Tesco shares plunge after profit warning

Tesco has warned its full-year profits will be substantially below market expectations.

The supermarket chain said its group trading profit for the full financial year "will not exceed £1.4bn", below the £1.8bn to £2.2bn range expected by markets.

The downgraded guidance follows its admission earlier this year that it had misstated its profits by £263m.

Its shares plunged 16% following the unscheduled trading update.

Emma Simpson reports.