Sports Direct hits out at 'extreme campaign' as profits fall 25%

Sports Direct's chairman has accused the media, unions and politicians of a damaging "campaign" against the company amid its working practices and governance crisis.

Keith Hellawell, who only survived a vote to remain in the post at the company's AGM in September thanks to chief executive Mike Ashley's dominant voting rights, launched the tirade as the retailer confirmed a 25% dip in half-year profits.

However, the financial performance did not seem to result in a tightening of the purse strings in the short term, with the firm confirming it was purchasing a new corporate jet at a cost of tens of millions of pounds.

It said the move would promote facilitate travel "efficiencies" though it was the former top policeman's remarks, which he said were in support of morale-starved staff, that caught the eye.

Mr Hellawell, who faces re-election at Sports Direct early in the new year, said: "I have no doubt that the extreme political, union and media campaign waged against this company has not only damaged its reputation and influenced our customers, it has impacted negatively on the morale of our people.

"I begin to question whether this intense scrutiny is all ethically motivated."

He said that while there were shortcomings - accepted by the board - there had "also been disproportionate, inaccurate and misleading commentary" and this was hurting staff morale.

Sports Direct pledged a shake-up of its pay and working practices amid allegations of Victorian workhouse conditions ahead of the bitter AGM in September.

It culminated in billionaire Mr Ashley being left red-faced after pulling wads of £50 notes from his pocket during a warehouse security check in front of reporters.

A snap inspection of the Shirebrook site in Derbyshire by MPs last month was later mired by claims - denied by Sports Direct - that a camera had been planted to secretly record their deliberations in a meeting room.

The company said on Thursday it was making progress in ironing out its operations but confirmed a 25% fall in reported pre-tax profits to £140m over the six months to 23 October despite sales rising 4.2% to £1.6bn.

Damage to profitability came from its initial failure to hedge against currency headwinds.

It had issued several profit warnings in advance of Thursday's statement which said it expects "strategic challenges and currency headwinds" to continue to adversely affect its financial performance in the medium term.

Mr Ashley said: "The last six months have been tough for our people and performance.

"Our UK Sports Retail business continues to be the engine of Sports Direct, but our results have been affected by the significant deterioration in exchange rates, and our assessment of our risk relating to our stock levels and European stores performance."

He added that his aim was to make Sports Direct the "Selfridges of sports retail."

Its shares, which have lost more than half their value over the past 12 months, were 10% down in morning trade on Thursday.