Tesco cuts dividend by 75% as new chief brought in early

Britain’s biggest retailer Tesco has slashed its interim dividend by 75%, as tough trading conditions forced it to cut its profit forecast for the second time in two months.

Tesco, which warned on profits in July as it ousted chief executive Phil Clarke, also said his replacement Dave Lewis would start on Monday, one month earlier than expected, and with a remit for a major review of the company.

Mr Lewis will get more financial flexibility from the dividend cut to 1.16p per share and also from a £400m (€504m) reduction in the retailer’s capital spending plan as the group scales back investment in store roll-outs and IT.