Tesco Launches Probe into £250Million profit overstatement
September 22, 2014 7:20 pm
Tesco (TSCO.L) is again under pressure after news emerged it has overstated its half year profit by a huge £250Million. The news has prompted new Chief Executive to respond by suspending four top executives including its UK managing director and launching an immediate probe into the matter.
Chief Executive Dave Lewis, only in the job since the first of September said “Disappointment would be an understatement” and his priority is now a “full and frank investigation”.
Earlier today as Tesco share price plummeted to a multi year low losing nearly 12% and wiping £2.2Bln from the value of the company. Trading finished at 203p and the prospect of more losses tomorrow looms as investors and financial institutions alike start to move their money amid a stream of bad news coming from the company including falling sales, profit warnings and weak share price performance.
Tesco (TSCO.L) is again under pressure after news emerged it has overstated its half year profit by a huge £250Million. The news has prompted new Chief Executive to respond by suspending four top executives including its UK managing director and launching an immediate probe into the matter.
Chief Executive Dave Lewis, only in the job since the first of September said “Disappointment would be an understatement” and his priority is now a “full and frank investigation”.
Earlier today as Tesco share price plummeted to a multi year low losing nearly 12% and wiping £2.2Bln from the value of the company. Trading finished at 203p and the prospect of more losses tomorrow looms as investors and financial institutions alike start to move their money amid a stream of bad news coming from the company including falling sales, profit warnings and weak share price performance.