Tesco said to be in secret talks with SFO as it apologises for past profit-chasing tactics

'We are recovering from big, bad decisions,' said chief executive Dave Lewis

Dave Lewis: “I want to make an apology for the way we behaved in the past. We are recovering from big, bad decisions,” (PA)

Tesco’s chief executive Dave Lewis has apologised for the profit-chasing tactics that led to its £326m accounting black hole as it was linked to a settlement with the Serious Fraud Office over the affair.

“I want to make an apology for the way we behaved in the past. We are recovering from big, bad decisions,” he said.

The supermarket is reportedly in secret discussions with the SFO in an attempt to draw a line under the affair a year after Mr Lewis discovered the hole in its accounts.

Sky News reported that Tesco is discussing a deferred prosecution agreement. Such a deal would allow it to admit wrongdoing but avoid any immediate criminal sanctions if approved in court.

Sources close to the retailer told The Independent it is co-operating with the SFO but discussions were not as direct as have been suggested.

Tesco declined to comment and it is not expected to provide an update on the progress of the SFO inquiry when it reports its interim results.

Mr Lewis used his speech to the IGD conference, for the food and consumer goods industry, in London to inform suppliers of new payment terms as he looks to move away from the culture that led to the profits scandal. Smaller suppliers will now receive payments for goods in 14 days and medium-sized suppliers will be paid faster than their larger rivals. The smallest firms will typically be paid 34 days quicker than before.

Mr Lewis said the move will “help us to deliver a fairer, more transparent and consistent approach across our supply base”.

The retail chief, who took the helm last year, is aiming to shift the company’s internal culture from chasing margins to focusing in its customers.

Tesco is expected to reveal a sharp fall in operating profits on Wednesday amid the fierce supermarket price war triggered by the German discounters Aldi and Lidl.

At the same event, the Morrisons chairman Andy Higginson said: “The supermarkets screwed up; it’s not all about scale and the discounters did a better job for their customers.”