Tesco’s latest financial report must make for very uncomfortable reading indeed for many today. Shareholders in particular are probably shuddering as they look at the plunging profits arrow.
And Sir Richard Broadbent, chairman of the once mighty shopping giant, reportedly wants out.
In the six months period up to August this year, before-tax profits are down a staggering 91.9%. Tesco has made a measly £112m (about €142m) in this period.
So Tesco’s profits have sunk into a bottomless maw, it seems, and it is in fact the Irish side of the supermarket chain that has consistently performed the worst of any country over the last six months.
It has also been confirmed that the company’s little accounting mess earlier in the year is more significant than previously announced. Tesco apparently overstated its profits to the tune of £263m (in and around €334m, and change.)
While the chain’s like-for-like sales were down everywhere, the largest drop comes from the Irish side, with a 7.3% plunge over the last 3 months, and a total of 6.4% for the full half-year.
Tesco’s shares have lost more than 62% of their value over the last five years, and are close to an all time low.
The company has reported that it has conducted an investigation into the accountancy issue and handed the results over to the UK’s Financial Conduct Authority.