Ashley shrugs off stock concerns

SPORTS World billionaire Mike Ashley has labelled investors dismayed by the plunging share price of the business since its February float as “cry-babies” in an interview yesterday.

Mr Ashley netted £929 million (€1.34bn) by floating a 43% stake in Sports Direct International, which includes Lillywhites and brands such as Dunlop alongside Sports World, but the company’s shares have halved amid accusations of poor relations with the City.

But the tycoon told the Sunday Times newspaper: “I’ve got balls of steel. Some investors have been great and have been very supportive. But some of these City people act like a bunch of cry babies.

“You meet a lot of incredibly smart people in the City who seem to be obsessively focused on the share price at that minute.”

Mr Ashley, who also owns half of the Irish retailer Heatons, is aiming to grow Sports Direct into a £4 billion (€6bn) business, but the group’s shares have plummeted from the 300p launch price. The stock took a further knock this week when the company warned of limited earnings growth in 2008.

Mr Ashley, who has pledged to improve communications, said: “We didn’t hide anything. We don’t think the share price is a reflection of the company’s prospects.”

Alongside the company’s results, the latest flashpoint with investors came when Sports Direct bought a 1% share of German sportswear giant adidas for £48m (€71m) last week, just weeks after Mr Ashley sold a 3% stake in adidas — which he bought personally with the proceeds of the float — for a reported £40m (€60m) profit.

Since February’s launch Sports Direct has built up stakes in other sports and leisure businesses such as Finnish group Amer Sports, which makes Wilson tennis rackets, and outdoor retail chain Field & Trek.

Mr Ashley also bought Premiership football club Newcastle United in June of this year.