Tesco finance chief 'set to quit'

Tesco’s under-pressure boss Philip Clarke is facing a fresh blow amid reports the group’s finance chief is poised to depart ahead of annual results in less than two weeks.

Tesco finance chief 'set to quit'

Tesco’s under-pressure boss Philip Clarke is facing a fresh blow amid reports the group’s finance chief is poised to depart ahead of annual results in less than two weeks.

Laurie McIlwee, who has been with the group for 14 years, is understood to be planning to hand in his resignation imminently following shareholder pressure and as speculation mounts over clashes with boss Mr Clarke over strategy.

Sources close to Mr McIlwee reportedly said he had lost confidence in Mr Clarke’s turnaround plans, but rumours of his departure have also been circulating for some months after investors are said to have questioned the finance director’s position following a larger-than-expected slump in central European profits last autumn.

It is felt he should have guided forecasts lower before the half-year results in October, which revealed a 71% plunge in European trading profits.

His departure would compound woes for Mr Clarke, who is already struggling to make a £1bn (€1.2bn) overhaul bear fruit.

Mr Clarke recently unveiled plans for £200m (€240m) of price cuts and another 150 convenience stores to halt sliding UK sales after losing out to the likes of discounters Aldi and Lidl.

It is expected to report another set of disappointing results on April 16, with analysts predicting a 10% slump in profits.

This comes after it last year reported its first annual profits fall in nearly 20 years.

And sales have since failed to turn around in a difficult market – falling by 2.3% over Christmas, while discounters and premium retailer Waitrose fared far better.

Tesco was not immediately available for comment.

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