Tesco says it has overstated the figure for its expected half-year profits by an estimated £250m.
The company said it was “principally due to the accelerated recognition of commercial income and delayed accrual of costs”.
In a trading update this morning, the group, which owns the Giraffe restaurant chain as well as the Decks format and has a stake in Harris + Hoole, said: “On the basis of preliminary investigations in to the UK food business, the board believes that the guidance issued on 29 August 2014 for the group profits for the six months to 23 August 2014 was overstated by an estimated £250m.
“Some of this impact includes in-year timing differences. Work is ongoing to establish the extent of these issues and what impact they will have on the full year.”
Dave Lewis, group chief executive, said: “We have uncovered a serious issue and have responded accordingly. The chairman and I have acted quickly to establish a comprehensive independent investigation. The board, my colleagues, our customers and I expect Tesco to operate with integrity and transparency and we will take decisive action as the results of the investigation become clear.”
