Steve Varley: The boss doing the running for EY October 1, 2014 No celebrations for EY Britain’s boss, Steve Varley, despite a 8.6pc rise in turnover. Steve Varley, head of EY’s British arm, laughs nervously. After three years at the helm, the Yorkshireman has clear, almost PR-perfect soundbite answers to any question about the business. The one that has flummoxed him is how he and [...]
Sainsbury’s new boss Mike Coupe blames “perfect storm” for sales drop October 1, 2014 Sainsbury's new chief executive said that a “perfect storm” of effects had plunged sales further into the red in the second quarter as the supermarket retailer cut its full-year sales forecast and warned that it might review its dividend. In his first official trading update since taking over from Justin King in July, Mike [...]
Sainsbury’s needs to shore up the shop – Bottom Line October 1, 2014 In business, timing is everything, and retail moves faster than most businesses. Justin King, Sainsbury’s ex-kingpin, seems to have grasped this better than most when he sailed off into the sunset earlier this year, just as the storm clouds were gathering over the supermarket. Under King’s helm, Sainsbury’s reported a 2.1 per cent rise in [...]
UK finance watchdog launches probe into Tesco’s profit debacle October 1, 2014 Tesco was put under further pressure yesterday after the Financial Conduct Authority (FCA) said it had launched a full investigation into the Tesco accounting scandal that had knocked £4bn off its market value. Britain’s biggest supermarket stunned the City after revealing last week that it had overstated first-half profits by £250m. The accounting error, which [...]
Supermarkets sweep to the bottom of FTSE – London Report October 1, 2014 BRITAIN’S top equity index fell yesterday to its lowest closing level in nearly six months, as a new slump in the shares of supermarket retailers hit the market. The sentiment was also hit by news that Britain’s manufacturing grew at the slowest rate in 17 months in September as demand weakened at home and in [...]
Tesco, Sainsbury’s and Morrisons: Have investors given up on supermarkets? October 1, 2014 Tesco's share price has fallen 3.4 per cent today. Wm Morrison's has declined by 5 per cent. Sainsbury's share price tumbled 6.6 per cent. Although they operate in the same sector, each of these three supermarkets is suffering its own problem. So what is happening? Tesco's well documented £250m black hole in its [...]
Tesco share price falls again as Financial Conduct Authority confirms investigation into £250m profits black hole October 1, 2014 October has not started off well for beleaguered Tesco. This morning, the Financial Conduct Authority (FCA) confirmed the launch of a full investigation into the supermarket following last month's profit overstatement. On 22 September, Tesco warned investors that its profit outlook for the half year to August had been overstated by £250m. It blamed [...]
Blame groupthink – not lack of regulation – for Tesco’s accounting crisis September 30, 2014 The latest fiasco at Tesco could prove an embarrassment for more than just the retailer. There appears to have been an overstatement of profit of some £250m, and some are asking questions about the company’s auditors. Of course, the full story has yet to emerge, and Tesco’s auditors did flag issues in their most recent [...]
Tesco share price falls on £2.5bn credit facility claims September 30, 2014 Tesco share price fell again today – though far less than in recent days – after it emerged the embattled supermarket had sought a £2.5bn banking facility to prop it up against any impact from credit ratings downgradings. The supermarket was 0.4 per cent down in early trading today, with its share price continuing [...]
Morrisons exec is charged with insider dealing September 29, 2014 MORRISONS’ former treasurer and head of tax has been charged with insider dealing ahead of the retailer’s £216m tie-up with Ocado last year. The Financial Conduct Authority (FCA) said yesterday it had charged Paul Coyle with two offences of insider dealing. He will now face criminal proceeding and is set to appear before Harrogate Magistrates’ [...]