Tesco Launches Investigation into Profit Guidance

Supermarket giant says profit guidance for the half year was overstated by £250 million

Tesco has launched an investigation after revealing that its guidance on half-year profits was overstated by around £250 million.

The supermarket has asked Deloitte to undertake an "independent and comprehensive" review of the issues, which involved the accelerated recognition of commercial income and delayed accrual of costs.

In its latest profits warning at the end of August, Tesco had said it expected trading profits to be in the region of £1.1 billion.

New chief executive Dave Lewis, who started in the role on 1 September, said: "We have uncovered a serious issue and have responded accordingly."

The supermarket was expected to release its interim results on 1 October, but this has now been pushed back to 23 October as a result.