Sports Direct is on right track

Sports Direct is on track to hit its "super-stretch" profit targets this year, passing the first hurdle that could see it hand founder Mike Ashley a bundle of shares worth nearly £17 million.

The sportswear market leader said it was now "certain" of hitting its higher underlying profits target of £225m for the year to April 29 and was reviewing its dividend policy following a hiatus stretching back to December 2008.

Sports Direct posted a 9.1% surge in group sales to £453.8m for the 13 weeks to January 22, boosted by "significant" online growth.

Chief executive Dave Forsey said: "Underlying performance in the period, particularly since December, has outperformed management's expectations."

Under the "super stretch" deal, if the retailer hits four years of profit targets up to April 2015, it will hand Ashley, the owner of Newcastle United, 6 million shares - worth £16.8 million at the current share price - in 2018.

Shares in Sports Direct rose by 16.6p, or 6.3%, to 279.4p, edging it closer to its float price of 300p in March 2007.