OVER the past few weeks, we have begun to see a number of UK retailers announcing their quarterly results, which included what is normally the busy summer months.

Rising interest rates and one of the worst summers on record have obviously taken their toll, with many companies reporting disappointing figures.

Companies such as Home Retail Group, which owns Argos and Homebase, reported very mixed results.

While Argos benefited from the increased spending on flat-screen TVs and video games, as their customers looked for ways to entertain themselves through the wet months, Homebase's seasonal products such as garden furniture and barbecue equipment sat uncomfortably on the shelves.

Homebase would normally expect seasonal products to account for about 30 per cent of second-quarter sales. The management has, however, decided that rather than promoting or discounting in order to clear stock, the company would retain most of the seasonal products, and put them on sale again next year.

Another retail company reporting mixed results was Next. Although the stores reported flat sales, Next Directory, the company's catalogue operation, reported strong growth.

That was helped by the improved margins achieved on products purchased from Next Directory, due to reduced overheads.

While profit margins are less than 11 per cent on products sold in the stores, margins at Next Directory hit almost 20 per cent during the quarter.

Also reporting to the market last week was Sports Direct, the company brought to the market at the beginning of the year by the group's billionaire owner, Mike Ashley.

Since the company floated on the Stock Market, the shares have had a very bumpy ride. In that short time, the retailer has produced a profit warning, lost a chairman and a public relations advisor.

Sports Direct has announced the purchase of large holdings in Adidas, as well as, more recently, Umbro.

The stake-building in Umbro, of which Sports Direct is its largest customer, is yet another confusing move for the company.

Whether it precedes a full-blown takeover bid, or is simply to gain additional leverage with a significant supplier, is unclear. At present, Sports Direct has a contract to buy two-thirds of all Umbro England shirts, which had remained on the shelves following, until very recently, a lacklustre performance from the national team.

In spite of all the recent developments, it was reported that Mike Ashley looked bored for much of the AGM, which was held in the conference room of the newly built headquarters, which cost Mr Ashley an alarmingly high £30m.

This is, however, a lot less than the amount he recently spent on Newcastle United Football Club, which was bought during the summer for just over £133m.

It could be that Mike Ashley is now more concerned about Newcastle's up-and-coming Carling Cup fixture against Arsenal than he is about the smooth running of his Sports Direct empire, or rather he simply finds explaining himself and his actions to the City rather tedious.

What is true is that since the company floated on the market, the shares have more than halved in value.

However, like many shrewd investors, Mike Ashley has used the opportunity to buy back shares, increasing his majority stake in the company, and raising speculation that after losing patience with the City, the company will be brought back into private hands.

* Michael Rankin is an investment manager in the Teesside office of Wise Speke, and can be contacted on 01642-608855. Views expressed are the author's own and are not necessarily held throughout the Brewin Dolphin Group. Wise Speke is a division of Brewin Dolphin Securities Ltd, a member of the London Stock Exchange, authorised and regulated by the Financial Services Authority. Prices, values or income may fall against investors' interests. You should be aware that you may get less back than you invested. Investments may not always be suitable for all individuals. If you have any doubts, you should consult a professional advisor.