Tesco faces €247.5m payout to settle accounting scandal

The UK chain has received a massive fine and will compensate some investors

Tesco faces €247.5m payout to settle accounting scandal

File photo: RollingNews.ie

Tesco has announced an agreement with the Financial Conduct Authority in the UK to pay a one-off fine of £129m (€150) as a full penalty for the overstatement of its profits in the Autumn of 2014.

The UK chain will also pay compensation worth £85m (€98m) to investors affected by the scandal - which brings the total bill to £214m (€247.5m).

This comes after a two-year investigation by the UK's Serious Fraud Office (SFO). It said that Tesco had co-operated fully with its investigation and that it had introduced extensive changes following the probe.

Payments will be made to those who bought Tesco shares and bonds between August 29th and September 19th of that year.

The full cost of resolving the scandal will result in an exceptional charge of £235m (€272m) in its 2016/2017 accounts.

Dave Lewis, chief executive of Tesco commented, "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."