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Tesco shares hit by profit warning

Tesco shares suffered a bleak day on the stock market after the company issued a warning about its full year profit.

Shares in the troubled retailer opened down 14pc yesterday morning.

The firm said yesterday that on the basis of the changes and investments made to date it now anticipates group trading profit for the financial year up to the end of February will not exceed £1.4bn (€1.78bn)

According to its website analysts were previously forecasting a trading profit of £1.94bn for the 2014-15 year.

Tesco said it will share more detail about the measures it plans to take to improve the competitiveness of the UK customer offer and to strengthen its balance sheet.

The most recent figures for Tesco Ireland also show that sales here are down. Shares in Tesco have fallen by 50pc so far this year as the company was also dogged by an accountancy scandal.

After two decades of uninterrupted growth, Tesco lost its way as it concentrated on a costly and unsuccessful, expansion abroad.