Dave Lewis, Tesco chief executive, said that it was ‘clearly a very significant day’ for the company, which had to re-state its half yearly results in 2014 following the discovery of a £263m ‘black hole’ as a result of overstating earnings from deals with suppliers.

Tesco reported a write-down of £7bn in one-off charges in the 2014 results. Of this amount, £0.6bn will impact direct cash outflow, with the remaining amounts being non-cash adjustments to balance sheet carrying values.

In a statement to shareholders, Tesco stated: ‘Each year we review the carrying value of our stores to ensure that they are supported by their value in use or their fair value less the costs of disposal.

‘Challenging industry conditions and the decline in profit over the last year have resulted in an impairment charge of £3.8bn against our trading stores. We have also written down the value of work-in-progress by £925m, primarily reflecting the decision we announced in January 2015 not to proceed with 49 sites in our property pipeline.’

The losses announced today include £570m on stock linked to the issue around how Tesco was recording income from suppliers. There is also a £4.727bn impairment charge on the value of its assets, largely related to property holdings, as well as restructuring costs of £416m.

Tesco has booked an impairment charge of £3.8bn against its trading stores, and has also written down the value of work-in-progress by £925m, primarily reflecting a decision announced at the beginning of the not to proceed with 49 sites in its property pipeline.

Goodwill and other impairments are listed as £878m, which together with reversal of £208m of income recognised in prior years and other items results in a total of £7.02bn of one-off charges recognised within the results.

The goodwill impairments relate to Tesco’s investment with China Resources Enterprise Ltd (CRE), as well as £116m relating to Dobbies and other UK businesses, and an impairment of £82m for investment in joint ventures which principally relates to the decision to slow the expansion of coffee chains at  Harris+Hoole and Euphorium sites.

The company reported trading profits of £1.39bn for the year to the end of February, down 58% on last year. This figure excludes the one-off charges.

Lewis said he would be a ‘hostage to fortune’ if he claimed the retailer would not make further write-offs and that the charges were the result of an ‘objective assessment’ of the state of Tesco’s finances.

This year's annual report contains more detailed disclosures on how the supplier income agreements work, in contrast to previous years when the figures were under- or not reported at all. It is also in the midst of a simplification of its commercial income agreements. The increased disclosure also includes additional detail on property valuation and ownership.

Lewis, who only joined mid-way through 2014, has already announced plans to cut thousands of jobs, close 43 stores, shut Tesco's head office, and end the company's defined benefit pension scheme as part of his bid to turn the chain around.

According to the preliminary results, Tesco has agreed a deficit funding plan with the Pension Trustee, comprising cash contributions of £270m per annum after an actuarial valuation put the deficit at £2.8bn. On an accounting basis, the group's net pension deficit after tax increased from £2.6bn last year to £3.9bn at the year end, largely due to failing corporate bond yields. The company has also announced plans to consult on the future of defined benefit pension plan for employees.

‘It has been a very difficult year for Tesco. The results we have published reflect a deterioration in the market and, more significantly, an erosion of our competitiveness over recent years,' said Lewis.

‘We have faced into this reality, sought to draw a line under the past and begun to rebuild, and already we are beginning to see early encouraging signs from what we've done so far.’ 

Tesco also confirmed that Matt Davies, outgoing chief executive of Halfords, is going to join the company earlier than expected and is set to take up his new role as UK CEO on 11 May 2015.

At the end of 2014, the Financial Reporting Council (FRC) announced an investigation into Tesco's financial years ended February 25 2012, February 23 2013 and February 22 2014 and the first half to August 23 2014, and the conduct of PwC as the company’s external auditors. At the same time, the Serious Fraud Office (SFO) is also looking into supplier agreements at Tesco.

The newly formed Groceries Code Adjudicator (GCA) has also said it is investigating Tesco for possible breaches of its code relating to its practices in paying suppliers and in handling payments for better positions on shelf promotions.

The Tesco prelimiarny results 2014/15 is available here