City round-up: JD Sports; Science in Sport

Bury-based sports and athleisure retailer, JD Sports Fashion, has appointed Andy Higginson as chair of the group effective on July 11, 2022.

The appointment follows an extensive search process undertaken by the board with the support of an external executive search firm.

Andy is a highly experienced and proven retailer and chair with more than 28 years of continuous non-executive director experience on PLC boards, including senior leadership roles over nearly 15 years at Tesco.

Most recently, he was chair of William Morrison Supermarkets from January 2015 until the takeover of the business by private equity firm CD&R in November 2021.

During this time he oversaw a major turnaround of the business and significant value realisation for shareholders. He is also currently senior independent director at Flutter.

Interim chair, Helen Ashton, said: “The board was impressed with the high quality candidates that we met throughout the recruitment process.

“Andy, however, stood out as the best candidate with his extensive board experience including as a chair and his strong track record in the international retail sector. It is a testament to the quality and attractiveness of JD that we have recruited Andy to the important role of Chair.

“JD is a great business with a clear strategy, occupying a unique place in the market and we look forward to working with him on our global development opportunities.”

Andy Higginson said: “Having closely followed JD’s success over the years, I see it as an exceptional business, with a strong strategic position.

“The board has clearly been addressing its governance and risk management structure and I very much look forward to working with the board and the senior management team, including our new CEO once appointed, to bring my experience to bear and capitalise on the strength of the brands, market positions and channels to market including the global retail store network.”

Russ Mould, investment director at Manchester investment platform AJ Bell, said: “JD Sports has made the first step towards rebuilding its senior leadership team following the departure of executive chairman Peter Cowgill.

“Consumer-facing business expert Andy Higginson has been appointed as the new chair of JD Sports, bringing experience from years of service at supermarkets Tesco and Morrisons as well as Unilever, Guinness and Laura Ashley.

“His role is to lead the board of directors and set high governance standards. This was something which was, perhaps, a weak point under the reign of Cowgill, given questions about why he had the joint chair and CEO role, as well as the circumstances of his exit – Cowgill left suddenly after a review of JD’s internal governance and controls.

“During his leadership the company came under fire for the design of bonuses, the way store leases were restructured at its camping gear chain Go Outdoors, and various dealings linked to JD’s failed attempt at buying trainers group Footasylum.”

He added: “Given how JD’s share price has slumped in recent months amid market worries about consumer spending and the surprise departure of Cowgill, Higginson will be under pressure from day one to try and improve the company’s reputation from a boardroom perspective, and to find the right person to lead the business.

“Despite all the drama, JD has been a resounding success and its core business model certainly doesn’t need a rethink.”

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Science in Sport, the performance nutrition company serving elite athletes, sports enthusiasts, and the active lifestyle community, warned today that it expects to suffer a £3.2m cost or margin loss for the year, compared with its budget.

In a trading update for the six months to June 30, today, the company, which has a manufacturing base in Nelson, East Lancashire, and a new operation in Blackburn, said this assessment includes raw material price increases, fuel and logistics costs, people retention costs, and the closure of its Russian business.

It also said revenue growth for the six month period is expected to be approximately 12% versus the same period in financial year 2021, which is lower than expected.

However, the business added that it believes its growth will improve in the second half through investment in brands and its digital channels, and through improved pricing.

The new Blackburn site is close to completion, with the logistics operation delivering the expected efficiencies and cost savings in line with the business case, it added. The site is expected to be fully operational by the end of July.