Tesco invent £250m in their profits and suspend execs
Everyone enjoys it when Tesco make a pig's ear of something. They're too big for their boots, so even if these cock-ups don't necessarily mean that they're in trouble, we should take every opportunity to mock them when it presents itself.
And so, Britain's biggest supermarket have overestimated their profits by £250m, like the massive idiots they are.
They were talking about their expected profit for the half year, and invented a whole load of money "due to the accelerated recognition of commercial income and delayed accrual of costs".
"On the basis of preliminary investigations into 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," the company said in a statement.
The stupid gits.
Tesco have gone off crying to Deloitte and asked them to undertake an independent and comprehensive review of this balls-up, as well as consulting Freshfields, their external legal advisers.
Once they get this sorted, they will provide a further update of their interim results, which will now be shared with the world on the 23rd October 2014.
We can only hope that even more money goes missing, because we're petty and cruel.
Tesco have gone and suspended four executives, including its UK managing director, after their overegging of profits and have launched an investigation, which will be undertaken by Deloitte.
As a result of this debacle, the company's shares fell 10%. "We have uncovered a serious issue and responded accordingly," said Tesco chief executive Dave Lewis.
Lewis said "a number of people" had been suspended from duty, and one of those is UK managing director Chris Bush, according to the BBC.
Lewis added that he expects Tesco "to operate with integrity and transparency" and that they "will take decisive action as the results of the investigation become clear."