JJB Sports is to be fined £455,000 by the Financial Services Authority (FSA) for a breach of disclosure and transparency rules that occurred before its interim results in September 2008.
The retailer, which has since installed a new management team led by former Dixons executive Keith Jones to lead a turnaround programme, will pay the fine next year “on a date or dates to be determined”. The punishment brings to an end FSA investigations into JJB.
City forecasts are likely to remain unchanged for 2011/2 because the fine will be treated as an exceptional item, it is understood.
JJB is concentrating on reformatting stores and has completed six shops so far.
Given the consumer backdrop, analysts expect trading conditions will remain tough. However, the overhauled shops are showing sales uplifts against the rest of the chain.