Sunday , June 13 2021

Mike Ashley takes 1 billion pounds for a binge

Mike Ashley, the hungry for sports, has borrowed nearly 1 billion pounds to help fund his burgeoning acquisitions, even though his profits exceed half his private investment.

Mash Holdings has entered into a new revolving credit that gives him access to £ 907 million, and "likely" will increase to £ 1 billion, House House accounts show on Wednesday.

Mash Holdings controls Ashley's bets at Sports Direct and Newcastle United.

The billionaire, who was beaten by a Canadian entrepreneur in a battle to buy a music chain from the administration last week, will use the extra cash "to look for profitable investments and development projects."

He also withdrew from the Patisserie Valerie bid this weekend just two days after he came out as a surprise customer for the collapsed chain of cafes.

Profit before tax fell from £ 277 million to £ 102.5 million for the year to end April 2017. Profits from the previous year fell by half to £ 520 million. This was down to Newcastle United, whose turnover shrank 30 percent from £ 131 million to £ 91 million when media revenues dropped. United remains for sale.

Sports Direct's earnings were also affected by higher currency costs.

The accounts, which were filed six months later, preceded the acquisition of House of Fraser by Sports Direct in August and Evans Cycles in October for £ 90 million and £ 8 million, and Ashley added to his retail empire this month " Nominal Amount ".

Ashley has let the city know his strategy. Some believe he is making a concerted effort to take on High Street, while others think he is trying to make quick profits from opportunistic deals.

Accounts show that Ashley did not get a salary or did not get a dividend in 2017, Mash Holdings has spent 109 million pounds to buy back shares from shareholders. That includes Ashley himself.

Sports Direct reported revenue of £ 1.7 billion for 26 weeks until October 28, 2018, which is 4.6%. However, the main pre-tax profits fell by 26.8% to 64 million pounds in the 88 million pounds.

Ashley could not be found for comment.

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