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Retail

Mike Ashley's Frasers delays reporting of results again

Blame has been laid on the final disclosures for new IFRS 16 accounting rules that are “still being completed and reviewed”

Frasers Group PLC (LON:FRAS), the retailer led by Mike Ashley, has delayed the reporting of its results for the second year in a row.

The former Sports Direct’s final results were due to be published this Thursday but in a statement the company said it was pushing the date back to 20 August.

READ: Mike Ashley’s Frasers refused access to government coronavirus financing facility

Blame was laid on the final disclosures for new IFRS 16 accounting rules that are “still being completed and reviewed”.

“Due to the undoubted scrutiny of our accounts, management and our auditors RSM will take this extra week to robustly review the final accounts and ensure that all necessary disclosures have been completed,” the company added.

While the shares fell 4% on Wednesday, Frasers insisted that there was “no significant matters to address outside of normal audit completion procedures and the final accounts disclosure review”.

Auditors RSM took the job of handling the sports and clothing retailer’s accounts after its long-serving previous accountants Grant Thornton resigned a year ago and the 'big four' auditors all ruled themselves out due to various different reasons.

Just before Grant Thornton resigned from what was still Sports Direct, the company also delayed its results, citing “complexities” to do with the integration of its House of Fraser acquisition, trading uncertainty and “the increased regulatory scrutiny of auditors and audits” after the Financial Reporting Council launched a review of Grant Thornton's previous audit.

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