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Tesco (TSCO)

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idpickering
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Tesco (TSCO)

#201474

Postby idpickering » February 15th, 2019, 7:05 am

Tesco PLC is hosting a briefing for analysts and investors at 9.00am UK time today relating to the introduction of IFRS 16, the new financial reporting standard on accounting for leases. Tesco will explain the nature of the standard and the associated changes to the presentation of the Tesco financial statements and performance measures using its most recently reported 1H 2018/19 results.

The standard has no economic impact on the Group. It has no effect on how the business is run, nor on cash flows for the Group. It does however have a significant impact on the way the assets, liabilities and the income statement of the Group are presented, as well as the classification of cash flows relating to lease contracts.

IFRS 16 is effective for all accounting periods beginning on or after 1 January 2019. As such, Tesco's first reported accounting period under IFRS 16 will be the 2019/20 financial year, which runs from 24 February 2019 to 29 February 2020. As previously indicated, the Group intends to adopt the standard fully retrospectively.

https://www.investegate.co.uk/tesco-plc ... 00031912Q/

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Re: TESCO PLC: INTRODUCING IFRS 16

#201557

Postby Walrus » February 15th, 2019, 1:11 pm

idpickering wrote:
Tesco PLC is hosting a briefing for analysts and investors at 9.00am UK time today relating to the introduction of IFRS 16, the new financial reporting standard on accounting for leases. Tesco will explain the nature of the standard and the associated changes to the presentation of the Tesco financial statements and performance measures using its most recently reported 1H 2018/19 results.

The standard has no economic impact on the Group. It has no effect on how the business is run, nor on cash flows for the Group. It does however have a significant impact on the way the assets, liabilities and the income statement of the Group are presented, as well as the classification of cash flows relating to lease contracts.

IFRS 16 is effective for all accounting periods beginning on or after 1 January 2019. As such, Tesco's first reported accounting period under IFRS 16 will be the 2019/20 financial year, which runs from 24 February 2019 to 29 February 2020. As previously indicated, the Group intends to adopt the standard fully retrospectively.

https://www.investegate.co.uk/tesco-plc ... 00031912Q/


Very interesting. Thanks

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Re: Tesco (TSCO)

#202166

Postby Arborbridge » February 18th, 2019, 6:14 pm

Could it be that the practice of sale and lease back has been recognised as (in effect) an accounting smoke and mirrors act? Might it make it less popular in future?

I've never quite understood why selling one's property and then leasing back, and in the process paying someone else a profit line, was sensible. Would you willing sell your house and be at the mercy of a landlord unless you had to?

I can see the point if there is some immediate and profitable investment requirement for the cash, but not if it is a desperate attempt to improve a failing balance sheet.
This new regulation could be a dose of common-sense for the shareholder, but no doubt some of you will explain why I am being muddled-headed ;)

Arb.

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Re: Tesco (TSCO)

#202585

Postby Hariseldon58 » February 20th, 2019, 12:07 pm

I did recently that they had reacquirred ownership of some of the property previously sold and leased back.

It was a sensible move if they could use the capital more profitably elsewhere, the passage of time suggests they were overconfident on using the released capital...

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Re: Tesco (TSCO)

#202771

Postby CommissarJones » February 20th, 2019, 11:15 pm

TSCO's combination with Booker is looking increasingly like a good bit of business, in light of today's strong statement from the Competition and Markets Authority concerning the planned Sainsbury/Asda merger and the subsequent sharp fall by Sainsbury shares, which I would think has to reflect doubt that the merger will complete.

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Re: Tesco (TSCO)

#210162

Postby idpickering » March 25th, 2019, 4:36 pm

This from TMF, written by Roland Head;

Is the Tesco share price the bargain of the year?

Investment ideas don’t get much more boring than the UK’s largest supermarket, Tesco (LSE: TSCO).

Boring can be good in the stock market, but we all need a bit of excitement. So today I’m going to look at Tesco and at a much smaller retailer that I think could be a long-term winner.

Big and well run

The efforts being made by Sainsbury’s and Asda to merge their operations tell you something about the advantage of being big in groceries.

However, Tesco is already roughly the same size as its two rivals combined. This means that chief executive Dave Lewis doesn’t need to worry about trying to push through complex merger deals, despite regulatory opposition.

Mr Lewis has been able to focus on two areas — operational excellence and finding other routes to growth. In my view he’s accomplished both of these feats. He’s made improvements to the group’s business practices to treat suppliers more fairly, and improved the performance of its supermarkets.

Alongside this, Mr Lewis has acquired fast-growing food wholesaler Booker, which has given the group a sizeable share of the convenience store and restaurant foodservice markets.


https://www.fool.co.uk/investing/2019/0 ... -the-year/

idpickering
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Re: Tesco (TSCO)

#214041

Postby idpickering » April 10th, 2019, 7:09 am

Results;

•Group sales2 £56.9bn, +11.5% ◦UK & ROI LFL sales8 +2.9% incl. Tesco UK +1.7% and Booker +11.1%
◦Central Europe LFL sales8 (2.3)%: fewer trading days and less general merchandise
◦Asia LFL sales8 (6.2)%: improvement to (3.0)% in 4Q

•Group operating profit4 £2,206m, +34.0% ◦UK & ROI £1,537m, +45.1%; incl. £196m Booker (last year: £185m9) and £79m synergies
◦Central Europe £186m, +56.3%: significant cost reductions and improved profit mix
◦Asia £286m, (4.3)%: supplier negotiations concluded and significant restructuring complete
◦Bank £197m, +16.6%: strong banking performance and one-off contract renewal benefit10

•Group operating margin4 3.45%; 2H operating margin4 3.96% (3.79% excl. Booker)
•Retail operating cash flow6 £2.5bn: c.£(490)m working capital timing impact year-on-year
•Retail free cashflow of £906m: impacted y-o-y by working capital timing, higher tax and market purchases of shares
•Net debt6,7 £(2.9)bn: increased by £(238)m after £(766)m Booker cash consideration
•Final dividend 4.10p, giving FY dividend of 5.77p – now expect to reach c.2.0x EPS cover11 in 2019/20
•Statutory revenue +11.2% to £63.9bn; operating profit +17.1% to £2,153m; profit before tax +28.8% to £1,674m


https://www.tescoplc.com/news/news-rele ... ts-201819/

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Re: Tesco (TSCO)

#214046

Postby Arborbridge » April 10th, 2019, 7:27 am

If I'm reading that right, that's a full year dividend increase from 3p of 192% - so they are trying hard. At 2.4% that keeps it above my sell threshold but clearly below any buy for the moment.

This has been a classic HYP experience - sitting on one's hands waiting for the recovery and hoping to avoid a further collapse ;) Likewise, Lloyds, but that took far longer.

Arb.

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Re: Tesco (TSCO)

#214157

Postby PinkDalek » April 10th, 2019, 3:45 pm

The results are also being discussed at High Yield Portfolios (HYP) - Practical:

viewtopic.php?p=214047#p214047

:D

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Re: Tesco (TSCO)

#214176

Postby CommissarJones » April 10th, 2019, 4:41 pm

Booker really is looking like an absolute steal for TSCO. In addition to Booker's meaningful contributions to sales, profit and margin, TSCO said today integration costs connected to Booker likely will be no higher than £75 million, about half of the original estimate.

The hefty rise in the dividend is appreciated as well.

I topped up my TSCO holding in late November at around 200 pence, something that would not have seemed remotely conceivable two or three years earlier.

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Re: Tesco (TSCO)

#214269

Postby CommissarJones » April 10th, 2019, 11:05 pm

It's encouraging to see TSCO stock performing so well even before today's well-received annual results - up 27% in 2019. The shares have rebounded from the big drop that followed the release of the interims in October and the subsequent move down to about 190 pence, and are trading at the highest price in 6-7 months. On a five-year chart, the stock has climbed nicely above the 50-day moving average at 231.5p, which I hope will serve as support going forward.

With TSCO continuing to improve its operating performance and the CMA having seemingly gutted the Sainsbury-Asda combination, I also hope that Moody's will finally raise TSCO's credit rating back to investment grade - the outlook was changed to positive back in June 2018. Fitch has already moved TSCO back to an IG rating.

idpickering
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Re: Tesco (TSCO)

#223313

Postby idpickering » May 21st, 2019, 7:07 am

Tesco Bank to cease new mortgage lending

Tesco Bank has today announced that it has ceased new mortgage lending and is actively exploring options to sell its existing mortgage portfolio, including the complete transfer of related balances and ongoing administration of relevant accounts. The Bank, which has offered mortgages since 2012, currently serves over 23,000 customers with total lending balances of £3.7bn.


https://www.investegate.co.uk/tesco-plc ... 01026090Z/

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Re: Tesco (TSCO)

#228429

Postby Alaric » June 10th, 2019, 5:25 pm

It seems to have been announced some months ago, but Tesco are cutting back on the services offered in their larger stores.

In particular, they are closing the meat, deli and fish counters in (some of?) their stores from Sundays to Tuesdays. It makes them a less attractive destination for a regular weekly shop if your preferred day is Sunday, Monday or Tuesday. You may not use these counters, but a knock on effect that the pre packaged equivalents are more likely to have run out when the over the counter offering is missing.

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Re: Tesco (TSCO)

#228460

Postby daveh » June 10th, 2019, 6:28 pm

Alaric wrote:It seems to have been announced some months ago, but Tesco are cutting back on the services offered in their larger stores.

In particular, they are closing the meat, deli and fish counters in (some of?) their stores from Sundays to Tuesdays. It makes them a less attractive destination for a regular weekly shop if your preferred day is Sunday, Monday or Tuesday. You may not use these counters, but a knock on effect that the pre packaged equivalents are more likely to have run out when the over the counter offering is missing.

No they are going completely in all north east Scotland stores except Banchory!

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Re: Tesco (TSCO)

#229101

Postby idpickering » June 13th, 2019, 7:22 am

Trading update;


Dave Lewis, Chief Executive:

"We have had a strong start to the year, growing ahead of the UK market on both a volume and value basis. Our customer offer is more competitive than ever, with a wider choice of our 'Exclusively at Tesco' products now available in more stores, helping to drive more than 10% sales growth across the range.

Following a particularly good Easter, our '100 Years of Great Value' event in May proved very popular with more than 1.5 million customers benefiting from discounted Clubcard Prices."


https://www.investegate.co.uk/tesco-plc ... 00090349C/


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