Sports Direct’s share price has taken a hit this morning after the market caught up with the release of the company’s delayed accounts.
The group’s share price opened at 183.4p per share this morning, falling from a high of 229.8p per share at close of play on Friday, following the release of a tumultuous set of results.
After initially delaying the document’s release, retail tycoon Mike Ashley used his company’s report to call for the introduction of drug tests for CEOs and CFOs, blame the Government for failing the economy, and described the physical retail market as being in a ‘terminal state’.
He also used the announcement to tell investors that the situation at House of Fraser, which Sports Direct bought for £90m in August 2018, was far worse than expected.
Mr Ashley criticised House of Fraser’s previous management, claiming they had left the business in a “shambles”. He went on to explain that the company would close more stores in an effort to turn the business around.
Friday’s report also revealed Sports Direct had been handed an unexpected tax bill from Belgian authorities relating to its EU operations.
Belgian tax authorities have demanded the company pay €674m (£607.5m), presenting the firm with a notice on July 25.
The tax relates to the movement of goods between the group’s accounts throughout the EU. Sports Direct said it has now entered into fiscal mediation with Belgian tax authorities.
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Investors were initially expecting Sports Direct to publish its accounts on Friday morning but a series of delays led to the documents becoming public well after trading ended on the London Stock Exchange.
It means that investors’ reactions have only become apparent this morning.
Shares at the retail group plummeted 20.2%, from 229.8p per share to 183.4p at the open.
However, the company’s share price has since rebounded slightly and at the time of writing the group’s shares were valued at 207p per share.