Record Pre-Tax Profit Boosted by Acquisitions and Online Sales
- JD Sports records a pre-tax profit of £947.2m in FY22, more than double the previous record set in Feb 2020
- Strong performance from sports fashion retail in UK and RoI with profits rising to £471.2m
- Net cash balance at end of period peaked at £1.18bn compared to £795.4m in 2021
- Acquisitions of Shoe Palace and DTLR contributed £57.3m and £50.6m respectively
- Proposed enhanced final dividend of 0.35p per share (0.29p in 2021)
- Board believes FY23 headline profit will be in line with FY22’s record performance
JD Sports has reported a record pre-tax profit of £947.2 million for the financial year ending February 2022, more than double the previous record set in February 2020. The company’s strong performance from sports fashion retail in the UK and Republic of Ireland contributed to profits rising to £471.2 million, while maintaining sales through digital channels during temporary store closures. The latest full-year results also include £125.6 million in profit from acquisitions made in the year and the annualisation period of businesses bought in the 52 weeks to January 30, 2021. JD Sports’ acquisitions of Shoe Palace and DTLR contributed £57.3 million and £50.6 million respectively, increasing its pre-tax profit to £343 million in the North American market. The net cash balance at the end of the period reached £1.18 billion compared to £795.4 million in 2021, reflecting strong cash generation in the UK and North America with a net proceeds after cost of £455.9 million. An enhanced final dividend of 0.35p (0.29p in 2021) per share is proposed to recognize the group’s performance over the full year. Interim chair Helen Ashton said, ‘This was another period of outstanding progress with the group delivering a record headline profit before tax and exceptional items, more than double the previous record set prior to the Covid-19 pandemic.’ She added, ‘We remain conscious of global macroeconomic and geopolitical challenges but believe the FY23 headline profit will be in line with FY22’s record performance.’
Factuality Level: 10
Factuality Justification: The article provides accurate information about JD Sports’ financial performance and includes relevant details such as profit figures, market growth, and acquisitions. It also includes a statement from the interim chair of the company, providing context and insight into their outlook for future performance.
Noise Level: 4
Noise Justification: The article provides relevant information about JD Sports’ financial performance and its acquisitions, but it lacks analysis of long-term trends or possibilities, exploration of consequences for those who bear the risks, intellectual honesty, and actionable insights. It also does not support claims with evidence or data beyond the numbers provided.
Financial Relevance: Yes
Financial Markets Impacted: JD Sports’ stock and related companies in sports fashion retail industry
Financial Rating Justification: The article discusses JD Sports’ record pre-tax profit, acquisitions impact on North American market, and the proposed enhanced final dividend, which are all financial topics relevant to the company and its shareholders.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
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