Athleisure retailer JD Sports is to overhaul its corporate governance and internal controls following the controversial departure of its longtime executive chair Peter Cowgill.
Alongside its much-delayed full-year results, the FTSE 100 company said that “a number of regulatory issues” had highlighted a need for more board-level experience and greater internal scrutiny and control.
The group in recent months has had several run-ins with the UK’s competition regulator and been fined on two occasions.
It said that following a review, it would now implement “a more formalised approach to governance, risk management and the documentation and appraisal of internal controls”.
Despite the disputes, the company reported its best-ever financial results, with sales in the year to January 2022 rising by more than a third to £8.56bn and pre-tax profit before exceptional items more than doubling to £947mn. The group finished the year with net cash of £1.18bn.
JD said it expected a similar level of profit in the current year. The company has begun the process to recruit a new permanent chief executive and chair.