Arab Today, arab today tesco shares plunge over 14 on profitswarning
Last Updated : GMT 14:03:39
Arab Today, arab today
Arab Today, arab today

Tesco shares plunge over 14% on profits-warning

Arab Today, arab today

Arab Today, arab today Tesco shares plunge over 14% on profits-warning

Tesco trading profit will not exceed £1.4bn
London - AFP

Britain's biggest retailer Tesco on Tuesday issued a major profits-warning, sending its share price crashing, as the supermarket group undergoes changes to its business triggered by a fraud probe.
Tesco said its trading profit "will not exceed £1.4 billion" ($2.2 billion, 1.8 billion euros) in its financial year to February 2015. Analysts' consensus had been for £1.94 billion.
"Whilst the steps we are taking to achieve this (turnaround) are impacting short-term profitability, they are essential to restoring the health of our business," Tesco chief executive Dave Lewis said in a company statement.
Shares in the group tumbled 14.31 percent to stand at 160.4 pence shortly after the start of trading on London's benchmark FTSE 100 index, which was down 0.96 percent overall.
"Tesco is no longer a viable investment," said Marc Kimsey, senior trader at Accendo Markets.
"A fire-sale of assets is almost nailed on and a rights issue cannot be ruled out. Traders are clearing the decks of what remaining stock they had."
British authorities recently launched a criminal investigation into Tesco after the retailer in October revealed that it had overstated its profits by £263 million as a result of accounting errors stretching back to before 2013.
Tesco is the world's third-biggest supermarket group after France's Carrefour and global leader and US giant Wal-Mart.
While Tesco has been forced to massively adjust its reported earnings owing to an overstatement of income and an understatement of costs, the supermarket has in any case seen profits hit in recent times by increased competition in main market Britain.
Tesco's net profit dropped to just £6.0 million in its first half from £820 million one year earlier.
In a bid to turn around its fortunes, the group in July appointed outsider and former Unilever executive Lewis to replace long-standing chief executive Philip Clarke.
But markets appear in no mood to be patient.
“The trading update may be brief and patchy on detail, but it has provided more ammunition for the snipers," said Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers.
"If there had been hope that the market would be immune to yet another profit warning, this quickly evaporated as Tesco has provided profit guidance which is nearly 30 percent shy of an already lowered estimate.
"The company partially attributed the lower figure to increased investment in the business, but amidst the accounting mishap, the revolving door in the boardroom and an unforgiving attack from the discount retailers, investors have simply lost interest in waiting for a recovery story which still seems some way off."
Tesco shares have plunged by almost half in value over the past year, according to Hunter, while the FTSE 100 has risen about 2.0 percent.
Amid the fallout, Richard Broadbent resigned as chairman of Tesco in October and the company has suspended a number of executives.
The Serious Fraud Office (SFO), the government department responsible for investigating and prosecuting serious and complex fraud and corruption, has meanwhile launched a criminal investigation into the company.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today tesco shares plunge over 14 on profitswarning Arab Today, arab today tesco shares plunge over 14 on profitswarning

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims

GMT 06:11 2017 Wednesday ,22 February

Russia’s Rosneft, Libya’s NOC sign oil offtake deal

GMT 05:49 2017 Wednesday ,22 February

‘PSA to honor Opel job guarantees’

GMT 05:41 2017 Wednesday ,22 February

BHP to Trump: Protectionism will hurt growth

GMT 20:42 2017 Tuesday ,21 February

Amazon plans 5,000 new jobs in UK

GMT 05:43 2017 Tuesday ,21 February

CEFC China Energy wins 4% stake in UAE oil project
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday