Grant Thornton (EDDC’s auditors) delay Sports Direct results

Owl says: not the first of the big auditors to get caught up in new, tighter regulation and certainly not the last.

“Retail tycoon Mike Ashley spooked investors on Monday after bosses at his tracksuits and trainers empire Sports Direct were forced to delay publication of its full-year results.

The acquisitive group’s highly-anticipated results were due to be published on Thursday but now the City may need to wait until August 23rd to glimpse beneath the bonnet of the firm.

Fearing the worst, investors fled. Shares slid 15 per cent in early trading on Monday to £2.20 – near to a seven-year low and well below the firm’s 2007 flotation price of £3.00. …

It said that its auditors at Grant Thornton need more time to sign off the accounts due to increased regulation and also pointed to ‘uncertainty’ around the future trading performance of House of Fraser, which it bought in a pre-pack administration for £90million last summer.

‘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,’ the group said. …”

https://www.thisismoney.co.uk/money/markets/article-7248053/Sports-Direct-shares-slump-billionaire-retail-tycoon-Mike-Ashley-delays-results.html