Back to the day job for Mike Ashley at Sports Direct

“Perhaps it is no wonder the markets are struggling for direction when investors have so many things to think about," says Russ Mould, Investment Director at AJ Bell

“Whether it is Brexit – where Theresa May is heading to Paris and Berlin to try and secure an orderly exit from the EU – or trade wars, with tensions between the US and EU beginning to ramp up even as hopes for a resolution to the battle between the US and China continue to wax and wane, it is little wonder people are sitting on their hands.

“Sterling was higher after UK peers and MPs pushed through legislation compelling May to seek a delay to Brexit rather than crashing out with no deal. The FTSE 100 was down a handful of points at 7,448.47 with housebuilders and utilities stocks weighing on the index."

Sports Direct

“While Mike Ashley seems to like the thrill of the chase, it is time for him to admit defeat with his pursuit of Debenhams and adding another string to the bow of his retail empire.

“Someone needs to tap him on the shoulder and remind him that he’s already got a core business to run and a bit more attention wouldn’t go amiss.

“Sports Direct’s half year results last December saw the retailer report a 26.8% drop in underlying pre-tax profit to £64.4m. And its share price has fallen by a third since last summer.

“The Debenhams saga has been a significant distraction to Sports Direct’s management at a time when the retail sector remains very fragile.

“The situation has been like a greedy child who wants a new toy. As soon as they get it, all they want is another toy rather than making the most of what they’ve already got.

“Mr Ashley needs to get back to the day job and regain focus.”

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