Tesco 'expected to report annual loss of £5 billion'

Tesco is expected to report one of the biggest losses in supermarket history today.

Britain's biggest grocery firm will post its first yearly figures since new boss David Lewis was drafted in to turn around its fortunes.

However, they are expected to show annual losses as high as £5 billion and a trading profits dip by 58% to £1.4 billion - their lowest level for a decade.

Analyst Clive Black said: "At a statutory level, it's going to be a horror show. But, for shareholders, it is about Dave Lewis and the future."

Shares fell to a low of 155.4p in December but have since added about 50% as Mr Lewis laid out a series of major plans to revive Tesco's fortunes.

But the profit numbers will be a far cry from results in recent years which saw Tesco's annual trading profits near £4 billion, before sales went into an alarming slide under Mr Lewis's predecessor Philip Clarke, who departed last year.

Tesco has been caught up in a price war with rivals Asda, Sainsbury's and Morrisons as their market share is gnawed away by discounters Aldi and Lidl.

Since the arrival of former Unilever executive Mr Lewis, it has announced the closure of 43 loss-making stores as well as shelving plans for a further 49.

The group has also shut its final salary pension scheme and sold its loss-making blinkbox online video operation.

It also plans to save £250 million a year by shutting its headquarters in Cheshunt and has said it will not pay a final dividend this year.

Tesco has recruited former Dixons chairman John Allan to head its board to succeed Sir Richard Broadbent, who left after the discovery last autumn of a £263 million accounting blunder, which is now being investigated by the Serious Fraud Office.

Analysts will be looking for further moves by Mr Lewis including the possible sale of £1.5 billion-rated dunnhumby, the customer data company behind its Clubcard loyalty scheme.

It is argued that Tesco needs to sell assets or place shares to raise more cash.