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Re: Tesco (TSCO)
Posted: January 14th, 2021, 8:31 am
by dealtn
It's not one I own so haven't dug into this too deeply, however I have concerns here, hopefully only short term ones.
Read the RNS and a lot of the talk is about growing revenue across the unprofitable bits of the business such as home delivery, and like-for-like declines in areas such as Booker. There are, of course, good reasons why food wholesalers will be suffering at the moment.
Throughout the RNs there is plenty to say about stakeholders, about ensuring communities are fed, staff are safe etc. but nothing about shareholders and profitability. Are companies really so scared about making money these days? Maybe they are, or maybe it is just PR. Given how the company, and industry as a whole, "caved in" and repaid government support, which hugely impacted profits, perhaps it is now the case. Again hopefully this is just a short term, during the pandemic, response.
For those for whom it is important there is guidance on the time scale for the special dividend, and completion of the Asian disposal.
In general not a lot here to get me excited about digging deeper into the company, and assessing potential investment.
Re: Tesco (TSCO)
Posted: January 14th, 2021, 9:59 am
by scrumpyjack
dealtn wrote:It's not one I own so haven't dug into this too deeply, however I have concerns here, hopefully only short term ones.
Read the RNS and a lot of the talk is about growing revenue across the unprofitable bits of the business such as home delivery, and like-for-like declines in areas such as Booker. There are, of course, good reasons why food wholesalers will be suffering at the moment.
Throughout the RNs there is plenty to say about stakeholders, about ensuring communities are fed, staff are safe etc. but nothing about shareholders and profitability. Are companies really so scared about making money these days? Maybe they are, or maybe it is just PR. Given how the company, and industry as a whole, "caved in" and repaid government support, which hugely impacted profits, perhaps it is now the case. Again hopefully this is just a short term, during the pandemic, response.
For those for whom it is important there is guidance on the time scale for the special dividend, and completion of the Asian disposal.
In general not a lot here to get me excited about digging deeper into the company, and assessing potential investment.
As it is a trading statement giving turnover rather than profit figures, and in current circumstances, it probably is sensible for them to blather on about every conceivable 'stakeholder' except the shareholders. I have held for a very long time and Tesco do seem to have stabilised after the awful mess they got themselves into a few years ago. But it has become clear to me that supermarkets do not have much of a 'moat' as Buffet called it and are likely to carry on competing fiercely with each other over the same cake, with the probability of increasing competition from the likes of Amazon. That is unlikely to make them an attractive investment from shareholders point of view.
I will sell the holding in my taxable account - the decision being prompted by the silly way they are handing out the capital proceeds of the far east sale so that shareholders get taxed on it as income at their marginal rate, when the nature of the payment is obviously capital. That shows how little regard they have for private shareholders.
Re: Tesco (TSCO)
Posted: January 25th, 2021, 12:14 pm
by idpickering
Publication of circular relating to a special dividend and share consolidation etc.
Special Dividend
The Company can confirm that it intends to return £4,987,827,804 to Shareholders by way of a proposed Special Dividend of 50.93 pence per Existing Ordinary Share in the capital of the Company. The Board is proposing to pay the Special Dividend to Shareholders on the Register as at 6.00 p.m. (GMT) on 12 February 2021 in Pounds Sterling and to ADR holders on the ADR register as at 5.00 p.m. (New York time) on 12 February 2021 (being the close of business on the day before the ADR effective date for the Share Consolidation) in US dollars.
Subject to (i) Shareholder approval of the Special Dividend and the Share Consolidation and (ii) Admission in respect of the New Ordinary Shares, the Special Dividend is expected to be paid to Shareholders on 26 February 2021 and to holders of ADRs 5 business days after payment to Shareholders.
In connection with the Special Dividend, the Company has today sent interim parent company accounts (as required pursuant to section 836 of the Companies Act 2006) to the registrar of companies.
https://www.investegate.co.uk/tesco-plc ... 12267298M/
Re: Tesco (TSCO)
Posted: January 26th, 2021, 7:14 am
by idpickering
Further to the above subject, Tesco put this out today;
Additional Listing
Further to the circular to shareholders published on 25 January 2021 (the "Circular"), Tesco PLC (the "Company") confirms that applications have been made for the admission of a total of 11 ordinary shares of 5p each to (a) the premium listing segment of the Official List of the Financial Conduct Authority of the United Kingdom and to trading on the London Stock Exchange's main market for listed securities and (b) to a secondary listing on the Official List of The Irish Stock Exchange plc, trading as Euronext Dublin and to trading on the Euronext Dublin Market operated by Euronext Dublin. This additional listing of shares will ensure the Share Consolidation results in a whole number of New Ordinary Shares following the Share Consolidation.
These shares are being issued to the Company's Employee Benefit Trust.
The shares will rank equally with the existing issued Ordinary Shares of the Company.
It is expected that admission will be granted on 28 January 2021 and that trading will commence on the same day.
https://www.investegate.co.uk/tesco-plc ... 00048359M/
Re: Tesco (TSCO)
Posted: January 28th, 2021, 9:36 pm
by Bouleversee
idpickering wrote:Publication of circular relating to a special dividend and share consolidation etc.
Special Dividend
The Company can confirm that it intends to return £4,987,827,804 to Shareholders by way of a proposed Special Dividend of 50.93 pence per Existing Ordinary Share in the capital of the Company. The Board is proposing to pay the Special Dividend to Shareholders on the Register as at 6.00 p.m. (GMT) on 12 February 2021 in Pounds Sterling and to ADR holders on the ADR register as at 5.00 p.m. (New York time) on 12 February 2021 (being the close of business on the day before the ADR effective date for the Share Consolidation) in US dollars.
Subject to (i) Shareholder approval of the Special Dividend and the Share Consolidation and (ii) Admission in respect of the New Ordinary Shares, the Special Dividend is expected to be paid to Shareholders on 26 February 2021 and to holders of ADRs 5 business days after payment to Shareholders.
In connection with the Special Dividend, the Company has today sent interim parent company accounts (as required pursuant to section 836 of the Companies Act 2006) to the registrar of companies.
https://www.investegate.co.uk/tesco-plc ... 12267298M/
I had a corporate action notification from Interactive Investor about this today and I see that it gives an ex-entitlement date for the dividend as l5th February and the effective date for the consolidation also as l5th February.. How does that tally with "The Board is proposing to pay the Special Dividend to Shareholders on the Register as at 6.00 p.m. (GMT) on 12 February 2021 in Pounds Sterling", i.e. which is the critical date so far as ownership of the shares is concerned? I've forgotten what happens about tax in such situations but I've had enough of tax for one day.
Re: Tesco (TSCO)
Posted: January 28th, 2021, 9:58 pm
by EthicsGradient
Bouleversee wrote:I had a corporate action notification from Interactive Investor about this today and I see that it gives an ex-entitlement date for the dividend as l5th February and the effective date for the consolidation also as l5th February.. How does that tally with "The Board is proposing to pay the Special Dividend to Shareholders on the Register as at 6.00 p.m. (GMT) on 12 February 2021 in Pounds Sterling", i.e. which is the critical date so far as ownership of the shares is concerned? I've forgotten what happens about tax in such situations but I've had enough of tax for one day.
12th Feb is a Friday, so you need to be on the register at close of trading on the Friday; the ex- date is the first trading day on which shares are traded without the entitlement to the dividend, ie Monday.
https://www.tescoplc.com/media/756913/s ... eeting.pdfShareholder record date for entitlement to the Special Dividend and for the Share Consolidation 6.00 p.m. on 12 February 2021
Record date for participation in the DRIP for the Special Dividend and deadline for receipt of DRIP elections 6.00 p.m. on 12 February 2021
ADR holder record date for the Special Dividend 5.00 p.m. (New York time) and for the Share Consolidation on 12 February 2021
Ordinary Shares (but not ADRs) marked ex-Special Dividend 15 February 2021
Commencement of dealings in New Ordinary Shares on London Stock Exchange and Euronext Dublin (after Share Consolidation) 8.00 a.m. on 15 February 2021
Re: Tesco (TSCO)
Posted: January 29th, 2021, 4:26 pm
by tjh290633
Bouleversee wrote:I had a corporate action notification from Interactive Investor about this today and I see that it gives an ex-entitlement date for the dividend as l5th February and the effective date for the consolidation also as l5th February.. How does that tally with "The Board is proposing to pay the Special Dividend to Shareholders on the Register as at 6.00 p.m. (GMT) on 12 February 2021 in Pounds Sterling", i.e. which is the critical date so far as ownership of the shares is concerned? I've forgotten what happens about tax in such situations but I've had enough of tax for one day.
It takes two days for changes to the register to take effect, so the ex-dividend day is that before the "On the register" day, and you have to be holding both on the 10th and the 11th to be entitled. The 15th is the first trading day after the closing time on the register, so that is the day when "New Tesco" will begin to be traded. Unless you hold at the close of business on Wenesday, 10th, you will not be entitled.
Interactive Investor have got it wrong. However, if you buy the shares XD on 11th, you will be buying the consolidated shares. Because of the consolidation there will be little difference in the price.
TJH
Re: Tesco (TSCO)
Posted: February 11th, 2021, 1:33 pm
by idpickering
Results of General Meeting (Special Dividend and Share Consolidation) and Listing and Trading Application
Further to the circular to shareholders published on 25 January 2021 (the "Circular"), Tesco PLC (the "Company") is pleased to announce that the resolutions proposed at the General Meeting held today, seeking approval for the proposed Special Dividend and associated Share Consolidation and to renew the annual authorities to enable the Company to make market purchases of its own shares, as well as to allot New Ordinary Shares and to disapply pre-emption rights, to cover the period between the date of the General Meeting and the 2021 AGM, were duly passed by shareholders. Full details of the poll results are as follows:
https://www.investegate.co.uk/tesco-plc ... 15068349O/
Re: Tesco (TSCO)
Posted: March 12th, 2021, 2:34 pm
by idpickering
TESCO CONFIRMS REGULATORY APPROVAL FOR THE SALE OF TESCO POLSKA
Following the announcement on 18 June 2020 that Tesco has agreed the sale of its business in Poland to Salling Group A/S, Tesco is pleased to confirm that the Polish Competition Authority has approved the sale.
Tesco Group CEO, Ken Murphy:
"I would like to thank all our colleagues in Poland for their hard work and dedication to our customers over 25 years. As part of a combined business with Salling Group, our stores and colleagues will be well set up for continued success, with opportunities for further growth in Poland. The sale of Tesco Polska allows us to focus on growing our businesses in the UK, Republic of Ireland, Czech Republic, Hungary and Slovakia."
As previously announced, the sale to Salling Group includes 300 stores together with distribution centres and our Polish head office. The total enterprise value agreed for the transaction is PLN900m (equivalent to £181m). The sale does not require shareholder approval and we expect completion before the end of March 2021.
Following completion, there will be a transition period of up to 18 months, during which time, Tesco stores in Poland will be converted to Netto.
https://www.investegate.co.uk/tesco-plc ... 02361440S/
Re: Tesco (TSCO)
Posted: March 16th, 2021, 4:17 pm
by idpickering
Further to the above;
TESCO COMPLETES SALE OF TESCO POLSKA
Following the announcement on 12 March 2021, Tesco is pleased to confirm that it has completed the sale of its business in Poland to Salling Group A/S .
There will now be a transition period of up to 18 months, during which time, Tesco stores in Poland will be converted to Netto.
https://www.investegate.co.uk/tesco-plc ... 32574454S/
Re: Tesco (TSCO)
Posted: April 14th, 2021, 7:14 am
by idpickering
Re: Tesco (TSCO)
Posted: April 14th, 2021, 7:22 am
by Dod101
'Our decision to protect and hold the dividend flat for this financial year demonstrates our commitment to shareholders'
That's one way to put it I suppose, helped by retaining business rates relief of course.
Dod
Re: Tesco (TSCO)
Posted: April 14th, 2021, 7:26 am
by idpickering
Dod101 wrote:'Our decision to protect and hold the dividend flat for this financial year demonstrates our commitment to shareholders'
That's one way to put it I suppose, helped by retaining business rates relief of course.
Dod
Maybe so Dod. I don't mind tbh, in this current investing climate. It's better than a cut imho.
Ian.
Re: Tesco (TSCO)
Posted: April 14th, 2021, 8:00 am
by scrumpyjack
Dod101 wrote:'Our decision to protect and hold the dividend flat for this financial year demonstrates our commitment to shareholders'
That's one way to put it I suppose, helped by retaining business rates relief of course.
Dod
They handed back the business rates relief, much to the annoyance of the other grocers who then followed suit, except for Waitrose ('never knowingly look a gift horse in the mouth)
Re: Tesco (TSCO)
Posted: April 14th, 2021, 8:42 am
by Dod101
Snorvey wrote:Dod101 wrote:'Our decision to protect and hold the dividend flat for this financial year demonstrates our commitment to shareholders'
That's one way to put it I suppose, helped by retaining business rates relief of course.
Dod
From today s Aberdeen Press & Journal 're Tesco.
It said profits were weighed down by £892 million in Covid-related costs and the company’s decision to hand £585 million in business rates relief back to the Government.?
If it did pay the business rates then good and I stand corrected. I do not hold any supermarket shares and should have kept quiet probably as I have no interest in following them. I do now vaguely remember that they were shamed into it because their Chairman held a public office advocating repayment if I remember correctly. Then as sj has said, the others followed.
Dod
Re: Tesco (TSCO)
Posted: April 14th, 2021, 4:40 pm
by Bouleversee
I remember being rather surprised when it paid them back as they had been supplying food parcels to the needy which must have cost them quite a lot even if they weren't all that marvellous. I am less worried about the static dividend than about the large loss in capital value, again held within and without my ISA. Sainsbury and Morrison which I also hold are also down. Silly me, I thought that food supermarkets would be a safe investment.
JD Sports don't have any sense of shame for not repaying taxpayer support despite resuming dividend payments and saying that profits will be higher this year than before the pandemic. I don't remember their doing anything for the public good. I really don't think it should be left to individuals running companies to decide whether to repay or not. Why should taxpayers be forced to cough up for something which is not needed or merited? Compare the 5 year charts of Tesco and JD Sports and you will see what I mean.
Re: Tesco (TSCO)
Posted: April 15th, 2021, 8:49 am
by Dod101
As I have said many times I do not hold any supermarket shares and I do not understand anyone who does hold them. There are enough shares in the FTSE not doing much without adding to them. I no longer follow the share price either but the Times today tells us that its share price is 22.5% less than 12 months ago and little changed from 5 years ago.
Dod
Re: Tesco (TSCO)
Posted: April 15th, 2021, 10:52 am
by Bouleversee
Dod101 wrote:As I have said many times I do not hold any supermarket shares and I do not understand anyone who does hold them. There are enough shares in the FTSE not doing much without adding to them. I no longer follow the share price either but the Times today tells us that its share price is 22.5% less than 12 months ago and little changed from 5 years ago.
Dod
Dod: You omitted to mention that Tempus in The Times today recommended Tesco as a buy, which hasn't helped the share price. As a long term Times reader, perhaps I bought them on their recommendation in the first place.
Re: Tesco (TSCO)
Posted: April 15th, 2021, 1:29 pm
by Dod101
Bouleversee wrote:Dod101 wrote:As I have said many times I do not hold any supermarket shares and I do not understand anyone who does hold them. There are enough shares in the FTSE not doing much without adding to them. I no longer follow the share price either but the Times today tells us that its share price is 22.5% less than 12 months ago and little changed from 5 years ago.
Dod
Dod: You omitted to mention that Tempus in The Times today recommended Tesco as a buy, which hasn't helped the share price. As a long term Times reader, perhaps I bought them on their recommendation in the first place.
That is true but I do not pay much attention to news columnists tips. I would imagine that it might not do too badly in the short term as a recovery share but I usually ignore that and look to the long term and a share 'in the round'. On that basis I do not think much of Tesco or the other supermarkets.
Dod
Re: Tesco (TSCO)
Posted: June 18th, 2021, 7:10 am
by idpickering