Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Tesco PLC    TSCO   GB0008847096

TESCO PLC

(TSCO)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Tesco's UK forecasts changing overnight in 2014, court told

share with twitter share with LinkedIn share with facebook
10/10/2017 | 03:19pm EDT
Former Tesco executive Carl Rogberg arrives at Southwark Crown Court in London

LONDON (Reuters) - Tesco had become such a complex business by 2014 that internal forecasts for its UK grocery business were changing overnight, a London court heard on Tuesday.

Amit Soni, a senior accountant at Tesco, was giving evidence for a fifth day at the trial of three former senior executives at Britain's biggest retailer who are accused of fraud and false accounting in 2014.

Christopher Bush, 51, who was managing director of Tesco UK, Carl Rogberg, 50, who was UK finance director, and John Scouler,49, who was UK commercial director for food, all deny any wrongdoing and have pleaded not guilty.

The trial, which opened on Sept. 29, follows Tesco's announcement in September 2014 that its group profit forecast had been overstated by 250 million pounds mainly due to booking commercial deals with suppliers too early.

On Tuesday Nicholas Purnell representing Rogberg told the court about an email Soni sent to Rogberg at the end of March 2014.

In the email Soni noted that the forecast for the difference between the UK food business's actual result for "period 1" (March) in the 2014-15 financial year and its budget had narrowed from 108 million pounds on the Thursday of the week to one of 75.6 million pounds on the Friday as more data became available.

"I'm not criticising Mr Soni, I'm merely pointing out that overnight the figure can move from 108 to 76 ... Pointing out what can happen in a business as complex as Tesco," Purnell said during his cross examination of Soni at Southwark Crown Court.

Tesco's disclosure in September 2014 saw its shares tumble and plunged the company into the worst crisis in its near 100-year history.

Last week lead prosecutor Sasha Wass had told the court that all three defendants were well aware that a hole in Tesco's accounts was "spiralling out of control" in the first half of 2014 but connived to conceal their failure to meet targets.

On Tuesday Purnell told the court about a document Soni and his colleague John Williamson prepared in March 2014 ahead of a meeting with Tesco's then chief financial officer Laurie McIlwee.

Soni said his aim was to explain to McIlwee how Tesco's commercial gross margin behaved quarter by quarter and to see if spikes in commercial gross margin could be smoothed out.

Purnell told the court the paper became known as "Reporting the Truth."

"Reporting the Truth has got nothing whatever to do with mis-reporting the accounts from one year to another has it ?" he said.

He said it instead highlighted the problem inherent in Tesco's system.

The trial is expected to last beyond Christmas.

(Reporting by James Davey; Editing by Greg Mahlich)


Stocks mentioned in the article
ChangeLast1st jan.
DEERE & COMPANY 1.12% 239.53 Delayed Quote.38.25%
TESCO PLC 1.61% 214.1 Delayed Quote.-16.11%
THE LEAD CO., INC. -1.83% 375 End-of-day quote.-3.85%
share with twitter share with LinkedIn share with facebook
All news about TESCO PLC
10/15London stocks slump on further coronavirus lockdowns, Brexit uncertainty
RE
10/15TESCO PLC : Ex-dividend day for interim dividend
FA
10/14AGEAS / : Sells Its Stake in Tesco Underwriting to Tesco Bank for GBP104 Million
DJ
10/14AGEAS / : sells its share in UK motor, home JV to Tesco Bank
RE
10/13London stocks retreat as coronavirus, Brexit doubts weigh
RE
10/13TESCO : Vegan food boom sends demand for sweet cooking pumpkins soaring
PU
10/13UK grocery sales rise, but shoppers aren't stockpiling - Kantar
RE
10/13London stocks retreat as coronavirus, Brexit doubts weigh
RE
10/13UK grocery sales growth accelerates as Eat Out scheme ends
RE
10/09TESCO : renews £2.5bn committed facility establishing link to sustainability tar..
PU
More news
Financials
Sales 2021 58 250 M 75 958 M 75 958 M
Net income 2021 1 075 M 1 402 M 1 402 M
Net Debt 2021 11 239 M 14 656 M 14 656 M
P/E ratio 2021 17,6x
Yield 2021 3,89%
Capitalization 20 841 M 27 191 M 27 177 M
EV / Sales 2021 0,55x
EV / Sales 2022 0,50x
Nbr of Employees 405 506
Free-Float 97,7%
Chart TESCO PLC
Duration : Period :
Tesco PLC Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends TESCO PLC
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 14
Average target price 276,89 GBX
Last Close Price 214,10 GBX
Spread / Highest target 47,1%
Spread / Average Target 29,3%
Spread / Lowest Target 2,76%
EPS Revisions
Managers
NameTitle
Ken Murphy Group Chief Executive Officer & Director
John Murray Allan Non-Executive Chairman
Antony John Hoggett Chief Operations Officer
Alan James Harris Stewart Chief Financial Officer & Executive Director
Guus Dekkers Chief Technology Officer
Sector and Competitors
1st jan.Capitalization (M$)
TESCO PLC-16.11%26 844
WOOLWORTHS GROUP LIMITED7.36%34 697
SYSCO CORPORATION-23.77%33 198
AHOLD DELHAIZE N.V.9.04%30 302
KROGER12.59%25 296
AEON CO., LTD.20.33%22 017