Tesco’s chair steps down as profit cri­sis deep­ens

CityPress - - Business -

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.

– Bloomberg

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