Mike Ashley’s Mash Holdings doubles profits after “gift” transfer of Sports Direct shares to Mash Beta
Mike Ashley doubled his profits last year through his holding company through which he holds his stakes in Newcastle United and Sports Direct.
Mash Holdings' profit before tax soared 111 per cent to £542.7m for the year to April 30 2014, up from £256.4m in 2012/2013. It included the profit raised from Ashley's move to sell off £283m-worth of shares, up from £54.7m-worth of disposals in the previous year.
Revenue jumped 23.8 per cent to more than £2.7bn, according to accounts filed yesterday at Companies House.
Revenues at Sports Direct increased by 23.8 per cent during the period, while revenues at Newcastle United rose 14.8 per cent.
Ashley is the sole director named at Mash Holdings although Sports Direct chief executive Dave Forsey is named as secretary.
In the director's report, Ashley notes that “the strength of our business model means we are very well postiioned for the challenges and targets for the next four years.
“Our progress since the year end is in line with management expectations”.
In January of the 2014/2015 financial year it emerged that Ashley had "gifted” a majority stake in Sports Direct – 50.71 per cent of the retailer, worth £2.2bn – owned through Mash Holdings to a new company.
However that company was Mash Beta, a newly formed subsidiary of Mash Holdings, which is also owned by Ashley.
In total Mash Holdings and Mash Beta own 55.1 per cent of Sports Direct.