Tesco boss Dave Lewis: Serious Fraud Office fine draws line under scandal

Tesco boss Dave Lewis on Tuesday claimed “we’re different now” as the retailer was fined £129 million over its accounting scandal.

Britain’s biggest retailer’s bill for misstating its profits forecast exceeds £200 million as it also includes £85 million compensation to investors who bought Tesco shares and bonds between August 29 and September 19, 2014 and the Serious Fraud Office’s costs.

Lewis appeared hopeful that today’s deal and the compensation scheme might head off outstanding litigation: “The FCA is very clear that no one at Tesco Plc knew or should have known what was in the misleading statement, and that will be significant in the litigation,” he said.

“It’s not for me to guess what the civil litigators will do, but they were not aware until this point of the compensation scheme. We’ll have to wait to see what those parties want to do, but we’ll be very committed in our defence.”

Lewis, who took the top job at Tesco shortly before the accounting scandal erupted, claimed paying up “does bring this matter to a close as far as the company is concerned”.

“We’re recognising the situation, we’re paying the fine, we’re paying the compensation, and that allows the Plc to move on,” he said.

The Deferred Prosecution Agreement with the SFO means Tesco Stores will escape prosecution for the £326 million black hole it discovered in its accounts after booking income from suppliers early.

The settlement relates to shops arm Tesco Stores, not the wider group and it is not an admission of criminal liability. It needs to be approved by Lord Justice Leveson next month.

But questions linger over the fate of its former bosses and a £100 million civil claim.

Today’s settlement does not affect the cases pending against the three individuals — UK managing director Chris Bush, UK finance director Carl Rogberg and food commercial director John Scouler — who have been charged by the SFO. They deny all wrongdoing.