Sports Direct Share Discussion Threads

[sentimentrules] 29/7/2019 22:16

I think getting an auditor is easy enough. Tesco managed it etc.

[pj0077] 29/7/2019 22:08

From the FT this evening, 9:30 pmGrant Thornton has told regulators it intends to quit as Sports Direct's auditor following concerns over the disclosure of a €674m tax bill, in a move that would pile more scrutiny on to the corporate governance of Mike Ashley's business.The firm, which has audited Sports Direct since it floated on the London Stock Exchange in 2007, is set to resign after the troubled retailer's annual general meeting in September.Grant Thornton made the decision to walk away from the company - one of its largest listed audit clients - after it was informed by Sports Direct of the significant tax liability just hours before it was due to sign off on its annual accounts, according to two people with knowledge of the matter.The Financial Reporting Council, the audit watchdog, has been informed of its plans, the people said.The resignation could leave one of the UK's most high-profile listed companies struggling to appoint an auditor after it admitted in its annual results last week that it had not persuaded rival accounting firms to tender for its audit contract.The retailer's shares dropped sharply on Monday after the tax disclosure debacle late last week, alongside concerns about trading in its core business. The company was forced to delay the publication of its earnings by 10 hours and eventually revealed that the reason for the delay was a €674m Belgian tax demand that came at "the eleventh hour".Incoming finance director Chris Wootton said the company considered the tax demand "without merit", adding: "We'll tackle it, we'll handle it, it'll go away."Outgoing finance director Jon Kempster announced he was quitting on Friday evening when Sports Direct finally announced its results. His departure follows several others in recent weeks, including head of retail Karen Byers and company secretary Cameron Olsen.Grant Thornton is under scrutiny from the audit regulator for its work for Sports Direct. The FRC is investigating why Grant Thornton did not disclose payments made by Sports Direct to a company run by Mr Ashley's brother as a related party transaction in the accounts. The FRC's audit quality review team is also looking into how Grant Thornton valued Sports Direct's holding in Debenhams prior to its near collapse in June.Sports Direct said in its results that it had held "early discussions" with the Big Four accounting firms over a possible tender process to replace Grant Thornton. It revealed that KPMG, Deloitte and EY had told it they were conflicted from auditing the business, and PwC had a "reluctance to engage based on our ownership structure".BDO, a mid-tier accountant, ruled itself out of a proposed tender process last year, citing reputational risk. Mazars, another challenger firm, approached Sports Direct about becoming its next auditor but with a number of conditions around governance.Asked about the auditors at its results presentation, Mr Wootton said Sports Direct had a "rolling letter of engagement" with Grant Thornton, but that "you would have to ask them" if the firm would continue to audit the group.Under UK rules, if a company cannot appoint an auditor, the Department for Business has the power to make an appointment. The lack of an auditor would be another significant problem for Mr Ashley and his tight-knit team of top executives. Sports Direct has lost £150m due to Debenhams going into administration, while House of Fraser lost £54m in its first full year of Sports Direct ownership. In its core sportswear business, refurbished stores have not attracted the level of support from third-party brands that it hoped for.Sports Direct, Grant Thornton and the FRC declined to comment.

[sentimentrules] 29/7/2019 21:53

Still a bit of a dog. But medium term.. beautiful

Just imo 245p zone has some serious buyers. Today's volume a take up and all the news and price zone etc tying in, they supported that 245. But be nice to see 229 taken out this week to confirm the volume is that,

[sentimentrules] 29/7/2019 21:51

Ignoble a three year treble bottom. If there was a game here in play, they sure shook out the market at a nice spot today.

Assuming...they wanted to get cheaper shares etc, what better time and place? It was perfection

Only an assumption

[ignoble] 29/7/2019 21:45

Must admit, I thought the stock would fall a lot more than it did today.

[ignoble] 29/7/2019 21:40

Don't we all.?

Joking...

[jamdan1] 29/7/2019 21:40

This is looking a lot worse

[smcni1968] 29/7/2019 21:36

aren't tax penalties for when you fail to pay an assessment by the due date? which makes me think someone has been sticking letters from the tax man in the bin

[mac15] 29/7/2019 21:32

The 1829 RNS on the Belgian tax is an attempt to clarify. Does it help?

[ignoble] 29/7/2019 21:30

Oh Dear...

[debsdowner] 29/7/2019 21:27

kinwah,

Good detective work.


Evidently the Belgium tax authorities do not accept his argument over tax, and penalties normally given when something is not above board.

[debsdowner] 29/7/2019 21:22

18bells,

Nothing wrong in buying beaten up companies if your own business is making fantastic and growing profits and you understand the companies you want to turn around.

However Sports Direct was on declining profits and in completely different sector than HOF something he didn't understand. Or put it this way he doesn't appear to have understood the market.

Its a different ballgame selling high end fashion to stack it high discount. Totally different concept.

The guys shown no previous knowledge of the cycle business whatsoever yet he has taken on a business on which was loss making.

But to go about taking on so many store groups so many fashion brands most of which were struggling and expect to turn them all around quickly was a very tall order particularly when there are too many retailers out there in any event and too many brand names.


Many of the brands were no longer fit for a younger generation they were meant to die not put back on oxygen and given an adrenalin boost. When all the organs were dying it was a waste of resources.

The Observer was bang on with their article the demise which hasn't fully materialised as yet is all of his own making.

He has shown an arrogant and egotistical approach to his own capabilities blaming everyone else for the situation he has caused to the company, there is nothing else to blame but himself.


No one forced him to take a stake in Debenhams when the company was indebted and no future and no one forced himself to buy another High Street chain in House of Fraser when the concept and bricks and mortar had their day.


He will need an awful lot of luck to get out of the mess he is in, it wont be enough relying on other people to sort out the mess from here on and time is not on his side the retail environment getting worse, and the clock is ticking all the time with a tax bill of hundreds of millions to sort out.


Maybe he knows something the city does not only he knows.


However I don't have faith in the man and buyers need to be very cautious from here on the stock is high risk at the moment.

[sentimentrules] 29/7/2019 21:20

I think it's smart by Belgium. A deeper play in force for some arrangement post brexit. SPD will be exonerated. I'm not sure how etc but I reckon its just another card in a bigger game. Jobs need protecting. Gov will be in offices discussing it with the Bels

[kinwah] 29/7/2019 21:10

I've just had a look at Belgian TVA or VAT as we would call it. Belgium has a complicated 5 rate structure. However sporting goods and clothes are on the maximum rate of 21%. There is a reduced rate of 6% for admittance to sporting venues. Surely Sports Direct haven't been running an exercise in VAT avoidance by claiming they are running a Football stadium and not a sports goods shop. There's also a special parking rate for certain transactions where VAT is only 12%. I don't see how the Belgian authorities have got this wrong as for sports goods and clothes it looks like bog standard VAT is payable. I'm beginning to think there might have been something rotten in the state of Belgium to misquote from Hamlet.

[18bells] 29/7/2019 19:23

Ashley was buying up beaten up companies like a novice investor buying a share at rock bottom without looking at the forecast why the share price was rocket bottom. problem for MA now he has a bottom draw full of beaten up companies with an expiry date causing more misery for a novice

[sentimentrules] 29/7/2019 18:47

And i can only imagine expectations being truly beaten until then.. But get out before the next audit. He will probably haha

[sentimentrules] 29/7/2019 18:46

I reckon this year is all about ashley getting what he can from his stock.. .And maybe even call it a day at some level next year.

Agree with all negativity here re the company.. this is just a game to December now. Nothing much more

[debsdowner] 29/7/2019 18:25

It did early morning but clawed back but clawed back more than I thought it would but its early days.

The share price still lost over 50% on a years basis when the market up on a year.

[ignoble] 29/7/2019 18:21

Agree with that
I thought the share price would take a kicking
Obviously not

[debsdowner] 29/7/2019 18:17

I became concerned about Mike Ashley's inept ability months before the company went into administration he seemed to me to be all over the place and not got a clue about the law.

The guy was lucky with Sports Direct but I suspect its gone as far as it could and he thought he had the ability to turn round broken companies that has been his downfall. They may well bring down the whole group.

The share price didn't end up as bad as I thought it would but its still early days.

[sentimentrules] 29/7/2019 17:34

Absolutely agree. Hence 2020 A dodo

[ltcm1] 29/7/2019 17:30

Yeah but look at MA's performance these last two years. And that rambling opus Friday. Plus he demanded a showdown with Debenhams board a few months back only to be told he didn't own any shares!!!

He isn't the same beast he was 10 years ago. Maybe it is all the binge drinking, who knows.

[sentimentrules] 29/7/2019 17:18

I went in 50% lot last Friday 245. A gamble the news wouldn't be brutal. But a calculated gamble. If bad I'd buy 30% lot on Monday low. And now last 20% of full lot is ordered at 245p where i believe the year run money is.

It will be volatile. But I truly believe anyone with a 300p+ target here will strike by December 1st. That's my aim.

This board on the ftse has the most to lose re share price to personal wealth... And ive no doubt creative expectations shall be produced. Legally of course

Then il dump it. Start of 2020 would be dodgy to hold.

[hermanngoring] 29/7/2019 16:46

retail broker on Bloomberg just said and I quote " Sports Direct could go bust within 6 months"