UK

Tesco's Share Price Still Falling In Wake Of Book-Cooking Scandal

23/09/2014 14:10 BST | Updated 23/09/2014 14:59 BST
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Male customers are seen carrying Tesco branded shopping bags after leaving a Tesco Metro supermarket store, operated by Tesco Plc, in London, U.K., on Monday, Sept. 22, 2014. Tesco Plc, Britain's biggest supermarket chain, started a probe of accounting practices and suspended its U.K. chief after overstating its first-half profit estimate. Photographer: Simon Dawson/Bloomberg via Getty Images

Tesco's share price has continued to fall in the wake of allegations that supermarket executives over-stated its profits.

The arrival of a new finance director Alan Stewart, who will start with has failed to stop the falling share price. The supermarket's new chief executive, Dave Lewis, only started in the job at the beginning of September.

The retailer, whose share of the market was above 30% last year, is in the grips of major crisis after it emerged yesterday that it had over-stated its profits guidance to the City by an estimated £250 million.

The fourth profits warning of the year sent Tesco shares down by 12% to their lowest level in a decade yesterday. Tesco has suspended four executives in its UK business while it investigates the over-statement of profits. The inquiry will look into the way it treated rebates paid by suppliers and whether they were reported in the right time period.

Clive Black, an analyst at Shore Capital Stockbrokers said he was "flabbergasted" by the news. "These are serious times for Tesco and its shareholders," he said.

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