Tesco’s chair steps down as profit crisis deepens
Tesco, the troubled UK grocery chain, said chairperson Richard Broadbent was preparing to step down as it disclosed that a first-half profit estimate was overstated by more than initially feared.
Broadbent said: “I will begin to prepare the ground to ensure an orderly process for my own succession.”
Tesco said there had been similar accounting practices in prior reporting periods and that an August estimate of first-half profit was overstated by £263 million (R4.6 billion), more than the £250 million it initially thought. First-half trading profit slumped 41% to £937 million.
The company had forecast earnings of £1.1 billion on August 29. Tesco said less than a month later that it had overstated the projection after booking some income before it was earned and recognising some costs later than they were incurred.