Welwyn Garden City-based Tesco pays millions after misleading accounting

PUBLISHED: 12:35 28 March 2017 | UPDATED: 15:53 28 March 2017

Dave Lewis, chief executive of Tesco

Dave Lewis, chief executive of Tesco

Archant

Supermarket giant Tesco, which is based in Welwyn Garden City, has admitted false accounting, and agreed to pay over £200million to avoid prosecution.

Tesco office at Shire ParkTesco office at Shire Park

Britain’s biggest retailer, which is based in Shire Park, announced today it has reached a deferred prosecution agreement with the Serious Fraud Office (SFO).

The company accepted that a trading statement published in August 2014 misled investors by seriously over-stating expected profits, but stressed that its directors had not been aware of this.

The company will pay £129million to the SFO, while compensating people and institutions who bought shares between August and September 2014 with £85million plus interest.

Group chief executive Dave Lewis said: “Over the last two and a half years, we have fully cooperated with this investigation into historic accounting practices, while at the same time fundamentally transforming our business.

“We sincerely regret the issues which occurred in 2014 and we are committed to doing everything we can to continue to restore trust in our business and brand.”


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