Sports Direct announced that the publication of the company’s preliminary results for the period ended April 28 will be delayed due to the “complexities” involved in integrating its acquisition of House of Fraser and the uncertain outlook for the struggling department store business.
The company had been expected to report results on July 18. The company acquired House of Fraser in a £90 million rescue deal last August.
Sports Direct said in a statement, “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. These factors have led to a need for the company to compile more information than in previous years for the audit of period ended 28 April 2019, and has therefore impacted on preparations for and responses to increased challenges in connection with this audit. Grant Thornton has also 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.
“Sports Direct would also note that increased regulatory scrutiny is leading to longer lead times generally for the completion of audits.
“Sports Direct believes its accounts and their audit to be at an advanced stage. 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. Sports Direct would note that its core principles in regards to its financial statements are to be conservative, consistent and simple. This is an important element for the company and is even more relevant in an uncertain economic environment for UK retail generally.
“The company now expects that its audited results will be published between 26 July 2019 and 23 August 2019.”