Tesco Issues Full-Year Profit Warning

Struggling supermarket giant Tesco has issued a profit warning, and said full-year results would be some 30% below expectations.

In a trading update, Britain's biggest grocer said profit to the year ending February 2015 would not exceed £1.4bn.

Previous forecasts for the 2014-15 financial year were around the £1.94bn figure.

This is the fourth profit warning issued by the company in the last year.

The warning comes on the 100th day in office of new chief executive Dave Lewis.

Mr Lewis takes over the day-to-day running of the UK business on January 1.

The company has seen  £11.7bn in market capitalisation eroded this year so far, with £3.4bn wiped from its value since Mr Lewis joined.

It said the cost of overhauling internal structures, product lines and investments were behind the trading update.

The company has struggled amid the rise of more discerning shopping habits, discounters and a succession of scandals.

In early 2012 it issued its first profit warning in two decades.

It then took a series of hits over its failing venture in the United States and writedowns in its UK property portfolio post-recession.

Last year it was hit by the horsemeat adulteration scandal and in 2014 there was been a significant management shake-ups.

Tesco was recently hit by an accounting controversy, after it was revealed to have inaccurately recorded £250m as profit in its books.

A number of senior executives were suspended pending the outcome of an internal inquiry. The Serious Fraud Office has since launched an investigation.

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