Tesco share price plunges on warning profits were overstated by £250m - live

One candidate to take over from Chris Bush, Tesco's suspended UK managing director, is Robin Terrell.

Mr Terrell is the supermarket's head of online operations, and joined Tesco from House Fraser last year, where he was multichannel boss.

Before that Mr Terrell spent six years managing Amazon.co.uk.

In notes published late last year - with titles 'A desperate move?' and 'It's just an illusion' - Cantor analysts made the case that Tesco had been overstating its UK commercial gross profit by £200m or more a year.

08:50

Tesco has suspended Chris Bush, its UK managing director.

08:45

"A number of people" were asked to "step aside" including four senior executives have been suspended while an investigation is underway, said Dave Lewis, CEO of Tesco.

The senior staff were located "across commercial and business operations", Mr Lewis said during a conference call.

The problem was discovered on Friday, Mr Lewis confirmed.

08:30

Nick Bubb, retail analyst, has said that the announcement would "go down like a lead-balloon in the City".

So it has. Shares dropped by 12pc as the market opened, and are now trading some 8pc lower, as the irregularities have scared off investors in the grocer.

08:15

Tesco said it had uncovered a "serious issue" within its accounts and has warned that pre-tax profits for the last six months have been overstated by £250m.

From a filing by the supermarket this morning (you can read the full statement )

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.

more