Live updates

Advertisement

Sainsbury's '100% confident' in accounting practices

Sainsbury's chief executive Mike Coupe says he is "100% confident" in the company's accounting practices, following a recent scandal when rival Tesco overstated profits by £250m.

Finance director John Rogers said there were already "very strong checks and balances" in the group but admitted Sainsbury's had "gone back just to look and check at what we have done historically".

Sainsbury's said it was '100% confident' in its accounting practices. Credit: Andrew Matthews/PA Wire/Press Association Images

It came as the company announced a 2.8% fall in like-for-like sales for the second quarter of the year.

Mr Coupe said the firm had faced a "perfect storm" of changing consumer habits and a supermarket price war.

Sainsbury's hit by 2.8% fall in sales

Supermarket chain Sainsbury's has reported a 2.8% fall in like-for-like sales, with new chief executive Mike Coupe warning of tough times to come for the company.

Mr Coupe said a "dynamic and fiercely competitive" supermarket price war was behind the decline.

He said performance had been "impacted by the accelerated pace of change in the grocery market".

Sainsbury's announced a fall in like-for-like sales. Credit: Anthony Devlin/PA Wire

It follows strong results from discount chain Aldi earlier this week. earlier this week.

Mr Coupe said: "These conditions are likely to persist for the foreseeable future and we now expect our like-for-like sales in the second half of the year to be similar to the first half."

Advertisement

Tesco 'will co-operate fully' with FCA probe

Supermarket giant Tesco says it will "co-operate fully" with the investigation by the Financial Conduct Authority into how it overstated first half-year profits by £250m.

Tesco is under investigation over how it overstated profits. Credit: Chris Radburn/PA Wire

"Tesco will continue to co-operate fully with the Financial Conduct Authority and other relevant authorities considering this matter," the company said in a statement today.

The company announced on September 22 that it had overstated first-half profit by £250 million - effectively its third profit warning in two months.

It suspended four senior executives and launched its own investigation.

Wonga profits hit by £18 million fake letter scandal

Profits at payday lender Wonga more than halved in 2013 because the company was forced to pay £18.8 million in costs over a scandal involving fake legal letters.

Wonga expects to be 'smaller and less profitable' in the near term. Credit: PA Wire

In June, Wonga was forced to pay compensation by the Financial Conduct Authority (FCA) after sending legal letters from fake law firms to 45,000 customers.

The payday lender was found guilty of "unfair and misleading debt collection practices".

A 56% rise in operating costs due to investment in staff, infrastructure and its international businesses also contributed to the fall in profits.

Load more updates