Tesco is one of the worlds leading international retailers. Since the company first the trading name of Tesco, in the mid 1920s, the group has expanded into different formats, different markets and different sectors. The UKs leading retailer Tesco was floated on the stock exchange in 1947 and in 1995 took over rival Sainsburys position as the UK number one. The principal activity of the group is food retailing, with over 2,000 stores worldwide. Tesco has a long term strategy for growth, based on four key parts: growth in the Core UK business, to expand by growing internationally, to be as strong in non-food as in food and to follow customers into new retailing services. The company launched a home shopping service in 2000, allowing customers to order their shopping online. Tesco is now expanding its convenience stores and overseas into areas such as Taiwan, Malaysia, Poland, the US and Ireland.

Upper graph = 12 month share price with 6 month moving average
Lower graph = 12 month volume (red line = volume average).

Samples of raw chicken bought at all the leading UK supermarkets and at butchers in spring of this year were tested.

The test found that 59% of birds carried the potentially deadly campylobacter bacteria, and 16% were heavily contaminated. More than two-fifths of retail chickens fell into the medium or heavily contaminated categories.

http://www.theguardian.com/society/2014/aug/05/majority-supermarket-chicken-contaminated-campylobacter-fsa

By the way, how about this:

Raymond Blanc has suggested that organic food is often overrated – while praising the fast-food chain McDonald's which he previously described as ‘killing people by encouraging obesity’.

“Organic should be best, but the reality of the world may be different,” he said.

“I used to hate compromise – compromise was evil because it’s the start of devaluing what you’re doing – but sometimes it is the only way. You can compromise without selling out.”

The French chef – who runs both the Michelin-starred Belmond Le Manoir aux Quat'Saisons in Oxford and chain Brasserie Blanc – attacked organic food for being “elitist” and “expensive”.

“Freshness is more important,” he said. “It is a mistake to say organic always tastes better. It depends on parentage. Some organics are simply terrible.”

His praising view of the fast food chain is a U-turn from his prior beliefs when he felt that the company “killed people by encouraging obesity”.

However, Blanc – president of the Sustainable Restaurant Association – presented McDonald's UK with a Sustainability Hero award earlier this year.

“I was amazed. All their eggs are free-range; all their pork is free-range; all their beef is free-range,” he told The Telegraph.

“[They show that] the fast-food business could change for the better. They’re supporting thousands of British farms, and saving energy and waste by doing so.

“I was as excited as if you had told me there were 20 new three-star Michelin restaurants in London or Manchester.”

Blanc received an OBE from the Queen in 2007 for his own culinary contributions.

From: http://www.hl.co.uk/news/articles/is-dave-lewis-the-right-man-to-lead-tesco

Is Dave Lewis the right man to lead Tesco?
by Charlie Huggins

Tesco recently announced that Philip Clarke, a 40-year veteran of the company, is to stand down as chief executive on 1 October. He will be replaced by Dave Lewis, a senior executive at Unilever, and the first outsider to the role in Tesco's near 100-year history.

The news comes as little surprise. Since assuming control of the group in February 2011, Clarke has overseen a dramatic fall in sales and profits, as competition in the UK grocery market has intensified. With Tesco seemingly stuck between a rock (the upmarket offering of Sainsbury's and Waitrose) and a hard place (the discount offering of Aldi and Lidl) the board clearly felt the time was right for a change of direction.

Three questions will now be at the forefront of shareholders' minds. Who is Dave Lewis? Is he the right man for the job? And what options does he have to turn the company around?

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

What do we know about Dave Lewis?
Dave Lewis is currently president of Unilever's Personal Care business and is a Non-Executive Director of British Sky Broadcasting.

A Unilever 'lifer', Lewis joined the firm as a graduate in 1987. He helped launch Dove soap in the UK in 1992, becoming Marketing Operations manager a year later. He then progressed to Marketing Director of River Plate (Argentina, Uruguay and Paraguay) before assuming the role of Managing Director of Unilever Indonesia's personal care business. Against a challenging political and economic backdrop this business achieved average growth of 30% per year under his tenure.

After serving as Senior Vice President for Home and Personal Care, Central and Eastern Europe, for three years, Lewis returned to the UK in 2005, becoming Managing Director of the UK Home and Personal Care business; and later chairman of Unilever UK and Ireland. Dave Lewis was a key figurehead in turning around this ailing business, overseeing Unilever's transition from a company with three separate operations – foods, groceries and personal care – into a single unit, and laying a strong platform for future growth.

Dave Lewis was rewarded for his good work in 2010 by being appointed President of the Americas, before taking up his present role in 2011. Unilever's Personal Care business generated annual sales of around €20bn in 2013 and incorporates many high profile brands including Dove soap, Vaseline and TRESemme haircare.

Is he the right man to lead Tesco?
Dave Lewis is very highly regarded within Unilever and was seen as the internal favourite to become its next chief executive.

He has a CV stuffed with turnaround experience and heads the most profitable multi-category personal care business in the world, working with many brands sold in Tesco stores. This should stand him in good stead.

He also brings a wealth of international experience (in Asia, Americas and Eastern Europe). Tesco's overseas operations (accounting for around a third of sales) have struggled of late and are a key area of priority. Dave Lewis could be the man to give the company's flagging international operations a much-needed shot in the arm.

Perhaps of greatest significance is Mr Lewis' vast marketing experience. He has been responsible for some of Unilever's most successful marketing campaigns. Given Tesco's current 'identity crisis' they desperately need someone to reinvigorate the brand and restore customer loyalty.

There is, however, one large gap in his CV - he has no direct retail experience. This is somewhat of a gamble by Tesco's board and represents a large departure from Philip Clarke, a former shelf-stacker who knows the company inside out. That said, some may see Mr Lewis's lack of retail experience as an advantage - the industry is undergoing a period of substantial upheaval and a fresh perspective could be just what the doctor ordered.

What options does Dave Lewis have to turn the business around?
At this stage we can only speculate and it will probably be a number of months before we have a clear picture of the new chief executive's plans. He does, however, have several options at his disposal:

Cut prices to combat the threat of the discounters

Over recent years the discount retailers have made significant inroads into the UK grocery market. This has seen Tesco's market share fall from 31.8% at its peak in October 2007 to around 28.6% today.

Tesco share price, charts and research

To try and win back these customers Tesco's new CEO may decide to embark on aggressive price cuts (something Philip Clarke was reluctant to do). Tesco's size and dominance affords it higher profit margins than many of its rivals, giving it a degree of scope to reduce prices. This is likely to hit profits in the short term but if it gets sales moving in the right direction it could turn out to be a wise long-term strategy.

Take a knife to underperforming stores

One of the major problems Tesco faces is a substantial proportion of its sales still come from large, out-of-town stores. With more people choosing to shop online and via the convenience format, sales at its larger supermarkets have fallen sharply. Rather than filling space by introducing the firm's non-core café and restaurant brands to large stores, Dave Lewis could take much bolder steps such as reducing store size and letting the extra space to tenants, or shutting down stores altogether.

Slim down international operations

Tesco has already pulled out of the US and Japan, and Turkey is under review, but this could be extended to other struggling central European markets. This could free up cash to invest in the UK business or other international markets with more promising growth prospects.

Tesco could even go a step further and pull out of Europe completely. Trading margins are just 2.6% in Europe, around half that in the UK, so Dave Lewis may decide Tesco's efforts are better focused elsewhere. The difficulty might be finding a buyer.

Cut capital expenditure

Tesco spent almost £2.9 billion on capital expenditure in its 2013/14 financial year, representing 90% of net operating cash flow. That is a lot, even for a company the size of Tesco. The new chief executive may decide to tighten the purse strings and 'reinvest' these savings into lowering prices.

Cut the dividend

This certainly won't be a popular option but whenever a new management team comes in to revive a struggling business, the risk of a dividend cut is increased. Philip Clark was reluctant to cut the dividend, maintaining it for the last three years, despite falling sales. Although the dividend is reasonably well-covered by earnings at present, Mr Lewis may wish to free up some cash by cutting the dividend (though I would be surprised if he scrapped it completely).

It will be very interesting to see what route Dave Lewis takes and only time will tell whether he can turn the business around. If you want to stay informed on Tesco's progress make sure you sign up for our free share research updates.

The chicken supply chain is looking at how interventions such as improved biosecurity on farms, rapid surface chilling, and anti-microbial washes can help reduce campylobacter.

The low levels of contamination found on packaging, shown in the results released today, potentially indicate the effectiveness of the leak-proof packaging for poultry introduced by most retailers, which helps to reduce risks of cross contamination in consumers' kitchens.

The FSA said, "As soon as we have enough data to robustly compare campylobacter levels in different retailers we will share that data with consumers."

Chicken is quite safe as long as consumers follow good kitchen practice:

Cover and chill raw chicken - Cover raw chicken and store at the bottom of the fridge so juices cannot drip on to other foods and contaminate them with food poisoning bacteria such as campylobacter.

Don't wash raw chicken - Cooking will kill any bacteria present,including campylobacter, while washing chicken can spread germs by splashing

Wash used utensils - Thoroughly wash and clean all utensils, chopping boards and surfaces used to prepare raw chicken.

Wash hands thoroughly with soap and warm water, after handling raw chicken. This helps stop the spread of campylobacter by avoiding cross contamination.

Cook chicken thoroughly - Make sure chicken is steaming hot all the way through before serving. Cut in to the thickest part of the meat and check that it is steaming hot with no pink meat and that the juices run clear.

50% off all time high.

Going to have a small basket full.

Tesco's credit has been downgraded by one of the world's leading rating agencies, sending shares in Britain's biggest retailer slumping to a ten-year low. Standard & Poor's said it had cut Tesco's rating from BBB+ to BBB and warned the struggling supermarket that it had a "negative outlook" on its business, given the level of competition it faced in Britain from low-cost rivals. - The Times

Tesco shares hit 10-year low following S&P downgrading

Fri, 08 August 2014

Tesco shares reached their lowest point in a decade on Thursday, as Standard & Poor's (S&P) cut its rating on the supermarket's stock following last month's profit warning.

The profit alert was issued in July as David Lewis, president of Unilever's personal care division, was announcement as the replacement for outgoing chief executive Philip Clarke.

S&P cut its rating by one notch, claiming Tesco's profitability could weaken even further in 2015.

"The downgrade reflects our view that Tesco's profitability will continue to weaken because market competition in the UK will remain persistently high, and even intensify, over the next 12 months," S&P said in its research note.

"Tesco's market and financial positions have not tangibly improved, despite extensive restructuring and substantial spending on a long-term program to improve its stores and customer service."

Earlier this week, HSBC warned that Tesco needed to take "drastic" actions and that it could also cut its 2014 dividend by 50% to 7.25p.

"Tesco needs to take drastic action to protect its future. We believe that UK operating profits need to more than halve to give Tesco a base on which to grow," HSBC said in a statement.

Tesco shares have been in freefall in recent months and analysts are saying that Lewis will begin a massive deck-clearing operation once he's officially installed in his new role at the beginning of October.

Tesco chairmain Sir Richard Broadbent insisted he's confident about Lewis' ability to turn the company's fortunes around.

"Dave Lewis brings a wealth of international consumer experience and expertise in change management, business strategy, brand management and customer development," said Broadbent.

"He is already known to many people inside Tesco having worked with the business over many years in his roles at Unilever. The board believes that with Dave's leadership Tesco will sustain and improve its leading position in the retail market."

Tesco shares showed a slight sign of recovery on Friday and they were up 1.21% to 246.75p at 16:32.

All looks grim for Tesco, but I am in just on 50% rule of thumb for a short term trade.

Down by £10BILLION in a year - now Tesco's set to slash dividend

By Neil Craven, Financial Mail On Sunday

Published: 22:20, 16 August 2014 | Updated: 22:20, 16 August 2014

Tesco's stock market value has slipped below £20billion for the first time in a decade as fears mount that it is about to slash its dividend.


The supermarket group is now worth £10billion less than a year ago after its shares plunged as it struggled to kick-start a strategy to fend off the growth of discounters, led by German-owned Aldi and Lidl.


Now there are fears that the newly appointed chief executive Dave Lewis will need to raid the dividend to pay for a strategic overhaul when he arrives on October 1.





Every little helps: New boss Dave Lewis is likely to seek cost savings


+1
Every little helps: New boss Dave Lewis is likely to seek cost savings



Retail analyst Clive Black of stockbroker Shore Capital said: ‘Tesco needs to become more competitive in its core grocery market and this may involve a considerable profit margin reset.


‘The dividend costs £1.1 billion a year. We cannot rule out that it will be cut to contribute to an improved operating performance and comprehensive change programme.’





‘We expect a cut of between 25 and 50 per cent from new management depending on the amount Dave Lewis believes he needs to deliver medium-term growth,’ he said.


Tesco’s woes were compounded last night when it emerged that group operations development director George Dymond, poached from Morrisons earlier this year, has become the latest senior figure to leave the business.


His departure comes just weeks after Lewis was appointed to replace Phil Clarke and also follows the resignation of finance director Lawrie McIlwee in April.


Dymond joined Tesco after a fall-out with Morrisons over his job description. But he is now expected to return to his previous company, Coles, in Australia, in the pivotal role of merchandise director.
British-born Dymond will arrive at 741-store Coles ‘within the next few weeks’, a spokesman for Coles confirmed. There is also speculation that Coles chief executive Ian McLeod will return to Britain to head Morrisons.


Leading City analyst Nick Bubb said it looked increasingly likely that Tesco’s interim dividend would be held at 4.63p because it was ‘relatively small’. When the interim announcement is made it will be on Lewis’s first day in the job, he said.


But he noted that newly appointed finance director Alan Stewart is expected to arrive in December, giving the new team plenty of time to digest the need for a cut in the full-year dividend from 14.75p last year to ‘8p or 9p’ a share.


Other analysts are more circumspect, arguing that Lewis could try to maintain the dividend. David Payne at Nomura said it would be ‘uncharitable’ to assume that price cuts would be the first thing on Dave Lewis’s agenda and that other options could be open to stimulate sales before resorting to a new, costly escalation in the price war.


He cited Tesco’s strengths in online sales, the potential for selling non-food items online, ongoing reorganisation of its hypermarkets to offer other products and services, and a hoped-for polishing of the brand as factors that could all potentially boost the business.


Tesco declined to comment on the possibility the dividend might be cut. But one source close to the business said: ‘The dividend cover is still strong and is well ahead of peers, but it is premature to second guess what Dave might do before he even takes the reins in October.


‘It’s worth remembering that Phil Clarke said in April that the dividend had been held despite the changes that have taken place at the business over the past two or three years.’


The source said that the falling share price, illustrative of a new level of jitters among investors about the future of Tesco, meant the company was now worth less than the estimated £21 billion value pinned on Tesco’s huge property portfolio of stores and is ‘perhaps an indication that nervousness around future performance is a little overdone’.


Tesco’s market capitalisation was £30billion in October last year and first dipped below £20 billion on August 6. Though it nudged back up again on Friday, it was the first time it had sunk below that mark since August 2004.


Other supermarket stock prices have suffered similar fates. Morrisons’ value has dropped 39 per cent to £4 billion in the same period and Sainsbury’s, which has suffered the least so far, has seen its shares drop 22 per cent to £6billion.


Even upmarket Waitrose, which is owned by the John Lewis Partnership, has been affected and is expected to see its market share eclipsed by Aldi in the coming months.


Aldi and Lidl now attract almost 9.4 per cent of grocery spending compared to 6.2 per cent just three years ago. That and the crash in demand for non-food products at hypermarkets has disrupted the performance of larger chains.

From: http://www.telegraph.co.uk/news/uknews/11039210/Tesco-store-trashed-by-Gaza-protesters.html

Tesco store trashed by Gaza protesters

Demonstrators threw produce to the floor and shouted at staff and shoppers


Police officers were attacked and stock was thrown around during a protest at a Tesco store Photo: Caters

Police officers were attacked and stock was thrown around during a protest against the Gaza conflict at a Tesco store on Saturday.

Demonstrators, who want the supermarket to stop selling Israeli food, entered Tesco in Hodge Hill, Birmingham, threw produce to the floor and shouted at staff and shoppers.
Pictures show a large number of police officers at the scene and stock strewn across the floor of the store.

West Midlands Police said one person was arrested for assaulting its officers during the protest.

Speaking on social media, a customer said: "I was just in the Tesco in Hodge Hill, scanning my items and I heard chanting.

"Then a group of Asian men holding Palestinian flags came walking in and starting to push products over and getting aggressive with staff and shoppers. "Police officers tried to stop them but I ran out."

About 100 people had gathered outside the store to demonstrate, calling on Tesco to stop all trade with Israeli agricultural companies.

A spokesman for West Midlands Police said: "Our officers dealt with a protest at Tesco Hodge Hill this morning where some disorder was repoted. One arrested for assaulting police.

"The protest was largely peaceful among the 100 protesters but some began throwing stock inside Tesco store. Two escorted from premises."

A spokesman for Tesco said: "The demonstration took place mainly outside the store. There was some minimal damage to a few goods inside - police were on the scene and the store reopened after being closed for just a few minutes.”

Tesco's 6pc income vs the rest: Whose dividend is most at risk?

Tesco’s dividend is under threat, but how does it compare to rivals? We crunch the numbers


http://www.telegraph.co.uk/finance/personalfinance/investing/11044350/Tescos-6pc-income-vs-the-rest-Whose-dividend-is-most-at-risk.html

Trading Statement

The combination of challenging trading conditions and ongoing investment in our customer offer has continued to impact the expected financial performance of the Group.

The business continues to face a number of uncertainties, including market conditions and the pace at which benefits from the investments we are making flow through in the second half and consequently the Board has revised its outlook for the full year. We now expect trading profit for 2014/15 to be in the range of £2.4bn to £2.5bn. Trading profit for the six months ending 23 August 2014 is expected to be in the region of £1.1bn.

Dave Lewis will now join Tesco as Chief Executive on Monday 1 September. He will be reviewing all aspects of the Group in order to improve its competitive position and deliver attractive, sustainable returns for shareholders.

The Board is focused on maintaining a strong financial position in order to maximise its business and strategic optionality. Reflecting this and our current expectations for future performance, the Board anticipates that it will set the interim dividend at 1.16p per share - a reduction of 75% from last year's interim dividend.

In addition, we are implementing further reductions in capital expenditure. For the current financial year capital expenditure will now be no more than £2.1bn, some £0.4bn less than originally planned and a reduction of £0.6bn from the previous financial year. This will be achieved in a number of areas including IT and the slower roll-out of our store refresh programme.

Sir Richard Broadbent, Chairman, said:

"The Board's priority is to improve the performance of the Group. We have taken prudent and decisive action solely to that end. Our new Chief Executive, Dave Lewis, will now be joining the business on Monday and will be reviewing every aspect of the Group's operations. This will include consideration of all options that create value for customers and shareholders.

The actions announced today regarding capital expenditure and, in particular, dividends have not been taken lightly. They are considered steps which enable us to retain a strong financial position and strategic optionality."

Further details on trading performance will be provided as usual in our Interim results announcement, scheduled for release on 1 October.

RED ALERT
profit warning again
abandon ship!

Tesco

The New Bellwether for UK?

Edit, just seen skinneys post above.,.

Merrill Lynch note:
"We estimate that Tesco’s UK margin will fall to 3.1% this year (from 5.1% LY), but we note this is not incorporating any new investments that the new CEO (due to start a month earlier than expected, on Monday, 1 September) and CFO may implement on arrival. We benchmark Tesco with Carrefour’s dark age (when the French margin collapsed to 2.5%) and, thus, forecast the UK margin to trough at 2.5% next year, due to more price investment, although we lack visibility on the new strategy.
The interim dividend will be cut by 75% and we now expect the FY dividend to fall by 45%, in line with our 2-year EPS decline. With capex being cut by another £400m, to £2.1bn, Tesco may stabilise its net debt from next year, but, with lease adjusted net debt/EBITDAR at 3.5x, we think Tesco will need to reduce its debt (we estimate c.£3.0bn) to maintain its BBB credit rating – a priority for management. It is too early to conclude what implications Tesco’s warning will have on its peers until the new management arrives. However, declining inflation will remain a headwind for the industry. We think the risk is greatest for Sainsbury’s, which may be the next retailer to revise down expectations. Meanwhile, Morrisons is already well underway with its action plan and we see further risk of downgrades as limited."

Tesco crisis continues as leading shareholder slashes stake

Mon, 01 September 2014

Pressure is growing on Tesco after one of its leading shareholders admitted it had cut its stake in the supermarket, deeming the retailer as being "too risky".

Chicago-based Harris Associates was Tesco's seventh-main shareholder with a 3% stake in the business, which has now been reduced by two percentage points after the US fund revealed it had sold two-thirds of its stake in August.

In a statement released over the weekend, Harris said Tesco had become too risky "to justify [having] a big position".

Speaking to the Sunday Telegraph, David Herro, chief executive of Harris, said he was waiting to see if Tesco had "a clear and coherent strategy" before making further decisions over his company's stake.

"I really want to see what the new chief executive is going to say - how he's going to deal with the issues," said Herro.

"If this thing is a turnaround story, we want to stay involved, but we need to hear a plan that makes sense."

Tesco lost over £1.3bn in share value on Friday, as its shares fell to 230p, an 11-year low, after the company issued its third profit warning in eight months and was forced to slash its dividend.

On Monday, Barclays cut its target price on the shares to 240p from 300p and maintained an "equal-weight" rating, on the same day when new chief executive Dave Lewis begins his career with the retailer.

Lewis, who has a proven track record with Unilever but has never worked in retail, has vowed to review "every aspect of the group's operations" as Tesco looks to halt the loss of market share to the likes of Aldi and Lidl.

Former Tesco chairman Lord MacLaurin said Lewis was "a very capable man" who "is going to have a really good look at all sides of the business".
"[Lewis] needs to find the finest marketing man he could possibly get, with a good background in strategy and knowledge of the business," MacLaurin said.

Analysts expect Lewis to adopt a drastic price-cut policy and slash the price of groceries, but even that might not be enough according to some, with Tom Stevenson of Fidelity arguing that "Buying Tesco now is a classic example of catching a falling knife".

Tesco shares were down 2.14% to 225.00p at 15:38 on Monday.

I think its going to take bigger things than slashing prices. Gross profit will be slashed then,. :-)). The floor space is far to vast. Personally I do not think shoppers will return. If it is all down to price they would be in Asda. Shopping needs have gone in a big circle( back to small stores) and as Aldi have said their shoppers are in and out in about half an hour. They are sadly in sinking sand and its going to be near impossible to get out.
Standards are going to fall with eventual mass layoffs in the near future if things do not pick up. Carrefour had similar happen in the 90's and have had to take the store back to basics to recover. They are on the way now, after 4/5 profit warnings .
Trouble is now the shopping public do not have the spare cash they had in the 90's,
after a very long recession.

Dave Lewis has no retail experience, Cannot see him holding his new post for very long.



Perhaps they should shut stores at night. Never understood why Tesco was one of the first to introduce the very expensive home delivery service. This alone is subsidised by the tune of £10/£15 per customer shopping in Tesco stores. All adds to the price of a basket of shopping. Slashing prices will lead to more major shareholders throwing in the towel, as returns will also be slashed.

StockMarketWire.com
Santander has reacted to Tesco's (LON:TSCO) latest profit warning and 75 per cent dividend cut by downgrading its recommendation to "hold" from "buy".

The company also announced that incoming Chief Executive, Dave Lewis, would be starting his role a month earlier than planned.

The broker said: "The total shareholder return argument for the shares is no longer valid, and given that the new management team may need up to six months to review the business, we see the shares as dead money for the coming months."

Analysts have also slashed their target price to 260 pence a share from 360 pence.

Separately, Societe Generale repeated its bearish "sell" call and pegged its target back to 190 pence (previously 220 pence).

"In our view Tesco is facing an emergency just as Carrefour was four years ago," SocGen said.

"The new management team will be under intense pressure to turn around the business and quickly take appropriate strategic decisions."

Irish customers deserting Tesco in favour of discount chains as market share continues to fall

By Rupert Steiner for the Daily Mail

Published: 22:40, 3 September 2014 | Updated: 22:13, 4 September 2014


The troubles facing Tesco’s new chief executive Dave Lewis are worse than first thought as the grocer’s Irish chain haemorrhages customers.



http://www.dailymail.co.uk/money/markets/article-2742725/Irish-customers-deserting-Tesco-favour-discount-chains-market-share-continues-fall.html

Trading Update

During its final preparations for the forthcoming interim results, Tesco has identified an overstatement of its expected profit for the half year, principally due to the accelerated recognition of commercial income and delayed accrual of costs.

On the basis of preliminary investigations into the UK food business, the Board believes that the guidance issued on 29 August 2014 for the Group profits for the six months to 23 August 2014 was overstated by an estimated £250m. Some of this impact includes in-year timing differences. Work is ongoing to establish the extent of these issues and what impact they will have on the full year.

The Board has asked Deloitte to undertake an independent and comprehensive review of these issues, working closely with Freshfields, the Group's external legal advisers.

We will provide a further update at our interim results, which will now be announced on the 23 October 2014.