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Updated at 2.01pm
NEARLY 15 YEARS of share gains from supermarket giant Tesco have been wiped out after the UK chain again slashed its profit forecasts.
The once-dominant retailer today announced it expected to make less than half what it took in last year.
Tesco told investors it predicted its trading profit for the full year to February would “not exceed £1.4 billion (€1.8 billion)” as it tried sinking more money into staff and stores.
The company’s share price hit a new low of £1.55 this morning after the announcement before bouncing back nearly 10%.
It has shed about two-thirds of its value since April 2010 and today’s bottom represents Tesco’s lowest share price since it plumbed similar depths in 2000.
Investors would have to look back even further – to 1997 – for a time when the Tesco share price consistently traded for less.
Last year the chain’s trading profit landed at £3.3 billion (€4.19 billion) – a figure which was already below what it took in for the same period in 2012/13.
Its forecast for this year has also been slashed since an estimate in late August when the company said it was expecting to make up to £2.5 billion (€3.18 billion).
Today, Tesco said it had “taken actions to invest in and improve (its) company offer” and it had hired more than 6,000 new staff, increased products and cut prices to win back customers.
“The early feedback from customers is encouraging,” its statement said.
Tesco under pressure
The supermarket chain has been coming under pressure as the market leader in Ireland over recent months, while in the UK, where it makes the bulk of its profits, its share of the grocery business has also been plunging.
Its existing business shrank 6.4% for the first half of 2014 in Ireland, the company’s worst-performed territory for the period.
Chief executive Dave Lewis said the company was trying to create “sustainable value” which had an impact on its short-term profits.
Our priorities remain restoring competitiveness in the UK, protecting and strengthening the balance sheet and rebuilding trust and transparency,” he said.
The company’s reputation took a big hit after it emerged in September that it had overstated its profits to the tune of £250 million – later revised up to £263 million.
The UK’s Serious Fraud Office has since launched a criminal investigation into the accounting debacle, while its chairman Sir Richard Broadbent announced he planned to stand down after the company’s latest plans were put in place.
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You can go studs up into the chest to win the ball these days.. who knew ..
@Brian: I’m a Liverpool fan and it wasn’t a penalty
@Mick Joe: I’m pretty sure I’ve seen plenty of penalties given for less!
@Mick Joe: If that challenge is made anywhere else on the pitch its a free kick 10 times out of 10.. It was a penalty.
@Brian: Absolutely disgraceful from the ref and VAR. Anywhere else on the pitch,at any moment during the game,that’s a clear foul and a booking for a reckless challenge. Because it’s with seconds to go and in the penalty area,officials are afraid to be ‘controversial’ City goal allowed to stand despite McAllister being blocked,van Dijk goal ruled out in Carabao Cup Final. Inconsistency is shocking.
@Mick Joe: I’m a Liverpool fan and that’s a peno all day.
@James Rowan: two wrongs don’t make a right
@Mick Joe: I’m a Liverpool fan and it was a penalty
@Mick Joe: Would it have been a free kick and yellow card anywhere else on the pitch?
@Brian: Exactly,and any earlier in the game.
@Mick Joe: yes it was…that happens anywhere else on the pitch and it’s a foul…VAR bottled it.
@Brian: spot on
@Mick Joe: im a united fan and it pains me to say it, but i reckon it was a pen. High legs is still high legs even if doku tried to pull out.
@Brian: Liverpool fans always moaning. Change the record. If Diaz was any use he’d have the match ball and you wouldn’t be crying.
@marklars81: Didn’t hear any moaning last week when the ref messed up and Liverpool got a late winner against Forrest.
@marklars81: nobody is crying lad.. you seem more upset than me . Lol. It was an observation of an incident in the biggest match of the season so far.. that alright with ya ? Lol
@Denis Ryan: Forrest? Oh,it’s Mr Gump again,showing his intelligence
@Mick Joe:
Know your not…your a troll
@Sean Brannigan: I am a Liverpool fan. Brush up on your spelling and grammar.
Liverpool have been denied stonewall penalties in games v City and Arsenal. Not to mention the perfect goal chalked off in the Spurs game. How many more can be dismissed?
Hate watching these games as a man u fan. Entertaining box to box. Attacking football at its best. Great game. Title race blown wide open. Liverpool unlucky had city on the ropes. Arsenal City on 31st has a even bigger feel now.
City luckly with draw as midfield overrun in the second half. Silva and KDB poor today due to Liverpool midfield play. Ake what a mistake. City really needed a win today so the title is probably gone, but still a surprise might happen.
@did you every wonder: city are still well in this race,whatever the result between city and arsenal just throws another twist,as a pool fan I’m enjoying it,but I have me fingers chewed up to the knuckle.
Liverpool have great chance of league. City Arsenal game will hopefully be a draw also. City are under pressure for something in that now. City’s next few games are tough but their final five games are all guaranteed wins for them on paper unlike Liverpool and Arsenal who have some tricky away games in theirs. Arsenal still have united wolves Brighton Tottenham all away also. More twists to come
We were robbed!
3 teams still in it and still some detractors are saying ‘dull stuff’ in contrast to say Bundesliga, La Liga, Ligue 1…you know, Bayern (not this year) Real/Barca/PSG.I want Liverpool to win, if not them Arsenal, and you know what that’ll be the 6th different team in 10/11 years that has won the PL..say to Bayern/PSG et al.
have your say