Ashley boasts of profit gains amid Sports Direct showdown

Mike Ashley today claimed his vision for Sports Direct — to make it the “Selfridges of sport” — was working.

Profits for next year will be up by between 5% and 15% thanks to the plan, a relief to investors worried about the cost of the refurbishments, Ashley said.

A trading update ahead of today’s AGM was upbeat, though controversy dogs the business.

Chairman Keith Hellawell was facing a rebellion from investors who want him out. It was unclear whether Hellawell retains the support of majority shareholder Ashley.

The former chief constable and government drug tsar has said he will resign if he can’t win the support of the majority of shareholders other than Ashley.

Paul Lee, head of corporate governance at Standard Life Aberdeen, who will vote against Hellawell, said the result would be “very close”.

Investors Hermes and Fidelity have said they will vote against him.

The Unite union yesterday accused Sports Direct of breaking promises to offer store staff guaranteed hours, rather than zero hour contracts.