Tesco Confirms US Exit And Profit Fall
Tesco writes off more than £2.5bn and ends major store expansion amid efforts to breathe new life into its appeal in the UK.
Tesco has confirmed its first fall in annual profits for 20 years and writedowns totalling more than £2.5bn as it moves to concentrate on improving its UK supermarket business.
The retailer confirmed the closure of its loss-making Fresh & Easy operation in the United States, with a resulting £1.2bn writedown a major factor behind its 51.5% fall in pre-tax profit to £1.96bn in the year to February 13.
Tesco was also hit by costs related to its turnaround plan for the UK while its bank's exposure to the payment protection insurance scandal grew to £115m.
A writedown of £804m was also confirmed on the value of its UK property portfolio as it scrapped more than 100 store developments to focus on store revamps, convenience stores and improved delivery to online customers.
A £495m 'goodwill impairment' relating to its operations in Poland, the Czech Republic and Turkey was announced too.
Read more: news.sky.com