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Tesco CEO: 'We will be the best supermarket again'

Tesco chief executive Dave Lewis has insisted the company will recover from "real challenges" to become "the best supermarket for customers" once more.

ITV News Economics Editor Richard Edgar is following developments.

Tesco scraps trading profit outlook as sales fall

Tesco has scrapped its full-year trading profit outlook as its domestic sales fell sharply in the second quarter of this year.

Tesco reported a sharp fall in domestic sales in the second quarter of the year. Credit: Rui Vieira/PA Wire

Results announced this morning showed underlying UK sales own 5.5% over the period.

The group said last month it had overstated its first-half profit forecast by £250 million pounds, but the group said on Thursday this had now risen to £263 million.

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Tesco profits overstated by £263m

Tesco has announced that it overstated its profits for the first half of the year by £263m, slightly higher than the £250m originally estimated when the company was hit by an accounting scandal.

ITV News Economic Editor Richard Edgar is following developments.

Five of the company's executives have been suspended over the issue and city regulators are investigating what went on.

Chief executive Dave Lewis said the suspensions were not disciplinary but would enable a "full and frank" investigation.

Tesco suspends fifth executive over profit probe

Tesco has suspended another executive as financial regulators investigate how the supermarket overstated profits by £250m.

The Financial Times reports that commercial director Kevin Grace has become the latest senior figure to be suspended.

Tesco has suspended another executive after its profit overstatement. Credit: Rui Vieira/PA Wire/Press Association Images

Four senior executives, including UK managing director Chris Bush, were asked to step aside two weeks ago when Tesco revealed that its most recent profits warning to the City in August was much too optimistic.

The company's new chief executive, Dave Lewis, has stressed that the suspensions are not a disciplinary matter, but are designed to enable a "full and frank" investigation into the profit warning.

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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.

Tesco-owned Homeplus in data leak probe in S Korea

Tesco-owned Homeplus investigated over alleged customer data leak in South Korea Credit: PA Wire

An investigation has been launched into allegations Tesco-owned Homeplus in South Korea sold customer information to insurance companies.

Former and current executives of Homeplus, which has more than 400 stores in South Korea, have been asked to remain in the country while investigations continue.

It has been reported that the information was collected during in-store prize giveaways and sold to insurance companies for millions of pounds.

A Tesco spokesperson said: “We can confirm our South Korean business, Homeplus is under investigation regarding the handling of customer data. "We take the protection of our customers’ data extremely seriously and are co-operating with the investigation."

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