Tesco chairman to stand down as supermarket chain reveals profits have fallen by a staggering 91% after disastrous six months
Tesco’s share price dive-bombed today after it was revealed profits have slumped by 91.9 per cent, its chairman quit and a £250million accounting scandal was even worse than predicted.
Sir Richard Broadbent stood down after the business suffered the most disastrous six months in its 95-year history, which saw millions of customers switch to budget rivals like Aldi and Lidl.
Tesco revealed today pre-tax profits in the six months to August plunged 91.9 per cent to £112million, compared to £1.3billion a year earlier.
Its shares opened 11p down this morning, meaning it has suffered a £4billion drop in its market value this year.
Police are also expected to launch a criminal investigation over an accounting scandal that saw its first half profits artificially inflated by £263million, more than the £250million estimated last month.
Chairman Sir Richard said this morning he was preparing to step down because ‘the issues that have come to light are a matter of profound regret.’
The latest industry data showed Tesco’s sales falling at the fastest rate in the sector. UK trading profit was down 55.9 per cent to £499million, it was announced today.
Source: Daily Mail / Oct. 23, 2014