Tesco makes solid start to its financial year


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A resilient performance by its Booker wholesale division meant that Tesco’s slowdown was not as sharp as feared.

Britain’s largest grocery store said sales in the UK, excluding fuel and VAT, rose 0.5 per cent in the first quarter ending 29 May. This was lower than the 8.8 percent growth in the previous quarter, but ahead of the analysts’ average forecast. of a decrease of 0.7 percent.

Booker’s similar sales rose 9.2 percent year-on-year better than expected, while restaurants and food service businesses reopened.

“While the market outlook remains uncertain, I am pleased with the strong start to the year and remain excited about the many opportunities we have to create value in the longer term,” said CEO Ken Murphy.

Murphy did not provide any new guidelines on future sales trends, but reiterated for the current financial year that the retail operating profit on an ongoing operating basis would be at a similar level to the £ 2.3 billion reported in 2020.

Briefly

British retail sales dropped unexpectedly last month for the first time since January when consumers shopped and switched to dining out. Sales by volume fell 1.4 percent in May compared to the previous month, the National Statistics Office data showed. Analysts had forecast a 1.6 per cent expansion, following a jump of almost 10 per cent in April when non-essential stores were allowed to reopen.

Telecom Plus said he expects earnings to bounce back this year as house-to-house trends help grow his client recruitment network. The utility seller made a pre-tax adjusted profit of £ 56.1 million for the year ended March, down 7.7 per cent year-on-year, on higher administrative expenses and lower energy prices during the peak winter period. For the current year, it was a full-year profit before tax that rose to around £ 60m, with a sustained dividend of 57p.

Inchcape, the new car dealer, said the trade had exceeded expectations since the last update at the end of April, but warned that it was too early to take an opinion on the second half, given uncertainties about pandemics and ‘ a shortage of semiconductors. “During the period, we saw our businesses benefit from an increase in demand and resilience,” Inchcape said. Based on the strength of the first half, the annual profit before tax will be a significant advantage over the £ 216 million before extraordinary market consensus, he said.

Student accommodation developer United said he had sold two properties in London’s Wembley and Whitechapel to his joint venture with the Singapore Sovereign Wealth Fund, GIC, for a total of £ 342 million. Unite said it would use the net proceeds to repay group debt.

Across the Square Mile

Starbucks paid $ 3.1 million in taxes from its European businesses, but also paid a $ 183 million dividend to its US parent company © Reuters

Starbucks’ European business paid out $ 183 million to his American parent suffered huge losses as the coffee market suffered its first growth in two decades during the coronavirus pandemic. Profit before tax on Starbucks fell nearly 40 percent to $ 104 million in the year to September 2020, according to calculations by the company, which summarized the accounts of its franchisees in mainland Europe and the Middle East.

The premium over super-safe US treasury that investors are demanding to buy corporate debt has fallen to its lowest level in more than a decade. The shift of the distributions was promoted by the accommodating policy of the Federal Reserve through the pandemic. Some 373 junk companies borrowed a total of $ 277 billion this year, a record 60% higher than the previous year, according to data provider Refinitiv.

ByteDance increased its revenue by 111 percent last year to $ 34 billion and had 1.9 billion users per month in its programs at the end of the year, said its incoming CEO, Liang Rubo. The owner of the short video applications TikTok and Douyin has recorded an increase in users as coronavirus locks around the world leave people looking for more entertainment online.

Essential Note Before You Go

The Bank of England meets to decide on interest rates next week and is expected to review the current inflation rate © Reuters

Merryn Somerset Webb Central bankers say we should only be a little worried about the current increase in inflation. I’m still far from convinced, says the editor-in-chief of MoneyWeek, which has advice on how to protect your income.

City Insider Ovo Energy, founder Stephen Fitzpatrick, who recently announced plans to list its electric aircraft developer on the New York Stock Exchange via a merger with a special-purpose acquisition vehicle. has a plan to start again Kensington Roof Gardens in London at a cost of up to £ 10 million.

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