Sports fashion retailer JD Sports has made a loss of £2.2m following the acquisition of Blacks Leisure.
The loss of operating costs from Blacks was as of a consequence of excessively large and over-rented stores, a lack of stock and disproportionate costs, according to the company.
JD bought the outdoor clothing retailer for £20m in January and set aside £3.5m for restructuring costs.
Pre-tax profit at JD fell 14% to £67.4m for the year to 28 January 2012. Revenues rose almost 20% to £1.06bn.
Sales at stores open for more than a year in the UK and Ireland were up 1.2 per cent, although profit margins are still under pressure as consumers continue to search for a bargain.