Tesco scraps outlook on accounting black hole

London - Britain's biggest grocer Tesco reported a larger than expected hole in its accounts on Thursday, forcing it to scrap its full-year trading profit outlook.

Tesco, which has lost a fifth of its market value in the last month, scrapped the outlook as its second-quarter underlying domestic sales fell sharply, down 5.5%.

The group said last month it had overstated its first-half profit forecast by £250m, but the group said on Thursday this had now risen to £263m.

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