Mike Ashley axes Sports Direct dividend to pay down £431m debts

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Ashley, who pocketed nearly £1 billion from the company's flotation at 300p a share, still has more than 70% of the stock.

Today Sports Direct unveiled profits for the year to April of £10.7 million, a slump of 91%. Sports Direct was forced to write off £53 million of shares held in rival retailers, including Blacks Leisure, JD Sports and JJB Sports.

The shares were held on Sports Direct's behalf by Kaupthing Singer and Friedlander, the Icelandic bank which collapsed last year. Sales at the trainers-to-tracksuits empire rose 9% to £1.36 billion.

The decision to axe the dividend will save Sports Direct about £14 million, cash it will use to cut debts of £431 million.

Ashley, the deputy chairman, has much on his plate. As well as trying to end his disastrous foray into football club ownership, he is locked in a fierce battle with arch-rival JJB.

Some say he would like to put JJB out of business altogether. He recently loaned JJB chairman Sir David Jones £1.5 million, money Jones has now paid back.

Sports Direct's shares lost 2p to 81p.