Arab Today, arab today tesco shares plunge over 14 on profitswarning
Last Updated : GMT 10:35:06
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.

arabstoday
arabstoday

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

 



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 Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today US travel restrictions are still 'Muslim ban'

GMT 00:54 2017 Tuesday ,26 September

US travel restrictions are still 'Muslim ban'
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel builds settlements 'at high rate'

GMT 01:04 2017 Tuesday ,26 September

Israel builds settlements 'at high rate'
Arab Today, arab today Saudi clerics use Twitter, textbooks

GMT 10:13 2017 Tuesday ,26 September

Saudi clerics use Twitter, textbooks
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Personality study finds fish have hidden depths

GMT 00:43 2017 Tuesday ,26 September

Personality study finds fish have hidden depths
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Botanical gardens a lifeboat

GMT 02:50 2017 Tuesday ,26 September

Botanical gardens a lifeboat
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Mai Kassab happy for participating in new film

GMT 09:33 2017 Friday ,22 September

Mai Kassab happy for participating in new film
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 16:08 2017 Monday ,25 September

'World's heaviest woman' dies

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
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