retail

Sports Direct delays results amid House of Fraser woes

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Sports Direct has delayed the publication of its results, citing complexities of the integration of the House of Fraser business and uncertainty around trading.

The sports retailer, which is controlled by the tycoon Mike Ashley, was due to publish its results for the year to 28 April on Thursday. It snapped up the struggling House of Fraser department store chain in a £90m rescue deal last August.

Sports Direct said: “The reasons for the delay are the complexities of the integration into the company of the House of Fraser business, and the current uncertainty as to the future trading performance of this business, together with the increased regulatory scrutiny of auditors and audits including the FRC review of Grant Thornton’s audit of the financial statements of Sports Direct for the period ended 29 April 2018.”

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This means that the retailer needs to compile more information than in previous years. Sports Direct added that increased regulatory scrutiny meant that audits took longer to complete than previously. It now expects its audited results to be published between 26 July and 23 August.

“Sports Direct believes its accounts and their audit to be at an advanced stage,” it said. “However there are a number of key areas to conclude on which could materially affect the guidance given in Sports Direct’s announcement of 13 December 2018.”

Last week, Grant Thornton came bottom in the Financial Reporting Council’s annual review of audits by the UK’s big accountants. The watchdog reviewed the firm’s audits of Patisserie Valerie, Interserve and Woodford Patient Capital Trust, as well as Sports Direct.

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