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Tesco full-year profits hit by fine

Supermarket giant Tesco has reported a fall in full-year profit after it was fined for overstating its profits in 2014. It said it had taken a £235m charge after it agreed a deferred prosecution with the Serious Fraud Office and the Financial Conduct Authority in March. However, Tesco said it exceeded its full-year operating profit target. Like-for-like sales, which strip out the impact of new store openings, grew 1% in the year to 28 February. “We are ahead of where we expected to be at this stage,” said Tesco chief executive Dave Lewis. “We are confident that we can build on this strong performance in the year ahead, making further progress towards our medium-term ambitions.” Full year pre-tax profit, which includes one-off charges such as legal costs, fell to £145m from £202m the year before. But Tesco’s operating profit figure, which strips out exceptional items and is designed to give a picture of the underlying performance of the business, was £1.28bn, exceeding Tesco’s £1.2bn target.