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23/10/2014
Tesco Chairman Quits As Profits Plummet
Tesco Chairman Sir Richard Broadbent is to stand down, after the retailer reported a 92% drop in pre-tax profits.
The firm also revealed that the accounting black hole in its profits is larger than anticipated.
Mr Broadbent said he would quit as soon as the new Chief Executive, Dave Lewis, established his strategy for the firm, which is expected to be next year.
Sir Richard said: "The issues that have come to light over recent weeks are a matter of profound regret. We have acted quickly to clarify the financial performance of the company.
"A new management team is in place to address the root causes of the mis-statement and to develop and implement the actions that will build the company's future."
An internal investigation by Deloitte into its procedures revealed historic failures in its UK food business.
Pre-tax profits fell to £112m while UK trading profit was down 55.9% to £499m. Tesco's share price has plummeted more than 50% in the last year.
(CD/JP)
The firm also revealed that the accounting black hole in its profits is larger than anticipated.
Mr Broadbent said he would quit as soon as the new Chief Executive, Dave Lewis, established his strategy for the firm, which is expected to be next year.
Sir Richard said: "The issues that have come to light over recent weeks are a matter of profound regret. We have acted quickly to clarify the financial performance of the company.
"A new management team is in place to address the root causes of the mis-statement and to develop and implement the actions that will build the company's future."
An internal investigation by Deloitte into its procedures revealed historic failures in its UK food business.
Pre-tax profits fell to £112m while UK trading profit was down 55.9% to £499m. Tesco's share price has plummeted more than 50% in the last year.
(CD/JP)
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