Share

Tesco boss to clarify accounting error

London - The new boss of Tesco has told staff he expects to be able to give a "clear and accurate indication" of the impact of a £250m ($402.18m) accounting mistake when the grocer reports delayed first-half results next week.

The 95-year old supermarket is suffering its worst ever crisis after issuing three profit warnings in 64 days this year and discovering an accounting mistake that overvalued first-half profits by £250m.

Tesco is due to issue its first half earnings on Thursday and chief executive Dave Lewis, who has been in the role for just over six weeks, said the figures will give the market clarity over the firm's finances.

In a memo emailed to staff, a copy of which was obtained by Reuters, Lewis said: "By next Thursday, Alan Stewart (CFO) and I expect to be in a position to give the market a clear and accurate indication of our income for the first half of the year."

The firm is expected to update the market on the progress of its own investigation, being conducted by auditors Deloitte and law firm Freshfields, into the accountancy error.

A spokesman at Tesco declined to comment on the memo, in which Lewis thanked staff for their cooperation with the investiation, when contacted by Reuters. Tesco launched an investigation into its finances when it announced the black hole on September 22 and it had not been clear how much of an update the market would receive next week.

Tesco has suffered over the last year with its big out-of-town stores losing favour as shoppers buy more locally and online, while discounters Aldi and Lidl and upmarket chains Waitrose and Marks & Spencer squeeze the middle ground.

On Tuesday, industry data published by Kantar Worldpanel will show Tesco's sales and market share performance over the last three months.

In his memo, Lewis told staff that performance in its core business had improved.

"Our recent performance in Food has been one of our strongest for a very long time."

He also said that the firm will be adding thousands of additional hours to cope with anticipated extra demand over Christmas, traditionally the busiest time of the year for British grocers but which saw poor sales figures last year.

Tesco's interim results on Thursday will cover the six months to August 23.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.87
+0.3%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders