BILLIONAIRE businessman and Newcastle United owner Mike Ashley yesterday announced a pick-up in trading in his Sports Direct firm thanks to improved weather conditions.

The company reported that poor weather conditions in June and July affected sales across its Sports World and Lillywhites stores as it reiterated its forecasts for limited earnings growth for the year.

It said trading had improved since the end of July, although the firm warned that market conditions remained difficult.

Shares in the company rose more than five per cent on the back of the improved trading, closing last night at 137¼p.

The rise prompted hopes it could mark a resurgence of Sports Direct's share price, which has more than halved since its February high of 300p.

The statement came ahead of the group's first annual meeting as a listed company, at which the sportswear firm may come under fire from shareholders dissatisfied with the company's poorly-performing share price.

The group said sales during the three months to July 29 were £335m, with gross profits of £149m.

Sports Direct has had a turbulent time since listing on the London stock market at the end of February.

The group, which also owns brands such as Dunlop and Lonsdale, posted profits of £176m for the year to April 29 - short of analysts' expectations of £180m.

Mr Ashley, the entrepreneur who founded the business in 1982, has failed to win over the City since the flotation, which earned him a £929m windfall.

However, analysts have been unimpressed by his approach to corporate governance, while the company has been accused of poor communication and vague trading updates.

Sports Direct has also endured a torrid few months internally, with chairman David Richardson quitting only months after the stock market debut.

Mr Ashley, who owns 94.5 per cent of Newcastle United after a £133m buy-out in June, recently increased his stake in Sports Direct to 60 per cent, taking advantage of the weak share price.

During the three months to the end of July, Sports Direct has signed a merger deal with boxing brand Everlast as well as a 60 per cent stake in outdoor leisure chain Field and Trek.