This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.independent.co.uk/news/business/news/tesco-launches-investigation-into-profit-guidance-9747605.html

The article has changed 7 times. There is an RSS feed of changes available.

Version 1 Version 2
Tesco shares dive amid profit guidance probe Tesco shares dive amid profit guidance probe
(35 minutes later)
Tesco suffered fresh humiliation today after a shock admission that it overstated its profits guidance by £250 million.Tesco suffered fresh humiliation today after a shock admission that it overstated its profits guidance by £250 million.
Shares in Britain's biggest grocery chain dived to their lowest level in 11 years as the revelation caused its third profits warning in as many months.  Tesco also revealed number of staff, including UK managing director Chris Bush, have been asked to step aside from their roles while the investigation is carried out. Shares in Britain's biggest grocery chain dived to their lowest level in 11 years as the revelation caused its third profits warning in as many months. Tesco also revealed four executives have been suspended while the investigation is carried out.
In a media call earlier today, new chief executive Dave Lewis refused to discuss individual details amid reports UK managing director Chris Bush is among those suspended.
The supermarket has asked Deloitte to undertake an "independent and comprehensive" review of the issues, which involved the accelerated recognition of commercial income and delayed accrual of costs. Deloitte will work alongside Freshfields, the group's external legal advisers.The supermarket has asked Deloitte to undertake an "independent and comprehensive" review of the issues, which involved the accelerated recognition of commercial income and delayed accrual of costs. Deloitte will work alongside Freshfields, the group's external legal advisers.
Shore Capital Stockbrokers analyst Clive Black said: "These are serious times for Tesco and its shareholders. We are flabbergasted by this development."Shore Capital Stockbrokers analyst Clive Black said: "These are serious times for Tesco and its shareholders. We are flabbergasted by this development."
Writing on wall for Tesco's Broadbent? Shore cap: "this development must raise much more fundamental questions over the Chairman's position" Meanwhile, chairman Richard Broadbent, who came under intense scrutiny this morning, insisted that he is listening to shareholders amid calls that he should resign, adding: "My intention is to continue to be part of the solution".
Crikey. It's properly falling apart at Tesco. Amazed if chairman will survive this. Robin Terrell as interim UK MD a good move. Talented man
The investigation relates to Tesco's latest profits warning at the end of August, when it said half-year trading profits would be in the region of £1.1 billion.The investigation relates to Tesco's latest profits warning at the end of August, when it said half-year trading profits would be in the region of £1.1 billion.
The company admits that the issues uncovered in its UK food business mean the figure is likely to have been overstated by £250 million, leaving profits down by around 46 per cent on the £1.58 billion a year earlier.The company admits that the issues uncovered in its UK food business mean the figure is likely to have been overstated by £250 million, leaving profits down by around 46 per cent on the £1.58 billion a year earlier.
New chief executive Dave Lewis, who started in the role earlier this month, said: "We have uncovered a serious issue and have responded accordingly." Lewis, who started in the role earlier this month, said: "We have uncovered a serious issue and have responded accordingly."
The errors emerged during the company's preparations for half-year results, which were set to be released on 1 October, but will now be announced on 23 October.The errors emerged during the company's preparations for half-year results, which were set to be released on 1 October, but will now be announced on 23 October.
Lewis took over from Philip Clarke, whose departure from the retailer he joined 40 years ago was brought forward after the profits warning at the end of August.Lewis took over from Philip Clarke, whose departure from the retailer he joined 40 years ago was brought forward after the profits warning at the end of August.
The previous profits guidance of £1.1 billion for the half-year to August 23 was already well below the City's forecasts, even before today's disclosure that profits had been overstated by around £250 million.The previous profits guidance of £1.1 billion for the half-year to August 23 was already well below the City's forecasts, even before today's disclosure that profits had been overstated by around £250 million.