Billionaire’s Holding Company Sees Profits Plummet Despite Revenue Growth

  • Profits at Mike Ashley’s business empire decline in 2017
  • Mash Holdings profits fall from £227.7m to £102.5m
  • Revenues increase by 11.7% to £3.33bn
  • Newcastle United revenues drop 30%
  • Sports Direct’s gross profit margin falls 320 basis points
  • Access to loans up to £907.5m, potentially rising to £1bn
  • Acquisitions of House of Fraser, Evans Cycles, and Sofa.com
  • Failed bid for HMV, pulled out of Patisserie Valerie race

Profits at Mike Ashley’s business empire, Mash Holdings, have fallen significantly in 2017 due to the decline in the value of the pound and poor performance at Newcastle United. The company’s profits dropped from £227.7 million to £102.5 million despite a 11.7% increase in revenue to £3.33 billion. Mash Holdings attributed the fall to lower EBITDA and higher depreciation charges in its Sports Direct division. Newcastle United’s revenues plummeted by 30%. Additionally, Sports Direct’s gross profit margin fell 320 basis points from 44.2% to 41%, caused by the negative movement of the US dollar exchange rate with the pound and an increase in provisioning for stock in a fast-changing market and supply chain. The company has access to loans up to £907.5 million, potentially rising to £1 billion. Despite recent acquisitions of House of Fraser, Evans Cycles, and Sofa.com, Ashley failed in a bid for HMV and pulled out of the race for Patisserie Valerie.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Mike Ashley’s business empire’s financial performance, including specific numbers and reasons for the drop in profits. It also mentions recent acquisitions and failed bids by Ashley. However, it could provide more context on the factors affecting Newcastle United’s revenues and the impact of exchange rates on Sports Direct.
Noise Level: 4
Noise Justification: The article provides relevant information about Mike Ashley’s business empire’s financial performance, including specific numbers and reasons for profit decline. It also mentions recent acquisitions and failed bids. However, it could benefit from more analysis or context on the implications of these events.
Financial Relevance: Yes
Financial Markets Impacted: Sports Direct, House of Fraser, Evans Cycles, Sofa.com, Patisserie Valerie, HMV
Financial Rating Justification: The article discusses the financial performance of Mike Ashley’s business empire and its impact on companies such as Sports Direct, House of Fraser, Evans Cycles, and its failed bids for Patisserie Valerie and HMV. It also mentions the fall in value of the pound and its effect on the company’s finances.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The financial performance of Mike Ashley’s business empire has been affected by factors such as currency fluctuations and poor performance at Newcastle United, but it does not qualify as a financial crisis.

Reported publicly: www.retailsector.co.uk