With dividends down by 75% and the Chairman, Richard Broadbent resigning, Tesco sees worse Q3 figures than expected.
Highlights from Tesco figures
UK like-for-like sales down (4.6)%, impacted by strong competition across the grocery market, headwinds from price cuts and fewer untargeted promotions
£0.9bn Group trading profit – year-on-year decline reflects challenges of UK business
Total UK online sales up 11%; like-for-like sales growth of +0.8% in UK convenience stores
Deloitte investigation into overstatement of expected half year profit concluded; impact confirmed as £(263)m, of which £(118)m relates to first half trading profit, with the balance treated as a one-off item (being c.£(70)m relating to 13/14 and c.£(75)m to pre-13/14)
Interim dividend 1.16p*** as previously announced; full-year capex reduction to £2.1bn
New Executive team in place and reviewing all strategic options to create greater shareholder value
* Group sales (inc. VAT) exclude the accounting impact of IFRIC 13 (Customer Loyalty Programmes).
** Underlying diluted EPS growth calculated on a constant tax rate basis; (48.2)% at actual tax rates.
*** The interim dividend will be paid on 19 December 2014 to shareholders on the Register of Members at the close of business on 31 October 2014.
Image: Table of interim results from Tesco PLC
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