Tesco fast-tracks new finance chief

Written By Unknown on Selasa, 23 September 2014 | 15.36

23 September 2014 Last updated at 08:08

Troubled supermarket giant Tesco has said that its new chief financial officer, Alan Stewart, is joining the company immediately, more than two months earlier than originally planned.

Mr Stewart was previously in the same post at Marks and Spencer.

His arrival fills a gap left by Laurie McIlwee, who left just over a week ago, following his resignation in April.

On Monday, Tesco stunned the markets by saying it had overstated its half-year profit guidance by £250m.

It has launched an investigation headed by Deloitte, and says it is now working to establish the impact of the issue on its full-year results.

It has also suspended four executives, including its UK managing director, Chris Bush.

Tesco is also believed to have suspended its UK finance director Carl Rogberg, its food commercial director John Scouler and the head of food sourcing, Matt Simister.

The news prompted a plunge in Tesco's share price, which closed 11.6% lower at 203p.

Mr Stewart was originally due to join Tesco on 1 December, but his start date was brought forward after negotiations with Marks and Spencer.

BBC business editor Kamal Ahmed says he has been told that the move came after a direct appeal from Tesco chief executive Dave Lewis to his counterpart at Marks and Spencer, Marc Bolland, who "graciously" allowed Mr Stewart to leave early.

Analysis, Kamal Ahmed, BBC business editor:

The announcement that Alan Stewart, the former finance director of Marks and Spencer, will start work today at Tesco - rather than the somewhat more leisurely 1 December - will bring some relief to investors, who have faced a battering over the last year.

A business facing an accounting crisis with no chief financial officer was not exactly comfortable.

Sir Richard Broadbent, the chairman, will hope that the move will quieten those who believe that he should consider his position.

He certainly spent yesterday, when the accounting crisis broke, desperately trying to move Mr Stewart's start date forward. In that, at least, he has been successful.

Last month, Tesco cut its full-year profit forecast from £2.8bn to £2.4bn, and said trading profit for the six months to 23 August was expected to be about £1.1bn.

As a result of the change to its profit guidance, Tesco has pushed back the release of its interim results to 23 October, from 1 October.

The investigation into the overstatement will be carried out by Deloitte together with Freshfields, the group's external legal advisers.

Tesco has been battling falling sales and a decline in its market share as discount chains such as Aldi and Lidl have gained in popularity.

Previous chief executive Philip Clarke stood down in July after his attempts to revive Tesco's fortunes through a £1bn turnaround plan failed.


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