STAFF are set for an average bonus payment of £20,000 in April at Newcastle United owner Mike Ashley’s Sports Direct.

Britain’s biggest sports goods retailer has said that it was confident of hitting its earnings target of £205m in April, triggering the bonus award of one year’s salary.

The firm also pledged to extend the staff bonus scheme for the next two years after the incentive helped the firm deliver a 40 per cent hike in profits.

The scheme, which involves about 2,000 staff, rewards them for hitting financial targets for two years running.

They get 25 per cent of their salary in shares for hitting the target in the first year and 75 per cent for the second.

Although they won’t get the shares until July 2012 and 2013 respectively, they are then free to do whatever they wish with them.

Sports Direct chief executive Dave Forsey said: “The group has continued to perform strongly during the first eight months of this financial year, achieving excellent profit growth.

“The initiatives we have been working on have clearly under-pinned this performance.

Looking ahead and anticipating a tough start to the new year, we are confident of reaching our current year target of £205m, which is £195m after scheme costs and will trigger the employee bonus share scheme awards.”

To trigger the bonus in the next two years the group must hit underlying earnings targets of £215m and £250m in each year, respectively.

Non-executive chairman Keith Hellawell said there was no doubt the scheme helped the group record £100.7m in pre-tax profits in the six months to October 24, and an eight per cent rise in revenues to £819.9m.

Sports Direct said UK retail revenues were up ten per cent to £644.3m in the first half.

The owner of Sports World stores and brands, including Slazenger and Donnay, reported its strongest ever trading day when England played the United States during the World Cup. The run-up to the football tournament boosted sales, but the impact dwindled as England’s performance failed to live up to expectations, the company added.

Sports Direct is rolling out a strategy of store improvements, including new merchandising techniques, and openings. It is still on target to open between ten and 15 stores before April.

The company has more than 350 stores in the UK, the majority of which trade under the Sports Direct.com fascia with others branded Lillywhites, McGurks, Exsports, Gilesports and Hargreaves and Field and Trek.