According to the company’s statement today, Deloitte’s investigation into the overstatement of the expected half year profits confirmed that there were amounts pulled forward or deferred, contrary to Tesco Group accounting policies and that there was similar practice in previous reporting periods.

In addition, Deloitte found that the current and previous practices appear to be linked as income pulled forward grew period by period.

Deloitte’s report states that the impact of the mis-statement of profits is confirmed as £263m in total, of which £118m relates to first half trading profit, with the balance treated as a one-off item. This is made up of around £70m relating to 2013/14 and approximately £75m from before that period.

Tesco’s re-statement of its half yearly figures in its statement today says pre-tax profits fell by 92% to £112m. This is in large part due to the accounting issues identified by Deloitte, but the retailer has also seen a 4.6% drop in UK like-for-like sales.  

Tesco said that on account of the Financial Conduct Authority investigating the matter, Deloitte's inevstigation - which was instructed by the group - has now concluded.

The company also said that it would not be providing full year profit guidance as 'the commercial income overstatement will affect our second half results as we revisit our plans with new management. As such, there are a number of uncertainties which limit visibility of future performance'. 

Following the suspension of eight senior directors earlier this month and ongoing questions over corporate governance at the supermarket giant, Sir Richard Broadbent, chairman of Tesco, has announced he will also be leaving the company.

In a statement released with the interim results, Broadbent said: ‘The issues that have come to light over recent weeks are a matter of profound regret’.

He said his decision ‘reflects the important principle of accountability on behalf of the board and will support the company to draw a line under the past as it enters the next phase of its development’.

On the accounting issues, Broadbent stated: ‘Given the outstanding investigation, we can make no further statement at this stage about how these events came about.’

He added: ‘A new management team is in place to address the root causes of the mis-statement and to develop and implement the actions that will build the company’s future. I am confident that the new chief executive and chief financial officer will move rapidly and effectively in this respect,’ Broadbent said.

Dave Lewis joined Tesco as chief executive on 1 September, one month earlier than previously anticipated. He is reviewing all aspects of the Group in order to improve its competitive position and deliver sustainable returns.  

In late September, Tesco parachuted in its new CFO Alan Stewart earlier than expected following a six-month hiatus when the company did not have a CFO following the unexpected departure of Laurie McIlwee in April 2014.

Lewis said: ‘Our business is operating in challenging times.  Trading conditions are tough and our underlying profitability is under pressure. We do however face these challenges from a position of market strength and I have been heartened by the team’s welcome and their determination to stay focused on doing the very best for our customers. 

‘Whilst my review of the whole business continues, three immediate priorities are clear: to recover our competitiveness in the UK, to protect and strengthen our balance sheet and to begin the long journey back to building trust and transparency into our business and brand.’

Additional reporting by Sara White