Money: Sports Direct shares plunge after bizarre delays to financial results - PressFrom - United Kingdom
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MoneySports Direct shares plunge after bizarre delays to financial results

12:30  29 july  2019
12:30  29 july  2019 Source:   news.sky.com

Sports Direct delays results and warns on previous guidance

Sports Direct delays results and warns on previous guidance Sports Direct delays results and warns on previous guidance

Sports Direct asked investors to give it more time to release its financial results on Friday morning, insisting it could still get them out by the end of the The result were delayed until Friday morning but failed to appear at the expected time of 7am. Sports Direct later admitted it was “still finalising” the

Mike Ashley’s Sports Direct International Plc has delayed the publication of its preliminary results for the third time today, extending a two-week long watch for the earnings report. On July 15, the U.K. retailer first postponed the publication of its results to give the company more time to compile

Sports Direct shares plunge after bizarre delays to financial results © PA Sports Direct founder Mike Ashley

Shares in Mike Ashley's Sports Direct have plunged by up to 27% as investors gave their first reaction to financial results - delayed several times in bizarre fashion last week.

The stock fell sharply at the open and settled around 10% down in early trading on Monday morning.

It was not until after dealing had concluded on Friday that the retailer finally revealed numbers for the year to the end of April after several false starts.

They showed not only the expected drag that the purchase of House of Fraser (HoF) had proved but also, contained at the bottom of the document, was news of a shock £605m tax demand from authorities in Belgium.

Sports Direct shares hit as it delays results again

Sports Direct shares hit as it delays results again Sports Direct shares hit as it delays results again

Sports Direct shares end in the red after it delays annual results four time. Analyst brands FTSE 250 retailer a “shambles”. Vodafone plans European mast company that may be floated. US GDP growth beats estimates, casting doubt over rate cut next week.

Sports Direct has already delayed the publication of its first-half results once. Shares crashed 10% two weeks ago after it said the numbers would Sports Direct ’s auditor Grant Thornton was censured by the Financial Reporting Council, which ordered Grant Thornton to improve the quality of its audits.

Sports Direct shares plunge after bizarre delays to financial results © Getty The purchase of the remnants of House of Fraser for 90 million pounds a year ago has taken its toll on Sports Direct's bottom line

The bad news did not stop there.

Also included was confirmation that finance director John Kempster was joining other key lieutenants of Mr Ashley's in leaving the business recently.

But crucially, there was no guidance on future performance - except a warning that HoF's problems threatened group profitability and therefore dividends.

Market analysts wrote at the time that the handling of the results statement had amounted to a "shambles".

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Sports Direct shares plunge after bizarre delays to financial results

After the initial share price plunge on Monday, chief market analyst at markets.com Neil Wilson wrote: "The situation for Sports Direct is not good, but it's too early to write off Mr Ashley.

"His mercurial style and talents have always raised eyebrows in the City.

"Whilst there are clearly many doubts about the elevation strategy (creating the 'Harrods of the high street'), among others, we are in no doubt that Mr Ashley is the master of the stack 'em high approach.

"Moreover, the fallout from HoF may well clip his wings in terms of making further dilutive acquisitions.

"Chastened, this may be the time we see a renewed focus on the basics."

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