods 
in transit or the absence of any employee or large numbers of employees that 
may or may not be altered by acts of nature
contracts essential to the business of the group
the group has longestablished relationships with nike and adidas the major 
suppliers of thirdparty branded sporting goods particularly footwear and 
considers that continued supplies from these companies are critical to the 
business of the group
environmental matters 
the corporate r esponsibility r eport is on pages 52 to 55 and a review of 
the assessment of the group’s impact on the environment is included in the 
corporate r esponsibility r eport on pages 53 and 54
research and development
the group’s success depends on the strength of the group brands and to a 
lesser extent the licensedin brands the group’s efforts to continually develop 
or obtain brands in a timely manner or at all may be unsuccessful 
outlook
the start of the fy14 has already been busy with the acquisition of majority 
stakes in two leading european sporting goods retailers in austria and in  
the baltic region this means that the group is now active in 19 countries across 
europe while management is focused on the successful integration  
of these businesses we also expect to see more opportunities to grow the 
group internationally
the group has witnessed a strong start to the year with trading ahead of 
management’s expectations this performance is attributable to a number of 
factors including the investment in gross margin made last year increased 
operating efficiencies and the exceptional quality and unbeatable value sports 
direct continues to offer to its customers however recent outperformance 
versus management expectations may not continue for the full year fy14 is a 
nontournament year which will make fy13 a tough comparator following the 
uefa european championships and the london olympics 
with this performance in mind we remain focused and driven to achieve our 
internal stretch underlying ebitda target of £310m before the charge for the 
2011 employee and executive bonus share schemes
dave forsey 
chief executive
18 july 2013
31
the business review management  governance financial statements  notes additional information