Tuesday, 23 September 2014

Tesco Profit Error: New Finance Boss Rushed In

ATesco supermarket with shoppers coming out of it
Tesco has managed to secure the services of its new chief financial officer more than two months early - a day after revealing a £250m profits error.
Alan Stewart had in July quit the same role at Marks & Spencer to join Tesco but was forced to take a period of so-called 'gardening leave'.
The supermarket chain said today that he would start work on Tuesday, rather than the previously announced date of December 1.
Tesco wanted to get Stewart early after revealing on Monday an accounting issuethat had led it to overstate its first half profit forecast by £250m.
Alan Stewart M&S/Tesco
Alan Stewart joins Tesco today from M&S
It was later revealed that four executives in its UK business had been suspended as an inquiry examines the way rebates paid by suppliers were treated and whether they were reported in the right time period.
Its shares lost 12% of their value on the FTSE 100 in the hours after the announcements and the decline continued on Tuesday.
Tesco has been without a finance chief since Laurie McIlwee officially left the business earlier this month though Sky News learned today he had not been at its HQ since April - raising further the pressure on chairman Sir Richard Broadbent.

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