RETAILER Sports Direct has revealed record-breaking profits as a strong market compensated for England's World Cup flop.

The firm, founded by Newcastle United owner Mike Ashley, saw pre-tax profits rise 16 per cent to £239.5m.

Underlying earnings were also 15 per cent higher at £331.1m for the year to April 27.

The results mean about 3,000 staff remain on course for a significant bonus windfall.

The company operates a four-year share incentive scheme.

Bosses say if full-year earnings hit £300m in 2015, shop floor workers will receive 34 million shares worth an average of £80,000.

The results came just hours after billionaire Mr Ashley withdrew his controversial participation in a £180m bonus scheme, despite winning approval from shareholders.

Dave Forsey, chief executive, said the company was happy with its results.

He said: "We have delivered another record year, especially in our sports retail division.

"This success is underpinned by offering customers a wide range of products at exceptional quality and value.

"Overall trading since the year end has been in line with expectations, with some stronger weeks offset by England's disappointing World Cup.

"Through individual hard work and operating as a team, against a particularly tough comparative, which included the UEFA European Championships and the London 2012 Olympic Games, we have significantly out-performed the third underlying EBITDA target of £260m set under the 2011 employee bonus share scheme.

"This means the group has now successfully met the first three targets, and the board is very confident of achieving the final target of £300m under the scheme."

A previous vote had sanctioned a plan to give £180m worth of shares to 3,000 permanent staff, including Mr Ashley, if earnings double by 2019.

However, the scheme ran into trouble with leading investors, opposed to the deal, plotting a revolt.

The company said it now doesn't expect "any other share-based incentive scheme to be proposed to shareholders in relation to Mr Ashley's role as an executive director."

Mr Ashley, who receives no salary from the group, owns 58 per cent of the firm and is deputy chairman.

Earlier this week, he confirmed Sports Direct is expanding Down Under with an online discount firm.

It is entering Australian and New Zealand markets for the first time after signing an agreement with MySale.

The chain will open three stores on Australia and one in New Zealand, as it targets MySale's 12 million customers.