Sports Direct disclosure in the dock again

Troubled retailer Sports Direct suffered yet another round of criticism
yesterday as City analysts scorned the level of disclosure in the group’s
Christmas trading update.

‘We see little merit in holding the shares unless the management is prepared
to provide materially improved visibility…and a better-articulated strategic
vision,’ Merrill Lynch said in a note.

Philip Dorgan from Panmure Gordon was equally critical, the Guardian reports.
Dorgan described the statement as ‘not full enough’

Sports direct said that profits for the 11 weeks to 13 January 2008 were
£126m on revenues of £280m, but refused to compare the period with trading from
the previous year.

The company, founded by Mike Ashley, has suffered endless problems with is
governance and accounting disclosure. Finance director Bob Mellors has been on
the receiving end of much of the City’s criticism.

Further reading:

FD buys one million shares in Sports

Sports Direct under pressure – again

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