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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/sep/07/sports-direct-annual-general-meeting-showdown-mike-ashley-business-live
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| Sports Direct warns of falling profits ahead of AGM showdown – business live | |
| (35 minutes later) | |
| 8.48am BST | |
| 08:48 | |
| Mike Ashley insists that, despite much City chatter, he isn’t planning to take Sports Direct private again. | |
| The company says: | |
| Further to the statement made in the Company’s preliminary results announcement on 7 July 2016, and in response to repeated speculation, Mike Ashley has confirmed to the Board that it remains the case that he has no current intention to take the Company private, and has indicated his willingness for the Company to confirm this statement publicly. | |
| 8.33am BST | |
| 08:33 | |
| Our retail writer Sarah Butler explains why Sports Direct is less profitable.... | |
| Sports Direct also warns that profits hopes dropped to £300m from £380m because of lower gross margins and higher operating costs.. | |
| 8.21am BST | |
| 08:21 | |
| Veteran retail analyst Nick Bubb is alarmed by Sports Direct’s new profit forecasts: | |
| Ouch: Sports Direct warn that EBITDA will fall from £380m to £300m this year... | |
| 8.16am BST | 8.16am BST |
| 08:16 | 08:16 |
| This chart shows how Sports Direct shares have taken an early dive: | This chart shows how Sports Direct shares have taken an early dive: |
| Updated | Updated |
| at 8.17am BST | at 8.17am BST |
| 8.09am BST | 8.09am BST |
| 08:09 | 08:09 |
| Sports Direct shares plunge | Sports Direct shares plunge |
| OUCH! Shares in Sports Direct have fallen sharply at the start of trading. | OUCH! Shares in Sports Direct have fallen sharply at the start of trading. |
| They tumbled by up to 10%, before stabilising around 7% lower, at 325p. That more than wipes out yesterday’s 5% rally. | They tumbled by up to 10%, before stabilising around 7% lower, at 325p. That more than wipes out yesterday’s 5% rally. |
| Investors clearly aren’t impressed with the news that profits will fall by a fifth this year. | Investors clearly aren’t impressed with the news that profits will fall by a fifth this year. |
| The news that Keith Hellawell’s resignation has been rejected may not have improved the mood, given that so many shareholders had demanded his departure. | The news that Keith Hellawell’s resignation has been rejected may not have improved the mood, given that so many shareholders had demanded his departure. |
| 7.59am BST | 7.59am BST |
| 07:59 | 07:59 |
| Sports Direct has also revealed that its profits will probably fall by 20% this year, in a statement to the City ahead of this morning’s AGM. | Sports Direct has also revealed that its profits will probably fall by 20% this year, in a statement to the City ahead of this morning’s AGM. |
| It now expects to post underlying earnings of around £300m this financial year, down from £381m in 2015-16. | It now expects to post underlying earnings of around £300m this financial year, down from £381m in 2015-16. |
| But that is also determined on achieving group sales growth of at least 9%, and only a small decline in profit margins. | But that is also determined on achieving group sales growth of at least 9%, and only a small decline in profit margins. |
| 7.37am BST | 7.37am BST |
| 07:37 | 07:37 |
| Sports Direct chairman offered to resign! | Sports Direct chairman offered to resign! |
| Sports Direct has just revealed that its chairman, Dr Keith Hellawell, offered to resign over the weekend! | Sports Direct has just revealed that its chairman, Dr Keith Hellawell, offered to resign over the weekend! |
| But the offer was rejected -- with SPD’s board asking Hellawell to stay on and help improve the company. | But the offer was rejected -- with SPD’s board asking Hellawell to stay on and help improve the company. |
| Here’s the statement issued to the City a few minutes ago: | Here’s the statement issued to the City a few minutes ago: |
| Further to the Working Practices Report published by the Company yesterday, the Company announces that Dr Keith Hellawell QPM has been asked by the Board, which includes the Company’s majority shareholder, Mike Ashley, to continue in his role as Chairman. | Further to the Working Practices Report published by the Company yesterday, the Company announces that Dr Keith Hellawell QPM has been asked by the Board, which includes the Company’s majority shareholder, Mike Ashley, to continue in his role as Chairman. |
| Dr Hellawell had offered to step down over the weekend in the light of the shortcomings highlighted in the report, but he will stay in his role in order to assist with making further improvements. | Dr Hellawell had offered to step down over the weekend in the light of the shortcomings highlighted in the report, but he will stay in his role in order to assist with making further improvements. |
| Sports Direct statement says Hellawell been asked to stay on despite offer to resign ahead of shareholder vote.. | Sports Direct statement says Hellawell been asked to stay on despite offer to resign ahead of shareholder vote.. |
| Hellawell, a former police chief constable and drug czar, has lost the confidence of some bigname investors recently - including Hermes, Legal & General, Aberdeen Asset Management and Royal London. | Hellawell, a former police chief constable and drug czar, has lost the confidence of some bigname investors recently - including Hermes, Legal & General, Aberdeen Asset Management and Royal London. |
| But crucially, not Mike Ashley (who still owns 55% of the company). | But crucially, not Mike Ashley (who still owns 55% of the company). |
| On Monday, my colleague Nils Pratley argued that a responsible chairman would have noticed the problems at Sports Direct, including paying staff below the minimum wage: | On Monday, my colleague Nils Pratley argued that a responsible chairman would have noticed the problems at Sports Direct, including paying staff below the minimum wage: |
| Hellawell may get credit for offering to walk the plank - but some investors will surely demand a change today..... | Hellawell may get credit for offering to walk the plank - but some investors will surely demand a change today..... |
| Updated | Updated |
| at 8.03am BST | at 8.03am BST |
| 7.22am BST | 7.22am BST |
| 07:22 | 07:22 |
| The agenda: Sports Direct AGM showdown with investors | The agenda: Sports Direct AGM showdown with investors |
| Good morning. | Good morning. |
| It’s time for Sports Direct’s board to face the music. | It’s time for Sports Direct’s board to face the music. |
| After all the revelations about “Victorian workhouses”, “gulag” conditions and zero hour contract misery, Mike Ashley and his top lieutenants are about to hear from their critics as the troubled retail chain holds its Annual General Meeting with shareholders. | After all the revelations about “Victorian workhouses”, “gulag” conditions and zero hour contract misery, Mike Ashley and his top lieutenants are about to hear from their critics as the troubled retail chain holds its Annual General Meeting with shareholders. |
| And it promises to be an absolute zinger of an AGM, which starts at 11am. City investors and unions alike are lining up to blast the company, which has become associated with some of the worst business practices in modern Britain. | And it promises to be an absolute zinger of an AGM, which starts at 11am. City investors and unions alike are lining up to blast the company, which has become associated with some of the worst business practices in modern Britain. |
| Chairman Keith Hellawall will face particular criticism, with some big shareholders determined to vote against his re-election. Royal London Asset Management, for example, has warned that Hellawell’s position was “untenable”. | Chairman Keith Hellawall will face particular criticism, with some big shareholders determined to vote against his re-election. Royal London Asset Management, for example, has warned that Hellawell’s position was “untenable”. |
| As you probably already know, Sports Direct admitted yesterday that it had let its warehouse workers down badly. | As you probably already know, Sports Direct admitted yesterday that it had let its warehouse workers down badly. |
| It is now offering all its shop staff permanent contracts -- but not the 4,000 agency staff at its Shirebrook site in Derbyshire -- and pledging to pay over the minimum wage. | It is now offering all its shop staff permanent contracts -- but not the 4,000 agency staff at its Shirebrook site in Derbyshire -- and pledging to pay over the minimum wage. |
| Guardian front page, Wednesday 7 September 2016: Sports Direct admits failure on zero hours pic.twitter.com/KqXmCPJyTM | Guardian front page, Wednesday 7 September 2016: Sports Direct admits failure on zero hours pic.twitter.com/KqXmCPJyTM |
| Late last night, Mike Ashley issued an apology to staff for the ‘serious shortcomings’ at his company, and promised to appoint a workers’ representative to his board to help drive improvements. | Late last night, Mike Ashley issued an apology to staff for the ‘serious shortcomings’ at his company, and promised to appoint a workers’ representative to his board to help drive improvements. |
| He said: | He said: |
| “I have always believed that Sports Direct was built by the great people who work here. I therefore wish to apologise to you on behalf of myself and The Board for the shortcomings that have occurred in our working practices, which have been identified in the report.” | “I have always believed that Sports Direct was built by the great people who work here. I therefore wish to apologise to you on behalf of myself and The Board for the shortcomings that have occurred in our working practices, which have been identified in the report.” |
| Will that be enough to placate critics? | Will that be enough to placate critics? |
| Sports Direct is also holding an open day at Shirebrook, allowing people (including our reporters) to see conditions for themselves. | Sports Direct is also holding an open day at Shirebrook, allowing people (including our reporters) to see conditions for themselves. |
| Here’s the order of business: | Here’s the order of business: |
| We’ll be tracking all the action at the AGM, and beyond, through the day.... | We’ll be tracking all the action at the AGM, and beyond, through the day.... |
| Updated | Updated |
| at 7.37am BST | at 7.37am BST |