Tesco have cut its trading profit from £2.8bn to £2.4bn, following what it is calling ‘challenging trading conditions.’
The company also said it had revised its outlook for the year after investment in customer offer. Trading profit for the six months ending 23 August 2014 is expected to be in the region of £1.1bn.
It awaits the arrival of David Lewis and chief executive on Monday 1 September, where he will review the Groups plans to improve its market position.
The supermarket giant also announced it had slashed half-year dividend by 75% compared with last year.
Sir Richard Broadbent, chairman, said: "The Board’s priority is to improve the performance of the Group. We have taken prudent and decisive action solely to that end.
“Our new Chief Executive, Dave Lewis, will now be joining the business on Monday and will be reviewing every aspect of the Group’s operations. This will include consideration of all options that create value for customers and shareholders.
“The actions announced today regarding capital expenditure and, in particular, dividends have not been taken lightly. They are considered steps which enable us to retain a strong financial position and strategic optionality."
Tesco interim results announcement is scheduled for release on 1 October.