We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Tesco Plc | LSE:TSCO | London | Ordinary Share | GB00BLGZ9862 | ORD 6 1/3P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 304.30 | 305.10 | 305.20 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Grocery Stores | 68.9B | 1.19B | 0.1670 | 18.27 | 21.7B |
TIDMTSCO
RNS Number : 9141Y
Tesco PLC
18 May 2021
18 May 2021
Tesco PLC
Annual Report and Financial Statements and Notice of Annual General Meeting 2021
Further to the release of its preliminary results announcement on 14 April 2021, Tesco PLC (the "Company") announces that it has today published its Annual Report and Financial Statements 2021. In addition, the Company announces that its Notice of Annual General Meeting 2021 (the "Notice") has been sent to shareholders. The 2021 Annual General Meeting will be held at our Heart building, Shire Park, Welwyn Garden City, Herts, AL7 1TW on Friday, 25 June 2021 at 9.30 am (the "AGM").
We recognise the ongoing importance of engaging with investors, especially during these unprecedented times. In light of the current UK Government restrictions, we propose to follow a slightly different format for this year's events. We invite investors to join a Virtual Shareholder Event on Friday, 18 June 2021 at 2.00pm. This will allow shareholders to hear from the Board and ask questions relating to the business of the AGM. During this event, shareholders will receive presentations from the Group Chair, John Allan, and the Group Chief Executive, Ken Murphy, on the performance and activities of Tesco during the past year. This new event will also allow those shareholders who vote in advance of the AGM to do so after having heard from the Board. Following the latest guidance issued by the UK Government, it is not clear whether all shareholders who may wish to attend the AGM in person will be able to do so. Therefore, it is proposed that we hold the AGM with the minimum number of shareholders present (which will be facilitated by Tesco) as is required under the Company's articles of association to enable the business of the AGM to be conducted. Further information and the current arrangements for the AGM can be found on our website at www.tescoplc.com/AGM2021.
The Company's Annual Report and Financial Statements 2021, Notice of Annual General Meeting 2021 and Little Helps Plan Progress Update can be viewed on the Company's website at www.tescoplc.com .
In accordance with Listing Rule 9.6.1R, copies of the following documents have been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
-- Annual Report and Financial Statements 2021; -- Notice of Annual General Meeting 2021; and -- Proxy Form for the 2021 Annual General Meeting.
The Company's preliminary consolidated financial information and information on important events that have occurred during the year, and their impact on the financial statements were included in the Company's preliminary results announcement on 14 April 2021. That information, together with the information set out below, which is extracted from the Annual Report and Financial Statements 2021, constitute regulated information, which is to be communicated to the media in full unedited text through a Regulatory Information Service in accordance with the FCA's Disclosure Guidance and Transparency Rules ("DTR"), Rule 6.3.5R. This announcement is not a substitute for reading the full Annual Report and Financial Statements 2021. Page and note references in the text below refer to page numbers and note references in the Annual Report and Financial Statements 2021. To view the preliminary results announcement, visit the Company's website: www.tescoplc.com .
Enquiries: Robert Welch
Company Secretary
Tesco PLC
Tesco House
Shire Park
Kestrel Way
Welwyn Garden City
Hertfordshire
AL7 1GA
Tel: 07793 222569
LEI Number: 2138002P5RNKC5W2JZ46
Principal risks and uncertainties
Key Elements of our risk management framework
Our established risk management framework enables us to manage and report the risks that we face as a business. A risk that can seriously affect our performance, future prospects or reputation is termed a principal risk.
To manage our risks effectively we have identified a risk appetite which is driven by the following factors:
- our performance should be competitive, responsible and focused on creating value for all our stakeholders including customers, colleagues, suppliers and shareholders;
- our behaviours must be in line with our Code of Business Conduct to protect and enhance our reputation;
- we aim to operate our business within the capital allocation framework we have set out; and
- we seek to ensure that our principal risks are effectively managed.
Principal risks are discussed and agreed by Executive management and the Audit Committee. These risks are cascaded to the business units (top-down), who manage and report on the principal risks and any additional significant business unit risks. Business units also escalate risks as appropriate (bottom-up) to the Executive Committee. Our regular risk discussions consider emerging risks and include horizon scanning, which are reported at business unit and Executive Committee levels.
The principal risks are discussed and evaluated through regular meetings with senior management. The Board discusses each principal risk at least annually to provide oversight and ensure they remain well-managed and relevant.
The seven steps of the risk, controls and assurance framework on page 31 are embedded within our business as key elements of how we manage our risks and ensure appropriate controls are in place.
The risk assessment process relies on our evaluation of the likelihood and impact of risks, and on the development and monitoring of appropriate internal controls. Risk registers, detailing the risks we face, are an important component of how we manage our risks.
Risk Management
We have carried out a robust review of our principal risks, which includes periodic assessments of the risks we believe could threaten our business model, future performance, solvency or liquidity.
The Brexit risk has reduced since last year when there was no clarity on the long-term trading relationship between the UK and EU once the transition period expired on 31 December 2020. The new UK-EU Trade and Cooperation Agreement (TCA) removed the uncertainty of a no-deal Brexit. While this has reduced the Brexit risk, uncertainty remains around the full effect of Brexit, how the TCA will be implemented and how the trading relationship will develop.
We reported the COVID-19 pandemic as a new principal risk last year, and it remains an elevated risk. The pandemic has had a more profound impact on economies and people than was then expected. Uncertainty remains as to whether the recent lockdowns and vaccination programme are sufficient to bring the pandemic under control and allow normal life to return and, if so, when. The impact of the pandemic is also reflected across many of the principal risks and our mitigation strategies for them.
Climate change has become a widely acknowledged global emergency and a key priority for governments, businesses and citizens around the world. While risks relating to climate change and sustainability have previously been integral parts of several of our principal risks, we have now included climate change as a separate principal risk.
Tesco Bank has been through a challenging year due to increased macroeconomic uncertainty driven by, among others, the COVID-19 pandemic, thereby increasing its risk profile.
During the year, we recognised the potential disruption arising from the lengthy regulatory processes involved in the sale of our businesses in Thailand and Malaysia, which was completed in December 2020. The actions we took to monitor and manage these risks proved effective.
The following table sets out our principal risks, their movement during the year, and a summary of key controls and mitigating factors. They do not include all our risks and they are not set out in priority order. Additional risks not presently known, or that we currently deem to be less material, may also have adverse effects.
As part of our continuous improvement approach to risk management, and aided by the appointment of a new Chief Audit and Risk Officer in September 2020, we will continue to develop our methodology and risk framework. This will enhance risk management in supporting effective decision-making. As part of this, we also continue to develop and enhance our approach to risk appetite.
Principal risk Risk movement Key controls and mitigating factors Brexit Failure to adapt The new UK-EU Trade to the UK's new trading and Cooperation Agreement * We continue to assess and monitor the potential risks relationship with (TCA) came into effect of Brexit and its impacts on our customers, the EU, and how it from 1 January 2021, colleagues and shareholders. We are also taking may develop as further setting out the conditions appropriate mitigation measures to address challenges agreements are reached for tariff-free trading including logistics, resourcing and supply with clear or political decisions with the EU and removing oversight by senior leaders and our Brexit Governance made, results in the uncertainty of Group. disruption to our a no-deal Brexit. business, cost inflation The business is impacted and impacts on our by more cumbersome * Our focus has been on avoiding transportation delays ability to supply border controls, and bottlenecks. We are also working to ensure the our customers with goods inspection, accuracy of documentation to avoid waste and to the products and and customs documentation, ensure we maximise the shelf life of our fresh
at the prices they with the most trade produce by working with our logistics partners. expect. These and friction being between any adverse impact Great Britain and of Brexit on the Northern Ireland * We continue to work closely with Government, UK economy could and Ireland. The regulatory bodies and industry on implementing the affect our business, full effect of Brexit TCA, sharing data and analysis to inform financial results on the business will policymaking. and operations. emerge as new trade patterns are established and the new regulatory framework is better understood. Risk decreasing --------------------------- ------------------------------------------------------------ COVID-19 The continuing global During the year, COVID-19 pandemic governments around * The safety and wellbeing of our colleagues and may have a significant the world introduced customers has been and continues to be our overriding and prolonged impact emergency public priority. Our Executive Committee is monitoring on global economic measures, including events closely with regular Board oversight, conditions, disrupt travel bans, quarantines evaluating the impacts and designing appropriate our supply chain and public lockdowns. response strategies. (including our supplier These measures have, base, specifically to varying degrees, regarding business been relaxed then * Our teams continue to work tirelessly to implement closure and consolidation, reintroduced as COVID-19 specific actions to minimise disruption faced by our labour shortage, transmission subsided customers in these challenging times. This includes raw material supply before surging again, increasing our retail store colleague headcount (with and cost inflation), with new variants redeployment of colleagues where possible), securing increase employee adding to the speed additional supply chain capacity to meet changes in absences and adversely of transmission. demand, implementing changes to stores (including impact our operations Vaccines have been hours, additional security, hygiene and social (including Tesco developed and are distancing measures), and extending support to Bank). Failure to being rolled out colleagues and customers at increased risk. adapt to changes with significant brought about by coverage in our core this and any future UK market, however * We have developed practices within our stores and pandemics in our uncertainty remains distribution centres, as well as for office markets and the as to whether recent colleagues working from home, to help people adapt to environment lockdowns and the the new ways of working. We have aligned our controls in which we operate vaccination programme accordingly with appropriate assurance measures in may adversely affect are sufficient to place. our competitiveness bring the pandemic and financial results. under control and allow normal life * The availability of cash resources and committed to return and, if facilities, together with our strong cash flow, are so, when. It is also supporting Tesco's liquidity and longer-term unclear how the pandemic viability. will have changed the environment in which we operate and the choices customers make. No risk movement --------------------------- ------------------------------------------------------------ Data security and data privacy Failure to comply As a retail organisation, with legal or regulatory we hold a large amount * We put our customers and colleagues at the heart of requirements relating of personal data all decisions we make in relation to the processing to data security on customers and of personal data. Our data privacy and protection and data privacy colleagues. The threat policies clearly set out how we can protect and in the course of landscape has been appropriately restrict customer, supplier and our business activities ever-growing while colleague data. Our multi-year technology security results in reputational we continue to invest programme is driving enhanced data security damage, fines or in our security and capabilities. other adverse privacy programmes. consequences. The move to homeworking This includes criminal for most office-based * We have an established team in our security penalties and colleagues during operations centre to detect, report and respond to consequential the pandemic has security incidents. litigation which presented its own may result in an security challenges adverse impact on and response requirements. * We have a third-party supplier assurance programme our financial performance focusing on third-party data security and privacy or unfavourable effects No risk movement risks. on our ability to do business. * We have a privacy compliance programme, which includes assessment and monitoring of risk across our global business. * There is regular reporting on progress and results of the security and privacy programmes to governance and oversight committees. * We recognise the importance of training and communication to help prevent data security and privacy-related incidents and have regular induction, awareness and refresher courses for our colleagues. * We have next-generation, behaviour-based anti-virus and malware solutions, data and payment encryption and threat detection tools that help us reduce the likelihood of being compromised. --------------------------- ------------------------------------------------------------ Health and safety Failure to meet safety The pandemic has standards in relation presented unique * We have a business-wide, risk-based safety framework to our workplace challenges for the which defines how we implement and report on safety results in death safety of our customers controls to ensure that colleagues, contractors and or injury to our and colleagues. It customers have a safe place to work and shop. customers, colleagues, has driven the need or third parties, for rigorous risk or in damage to our assessment, the rapid * We require each business to maintain a comprehensive operations and leads rollout of new ways risk register and safety improvement plan to document to adverse financial of serving customers and track enhancements. and reputational and of working for consequences. colleagues, clear communication, and * Governance and oversight are established in the form close attention to of our Group Risk and Compliance Committee and and compliance with business unit-specific health and safety committees. Government pronouncements. These committees review critical metrics and monitor the effectiveness of related controls. No risk movement * Our safety audits, whistleblowing arrangements and the results of our annual colleague surveys inform
management on the delivery of targeted safety initiatives, including communication plans. * Our assurance activities, such as store and distribution compliance reviews, safety health checks and audits, help us assess our compliance with established policies and processes. They enable us continuously to seek and identify areas for potential improvement. --------------------------- ------------------------------------------------------------ Climate change Climate change has Climate change has the potential to become a widely * Our Little Helps Plan on pages 12 to 16 sets out our change dramatically acknowledged ambitions and action plans for addressing climate the world in which global emergency, change. The Board's Corporate Responsibility we live and operate, moving from an emerging Committee provides governance and oversight. and tackling climate risk to a principal change, by taking risk for the business. measures to limit * We have established a number of metrics with its impact to manageable New risk appropriate management oversight and governance levels, has become mechanisms to enable us to monitor progress. We are a key priority for working with third-party organisations to continue governments, businesses developing this suite of metrics. There is a level of and citizens around external assurance over the metrics, and we are the world. Even if working to further enhance and extend this. manageable, the effect of climate change will be quite profound, * We seek to align our climate-related ambitions with and these measures our financial policies and have launched our first will themselves have sustainability-linked bond. We have also extended our a significant impact climate-related financial disclosures. on economies and the choices people make. Climate change has, therefore, moved from an emerging risk to a principal risk for the business. --------------------------- ------------------------------------------------------------ Responsible sourcing and supply chain Failure to meet product The pandemic (and safety standards to an extent contingency * Our product standards, policies and guidance help results in death, planning for Brexit) ensure that products are safe, legal and of the injury or illness put significant stress required quality. They cover food and non-food, as to customers. Failure on our supply chain well as goods and services not for resale. to ensure that products during the year. are sourced responsibly Surges in demand across our supply placed pressures * We have policies and guidance to help ensure human chain (including on supply, and some rights are respected and environmental impacts are fair pay for workers, suppliers were unable responsibly managed. These include a focus on adhering to human to maintain operating appropriately monitoring conditions and progress, rights, clean and capacity. We have tackling endemic sector risks and addressing wider safe working environments, also had to adopt community needs. meeting climate change new approaches to and sustainability our technical and commitments) and supplier audits to * We run colleague training programmes on food and that all social and ensure our standards product safety, responsible sourcing, hygiene environmental standards have been met. We controls, and also provide support for stores. We are met, results have continued to also provide targeted training for colleagues and in supply chain drive our environmental suppliers dealing with specific challenges such as disruption, agenda, including modern slavery. regulatory breaches, actions relating and reputational to deforestation impacts of not meeting and animal welfare. * Our crisis management procedures are embedded within societal expectations. operations to quickly resolve issues if non-compliant No risk movement products are produced or sold with clear escalation protocols. * We operate supplier audit and product analysis programmes to monitor product safety, traceability and integrity, human rights and environmental standards. They include unannounced audits of suppliers' sites and facilities. --------------------------- ------------------------------------------------------------ Competition and markets Failure to deliver We continue to face an effective, coherent the challenges of * Our Board develops and regularly challenges the and consistent strategy a changing competitive strategic direction of our business to enhance our in response to our landscape and price ability to remain competitive on price, range and competitors and changes pressures across service. This includes developing our online channels in market conditions our markets. Our and multiple formats to allow us to compete in result in a loss strategies are different markets. of market share and well-developed profitability. and we review them regularly to remain * Our Executive Committee and operational management competitive and informed regularly review markets, trading opportunities, by competitor and competitor strategy and activity. market activity. No risk movement * We carry out market scanning and competitor analysis to refine our customer proposition. --------------------------- ------------------------------------------------------------ Transformation Failure to achieve There has been ongoing our transformation delivery of key programmes * We have clear market strategies and business plans to objectives due to to meet our transformation address changes to business priorities, strategic poor prioritisation, objectives while objectives and external market factors. ineffective change we continue to push management and a forward with new failure to understand initiatives. * We have executive-level governance and oversight for and deliver the technology all activities to ensure programmes are adequately required, results No risk movement resourced, milestones achieved, and key rollout in an inability to decisions approved. progress sufficiently quickly to maintain a competitive cost * Real-time independent assurance activities are structure and generate conducted during the transformation programme. sufficient cash to meet business objectives. --------------------------- ------------------------------------------------------------ Political, regulatory and compliance Failure to comply Long-term changes with legal and other in the global political * Wherever we operate, we aim to ensure that we requirements in an environment and societal incorporate the impacts of political and regulatory increasingly restrictive expectations are changes in our strategic planning and policies. regulatory environment leading to greater due to changes in regulation of business the global political and potential penalties. * We have compliance programmes and committees to
landscape, results In some markets, manage our most important risks (e.g. anti-bribery in fines, criminal regulations can result and competition law) and we conduct assurance penalties for Tesco in favouring local activities for each key risk area. or colleagues, companies. consequential litigation and an No risk movement * Our Code of Business Conduct and various policies adverse impact on (e.g. gifts and entertainment, conflicts of interest) our reputation, financial are supported by new starter and annual compliance results, and/or our training and other tools such as our whistleblowing ability to do business. hotline. * The engagement of leadership and senior management is critical to the successful management of this risk area. We have established structured communication plans to provide a clear tone from the top. --------------------------- ------------------------------------------------------------ Technology Failure of our IT Dependence on technology infrastructure or continues to grow * Our multi-year programme continues to enhance our key IT systems results throughout the Group. technology infrastructure and resilience in a loss of information, We continue to improve capabilities. This involves significant investment in inability to operate our technology environment our hosting strategy, partnering with cloud providers effectively, financial and invest in disaster and re-engineering some of our legacy retail systems, or regulatory penalties, recovery and business while building redundancy for key business systems. and negative impacts continuity, which on our reputation. are helping manage Further, failure our exposure to external * Our investment in data centre facilities is providing to build resilience threats. greater resiliency and oversight for our key systems. at the time of investing in and implementing No risk movement new technology results * Our technology security programme continues to in potential loss enhance our information security capabilities, of operating capability. thereby strengthening our infrastructure and information technology general controls. * We have combined governance processes to ensure alignment between our technology disaster recovery and business continuity activities. --------------------------- ------------------------------------------------------------ People Failure to attract, Market competition retain and develop for key leadership * Our talent planning and people development processes the required capability and specialist talent are established across the Group. and to embed our remains strong. The values in our culture year has also presented results in an impact significant people * Talent and succession planning are regularly on the delivery of challenges in supporting discussed by line management and the Executive our purpose and business vulnerable colleagues, Committee, with regular oversight by the Nominations performance. recruiting and training and Governance Committee and the Board. huge numbers of new permanent and temporary colleagues, supporting * We have clear potential and performance criteria and the shift to homeworking talent principles, underpinned by our employer value for most office-based proposition and strategy. colleagues, reinforcing our culture and driving our diversity and * An independent assessment of all leadership-level inclusion programmes promotions and external hires is conducted to ensure harder. capability, potential, leadership and values. No risk movement * The Remuneration Committee agrees the objectives and remuneration arrangements for senior management. * Our 'how to' and 'when to' speak up programmes across all areas include our protector line and complaints process. These allow colleagues to raise in confidence any workplace concerns such as dishonest activity, bias or something that endangers colleagues , the public or the environment. * Our established Group Diversity and Inclusion strategy ensures that everyone is welcome and that we provide all our colleagues with equal opportunities for growth and development. This is embedded in our values, and we are committed to building an inclusive workplace. --------------------------- ------------------------------------------------------------ Customer Uncertainties (including There remains considerable the pandemic and uncertainty as to * We have a value, price, promotions and Clubcard the effects of Brexit) the further impact strategy that drives our business priorities with and macroeconomic on the economy and governance and oversight mechanisms. conditions impact employment from the our customers' budgets pandemic and on and force customers households. * We have a consistent approach to building impactful to reappraise the Also, the full effects customer propositions, offering high-quality and concepts of value of Brexit on the competitive value while improving the customer and loyalty in a economy in the short experience. way to which we are and longer term are unable to respond. unclear. However, we feel we have the * We undertake Group-wide customer insight analysis to right strategies improve our propositions by understanding and and processes in leveraging trends around customer behaviour, place to monitor expectations and experience across the different this risk and manage parts of the business. it as far as circumstances will allow. The pandemic has seen a significant * We have well-established product development and shift in consumer quality management processes, which keep the needs of demand for online our customer central to our decision-making. shopping which led us to significantly increase our capacity. * We monitor the effectiveness of our processes by regularly tracking our business and competitors No risk movement against measures that customers tell us are important to their shopping experience. --------------------------- ------------------------------------------------------------ Brand, reputation and trust Failure to create There has been widespread brand reappraisal recognition of the * Our Group policies, procedures and our Code of opportunities to steps we took to Business Conduct set out the detailed expectations
improve quality, feed the nation while and behaviours that enable us to make the right value and service keeping customers decisions for our customers, colleagues, suppliers, perceptions, as well and colleagues safe communities and investors. as meet societal during the year, expectations in relation prioritising vulnerable to climate and customers and providing * We listen to our customers and stakeholders as part sustainability, support for local of our communication and engagement programmes. We results in a negative communities around reflect their needs in our plans, which include impact on the trust the country. We are, health, community, sourcing, climate and which our communities however, very aware sustainability initiatives. and stakeholders that hard-won reputations place in our brand. can be quickly lost, and we continue to * The Board's Corporate Responsibility Committee implement initiatives oversees all corporate responsibility activities and and activities aligned initiatives, including climate and sustainability to our strategic programmes, to ensure alignment with customer priorities to continue priorities and our brand strategy. to build and maintain trust. No risk movement * We continue to use the advice of specialist external agencies and our in-house marketing expertise to maximise the value and impact of our brand. --------------------------- ------------------------------------------------------------ Tesco Bank Tesco Bank is exposed The pandemic has to a number of risks, resulted in lower * The Bank has a formal structure for reporting, the most significant trading activity, monitoring and managing risks. This comprises, at its of which are operational, lending balances highest level, the Bank's risk appetite, approved by regulatory, credit, and income in the the Bank Board and supported by the risk management funding, liquidity, Bank and increased framework. market and business provisions for expected risk. credit losses, reflecting forecast unemployment, * The Tesco PLC Board also reviews and approves the resulting in a loss Bank's financial risk appetite. Risk appetite defines for the year. The the type and amount of risk that the Bank is prepared Bank continues to to accept to meet its strategic objectives. It forms actively manage the a link between the day-to-day risk management of the risks to which it business and its strategic priorities, long-term plan is exposed and maintains , significant regulatory capital planning and stress-testing. Adherence to capital. While the risk appetite is monitored monthly. overall risks facing the Bank are similar to that of a year * The risk management framework brings together ago, the risk profile governance, risk appetite, the three lines of defence is judged to have , increased, reflecting the policy framework and risk management tools to the uncertainty as support the business in managing risk as part of its to the timing and day-to-day activities. The framework includes strength of a recovery scenario analysis and regular stress-testing of in the economy on financial resilience. which the financial performance of the Bank relies. * There is Bank Board risk reporting throughout the year, with updates to the Tesco PLC Audit Committee Risk increasing provided by the Bank's Chief Financial Officer and Audit Committee Chairman. A member of the Tesco PLC Board or Executive Committee is normally a member of the Bank's Board to enhance visibility and knowledge sharing. --------------------------- ------------------------------------------------------------ Liquidity Failure of our business Tesco Group has traded performance to deliver robustly overall * We maintain an infrastructure of systems, policies cash as expected; through the pandemic and reports to ensure discipline and oversight on access to funding and the injection liquidity matters, including specific treasury and markets or facilities of GBP2.5bn from debt-related issues. being restricted; the proceeds of the failures in operational sale of our Asia liquidity and currency business has greatly * Our treasury policies are regularly reviewed by risk management; reduced the prospect management, the Executive Committee and the Board. Tesco Bank cash call; of having to make or adverse changes further pension deficit to the pension deficit contributions in * The Group's funding strategy is approved annually by funding requirement the future. The Group the Board and includes maintaining appropriate levels create calls on cash has maintained an of working capital, undrawn committed facilities and higher than anticipated, Investment Grade access to the capital markets. leading to impacts rating from the credit on financial performance, rating agencies, cash liquidity or and maturing bonds * We regularly review liquidity levels and sources of the ability to continue and the revolving cash, and we maintain access to committed credit to fund operations. credit facilities facilities and debt capital markets. were refinanced. No risk movement * We have a long-term funding framework in place for the pension deficit and there is ongoing communication and engagement with the Pension Trustees. * While recognising that Tesco Bank is financially separate from Tesco PLC, we continue to monitor the activities of Tesco Bank that could give rise to risks to Tesco PLC. * The Audit Committee reviews and annually approves our viability and going concern statements and reports into the Board. --------------------------- ------------------------------------------------------------
Indicates that the principal risk has been included as part of the longer-term viability scenarios as detailed on pages 38 and 39.
Internal control
The key elements of the Group's internal control framework are monitored throughout the year and the Audit Committee has conducted a review of the effectiveness of the Group's risk management and internal control systems on behalf of the Board. To support the Board's annual assessment, Group Risk and Audit prepared a report on the Group's principal risks and internal controls. This describes the risk management systems and key internal controls, as well as the work conducted in the year to improve the risk and control environment, including the level of assurance undertaken. The internal control framework is intended to effectively manage rather than eliminate the risk of failure to achieve our business objectives. It can only provide reasonable, but not absolute, assurance against the risk of material misstatement or financial loss.
Statement of Directors' responsibilities
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors are required to prepare the Group financial statements in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. The Group Financial Statements are also prepared in accordance with IFRS as issued by the International Accounting Standards Board. The Directors have also chosen to prepare the Parent Company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard (FRS) 101 Reduced Disclosure Framework. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing the Parent Company financial statements, the Directors are required to:
- select suitable accounting policies and then apply them consistently; - make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
In preparing the Group financial statements, International Accounting Standard 1 requires that Directors:
- properly select and apply accounting policies;
- present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
- provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
- make an assessment of the Company's ability to continue as a going concern.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Each of the serving Directors, whose names and functions are set out on pages 42 to 46, confirm that, to the best of their knowledge:
- the financial statements, prepared in accordance with the relevant financial reporting framework, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole;
- the Strategic report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face; and
- the Annual Report and Financial Statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's position and performance, business model and strategy.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
ACSDKOBNCBKDPPD
(END) Dow Jones Newswires
May 18, 2021 02:00 ET (06:00 GMT)
1 Year Tesco Chart |
1 Month Tesco Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions