Sport Direct has 700 stores in the UK with 29,000 employees (Sport Direct Ltd, 2017). The market price of Sport Direct on the London Stock Exchange is £397.30 as of 27/10/2017, having suffered declines in the last 5 years as it had a share price of £922 on 04/04/2014 (Londonstockexchange.com, 2017). The revenue of Sports Direct increased by 11.7% (£3,24bn) but underlying profit before tax decreased by 58.7% to £113.7m, however Brexit has had an Figure 3: (London Stock Exchange, 2017) negative impact on the pound and this has affected Sports Direct. It has a market capitulation of £2,179.85m and a EPS of 39.40p (Markets.ft.com, 2017). Sports Direct had a market share of 22.9% as of July 2017. The market position, …show more content…
Sports Direct’s did not comply with the UK code of corporate governance in 2015 (Sports Direct Plc, 2015) as an undercover investigator from the Guardian found in 2015 that due to practises in place many staff were being paid an effective rate of about £6.50 an hour which was against the statutory rate of £6.70 (Goodley, 2015) (Goodley, 2017). This is in direct confrontation with the UK code of Corporate Governance as it states, ‘One of the key roles for the board includes establishing the culture, values and ethics of the company’ and paying staff under minimal wage is not only unethical but also illegal therefore staining the values of the company. Corporate governance is therefore about what the board of a company does and how it sets the values of the company (FRC, 2016), so in Sports Direct paying their employees less than minimum wage the board has not achieved their aim and Sport Direct’s values have been