A RETAILER has warned a decision to refuse its founder a £70m shares windfall could lead to future uncertainty.

Sports Direct bosses have revealed their dismay at a move to deny Mike Ashley a shares scheme.

The move could have handed Mr Ashley, who owns Newcastle United, eight million shares if targets were met for this year and next year.

Dave Forsey, Sports Direct's chief executive, said: “The board was extremely disappointed to withdraw the resolution of a proposed share scheme award to Mike Ashley.

“The most disappointing aspect was where large shareholders gave their support only to then vote differently.

“This outcome is likely to lead to further uncertainty in the future.”

The company made the announcement after revealing increased group sales for the nine weeks to March 30.

It said sales were up 10.3 per cent to £360m, compared to £326.3m, in 2013, with gross profits rising 11.5 per cent to £147m.

Mr Forsey added: “We have continued to perform well since the end of January, primarily driven by our focus on quality, value and availability.”

Earlier this month, Mr Ashley sold more than £200m worth of his holding in Sports Direct, shedding 25 million shares to Goldman Sachs.

He also bought an 11 per cent stake in department store House of Fraser, which is the subject of a takeover by Chinese conglomerate Sanpower.