16/09/2003

Tesco shares climb following positive half-year results

The Tesco share price has upped 11.5p to 240p today following the publication of positive half-year results showing a rise in pre-tax profits of almost one fifth.

The group announced that sales rose by 17% in the period to £14.9 billion, netting £628 million in ore-tax profits. Overall, total international sales grew by 30% to £3 billion, catapulting international operating profits by £98 million – and increase of 66.1%.

On the back of these figures, Tesco said that it intends to create around 22,000 extra jobs this year – building on their total headcount of 307,000.

The UK underlying operating profit was up 16.2% to £624 million and sales were up 14.2% to £12 billion - of which 6.3% came from existing stores and 7.9% from net new stores, including 4.8% from T&S.

Terry Leahy, Chief Executive, said: "It has been an outstanding first half. Customers have told us what they want and we have been doing a better job for them right across the group. Our results show all four parts of the strategy are delivering for customers and shareholders."

The Board has proposed an interim dividend of 2.07p (2002 – 1.87p), which represents an increase of 10.7%

The group says that it has a strong balance sheet and operating cashflow stands at £1.2 billion up 42%.

Net debt at the half year was £5 billion up £0.3 billion of which £0.1 billion was due to the purchase of C Two-Network. "We anticipate debt increasing to £5.2 billion at the year end," the group said.

Tesco said that their development programme in the UK was "on track" with 39 stores opening in the first half. "We are planning to open 1.4 million sq. ft. of new selling space this year. This includes 21 extras and 35 convenience express stores," the company confirmed.

(gmcg)

Related UK National News Stories
Click here for the latest headlines.

17 July 2006
Parents warned over children's internet use
A third of children, many as young as 11, use blogs and social networking sites at least two or three times a week, yet two-thirds of parents don't know what a blog is, a new report has revealed. The 'Get I.T.
21 September 2004
Tesco half-year results show big growth in profits
Tesco has reported a massive surge in growth – notching £16.5 billion in sales, up 12.2% on last year's mark. According to the company's half-year interim results ending in August, underlying group pre-tax profit increased by 24.4% to £822 million.
12 April 2005
Tesco profits top £2 billion
The UK's leading supermarket chain, Tesco, has become the first British retailer to announce annual profits in excess of £2 billion. The latest figures revealed by the company show that the group posted underlying pre-tax profits of £2.03 billion, an increase of 20.5% from 2004 figures. The supermarket reported global sales of £37.
06 October 2011
Cameron 'Shops At Waitrose'
The Prime Minister David Cameron has been 'shopping' at Waitrose where Managing Director Mark Price met the Conservative Leader to discuss plans for a new £35 million regional distribution centre (RDC) in Chorley, Lancashire that will create up to 600 jobs.
21 December 2010
Three Billion A Year Could Be Saved, Says Report
A Government report by Infrastructure UK (IUK) today sets out a blueprint to save up to three billion a year on building and maintaining infrastructure.