Sports Direct suffers from a dramatic drop in profits before tax.

Retailing giant Sports Direct has announced its results for the 52 weeks to 26 April 2009, and it has seen its profit before tax fall by a massive 91% to £10.7 million.

The amount of profit is disappointing for the company as actual group revenue was up 8.6% to £1,367 million. In response, the board has said it will not be recommending a final dividend to shareholders, instead prioritising the reduction of its debts.

Like many other international retailers, it blames a weak pound for the dramatic decline in profit.

David Forsey, Chief Executive, said: “The second half of the year remained challenging, but we are pleased with these solid full year results that reflect the resilience and relevance of our flexible business model, focused on the core principles of retailing.

“Our strategy remains the right one for the business and against the tough market conditions.”

The retail group has over 470 stores in the UK, Ireland, Belgium, Holland and Slovenia, and has opened its first store in Cyprus.

The latest results from Sports Direct come in the same week troubled retailer JJB Sports announced it was considering new ways to raise additional capital – including the disposal of non-core assets – in order to help pay its debts.