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Tesco confirms finance director exit | Tesco confirms finance director exit |
(35 minutes later) | |
Tesco has confirmed its finance director, Laurie McIlwee, has decided to resign ahead of what is likely to be a second fall in profits in as many years. | Tesco has confirmed its finance director, Laurie McIlwee, has decided to resign ahead of what is likely to be a second fall in profits in as many years. |
It comes as Tesco finds itself locked in a price war with rivals. | It comes as Tesco finds itself locked in a price war with rivals. |
Tesco posts its full-year results on 16 April. Analysts expect pre-tax profits to fall to £3bn from £3.2bn a year earlier. | Tesco posts its full-year results on 16 April. Analysts expect pre-tax profits to fall to £3bn from £3.2bn a year earlier. |
In October Tesco reported a 23.5% fall in half year pre-tax profits. | In October Tesco reported a 23.5% fall in half year pre-tax profits. |
It blamed the fall on a challenging retail environment, particularly in Europe. | It blamed the fall on a challenging retail environment, particularly in Europe. |
UK like-for-like sales - which exclude new store openings - fell by 0.5%. | UK like-for-like sales - which exclude new store openings - fell by 0.5%. |
At the same time Sainsbury's reported a 2% rise in like-for-like sales during the second quarter of its financial year. | At the same time Sainsbury's reported a 2% rise in like-for-like sales during the second quarter of its financial year. |
Mr McIlwee's resignation comes after investors are thought to have aired frustrations relating to October's half year figures. | Mr McIlwee's resignation comes after investors are thought to have aired frustrations relating to October's half year figures. |
Tesco shares closed down 1.47% to 287.40p, the second biggest faller in the FTSE 100. | |
'Unprecedented change' | 'Unprecedented change' |
Last April's full year results showed a £1.2bn write-down on Tesco's Fresh & Easy US chain of stores, which had never turned a profit. | Last April's full year results showed a £1.2bn write-down on Tesco's Fresh & Easy US chain of stores, which had never turned a profit. |
Tesco also wrote down £804m on its UK property portfolio. | Tesco also wrote down £804m on its UK property portfolio. |
The supermarket said it was commencing the process of looking for a new financial director immediately and would be considering both internal and external applicants. | The supermarket said it was commencing the process of looking for a new financial director immediately and would be considering both internal and external applicants. |
Tesco chairman, Sir Richard Broadbent, thanked Mr McIlwee for his contribution to Tesco during his 14 years with the supermarket giant. | Tesco chairman, Sir Richard Broadbent, thanked Mr McIlwee for his contribution to Tesco during his 14 years with the supermarket giant. |
"Together with Philip and the wider team, Laurie has played an important role in our process to transform Tesco and position it to be a winner in the new era of retailing. I and the Board wish him every success for the future," he added. | "Together with Philip and the wider team, Laurie has played an important role in our process to transform Tesco and position it to be a winner in the new era of retailing. I and the Board wish him every success for the future," he added. |
Mr McIlwee said: "I am proud of what we have achieved at Tesco over the last few years. However, after 14 years at Tesco I feel that now is the right time for me to pursue new opportunities. | Mr McIlwee said: "I am proud of what we have achieved at Tesco over the last few years. However, after 14 years at Tesco I feel that now is the right time for me to pursue new opportunities. |
"I wish Philip and the team well and I am absolutely confident that Tesco will emerge from the current period of unprecedented change in the industry stronger than ever." | "I wish Philip and the team well and I am absolutely confident that Tesco will emerge from the current period of unprecedented change in the industry stronger than ever." |