Shares in Mike Ashley’s Sports Direct have fallen by 11% in early trading this morning after it delayed its full-year results citing “complexities” around its House of Fraser acquisition.
The results, which were due on Thursday, have been delayed due to “the current uncertainty as to the future trading performance of the business”, together with the “increased regulatory scrutiny” of auditors and audits including the FRC review of Grant Thornton’s audit of Sports Direct,” the company revealed.
The retailer added these factors have led to a need for the company to compile more information than in previous years for the audit, and as such it has impacted the “preparations for and responses to increased challenges” in connection with the audit.
Sports Direct said that audits as a whole are taking companies longer due to the increased scrutiny.
Sports Direct believes its accounts and its audit to be at an “advanced stage”. However it added there are a number of “key areas” to conclude on which could materially affect the guidance given in Sports Direct’s announcement on 13 December 2018.
The company now expects that its audited results will be published between 26 July 2019 and 23 August 2019.
