Sports Direct takes profits from JD stake

The FTSE 100 sports goods retailer, whose canny chief Mike Ashley has a history of short- and long-term investments in rivals, took its contract for difference down to 13.42m shares or a 6.895% stake, pared back from the 14.5m or 7.449% is had since last selling down the stake in December.

Given a price of around 1,160 last Wednesday, Sports Direct reaped close to £12.5m before costs.

JD Sports shares surged from just below £4.80 to £10.40 during 2015 and have kept on going, while Sports Direct has stumbled from last summer's £8 high to below £4 amid criticism of the way workers are treated, a profit warning in January and recent wrangling with parliament.

In 2008, with JD trading at not much more than £1, Ashley took the position in the John David Group as it was called then, to 12.4%.

Broker Jefferies last month called on founder Ashley to take the company private, saying: “Recent events highlight a widening gulf between Mike Ashley's long-term vision and growing governance concerns in the City."