Sports Direct has announced plans to buy 35 properties from its founding chief executive, Mike Ashley, to prevent a "future conflict of interest" as part of its first full-year results as a public company that reveal a 37.2 per cent fall in pre-tax profits.

At present, Mr Ashley charges Sports Direct rent to trade from the freehold properties that he owns. The company is buying the stores from its reclusive billionaire founder to "simplify" the structure of the business and will put the plan to shareholders at its upcoming Annual General Meeting.

Following its results announcement that included its second profits warning this year an "exceptionally difficult" first quarter, Sports Direct's shares plunged 24.08 per cent, or 45.75p, to 142.5p — a 52.5 per cent fall in its share price in just five months since the company floated at 300p, netting Mr Ashley a £930 million windfall.

It also emerged today that Sports Direct is still searching for a non-executive chairman after the former incumbent, David Richardson, left the group after only three months. The company has been rebuffed by John Gildersleeve, the chairman of EMI and Carphone Warehouse. Simon Bentley, the senior independent director at Sports Direct, is standing in as non-executive chairman until a replacement is found.

Sports Direct said today that sales for the 12 months to April 29, 2007 grew by 12.8 per cent to £1.35 billion but pre-tax profits declined from £96.3 million in the previous year to £60.4 million.

The company said that the fall was due to a number of exceptional items related to its flotation in February this year, including a £39.4 million performance related bonus that was paid to senior management, excluding Mr Ashley who earned £900 million from the float, and staff at the company.

Stripping out exceptional costs, earnings before interest tax depreciation and amortisation grew by 38.3 per cent to £191 million including a £10 million gain from the sale of property during the year,

Commenting on trading during the first three months of its financial year, Sports Direct said: "The first three months of the current financial year have been exceptionally difficult with the unprecedented weather having an immediate impact on sales."

Over the last 12 months, sales from the company's retail outlets increased from £943.8 million to £1 billion while revenue at its wholesale operations have risen from £14.8 million to £41.5 million.

However, the company said that revenue from its branding business declined by 6.3 per cent to £171.9 million due to the loss of sales on golf balls after the closure of a golf ball factory in America but income from licensing agreements grew by 22.5 per cent.

Since floating the business in February, Mike Ashley and Sports Direct have acquired a number of companies including Newcastle United Football Club.

The company is currently attempting to buy Everlast, the iconic American sportswear group that made boxing gloves for Muhammad Ali, for $182.3 million and is believed to be looking into acquiring Foot Locker, the US business, for £2.25 billion.

Tempus: A bad sport

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax