Owner opens up warehouse to media – 10 months after the Guardian went undercover to expose poor working conditions
Ashley: If I keep failing, I should go
Shareholders revolt against company chairman
Ashley produces huge wad of £50s...
...after blaming Unite union for Shirebrook problems
7.11pm BST
It’s been a day of contrition, confrontation and humiliation for Sports Direct; and the company faces more rough times unless it actually delivers the better working practices it has promised.
Here are the key points.
We’re going to fix it. Please give us 12 months to fix it. What difference is 12 months?
We’ve done some good work in 90 days - lets do some fantastic work in 12 months.
In the end, if I keep failing and keep failing and keep failing, it’ll be best for everybody if I go. But give me some time to see if I can fix the problems first, please.
“At absolute minimum, we believe the current chairman should step down immediately and an external, independent appointment made to oversee management and protect the interests of all stakeholders – including employees, suppliers, and shareholders.”
This is probably your fault we are in this mess because we can’t talk to you. I made a commitment to make a difference, I am trying, don’t pull me down.
I accept I have made some errors and I accept I can learn something. Please don’t do the whole showboating thing, it will make me turn away and it’s the people who work in Sports Direct who suffer.”
6.40pm BST
My colleague Simon Goodley paid a return visit to Sports Direct today, nearly a year after going undercover at the Shirebrook site to expose its failings.
And he’s none too impressed with the company’s attempt to charm journalists and investors today by showing them a shiny new operation.
The show...was a disappointment. This was not a tour of the huge, bustling, Shirebrook warehouse where Guardian undercover reporters revealed last year how the company had broken the law by paying its workers less than the national minimum wage.
Instead, the crowd of around 200 observers, all dressed in bright yellow hi-vis jackets, were shown around Sports Direct’s spacious, brand new, facility, gleaming white walls and all. It even smelt new and freshly painted - meaning it was tempting to conclude that shareholders were actually witnessing a whitewash at the workhouse.
6.23pm BST
Here’s a video clip of Mike Ashley’s search today -- for anyone who missed the fun and games earlier:
6.14pm BST
5.46pm BST
The Press Association have a good take on the Sports Direct tour - and the moment Mike Ashley stunned reporters (and perhaps staff too) by pulling out that wad of £50s:
Mike Ashley was sorry - this he wanted to make clear.
As he conducted a tour of his Sports Direct empire, he drove home the message that he was not ducking any responsibility when it came to the retailer’s problems.
Mike Ashley gets searched... Yes. That is a massive wad of £50 notes he just took out his pocket pic.twitter.com/zV78Qdfmec
5.36pm BST
Commentators have been arguing for years that British business should learn from their German rivals, and put workers in the boardroom.
Prime minister Theresa May even expressed support for the idea, putting it higher on the political agenda. So Sports Direct could be ahead of a trend.
The appointment by Sports Direct of an employee to the Board is an astute move, no doubt intended to demonstrate that company’s willingness to embrace change and encourage employee participation.
“However, the Government has a far tougher task if it wants to legislate on employee Board appointments given the many questions that would need addressing, including the size of the company to whom such rules would apply, the number of employee directors, the nature and status of the role of employee director, the nature of the Board on which they would sit, the selection/election process, confidentiality, trade union involvement and pay etc.”
5.24pm BST
Sports Direct’s shares have endured a bad day, closing down almost 9%.
That’s primarily due to this morning’s admission that profits will probably fall 20% this year, from £380m to £300m.
5.07pm BST
Sky News’s Charlotte Lomas has spotted a fresh innovation at Sports Direct -- a list of its best stock pickers.
The top worker stands to win a £25 voucher -- all part of the new regime more carrot, less stick.
Ashley at ease, cracking a few jokes as he leads us around the warehouse. Stumble across this... pic.twitter.com/I8FW4jthT2
5.04pm BST
Earlier, my colleague Sarah Butler tweeted more interesting comments from Ashley from the warehouse tour:
John Lewis is something to look up to from a people point of view says Ashley.'I believe it us the best employer in the business'
Ashley says "no doubt this publicity affects our retail stores. It must have a negative impact but how big I don't know.."
Ashley says not right to say he's only worried abt bottom line. sports Dct "not anywhere near as bad a business as people try to portray it"
4.56pm BST
Here’s the full quote from Sacha Sadan, Director of Corporate Governance at Legal & General Investment Management, calling for Hellawell to quit Sports Direct.
“Following Sports Direct’s recent report on its own shortcomings, as well as the large independent shareholder vote against the chairman’s re-election, it is clear the Board needs to enact significant change in order to earn back shareholder trust.
“At absolute minimum, we believe the current chairman should step down immediately and an external, independent appointment made to oversee management and protect the interests of all stakeholders – including employees, suppliers, and shareholders.”
4.49pm BST
The Trade Union Share Owners group has hailed the rebellion against Keith Hellawell today.
It believes the revolt by independent investors is a record - and one which other firms should learn from.
“Today’s shareholder uprising should act as a cautionary tale to other employers. Sports Direct’s reputation has been dragged through the mud and its share price has taken a hammering.
“The company must now commit to holding a genuinely independent investigation into how the company treats its workers. Without wholesale changes to working conditions, Sports Direct risks finding itself back in the dock.
4.40pm BST
Steve Turner, Unite general secretary, has responded to the shareholder revolt against Keith Hellawell today:
“Investors have sent a robust message to the Sports Direct board that it has much more to do to reform and regain confidence.
As well as corporate governance Sports Direct must urgently work with Unite to put in place a framework which moves the thousands of temporary agency workers at Shirebrook on to secure, permanent direct contracts. We remain committed to work constructively with Sports Direct to help restore dignity and respect to the work place.”
4.20pm BST
City firm Legal & General aren’t convinced by Ashley and Hellawell’s arguments.
They want the chairman to quit now, having lost the support of independent investors today.
L&G calls on Sports Direct chair Hellawell to step down immediately after more than half of indie shareholders vote against his re-election
L&G: " it is clear the Board needs to enact significant change in order to earn back shareholder trust"
4.07pm BST
Q: Final question, how do you feel about Iain Wright MP claiming that you and Sir Philip Green are ‘two peas in a pod’?
No, I’m far better looking than him, Ashley shoots back, before heading back into the HQ.
4.06pm BST
Back to Mike Ashley....
Keith knows my strengths, and my weaknesses, and we’re beginning to learn some of the company’s weaknesses, together.
So, we’re going to fix it. Please give us 12 months to fix it. What difference is 12 months?
We’ve done some good work in 90 days - lets do some fantastic work in 12 months.
3.59pm BST
City investors do recognise my integrity and my experience, Hellawell insists.
But if they don’t have a change of heart over the next 12 months, I will leave.
My position is not untenable - the majority of shareholders in this company support me.
I am here to prove to the majority of independent shareholders who don’t support me that I making a valuable contribution to this company, and over the next 12 months I’ll be judged on that contribution.
3.55pm BST
Chairman Keith Hellawell is taking questions now.
Q: Were you surprised by the scale of the rebellion against you today?
3.45pm BST
Mike Ashley then tells reporters that he should step down from Sports Direct if he can’t turn the company around.
Q: Have you been hurt by the personal criticisms from City institutions, Mr Ashley, saying you aren’t the right man to lead the company?
I’m a man who gets some things very right, and other things very wrong.
I got the staff bonus very right for a few years. Hundreds of millions [of pounds]. Fantastic.
3.39pm BST
Mike Ashley and Keith Hellawell are facing the media now, after 53% of shareholders (excluding Ashley) dramatically voted against Hellawell’s re-election as chairman today.
3.27pm BST
BREAKING: A majority of Sports Direct’s independent shareholders have voted against Keith Hellawell’s reappointment as chairman today.
Figures just released show that 53% of shares cast by investors, excluding Mike Ashley, opposed Hellawell’s re-election. Including abstentions, and a whopping 57% of shareholders refused to back him!
“I take this clear message from our independent shareholders seriously, and I will do my best to address their concerns and earn their confidence over the next year.
I have confirmed today that should I not receive the support of a majority of our independent shareholders at next year’s AGM, I will step down at that time with immediate effect.”
3.12pm BST
Here’s a taste of our latest news story about Ashley’s clash with Unite:
Mike Ashley, Sports Direct’s founder and majority shareholder, has blamed the Unite union for the company’s problems in an angry outburst at the retailer’s annual shareholder meeting.
In a packed meeting of more than 120 people at the head office in Shirebrook, Derbyshire, Ashley was challenged by the union’s assistant general secretary, Steve Turner, over a pledge to offer shop-floor staff 12-hour contracts instead of zero hours.
Related: Sports Direct founder Mike Ashley lashes out at Unite union
3.00pm BST
Here’s a better photo of the protests outside Sports Direct’s HQ:
While Mike Ashley shows people around Shirebrook, activists continue to protest #sportsdirectshame #sportsdirectagm pic.twitter.com/BTCBUHNz07
2.59pm BST
Mike Ashley appears to have regained his good spirits:
Hellawell just left the room to deal with something. Ashley quips "probably had his hand in the till".. Er..
2.54pm BST
The Unite union are holding a demonstration at Shirebrook today.
They’re urging Ashley to offer permanent contracts to the thousands of agency workers who keep his warehouse running.
2.42pm BST
If you can’t get the video of Mike Ashley producing his wad of £50 notes to play, try clicking here.
2.37pm BST
Mike Ashley says that every Sports Direct worker will get a vote on the new ‘employee representative’ who will join the board.
That’s from my colleague Sarah Butler, who is touring the site now:
Staff board rep will be elected by all 20,000-plus staff Sports Direct's Ashley says. Just working out details of election
2.17pm BST
For most journalists, this is their first taste of life inside the Shirebrook warehouse.
Mike Ashley has admitted that mistakes were made - but he’s also hoping to prove the difficulty in controlling such a huge site.
Ashley: "If the headline is sorry then so be it. Because clearly I could have done a better job." pic.twitter.com/qW5hi9HSUn
Mike Ashley adds he "didn't deliberately do it badly". "Impossible to get it right." Pleads for time to make changes. #SportsDirect
This is just one aisle of hundreds at shirebrook ... pic.twitter.com/PDtkGqM9SM
1.46pm BST
Mike Ashley has stuffed his £50 notes away, and started discussing the issue of how staff were paid below the minimum wage.
He says he only discovered the problems with searches last December, after the Guardian exposed them.
“He’s not my favourite person, the Guardian man. Where is he?”
1.40pm BST
Oh dear lord, Mike Ashley has just been searched by Sports Direct’s security staff - and produced a chunky wad of £50 notes from his pockets.
Mike Ashley demonstrates search procedure at #SportsDirect warehouse. In his pocket? A huge wad of £50 notes. pic.twitter.com/kz5jBQKY8K
Yes, I’ve just been to the casino.....No, don’t please write that.
Mike Ashley gets searched... Yes. That is a massive wad of £50 notes he just took out his pocket pic.twitter.com/zV78Qdfmec
1.21pm BST
My colleague Simon Goodley has managed to send a photo from the scrum around Mike Ashley:
1.14pm BST
Mike Ashley is posing for photos and chatting to journalists as the tour gets underway.
He says that he (like very other worker) used to be searched when he left the site.
As repeated earlier, it's definitely not just about one man, ok? pic.twitter.com/ylckJnAeA2
1.02pm BST
Sports Direct’s investors have now finished voting on today’s resolutions, so we’ll have the results in a few hours.
The entire room have now donned fluorescent jackets and headed out for a tour of the Shirebrook site.
Whole agm now heading off on a tour of Shirebrook .. Not seen the like if this before pic.twitter.com/UFb9HgkOnL
Ashley tour is on. Tells us there's always problems with companies of this size. pic.twitter.com/VXqovUxTeS
1.00pm BST
Nine months after the Guardian went undercover at Sports Direct, the company is now facing the full consequences of operating a “Dickensian” warehouse in 21st century Britain.
This is probably your fault we are in this mess because we can’t talk to you. I made a commitment to make a difference, I am trying, don’t pull me down.
I accept I have made some errors and I accept I can learn something. Please don’t do the whole showboating thing, it will make me turn away and it’s the people who work in Sports Direct who suffer.”
We agree the system is not good enough, and we are going to improve it.
Standard Life wants Ashley's role, title and responsibilities redefined and full independent review of way @SportsDirectUK is run.
12.36pm BST
The AGM is now over. Perhaps Mike Ashley’s bad mood trumped his promise to say until midnight to answer questions.
Investors are now voting on the various resolutions on whether to reappoint directors, and approve the pay report.
12.33pm BST
Campaigners for fairer pay are already planning to return to Shirebook in 2017 to mark Ashley’s homework....
True leadership would be accreditation with @LivingWageUK. We'll be back next year to check progress... https://t.co/J9G3HHmG7H
12.29pm BST
I’m a little surprised that Mike Ashley lashed out at Unite, to be honest.
Back in June, he was surprisingly open and engaging with MPs - a strategy that seemed to wrongfoot the BIS committee. That strategy might have worked well today too.
Interesting pattern here: SD board not happy to listen to criticisms of work it's done. Think it was expecting a cheering match, not jeers
Ashley's outburst at Unite shows how unused he is to being challenged and questioned despite Jenkins defence of SD's board
12.26pm BST
Back to Sports Direct’s pay policies....and Lisa Narthan of ShareAction UK asks if it might pay more than the minimum wage to staff.
Hellawell replies that SPD wants to show leadership in this issue [having now resolved the issue, exposed by the Guardian, of paying less than the statutory minimum because of its security checks]
.@lisarnathan asks if board will consider increase in rates above legal requirement. Chair says they want to be a leader. @ShareActionUK
12.22pm BST
Non-executive director Claire Jenkins has jumped to Ashley’s defence, saying that Sports Direct has the “most open” board meetings of any company she’s worked at.
And she denies that yesterday’s report (written by Mike Ashley’s lawyers) wasn’t independent:
I take issue with them not being called independent. [The report] was very uncomfortable reading for all." Claire Jenkins, Sports Direct
12.19pm BST
Aviva, a significant shareholder, asks if there’s any point discussing Keith Hellawell’s position - as the company declined his resignation last weekend.
Hellawell says “yes” (reminder, he’s already promised to leave in 2017 if he loses a vote of confidence next year)
12.16pm BST
Mike Ashley doesn’t seem to be enjoying the AGM very much:
#sportsdirect Mike Ashley now sitting glumly, refusing to take questions
12.13pm BST
Although Mike Ashley has lost his grip on his (Sports Direct-branded?) rag, his chairman is calmer.
Keith Hellawell says the time for excuses is over, and that Sports Direct has reached a watershed moment.
Hellawell managing to keep his cool, in stark contrast to Ashley. No wonder the company won't let him resign. #sportsdirectAGM
12.11pm BST
Here’s the key quote from Ashley’s outburst, after Unite questioned the value of his offer of permanent contracts to store staff:
Ashley to Unite: don't do the whole show boating thing. It will make me turn away, the only people who suffer are people that work at SD
12.09pm BST
UNITElive at Sports Direct AGM:
Ashley has stopped proceedings and is asking an independent shareholder if she is a member of Unite
12.04pm BST
Oh dear. Mike Ashley’s cheery mood has vanished, as the criticism from Unite’s Steve Turner hits home.
The Sports Direct founder (who still owns half the company!) has kicked off, saying the unions must take some blame for the abuses that were perpetrated at his warehouse.
Angry outburst by Ashley who says: I've made commitment to make a difference I'm trying so don't pull me down.
Mike Ashley gets shirty @unitetheunion "if you had been reasonable before... I'm trying, don't pull me down, it doesn't help...."
Ashley: "Let’s not have a punchup like in a silly cartoon."
"You can see why there's a bullying culture" - shareholder in audience, under her breath, in response to Ashley's outburst. #SportsDirect
11.57am BST
Steve Turner of the Unite union asks why Sports Direct store workers are being offered a choice between a zero hours contract, and one only guaranteeing 12 hours a week.
Many zero-hours workers are actually putting in a 40-hour shift each week, Turner says - so there’s no incentive to take a new contract.
Steve Turner @unitetheunion says "Agencies have been behind the abuses" & he's shocked "Sportsdirect don't even have contracts with them"
"Your name is being dragged through the mud" as a result of agencies' behaviour. Millions handed to agencies - #SportsDirect responsibility.
11.54am BST
What about the investigation into how Sports Direct paid staff less than the minimum wage?
Hellawell says the inquiry into warehouse staff has been finished (and staff are being paid the money they’re owed).
Forsey says conversations with HMRC "always on going" but warehouse investigation concluded
Forsey asked about what inquiries are ongoing with HMRC. He very specifically says the "warehouse" inquiry is done. No word on store inquiry
11.51am BST
Mike Ashley insists he has nothing to hide, and promises (or threatens) to say until midnight to answer everyone’s questions.
But now we have Dave Singleton, an independent non-executive chairman, answering questions about operational problems at the company.
11.48am BST
Sports Direct are now taking questions from the floor, and facing a flurry of criticism and accusations.
One shareholder, Anis Anil, also a worker, asks why company "did nothing" after a letter he has seen was sent with various allegations.
#SportsDirect employee addresses Mike Ashley: raises numerous allegations of sexual and racial harassment
11.45am BST
Standard Life says it is voting against the board because the turnaround plan announced yesterday simply doesn’t go far enough.
It wants to see ‘strong’ independent directors who can challenge Mike Ashley, as well as help him run the company (which has been “starved” of investment).
Standard Life says independent review of governance required at Sports Direct. Follow-up plan for working practices report doesn't do enough
Standard Life: Ashley should have pivotal role at Sports Direct reflecting his influence but needs support and challenge from strong execs.
Standard Life says there's long-term value in Sports Direct but it has been starved of investment in people, facilities and infrastructure.
Standard Life's Stirling says has tried to talk to Sports Direct as long-term investor to little effect.Yesterday's report was step forward.
11.38am BST
Chief executive Dave Forsey doesn’t seem to share Mike Ashley’s perkiness.
Dave forsey up&speaks about Improving relations with press & the City in same tone of voice one would use to discuss impending root canal
11.35am BST
NEWSFLASH: We understand that Standard Life, the second largest shareholder at Sports Direct, has voted against reappointing the company’s non-executive directors.
It has also voted against the pay report, my colleague Sean Farrell reports:
Standard Life, biggest Sports Direct shareholder after Ashley, has voted against all non-execs and remuneration report.
Euan Stirling, Standard Life's governance head, will tell AGM stronger board needed, esp in "crucial role of chairman".
11.33am BST
Workers will be pleased to hear that a nurse and a welfare officer are (finally) being hired. Back in June, MPs heard that one Sports Direct worker actually went into labour on site, because she was afraid to take time off.
11.32am BST
Onto the scandalous conditions at Shirebrook.
Hellawell admits that Sports Direct failed its staff -- and singles out the HR operation for particular criticism.
"We will stop anything we believe is unfair to our workforce" says Hellawell who admits Sports Direct was failing its workforce
Sportsdirect chair says "it's clear we are failing in many ways in HR. We're going to beef up HR, provide a nurse & welfare officer"
11.29am BST
Hellawell says Sports Direct’s directors genuinely want a worker to join them on the board (a move Ashley announced last night)
SportsDirect chair says board fully supports a workers rep on the board "someone who's not afraid 2 stand up 2 a load of suits" @BBCBusiness
He says in hindsight it should have disclosed that Ashley's brother was behind Barlin, a logistics company, that supplies services to SD
11.26am BST
Onto corporate governance issues - always a sticky subject for a company where the found owns 55% of the shares.
Chairman Hellawell says the search for new independent directors is ‘ongoing’.... so no news of fresh heavyweight expertise to help steer the company.
11.22am BST
It sounds like Keith Hellawell is giving himself a 12 month window to win back the support of Sports Direct’s investors.
He says Sports Direct must become “even more transparent and over-zealous” in the way it reports information (an area where the company has traditionally struggled).
Hellawell says board will making decision on role of acting finance boss Matt Pearson 'in due course'
11.17am BST
Chairman Keith Hellawell gets the AGM underway.
He says he is committed to working with the parliamentary Business committee to implement Sports Direct’s turnaround plan.
Hellawell says will step down if he doesn't have support of independent shareholders by time of the NEXT agm.
11.12am BST
Ho ho ho
Mike Ashley smiles for cameras before joking to chairman Keith, "I'm off now." Good one... #SportsDirectAGM
11.09am BST
Here we go.. Ashley and Hellawell take their seats.. pic.twitter.com/2iXmljsxaT
11.09am BST
Sports Direct’s founder is in good spirits, apparently, as he arrives for his grilling from shareholders and other critics:
Just bumped in Mike Ashley outside the loos.. Seems v perky.. Maybe 200 people here at the agm.. Bit more than the usual 6
Mike Ashley arrives. pic.twitter.com/rrCsuk1BvZ
11.04am BST
Keith Hellawell, Sports Direct’s chairman (despite his offer to quit) will address investors first:
Sports Direct's AGM about to start, hosted by someone who doesn't want to work for the company, but isn't allowed to quit...
Who will then ask shareholders to vote for him to continue working in a job he doesn't want to do. You're welcome
Related: Sports Direct's Keith Hellawell offered to resign as chairman
10.58am BST
Auditorium is filling up nicely. Everyone very chatty. Coffee and pastries on offer.#sportsdirectagm
10.54am BST
Simon Neville of Buzzfeed tweets:
After some wifi fan dangling, I'm now at the Sports Direct AGM. Currently seems to be more press and unions than shareholders...
10.52am BST
While we wait for the AGM to start, here’s some comment from City lawyer Nick Elwell- Sutton of Clyde & Co:
“While Sports Direct’s decision to elect a worker to its board is designed may be a response to the report, the direction of travel is now turning towards worker representation at board level as is already common on the continent.
This can be seen in TFL appointing a union representative to its board and the Prime Minister’s policy statement in July that workers should be present on the boards of big business. Quite how successful this will be remains to be seen.”
10.49am BST
Shareholders and reporters are shuffling into their seats in the Auditorium* at Unit D of Sports Direct’s HQ.
(* - basically, a room in a warehouse)
10.40am BST
City chairmen are meant to be the ultimate power in the boardroom, with the power to sack a mere CEO if required.
But Keith Hellawell’s failed resignation attempt shows that Mike Ashley does things differently at Sports Direct.
Slightly confused on Sports Direct. If chairman offered to resign, who had power to stop him? He is supposed to be head of board
Keith Hellawell "offering to resign" rather suggests that he is not real power behind the board....
10.22am BST
My colleague Sarah Butler will be covering the AGM action for us - here’s the scene outside Sports Direct’s HQ:
News crews aplenty outside Sports Direct HQ ahead of the AGM this morning.. I'll be live tweeting pic.twitter.com/1asm8rzMW1
A crowd of cameras outside the #SportsDirectAGM. Set to be an exciting day at #SportsDirect HQ in Shirebrook. pic.twitter.com/edd71srdvl
Media scrum starting to assemble at the sports direct annual meeting ... pic.twitter.com/Qf20ybwbzd
10.08am BST
The Sports Direct AGM kicks off (literally and metaphorically) in around 50 minutes, at 11am BST.
According to the schedule, the board will spend 45 minutes presenting their report to shareholders, and the ‘interested parties’ who are also welcome to attend.
Sports Direct have allotted just half an hour for lunch at today's AGM and investor meeting — controversial pic.twitter.com/Ca9xzKUVII
9.51am BST
Boom! Another Sports Direct investor has announced it will vote against the board at today’s AGM.
More pressure on Sports Direct: Railways pension scheme votes against all directors. Says it's a big decision but has lost faith in board.
9.46am BST
It’s pretty busy at Sports Direct’s Shirebrook HQ this morning, as executives and reporters arrive for the AGM.
Chairman Keith Hellawell gave reporters a cheery “Morning”, but didn’t discuss his resignation offer.
Sports Direct chairman Keith Hellawell arrives at the company's AGM in Shirebrook pic.twitter.com/OSq2hLEHy4
9.40am BST
The Telegraph’s Ashley Armstrong sums up the morning....
This morn we've already had a profit warning, a cap ex hike, an offer from the chairman to resign & Sports Direct's AGM hasn't even started
9.40am BST
Sports Direct’s shares are still being hammered in the stock market, and are currently down almost 10%.
Investors aren’t impressed by its warning of falling profits and chairman’s Hellawell’s failed attempt to resign.
“Investors rapidly sold out of Sports Direct shares as the UK market opened after a double whammy of bad news this morning.
First and foremost, the retailer expects profits to fall by 20%, with underlying earnings expected around £300m, marking a fall of £81m from a year ago. And secondly the fact the firm rejected Chairman Dr Keith Hellawell’s resignation. Shareholders have long felt that the firm is held too tightly under Mike Ashley’s grip and Chairman Hellawell has been unable to wield the sufficient power needed to make the radical changes required. So news of this rejection ultimately raises the feeling amongst larger shareholders such as Legal and General that Sports Direct will continue to operate with a Chairman that lacks sufficient influence.”
9.33am BST
Here are some more slides from this afternoon’s presentation, showing how Sports Direct will implement its turnaround plan:
9.30am BST
The prospect of Sports Direct becoming the new Selfridges has caused some mirth on social media...
..@NickBubb1 @whatbutlersaw how about the Newcastle of retail ??
Mike Ashley you craaaazy ! #sportsdirect have more chance of becoming like #Selfridges than #Asda have of being the #Harrods of food! #never
@NickBubb1 @whatbutlersaw if it could just be a sports retailer without chewing gum embedded in the carpet that would be a good start
9.15am BST
Mike Ashley is going to declare today that Sports Direct hopes to be the Selfridges of sports retail by the end of the decade.
Yes, you read that right.
9.02am BST
Despite Sports Direct’s efforts to turn over a new leaf, it is still employing Mike Ashley’s daughter’s boyfriend to run its property arm.
The company says today that:
As previously disclosed, our Property team will continue to be led by Michael Murray and any remuneration will be decided at the Board’s discretion.
To kick things off Sports Direct statement saying chairman Hellawell is staying and Ashley's daughters boyfriend will still run properly..
8.48am BST
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
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
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
This chart shows how Sports Direct shares have taken an early dive:
8.09am BST
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.
7.59am BST
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.
7.37am BST
Sports Direct has just revealed that its chairman, Dr Keith Hellawell, offered to resign over the weekend!
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.
Sports Direct statement says Hellawell been asked to stay on despite offer to resign ahead of shareholder vote..
Related: A new Sports Direct chairman is long overdue
7.22am BST
Good morning.
Related: Sports Direct ditches zero-hours jobs and ups worker representation
Guardian front page, Wednesday 7 September 2016: Sports Direct admits failure on zero hours pic.twitter.com/KqXmCPJyTM
“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.”
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