MIKE Ashley's Sports Direct this morning cheered shareholders when it revealed profit before tax and earnings per share are both expected to come in above forecasts of roughly £290m and 36.7p per share.

The firm's share price leapt around 5 per cent in early trading following the Stock Exchange announcement.

“This is primarily as a result of our continued and prudent depreciation policy and lower interest charges,” the firm said ahead of its annual conference today.

Sports Direct will also give an update on its investment in large-format city centre stores in the UK and on its plans for combined gym and sports retail concept stores.

The firm, founded and controlled by Newcastle United Mr Ashley said that net debt had been cut to £60m as of April 26, compared to £212m a year ago.

The company plans to announce its full-year results on July 16.