Sports Direct has delayed the publication of its preliminary results for the period ended 28 April 2019, which has seen a dive in shares.
The Shirebrook-headquartered firm has said that the delay is a result of 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.” Sports Direct purchased house of Fraser for £90m last year.
The retailer says that these factors have led to a need for the Company to compile more information than in previous years for the audit of the period ended 28 April 2019. Grant Thornton is also said to have required additional time to complete its audit work for the period ended 28 April 2019 leading to the delay in the publication of the Company’s preliminary results announcement.
In a statement to London Stock Exchange, Sports Direct also noted that “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,” in which, excluding House of Fraser, the business anticipated it would “be within [its] previously communicated underlying EBITDA growth range of 5-15% by year end.”
The Company now expects that its audited results will be published between 26 July 2019 and 23 August 2019.
The news comes as Sports Direct’s offer for GAME was accepted.