Before the final preparations for the upcoming interim results, Tesco has identified an overstatement in its H1 2014 profit due to accelerated recognition of commercial income and delayed accrual of costs.
- In preliminary investigations for the UK food business, the Board expects that the guidance on 29 August 2014 for the Group’s profits for the six months ended on 23 August 2014 was overstated by approximately GBP 250 million.
- The impact is also driven by in-year timing differences.
- The retailer is working to negate the extent of these issues and to reduce the impact on the full year results.
- It will further update on its interim results, announced on 23 October 2014.
- The Board has asked Deloitte to carry out an independent and comprehensive review of these issues, in tandem with Freshfields, the Group's external legal advisers.