Shares in JJB Sports dropped by nearly a fifth after the retailer warned it would make a loss in its current financial year.

The worse-than-expected trading update came on the heels of an admission from JJB that 27.5 per cent of its shares, believed to have been owned by Chris Ronnie, chief executive, had been transferred to the administrators of Mr Ronnie’s financial backer Kaupthing Bank. Another 1.3 per cent – or 3.2m shares – are missing.