Tesco Share Discussion Threads

[loganair] 14/10/2020 11:30

The billionaire brothers who bought Asda for £7billion are facing questions over their decision to transfer ownership of the British supermarket to the tax haven of Jersey.

Under the deal struck by Mohsin and Zuber Issa, who were made CBEs in the Queen's Birthday Honours list, the grocer will be legally controlled by a parent company based in Jersey.

Experts said there were several benefits to operating from the Crown dependency, which charges a corporate tax rate of zero.

It would also mean the parent company does not have to disclose its accounts publicly, and the Issas would pay no capital gains tax if they decided to sell Asda at any time.

[muffinhead] 13/10/2020 19:19

UK shoppers spend £261m more on alcohol amid Covid pub curfew

[paulisi] 13/10/2020 12:41

Limited stockpiling, but working from home means people buying more food for home cooking instead of buying from pret or Gregg etc

[philanderer] 13/10/2020 11:14

Alliance News:

Take-home grocery sales in the UK increased in the face of new lockdown restrictions, but there is a limited evidence of consumers stockpiling, research agency Kantar said.

In the 12 weeks to October 4, UK take-home grocery sales grew by 9.4%. However, in the shorter period of four weeks to October 4, sales increased by 10.6%, an acceleration from September. Among the "Big Four" UK grocers, Tesco saw a 9.2% sales rise to GBP7.84 billion, but its market share remained flat at 26.8%.

J Sainsbury booked a 6.8% sales jump to GBP4.35 billion. Its market share slipped to 14.9% from 15.3%. Walmart's Asda had a 5.4% annual sales rise to GBP4.21 billion, but its market share fell to 14.4% from 15.0%. At Wm Morrison Supermarkets PLC, sales rose 12% year-on-year to GBP2.95 billion, with market share up to 10.1% from 9.9%.

[vaneric1] 11/10/2020 09:32

Dame Margaret Hodge, wasn't she one of the dodgy MPs caught out in the expenses scandal?

[philanderer] 11/10/2020 00:27

Tesco chairman John Allan says he will defend 'to the death' board's decision to pay dividend after receiving tax break

[bountyhunter] 10/10/2020 08:44

Yes I see that FB, but likewise am looking for a break upwards on the basis that the huge investment in Covid protection measures and expanding the online delivery option will bear fruit over the next 6-12 months. Tesco is the best UK grocer imho.

[farnesbarnes] 08/10/2020 12:12

The only thing troubling me with TSCO is a clear descending triangle in formation over the last 9 months. One hopes for a break upwards.

[trikytree] 08/10/2020 11:37

That will help! Can’t believe I got a chance of a big top up whilst it was down on the day yesterday after those results. Crazy markets atm.

[philanderer] 08/10/2020 10:55

Tesco is Interactive Investor’s preferred supermarket play


Tesco (TSCO) has navigated the Covid-19 crisis ‘with aplomb’ and Interactive Investor says it will remain a preferred play on supermarkets.

Analyst Richard Hunter said Tesco was ‘reaping the benefits of its actions’ as first-half profits rose more than a quarter as the pandemic saw online orders double. Pre-tax profits were up 28.7% to £551m as the supermarket announced its first set of results under new chief executive Ken Murphy.

It wasn’t all good news, however, as Covid-19-related costs came in at £533m and the banking division is on track for a loss this year. Hunter said performance overall has been ‘robust’. The shares were trading at 212.6p yesterday.

‘The warm reaction to the numbers is understandable given the strides which Tesco has made,’ he said.

‘While the [share] price has yet to make meaningful progress of late, Tesco’s intentions are clear and its status as the preferred play in the sector is likely to remain intact, as evidenced by the market consensus of the shares as a strong “buy”.’

[vaneric1] 08/10/2020 10:10

He's Aldi's spokesman. :-)

[cl0ckw0rk0range] 07/10/2020 23:21

If you aren't a shareholder JW why are you wasting your time posting here?

[bountyhunter] 07/10/2020 21:30

Absolutely TT

Just posting what was stated in this morning's RNS, fortunately it's the Board's decision that matters and they will be paying off 2.5B of the pension fund's deficit an returning 5B to shareholders. There has to be a balance or no one would invest in Tesco.

[trikytree] 07/10/2020 21:03

Lucky you’re not deciding jw

[johnwise] 07/10/2020 20:44

bountyhunter 7 Oct '20 - 19:27 - 24457 of 24458
"2.5B into the pension fund + 5B returned to shareholders in due course, that's over 50p per share".

The shareholders should receive none of it untill its debt £12.5 Billion is payed off.

[bountyhunter] 07/10/2020 19:27

2.5B into the pension fund + 5B returned to shareholders in due course, that's over 50p per share.

GBP8.2bn(9) sale of Thailand and Malaysia businesses approved by shareholders in May; regulatory approval and completion expected by the end of the calendar year, to be followed immediately by shareholder meeting to approve c.GBP5bn capital return and GBP2.5bn one-off contribution to eliminate pension funding deficit

[essentialinvestor] 07/10/2020 16:16

There is a case for paying £2 billion off net debt, funding the pension plan
as announced and the remainder returned to shareholders.

The market may well have preferred that imv.

[trikytree] 07/10/2020 14:38

Thanks Phil, you are of course correct. I can wait a week. Cheers

[carpingtris] 07/10/2020 14:29

And then it'll drop ~50p when the special goes xd - so let's hope the rocket up is substantial!

[philanderer] 07/10/2020 14:26

TrikyTree , you'll have to wait another week , goes xd for the 3.2p interim dividend next thursday morning on the 15th october ;-)


And yes, around 50p for the special dividend once the sale is all complete.

[trikytree] 07/10/2020 14:12

Any ideas on the special anyone. Been rumoured could be worth up to 51p a share. The share price would rocket if they announced it.

[carpingtris] 07/10/2020 14:10

GBP2.5bn one-off contribution to eliminate pension funding deficit - that'd be a good thing.