UK supermarket chain Tesco listed on the London Stock Exchange (LSE) in 1947. The first sign of trouble was the April 2014 departure of its CFO. In July 2014, Tesco announced that its CEO was departing after disappointing FY14 results (to February) having failed to turn the company around. This led to a collapse in the company's share price. In 2014, Tesco admitted that its 1H15 profits were overstated by £250m and the company had asked various senior managers to step aside whist an investigation was ongoing. A summary of Deloitte's forensic report was released in October which stated that the impact of the misstatement of profits was confirmed as £263m in total, of which £118m related to 1H15 trading profit, with the balance treated as a one-off item. This was made up of around £70m relating to FY14 and approximately £75m from before that period. The Deloitte report confirmed that there were amounts pulled forward or deferred, contrary to Tesco Group accounting policies.

Last updated November 2022

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