This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2019/jul/26/sports-direct-shares-fall-results-delay-mike-ashley
The article has changed 8 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Sports Direct shares fall after results 'shambles' | Sports Direct shares fall after results 'shambles' |
| (32 minutes later) | |
| Sports Direct has asked investors to give it more time to release its financial results, insisting it could still get them out by the end of Friday. | Sports Direct has asked investors to give it more time to release its financial results, insisting it could still get them out by the end of Friday. |
| The results were originally due to be released on 18 July, only to be postponed as Sports Direct wrestled with a string of factors it said had made the results more complicated and might also force it to change its financial forecasts. | The results were originally due to be released on 18 July, only to be postponed as Sports Direct wrestled with a string of factors it said had made the results more complicated and might also force it to change its financial forecasts. |
| It blamed the complexities of its House of Fraser takeover, recent volatile trading conditions and tighter regulatory scrutiny of its auditor, Grant Thornton, due to its role in the Patisserie Valerie collapse. | It blamed the complexities of its House of Fraser takeover, recent volatile trading conditions and tighter regulatory scrutiny of its auditor, Grant Thornton, due to its role in the Patisserie Valerie collapse. |
| The results were delayed until Friday but failed to appear at the expected time of 7am. Less than an hour before Sports Direct was due to meet investors and the press at its London head office, the company admitted it was still finalising the figures and expected them to come out by 12.00. “Apologies for any inconvenience,” the company said in an email. | |
| But at midday it released a further statement saying it was “currently still finalising our preliminary results,” and would provide a further update at 2pm. | |
| Shares in the company slipped by about 1% as Neil Wilson, an analyst at Markets.com, described the latest delay as a “total and utter shambles”. | |
| “Above all [the latest delay] betrays a total disregard for shareholders. It not only raises questions about the haphazard way in which the investor relations and finance teams are run, but also could suggest a material problem with the numbers,” he said. “Additionally, it raises a question about whether Ashley will ultimately take the company private.” | “Above all [the latest delay] betrays a total disregard for shareholders. It not only raises questions about the haphazard way in which the investor relations and finance teams are run, but also could suggest a material problem with the numbers,” he said. “Additionally, it raises a question about whether Ashley will ultimately take the company private.” |
| Analysts at Berenberg suggested the biggest risk indicated by the delay was that Grant Thornton had failed to complete – or were possibly refusing to sign off – the accounts. | Analysts at Berenberg suggested the biggest risk indicated by the delay was that Grant Thornton had failed to complete – or were possibly refusing to sign off – the accounts. |
| On 24 July, when Sports Direct announced it would be publishing its results on Friday, the company said its audit was at an advanced stage but not yet complete. | On 24 July, when Sports Direct announced it would be publishing its results on Friday, the company said its audit was at an advanced stage but not yet complete. |
| Shares in the retail group, controlled by the Newcastle United owner Mike Ashley, fell nearly 10% last week to 238p, their lowest level this year, as analysts suggested the company was struggling to cope with a string of acquisitions made in the past 18 months. | Shares in the retail group, controlled by the Newcastle United owner Mike Ashley, fell nearly 10% last week to 238p, their lowest level this year, as analysts suggested the company was struggling to cope with a string of acquisitions made in the past 18 months. |
| Sports Direct said in December that underlying profits would rise by 5-15%, taking them to between about £321m and £352m. But it admitted profits would fall once the effect of House of Fraser was included. Analysts expected House of Fraser to lose £50m for the year. | Sports Direct said in December that underlying profits would rise by 5-15%, taking them to between about £321m and £352m. But it admitted profits would fall once the effect of House of Fraser was included. Analysts expected House of Fraser to lose £50m for the year. |
| Ashley and his team appeared to have taken on too much, having bought Evans Cycles, the furniture business Sofa.com, Game Digital and House of Fraser. | Ashley and his team appeared to have taken on too much, having bought Evans Cycles, the furniture business Sofa.com, Game Digital and House of Fraser. |
| It also became involved in a bitter, and ultimately unsuccessful, battle for control of Debenhams. Ashley is also embroiled in a bust-up with Goals Soccer Centre, the five-a-side pitch operator whose shares dived after the company admitted it had underpaid VAT. | It also became involved in a bitter, and ultimately unsuccessful, battle for control of Debenhams. Ashley is also embroiled in a bust-up with Goals Soccer Centre, the five-a-side pitch operator whose shares dived after the company admitted it had underpaid VAT. |
| Sports Direct International | Sports Direct International |
| Corporate governance | Corporate governance |
| Retail industry | Retail industry |
| House of Fraser | House of Fraser |
| Mike Ashley | Mike Ashley |
| Annual results | Annual results |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |