Supermarket giant Tesco has announced that its group trading profits will not exceed £1.4 billion for the full financial year. The anticipated total was predicated to fall between £1.8 billion and £2.2 billion.

The news follows the announcement earlier this year that Tesco had overstated its profit guidance by £263 million, sending shares plummeting 16%.

It said it had retrained its "entire team" and invested further in its service following the news.
Tesco said it is making good progress to improve their plans and will have more information at its next update on January 8th.

Dave Lewis, CEO said: “Tesco is focused, and will continue to focus, on doing the right thing for customers. This means running our business in a way that everything we do creates sustainable value. Whilst the steps we are taking to achieve this are impacting short-term profitability, they are essential to restoring the health of our business. We will not engage in short term actions that compromise in any way our offer for customers.

“We still have much to do but are making good progress in developing our plans to improve the long-term positioning of the Group and I will share more of that on the January 8th. Our priorities remain restoring competitiveness in the UK, protecting and strengthening the balance sheet and rebuilding trust and transparency.  For now, all the Tesco team is focused on delivering the best Christmas for customers."