Asda posts flat profits and is ‘sold’ in internal Walmart deal

The figure was down from £532.7m the previous year, but still more than rival Sainsbury’s. Asda’s turnover climbed from £16.7bn to £18.57bn, accounts filed at Companies House showed.

Asda’s accounts also revealed that chief executive Andy Bond’s total pay, excluding pension contributions, rose 19% to £1.27m, the Daily Telegraph reported.

It also emerged that Walmart has sold Asda to Corinth Services Limited, a Walmart group company, for £6.9bn as part of a “group reconstruction” and for reasons of “good financial management”.

Five Asda directors, including marketing boss Rick Bendel and chief operating officer Andy Clarke, were appointed to Corinth’s board. Bond and Asda finance chief financial officer Judith McKenna were already on Corinth’s board.

An Asda spokesman told the Daily Telegraph: “From 2009 Corinth is the new parent company of Asda Group, having previously been a subsidiary. As part of good financial management of our business we will, from time to time, alter that structure as appropriate.

“Such alterations depend on a variety of factors including the cash, debt and interest positions in the various group companies.”