Michael O’Leary proves he’s still good for laughs September 25, 2014 RYANAIR has the best shareholder meetings. Despite Michael O’Leary’s decision to “step out of the public spotlight”, he’s still good for quips when he gets in front of a crowd. Yesterday’s meeting in Dublin was no different. Tesco was first to get it in the goolies. When speaking about chief marketing officer Kenny Jacobs, O’Leary [...]
London Report: Bank policy and property fears weigh on FTSE September 25, 2014 Britain’s FTSE 100 fell yesterday to a six-week low as concern that Britain and the United States would soon tighten monetary policy pulled down mining and energy stocks, as well as companies exposed to the UK property market. Shares in basic materials and energy companies knocked a combined 35 points off the FTSE 100, which [...]
As BlackRock sells Tesco shares, has the grocer been permanently damaged by recent events? September 25, 2014 James McGregor, director of Retail Remedy, says Yes. Tesco’s admission this week that it had overstated its declining profits by £250m was one hell of a story. But the accounting cock-up and subsequent dumping of Tesco shares by BlackRock are really only footnotes in the protracted obituary of this once all-conquering retailer. The hegemonic Tesco [...]
Tesco bosses and ex-chief Philip Clarke could now face a grilling from MPs on the Business Select Committee September 25, 2014 Already facing scrutiny from the public, investors and financial regulators, Tesco may now have to explain itself to parliament. Business Select Committee chair Adrian Bailey called Tesco’s accounting error “stratospheric” and said bosses at the supermarket could face a grilling from MPs. Tesco chief Dave Lewis, chairman Sir Richard Broadbent, ex-chief Philip Clarke and auditor [...]
What is a put option and how is Mike Ashley using it to bet on Tesco? September 25, 2014 Mike Ashley's Sports Direct has taken a punt on Tesco by entering into a put option agreement with Goldman Sachs. But what exactly is a put option and how is he using it to make money? In short, Sports Direct is selling the option to Goldman, meaning that if the share price goes up, [...]
Mike Ashley’s Sports Direct takes a punt on Tesco’s share price September 25, 2014 Mike Ashley isn't averse to taking a flutter. This time, the Newcastle United owner has taken a bet on Tesco – his company, Sports Direct, has entered into a put option agreement with Goldman Sachs on 23 million of its shares, which could leave it with a 0.28 per cent stake in the retailer, worth [...]
Tesco admits finance boss Laurie McIlwee left in April – before £250m profit black hole appeared September 24, 2014 New revelation puts spotlight on former CEO Tesco was forced to admit last night that ex-finance chief Laurie McIlwee was not involved with the company during recent months when a £250m black hole appeared in its accounts. The troubled supermarket also confirmed that Philip Clarke, its recently-ousted chief exec, had headed up an internal finance [...]
Why Sir Richard Broadbent could be next to checkout at Tesco after £250m profit overstatement debacle September 24, 2014 Things are always unnoticed until they’re noticed.” Those seven Rumsfeld-esque words could seal Sir Richard Broadbent’s fate as Tesco chairman. Responding to questions about the accounting debacle at Britain’s biggest retailer, Broadbent offered a painful reminder of how quickly events can spiral out of the control of even the grandest of grandees. The [...]
Now Standard & Poor’s puts Tesco on negative credit watch September 24, 2014 It hasn't been a great week for Tesco chief executive Dave Lewis, what with discovering a £250m black hole in his balance sheet, having to suspend four executives, and then being subjected to the humiliation of a series of regulators saying they were "keeping an eye" on the situation. Now, following in the footsteps of [...]
Tesco share price continues slump as Financial Reporting Council says it’s “closely monitoring” the situation September 24, 2014 The UK’s accounting regulator is keeping an eye on Tesco’s investigation into accounting errors which has caused more than £2bn to be wiped off its shares in the past two days. The Financial Reporting Council (FRC) said this morning it is "monitoring the situation closely" after Tesco’s announcement on Monday that it overstated profit estimates [...]