Mike Ashley’s holding company sees profits plunge 80% in 2018

Mike Ashley’s holding company, Mash Holdings, saw pre-tax profits plunge by 80% to £20.9m in 2018, according to recently filed accounts on Companies House.

The group attributed the profits decline to its performance during the 2017 financial year, when the company saw increased profits from the sales of Dunlop and shares in JD Sports, for which there was “no similar income in 2018”.

Despite this, the group reported strong revenue growth for both Sports Direct and Newcastle United, which increased by 3.2% and 64.4% respectively. Overall group revenue also increased by 5.2% during the year.

However, on the subject of Brexit, Mash Holdings also specified that it will be unable to “fully protect” the Sports Direct Group from what is potentially a “completely new economic landscape”. Sports Direct currently operates internationally and specifically throughout mainland Europe, with European internet sales fulfilled through its Shirebrook operations.

The holding company said it does have “some elements to protect it”, including a network of warehouses across mainland Europe which can assist in providing “efficient” stock management once the “customs and duty landscape is fully understood”.

Mash Holdings said: “We have been investing in some partial automation for the Shirebrook warehouse operations to make efficiencies and improve productivity on internet fulfilment orders and help mitigate any potential staffing shortfall after Brexit.”