Tesco PLC
Price: 326.75 (p) 29-Aug-05

Business Details
SectorFood & Drug Retailers 
AddressTesco House, Delamare Road, Cheshunt, Hertfordshire, EN8 9SL, United Kingdom 
Tel/Fax(01992) 632222 / (01992) 630794 
Websitewww.tesco.com/corporate 
Co SecNEVILLE-ROLFE, Lucy
RegistrarLloyds TSB Registrars
Tel(0870) 600 3964 
Advisers Insurance Agent: Aon Ltd; Property Advisor: Healey & Baker; Financial PR: Maitland Consultancy (The); Solicitor: Berwin Leighton Paisner; Freshfields Bruckhaus Deringer; Auditor: PricewaterhouseCoopers LLP; Financial Advisor: Greenhill & Co; Broker: Deutsche Bank AG London; JPMorgan Cazenove; Merrill Lynch International; Remuneration Consultant: Deloitte & Touche LLP;  
Share Data
IndexFTSE All Share, FTSE 100, FTSE 350,
EPIC CodeTSCO
Shares in issue7,830m
Key Statistics
Mkt Cap£m25,584.58
Turnover 05£m33,974.00
No. Emp.  335750
Progress Report
 
Q1
Interim
Q3
Turnover
Pre Tax
EPS (norm)   
Key Dates
Next AR Year End25-Feb-06
Q1 Results
Interim Results20-Sep-05
Q3 Results
Prelim Results12-Apr-06
Annual Report13-May-06
AGM 7-Jul-06
Dividend Payment Date 1-Jul-05
Full Activities
Operation of foodstores, development of Tesco Direct, which is an extension to Home Shopping via the Internet. Clubcard is an innovative shopping account which pays interest on cash balances while offering an overdraft facility at much better rates than standard accounts. By forming a joint venture with the Royal Bank of Scotland, with its links with Direct Line and Scottish Widows, the group will be able to offer customers personal financial services 
OutlookMajor Shareholders (greater than 3%)
24/6/2005 ce - "Our strong sales performance has put us in a good position" Barclays (3.48%);  
Directors
REID, David Edward , CA (ch); CHASE, Rodney Frank CBE , FCT (dch); ALLEN, Charles Lamb CBE , FCMA FHCIMA ; EINSMANN, Dr Harald ; DAVIES, Evan Mervyn CBE ; HYDON, Kenneth John Ken , MCT FCMA FCCA FRSA ; COOK, Karen , MBA ; MCCALL, Carolyn ; LEAHY, Sir Terence Patrick Terry (ce); HIGGINSON, Andrew Thomas , FCMA (fd); MASON, Timothy John Rollit Tim (mktg); BRASHER, Richard William Peter (cmml); CLARKE, Philip A (International Operations & IT Director); POTTS, David T (Retail & Logistics Director); 

5 Year Price Chart (price -v- sector index -v- FTSE all share)
Share Price Graph
Valuation Metrics
P/E Ratio (pros.)x15.15
EPS Growth 1yr% 11.12
PEG (pros)x 1.36
Dividend Yield (pros)%2.69
Price/Salesx0.74
Price/Cash Flowx10.52
Price/Tng Book Valx 3.19
Cashflow PS (av)p31.05
Net Gearing%46.50
Dividend Cover (pro)x 2.45
12 Month Range
High335.753-Aug-05
Low263.5 1-Sep-04
Change (%)
Price
Rel
1 Week3261.47
1 Month326-0.02
3 Months317-1.81
12 Months 266 4.50

This Month's News Stories - Regulatory News
(22/8/2005 Reg News): The Office of Fair Trade haws decided that a relevant merger situation has not been created in the anticipated acquisition by Tesco PLC of a former Safeway site at Coulby Newham from Wm Morrison Supermarkets PLC (12/8/2005 Reg News): The anticipated acquisition by Tesco of a store in Cam, Gloucestershire, has resulted in the Office of Fair Trading considering whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002  

Five Year Trading Record + Forecasts
year ended 26-Feb
 24-02-01
 23-02-02
 22-02-03
 28-02-04
 2005
 2006 (E)
 2007 (E)
Turnover£m 20,988.0023,653.00 26,004.0030,315.66 33,974.0037,931.28 41,258.80
FRS3 Pretax Profit£m 1,054.001,201.00 1,361.001,574.12 1,962.00 
Normal Pretax£m 1,070.001,221.00 1,401.001,680.38 2,029.002,264.30 2,519.51
FRS3 EPSp10.4211.8613.4214.6917.50
Norm. EPSp 10.6512.15 13.9916.13 18.3620.47 22.69
Norm. EPS Growth% 4.2914.03 15.1615.32 13.8111.50 10.84
Norm. P/E Ratiox   17.8015.96 14.40
PEGf   1.291.39 1.33
Cashflow Per Share (ave)p 22.1421.53 25.7835.21 31.0533.28 36.61
CAPEXp 6.307.64 8.069.45 3.79 
Dividend Per Sharep 4.985.60 6.206.73 7.568.38 9.22
Dividend Growth% 11.1612.45 10.718.54 12.3410.85 10.02
Dividend Yield%   2.312.56 2.82
Dividend Coverx 2.14 2.17 2.26 2.40 2.43 2.44 2.46
Turnover Per Share£ 3.093.43 3.724.15 4.41 
Operating Margin% 5.595.63 5.805.94 6.08 
ROCE% 14.4014.11 14.0815.04 16.46 
ROE% 13.72 14.24 14.01 13.83 14.69  
Shareholder Funds£m 4,978.005,530.00 6,516.007,998.00 9,006.00 
Net Borrowings£m 3,059.003,785.00 4,976.004,520.00 4,188.00 
Net Tangible Asset Value Per Sharep 69.5976.86 77.7391.57 102.30128.01 140.47

Detailed Broker Forecasts
Broker
Exclude ReasonDateRec2006 ESTIMATES2007 ESTIMATES
 PretaxEpsDpsPretaxEpsDps
 £mpp£mpp
UBS
 25/08/2005
 BUY1 2,167.00 19.93 8.35 2,415.00 22.23 9.10
WestLB Equity Markets
 26/07/2005
 OUTP 0.00 20.69 8.50 0.00 23.11 9.35
Panmure Gordon
 08/06/2005
 BUY 2,192.35 19.95 8.45 2,468.57 22.36 9.47
BarclaysResults
 26/07/2005
 NEUT 2,500.00 23.10 9.20   
Exane BNP Paribas
 28/06/2005
 BUY 2,386.00 21.70 8.50 2,646.00 24.07 9.37
SG Securities
 17/05/2005
 BUY 0.00 21.00 8.30 0.00 23.35 9.00
Williams de Broe
 24/08/2005
 None 2,250.00 20.50 8.40 2,500.00 22.90 9.20
Citigroup
 12/08/2005
 1M 0.00 19.41 8.32 0.00 21.60 9.20
Oddo Securities
 20/04/2005
 ACCU 0.00 22.93 10.19 0.00 0.00 0.00
Teather & Greenwood
 02/08/2005
 HOLD 2,240.00 19.60 8.20 2,404.00 21.60 9.00
Seymour Pierce
 27/06/2005
 BUY 2,240.00 20.30 8.30 2,430.00 22.10 9.10
Shore Capital
 24/06/2005
 BUY 2,251.00 20.20 7.00 2,485.00 22.30 7.70
ABN AMRO
 25/07/2005
 HOLD 2,287.99 20.69 8.48 2,544.31 23.07 9.41
Baird
 27/06/2005
 NEUT 2,300.00 20.53 8.55 2,553.00 22.73 9.50
Charles Stanley & Co Ltd
 15/07/2005
 BUY 2,262.08 20.07 8.28 2,516.66 22.38 9.10
Numis Securities Ltd
 15/07/2005
 HOLD 2,290.00 20.70 8.40 2,571.00 23.20 9.20
Oriel Securities
 21/03/2005
 BUY 2,335.10 21.20 8.50 2,595.20 23.40 10.10
Merrill Lynch
 24/06/2005
 BUY 2,332.00 20.90 8.30 2,624.00 23.50 9.10
Dryden Wealth Mgt
 24/06/2005
 BUY      
ING Financial Markets
 15/04/2005
 BUY 0.00 20.48 8.32 0.00 22.52 9.15

Broker Forecasts - Consensus (26-Aug-05)
  2006 ESTIMATES2007 ESTIMATES
 PretaxEpsDpsPretaxEpsDps
 £mpp£mpp
 Consensus 2,264.30 20.47 8.38 2,519.51 22.69 9.22
 1M Change-2.23-0.070.01-1.67-0.18-0.02
 3M Change-17.94-0.24-0.04-4.58-0.360.04
 6M Change -14.74 -0.33 0.01 37.05 -2.59 -0.73
 Brokers131818131717
 Std Dev 57.10 0.79 0.54 75.18 0.66 0.45
 incr/decr235.302.110.82255.212.220.84
 growth11.6011.5010.8511.2710.8510.02

EPS (Normalised)
 
Price Earnings Ratio
 

Operating Margin
 
ROCE
 
Turnover £m
 24-02-01 23-02-02 22-02-03 28-02-04 2005 
Turnover £m
 		20988 23653 26004 30315.66 33974 
 
Capital Employed £m
 24-02-01 23-02-02 22-02-03 28-02-04 2005 
Capital
Employed £m		8754 10236 12455 13826 14795 

Executive Directors
LEAHY, Sir Terence Patrick Terry; Ords - 2920090; Incentive shares - 7,470,594; Listed Company Directorships - Tesco PLC (ce); 
HIGGINSON, Andrew Thomas , FCMA; Ords - 122585; Incentive shares - 3,397,808; Listed Company Directorships - Tesco PLC (fd); British Sky Broadcasting Group PLC (None); 
MASON, Timothy John Rollit Tim; Ords - 262198; Incentive shares - 3,396,208; Listed Company Directorships - Tesco PLC (mktg); GCap Media PLC (None); 
BRASHER, Richard William Peter; Ords - 16500; Incentive shares - 1,457,263; Listed Company Directorships - Tesco PLC (cmml); Non Listed Company Directorships -
CLARKE, Philip A; Ords - 329077; Incentive shares - 3,166,527; Listed Company Directorships - Tesco PLC (None); 
POTTS, David T; Ords - 432636; Incentive shares - 3,175,121; Listed Company Directorships - Tesco PLC (None); 

Non-Executive Directors
REID, David Edward , CA; Ords - 193169; Incentive shares - 51; Listed Company Directorships - Reed Elsevier PLC (None); Tesco PLC (ch); Reed Elsevier Group PLC (None); Non Listed Company Directorships - Tartan TV Ltd (ch); Reed Elsevier NV (dir*)
CHASE, Rodney Frank CBE , FCT; Ords - 51245; Listed Company Directorships - Tesco PLC (dch); Non Listed Company Directorships - Computer Sciences Corporation (dir*); Lehman Brothers, European Advisory Council (snr adv)
ALLEN, Charles Lamb CBE , FCMA FHCIMA; Listed Company Directorships - Tesco PLC (None); ITV PLC (ce); Non Listed Company Directorships - ONdigital PLC; British Digital Broadcasting PLC (dir); GMTV Ltd (dir); Boxclever Technology Ltd (dir)
EINSMANN, Dr Harald; Ords - 93723; Listed Company Directorships - Tesco PLC (None); Non Listed Company Directorships - Interbrew SA (dir*); Stora Enso Oy (dir*); Findus AB (ch); E.Q.T. (op ptnr); European Mediaxchange Ltd (dir); Swedish Wallenberg Group (mem)
DAVIES, Evan Mervyn CBE; Ords - 2400; Listed Company Directorships - Standard Chartered PLC (gce); Tesco PLC (None); Tottenham Hotspur PLC (None); 
HYDON, Kenneth John Ken , MCT FCMA FCCA FRSA; Ords - 30093; Listed Company Directorships - Reckitt Benckiser PLC (None); Tesco PLC (None); Non Listed Company Directorships - Verizon Wirless (dir); Vodafone Americas Inc
COOK, Karen , MBA; Listed Company Directorships - Tesco PLC (None); Non Listed Company Directorships - Goldman Sachs International (md, inv banking)
MCCALL, Carolyn; Ords - 6365; Listed Company Directorships - Tesco PLC (None); Non Listed Company Directorships - Guardian & Observer Newspapers (md); Vallsar (Trustees) Ltd; GMG (dir)

Director Share Dealings - All trades in excess of £1,000 during last 2 years
Date
Trade
Price
(p)		Number
Dealt
Director
ActionAmount
Additional
Information
Trade as
% of shares
in issue		Residual holding
(and as % of
shares in issue)
28-Jul-05
314.176,365  MCCALL, Carolyn
Purchase
£19,997
6,365
22-Jul-05
314.25627,780  POTTS, David T
opt sale
£1,972,799
0.008%432,602 (0.006%)
21-Jul-05
247299,595  POTTS, David T
exe opt
£740,000
0.004%732,197 (0.009%)
21-Jul-05
259328,185  POTTS, David T
exe opt
£849,999
0.004%1,060,382 (0.014%)
01-Jul-05
312.65804  BRASHER, Richard William Peter
in Lieu of Dividend
£2,514
16,466
01-Jul-05
312.65849  CHASE, Rodney Frank CBE , FCT
in Lieu of Dividend
£2,654
51,245
01-Jul-05
312.651,573  EINSMANN, Dr Harald
in Lieu of Dividend
£4,918
93,723 (0.001%)
01-Jul-05
312.6523,985  CLARKE, Philip A
in Lieu of Dividend
£74,989
329,043 (0.004%)
01-Jul-05
312.6526,383  HIGGINSON, Andrew Thomas , FCMA
in Lieu of Dividend
£82,486
122,551 (0.002%)
01-Jul-05
312.6527,432  MASON, Timothy John Rollit Tim
in Lieu of Dividend
£85,766
262,164 (0.003%)
01-Jul-05
312.6528,609  POTTS, David T
in Lieu of Dividend
£89,446
432,602 (0.006%)
01-Jul-05
312.6558,464  LEAHY, Sir Terence Patrick Terry
in Lieu of Dividend
£182,788
2,920,056 (0.037%)
24-Jun-05
317.5111,111  MASON, Timothy John Rollit Tim
Sale
£352,777
0.001%234,619 (0.003%)
16-May-05
309.75968  BRASHER, Richard William Peter
Purchase
£2,998
15,514
16-May-05
309.75968  POTTS, David T
Purchase
£2,998
403,845 (0.005%)
16-May-05
309.75968  CLARKE, Philip A
Purchase
£2,998
304,910 (0.004%)
16-May-05
309.75968  MASON, Timothy John Rollit Tim
Purchase
£2,998
345,695 (0.004%)
16-May-05
309.75968  HIGGINSON, Andrew Thomas , FCMA
Purchase
£2,998
96,020 (0.001%)
10-Feb-05
312.451,674  BRASHER, Richard William Peter
in Lieu of Dividend
£5,230
Executive Incentive Plan
12,206
01-Feb-05
1512,235  BRASHER, Richard William Peter
exe opt
£3,375
Savings
14,441
01-Feb-05
1512,235  CLARKE, Philip A
exe opt
£3,375
Savings
303,837 (0.004%)
01-Feb-05
1512,235  MASON, Timothy John Rollit Tim
exe opt
£3,375
Savings
344,622 (0.004%)
01-Feb-05
1512,235  LEAHY, Sir Terence Patrick Terry
exe opt
£3,375
Savings
2,861,339 (0.037%)
01-Feb-05
1512,235  HIGGINSON, Andrew Thomas , FCMA
exe opt
£3,375
Savings
94,947 (0.001%)
09-Dec-04
205419,512  MASON, Timothy John Rollit Tim
exe opt
£860,000
0.005%582,439 (0.008%)
09-Dec-04
310419,512  MASON, Timothy John Rollit Tim
opt sale
£1,300,487
0.005%162,927 (0.002%)
26-Nov-04
288.85396  CHASE, Rodney Frank CBE , FCT
in Lieu of Dividend
£1,144
Scrip Div
50,396
26-Nov-04
288.85562  MASON, Timothy John Rollit Tim
in Lieu of Dividend
£1,623
Script Div, Spouse
149,284 (0.002%)
26-Nov-04
288.852,120  BRASHER, Richard William Peter
in Lieu of Dividend
£6,124
Script div
10,463
26-Nov-04
288.8511,508  CLARKE, Philip A
in Lieu of Dividend
£33,241
Script Div
199,723 (0.003%)
26-Nov-04
288.8512,288  HIGGINSON, Andrew Thomas , FCMA
in Lieu of Dividend
£35,494
Script Div
92,643 (0.001%)
26-Nov-04
288.8513,643  MASON, Timothy John Rollit Tim
in Lieu of Dividend
£39,408
Script Div
162,927 (0.002%)
26-Nov-04
288.8513,769  POTTS, David T
in Lieu of Dividend
£39,772
Script Div
271,001 (0.003%)
26-Nov-04
288.8528,280  LEAHY, Sir Terence Patrick Terry
in Lieu of Dividend
£81,687
Script Div
2,557,740 (0.033%)
25-Nov-04
20514,634  HIGGINSON, Andrew Thomas , FCMA
exe opt
£30,000
ESOP
608,289 (0.008%)
25-Nov-04
16463,415  HIGGINSON, Andrew Thomas , FCMA
exe opt
£104,001
ESOP
517,354 (0.007%)
25-Nov-04
17376,301  HIGGINSON, Andrew Thomas , FCMA
exe opt
£132,001
ESOP
593,655 (0.008%)
25-Nov-04
176.66373,584  HIGGINSON, Andrew Thomas , FCMA
exe opt
£659,973
ESOP
0.005%453,939 (0.006%)
25-Nov-04
205404,878  HIGGINSON, Andrew Thomas , FCMA
exe opt
£830,000
ESOP
0.005%1,013,167 (0.013%)
25-Nov-04
305.5932,812  HIGGINSON, Andrew Thomas , FCMA
opt sale
£2,849,741
0.012%80,355 (0.001%)
16-Nov-04
205346,341  CLARKE, Philip A
exe opt
£709,999
ESOP
0.004%534,519 (0.007%)
16-Nov-04
301346,341  CLARKE, Philip A
opt sale
£1,042,486
0.004%188,178 (0.002%)
30-Sep-04
151.66120,660  LEAHY, Sir Terence Patrick Terry
exe opt
£182,993
ESOS
0.002%2,529,385 (0.033%)
30-Sep-04
151.66120,666  LEAHY, Sir Terence Patrick Terry
exe opt
£183,002
0.002%2,495,720 (0.032%)
30-Sep-04
285.7586,995  LEAHY, Sir Terence Patrick Terry
opt sale
£248,588
0.001%2,408,725 (0.031%)
21-Sep-04
20511,308  REID, David Edward , CA
exe opt
£23,181
ESOS
648,618 (0.008%)
21-Sep-04
20514,634  POTTS, David T
exe opt
£30,000
ESOS
799,065 (0.010%)
21-Sep-04
16438,756  POTTS, David T
exe opt
£63,560
ESOS
295,874 (0.004%)
21-Sep-04
16490,245  REID, David Edward , CA
exe opt
£148,002
ESOS
0.001%93,563 (0.001%)
21-Sep-04
173117,920  REID, David Edward , CA
exe opt
£204,002
ESOS
0.002%637,310 (0.008%)
21-Sep-04
173199,827  POTTS, David T
exe opt
£345,701
ESOS
0.003%784,431 (0.010%)
21-Sep-04
178288,730  POTTS, David T
exe opt
£513,939
ESOS
0.004%584,604 (0.008%)
21-Sep-04
205346,341  POTTS, David T
exe opt
£709,999
ESOS
0.004%1,145,406 (0.015%)
21-Sep-04
179.42425,827  REID, David Edward , CA
exe opt
£764,019
ESOS
0.006%519,390 (0.007%)
21-Sep-04
205593,570  REID, David Edward , CA
exe opt
£1,216,819
ESOS
0.008%1,242,188 (0.016%)
21-Sep-04
247502,024  REID, David Edward , CA
exe opt
£1,239,999
ESOS
0.006%1,744,212 (0.023%)
21-Sep-04
259498,069  REID, David Edward , CA
exe opt
£1,289,999
ESOS
0.006%2,242,281 (0.029%)
21-Sep-04
197.5707,848  REID, David Edward , CA
exe opt
£1,398,000
ESOS
0.009%2,950,129 (0.038%)
21-Sep-04
282.5888,288  POTTS, David T
opt sale
£2,509,414
0.011%257,118 (0.003%)
21-Sep-04
2802,946,811  REID, David Edward , CA
opt sale
£8,251,071
ESOS
0.038%3,318
13-Aug-04
257209,732  MASON, Timothy John Rollit Tim
Sale
£539,011
0.003%148,608 (0.002%)
12-Aug-04
16463,415  MASON, Timothy John Rollit Tim
exe opt
£104,001
ESOP
361,099 (0.005%)
12-Aug-04
17387,861  MASON, Timothy John Rollit Tim
exe opt
£152,000
ESOP
0.001%704,756 (0.009%)
12-Aug-04
167.66149,076  MASON, Timothy John Rollit Tim
exe opt
£249,941
ESOP
0.002%297,684 (0.004%)
12-Aug-04
178255,796  MASON, Timothy John Rollit Tim
exe opt
£455,317
ESOP
0.003%616,895 (0.008%)
12-Aug-04
257556,148  MASON, Timothy John Rollit Tim
opt sale
£1,429,300
ESOP
0.007%148,608 (0.002%)
25-Jun-04
251.95557  PIMLOTT, Graham F , MA
in Lieu of Dividend
£1,403
scrip
33,975
25-Jun-04
251.951,383  MASON, Timothy John Rollit Tim
in Lieu of Dividend
£3,484
Spouse, scrip
331,340 (0.004%)
25-Jun-04
251.953,734  BRASHER, Richard William Peter
in Lieu of Dividend
£9,408
scrip
8,287
25-Jun-04
251.9518,561  CLARKE, Philip A
in Lieu of Dividend
£46,764
scrip
188,059 (0.002%)
25-Jun-04
251.9521,833  HIGGINSON, Andrew Thomas , FCMA
in Lieu of Dividend
£55,008
scrip
80,199 (0.001%)
25-Jun-04
251.9523,610  POTTS, David T
in Lieu of Dividend
£59,485
scrip
257,076 (0.003%)
25-Jun-04
251.9526,958  MASON, Timothy John Rollit Tim
in Lieu of Dividend
£67,921
scrip
358,298 (0.005%)
25-Jun-04
251.9550,818  LEAHY, Sir Terence Patrick Terry
in Lieu of Dividend
£128,036
scrip
2,375,012 (0.031%)
22-Jun-04
266.585,324  HIGGINSON, Andrew Thomas , FCMA
Sale
£227,388
0.001%58,269
20-Apr-04
16429,946  CLARKE, Philip A
exe opt
£49,111
ESOP
194,891 (0.003%)
20-Apr-04
178146,991  CLARKE, Philip A
exe opt
£261,644
ESOP
0.002%341,882 (0.004%)
20-Apr-04
173277,170  CLARKE, Philip A
exe opt
£479,504
ESOP
0.004%619,052 (0.008%)
20-Apr-04
256.5454,107  CLARKE, Philip A
opt sale
£1,164,784
0.006%164,945 (0.002%)
24-Feb-04
252.37520,552  CLARKE, Philip A
Purchase
£51,868
SIP
164,945 (0.002%)
24-Feb-04
252.37555,756  POTTS, David T
Purchase
£140,714
SIP
228,913 (0.003%)
24-Feb-04
252.37564,193  HIGGINSON, Andrew Thomas , FCMA
Purchase
£162,007
SIP
139,137 (0.002%)
24-Feb-04
252.375102,989  MASON, Timothy John Rollit Tim
Purchase
£259,918
SIP
0.001%324,610 (0.004%)
24-Feb-04
252.375173,678  LEAHY, Sir Terence Patrick Terry
Purchase
£438,320
SIP
0.002%2,319,641 (0.030%)
03-Feb-04
1361,488  CLARKE, Philip A
exe opt
£2,024
SAYE
144,393 (0.002%)
03-Feb-04
1364,963  AGER, Rowley Stuart , FMCA
exe opt
£6,750
SAYE
787,551 (0.010%)
03-Feb-04
241.7541,015  GARDINER, John Anthony
Purchase
£99,154
Spouse
669,026 (0.009%)
15-Jan-04
246.540,650  EINSMANN, Dr Harald
Purchase
£100,202
92,150 (0.001%)
16-Dec-03
24522,258  AGER, Rowley Stuart , FMCA
Sale
£54,532
782,254 (0.011%)
16-Dec-03
151.66198,669  MASON, Timothy John Rollit Tim
exe opt
£301,301
0.003%420,204 (0.006%)
16-Dec-03
245198,669  MASON, Timothy John Rollit Tim
opt sale
£486,739
0.003%221,535 (0.003%)
28-Nov-03
239.558,507  CLARKE, Philip A
in Lieu of Dividend
£20,379
Scrip
142,818 (0.002%)
28-Nov-03
239.5510,257  HIGGINSON, Andrew Thomas , FCMA
in Lieu of Dividend
£24,571
Scrip
74,857 (0.001%)
28-Nov-03
239.5511,013  POTTS, David T
in Lieu of Dividend
£26,382
Scrip
173,070 (0.002%)
28-Nov-03
239.5513,385  MASON, Timothy John Rollit Tim
in Lieu of Dividend
£32,064
Scrip
221,447 (0.003%)
28-Nov-03
239.5516,516  GILDERSLEEVE, John
in Lieu of Dividend
£39,564
Scrip
516,611 (0.007%)
28-Nov-03
239.5517,141  AGER, Rowley Stuart , FMCA
in Lieu of Dividend
£41,061
Scrip
804,468 (0.011%)
28-Nov-03
239.5521,684  REID, David Edward , CA
in Lieu of Dividend
£51,944
Scrip
1,331,738 (0.018%)
28-Nov-03
239.5524,057  LEAHY, Sir Terence Patrick Terry
in Lieu of Dividend
£57,629
Scrip
2,145,876 (0.029%)
07-Nov-03
2059,888  MASON, Timothy John Rollit Tim
exe opt
£20,270
Spouse, ESOP
250,818 (0.003%)
07-Nov-03
17815,000  MASON, Timothy John Rollit Tim
exe opt
£26,700
Spouse, ESOP
240,930 (0.003%)
07-Nov-03
176.6618,000  MASON, Timothy John Rollit Tim
exe opt
£31,799
Spouse, ESOP
255,930 (0.003%)
07-Nov-03
24042,888  MASON, Timothy John Rollit Tim
opt sale
£102,931
Spouse, ESOP
207,930 (0.003%)

Profit & Loss Account
year ended 26-Feb  24-02-01 23-02-02 22-02-03 28-02-04 2005
days  364 364 364 371 364
TURNOVER:      
continuing operations£m 20,988.00 23,653.00 26,004.00 30,683.00 33,913.00
acquisitions£m0.000.000.00131.0061.00
discontinued operations£m 0.00 0.00 0.00 0.00 
 £m 20,988.00 23,653.00 26,004.00 30,814.00 33,974.00
non-UK turnover£m 2,616.00 3,601.00 0.00 6,054.00 6,828.00
PROFIT AND LOSS      
continuing operations£m 1,166.001,322.00 1,484.001,729.00 1,957.00
acquisitions£m 0.000.00 0.006.00 -8.00
discontinued operations£m 0.000.00 0.000.00 
prov. for discontinuations£m 0.00 0.00 0.00 0.00 
OPERATING PROFIT (reported)£m 1,166.00 1,322.00 1,484.00 1,735.00 1,949.00
OPERATING PROFIT (adjusted)£m 1,174.001,332.00 1,509.001,832.00 2,064.00
interest£m -107.00-136.00 -162.00-209.00 -136.00
investment income£m 3.0025.00 52.0083.00 96.00
structural items£m -8.00-10.00 -17.00-54.00 0.00
asset write offs£m -8.00-10.00 -21.00-52.00 -62.00
debt restructuring£m 0.000.00 0.000.00 
bid defence costs£m 0.00 0.00 0.00 0.00 
PROFIT BEFORE TAX£m 1,054.00 1,201.00 1,361.00 1,600.00 1,962.00
taxation£m 333.00 371.00 415.00 498.00 593.00
PROFIT AFTER TAX£m 721.00830.00 946.001,102.00 1,369.00
minority interests£m 1.000.00 0.00-2.00 -3.00
extraordinary items£m 0.00 0.00 0.00 0.00 
AVAILABLE FOR DIVIDEND£m 722.00830.00 946.001,100.00 1,366.00
preference dividends£m 0.000.00 0.000.00 
ordinary dividends£m -340.00 -390.00 -443.00 -516.00 -587.00
RETAINED PROFIT£m 382.00 440.00 503.00 584.00 779.00
EPS & DPS (unadjusted for bonus issues etc):      
FRS3 epsp 10.6312.05 13.5415.05 17.72
FRS3 eps (diluted)p 10.4211.86 13.4214.93 17.50
company adj epsp 10.8712.33 14.1016.45 18.53
company adj eps (diluted)p 10.6612.14 13.9816.31 18.30
dpsp 4.98 5.60 6.20 6.84 7.56

Subsidiaries
C Two-Network Co. Ltd; Ek-Chai Distribution System Co Ltd; Samsung Tesco Co Ltd; T & S Stores Ltd; Tesco Card Services Ltd; Tesco Distribution Ltd; Tesco Global Aruhazak Rt; Tesco Home Shopping Ltd; Tesco Insurance Ltd; Tesco Ireland Ltd; Tesco Kipa A.S; Tesco Polska Sp z.o.o.; Tesco Property Holdings Ltd; Tesco Stores CR a.s; Tesco Stores Hong Kong Ltd; Tesco Stores Ltd; Tesco Stores Malaysia Sdn Bhd; Tesco Stores SR a.s; Tesco Taiwan Co Ltd; Valiant Insurance Ltd; dunnhumby Ltd;

DivisionsProducts
Food retailing; Property development;  Tesco Personal Finance; Tesco.com; Unbeatable Value range;  

Segmental Analysis
Geographical
Turnover
 
Pretax profit
  26-Feb-05% 28-Feb-04%  26-Feb-05% 28-Feb-04%
UK27146.0079.9024760.0080.35 1694.0082.071526.0083.30
Rest of Europe3818.0011.243385.0010.99 218.0010.56184.0010.04
Asia3010.008.862669.008.66 152.007.36122.006.66
          
 0.00100.0030814.00100.00 2064.0099.991832.00100.00
Joint Ventures0.000.000.000.00 130.000.0097.000.00
Disposal of Fixed Assets0.000.000.000.00 53.000.00-9.000.00
Integration costs0.000.000.000.00 -53.000.00-45.000.00
Goodwill Amortisation0.000.000.000.00 -62.000.00-52.000.00
Net interest0.000.000.000.00 -170.000.00-223.000.00
          
 33974.00100.0030814.00100.00 1962.0099.991600.00100.00
Product
Turnover
 
Pretax profit
  26-Feb-05% 28-Feb-04%  26-Feb-05% 28-Feb-04%
Food retailing & Property33974.00100.0030814.00100.00 1962.00100.001600.00100.00
          
 33974.00100.0030814.00100.00 1962.00100.001600.00100.00
          
 33974.00100.0030814.00100.00 1962.00100.001600.00100.00

Profit & Loss Account (Notes 1)
year ended 26-Feb  24-02-01 23-02-02 22-02-03 28-02-04 2005
days  364 364 364 371 364
INCLUDED IN ADJ OPERATING PROFIT      
abnormal pensions£m 0.000.00 0.000.00 
other exceptional charges£m 0.000.00 0.000.00 
other exceptional credits£m 0.00 0.00 0.00 0.00 
net exceptionals£m 0.00 0.00 0.00 0.00 
depreciation amortisation£m 468.00524.00 581.00700.00 733.00
equip hire and lease charges£m 177.00170.00 172.00221.00 283.00
property rental expenditure£m 0.000.00 0.000.00 
other rental expenditure£m 0.000.00 0.000.00 
audit remuneration£m 0.800.80 0.901.50 2.10
other fees charged by auditors£m 0.901.20 1.801.30 2.00
political donations£m 0.000.00 0.000.00 0.00
charitable cash donations£m 1.458.98 10.5011.05 4.58
non-cash comm involvement£m 0.000.00 0.0017.19 21.76
research and development£m 0.00 0.00 0.00 0.00 
EXTRACTED FROM OPERATING PROFIT      
interest£m 0.000.00 0.000.00 
investment income£m 0.000.00 0.000.00 0.00
structural items£m 0.000.00 -4.00-45.00 -53.00
asset write offs£m 8.0010.00 21.0052.00 62.00
bid defence, debt restruct£m 0.00 0.00 0.00 0.00 
TOTAL  8.00 10.00 17.00 7.00 9.00
INTEREST      
under five years£m 139.00178.00 192.00163.00 162.00
over five years£m 75.0083.00 92.00138.00 120.00
on financial leases£m 6.004.00 5.0019.00 16.00
capitalised£m -52.00 -63.00 -62.00 -62.00 -63.00
net interest payable£m 168.00202.00 227.00258.00 235.00
interest receivable£m 61.00 66.00 65.00 49.00 99.00
TOTAL£m 107.00 136.00 162.00 209.00 136.00
INVESTMENT INCOME      
share of associates£m 3.0025.00 54.0085.00 101.00
associates' exceptionals£m 0.000.00 0.000.00 
associates' structural£m 0.000.00 -2.00-2.00 -5.00
other investment income£m 0.000.00 0.000.00 
rental income£m 0.00 0.00 0.00 0.00 
TOTAL£m 3.0025.00 52.0083.00 96.00

Profit & Loss Account (Notes 2)
year ended 26-Feb  24-02-01 23-02-02 22-02-03 28-02-04 2005
days  364 364 364 371 364
STRUCTURAL ITEMS      
discontinuations£m 0.000.00 0.000.00 
provs for discontinuations£m 0.000.00 0.000.00 
reorganisation costs£m 0.000.00 4.0045.00 53.00
provs reorganisation costs£m 0.000.00 0.000.00 
asset disposals£m 8.00 10.00 13.00 9.00 -53.00
CAPITAL AND RESERVES£m 8.00 10.00 17.00 54.00 0.00
ASSET WRITE DOWNS:    
investments£m 0.000.00 0.000.00 
intangibles, incl. amort£m 8.0010.00 21.0052.00 62.00
fixed assets£m 0.00 0.00 0.00 0.00 
TOTAL£m 8.00 10.00 21.00 52.00 62.00
TAXATION      
norm corp tax rate% 30.00 30.00 30.00 30.00 30.00
domestic tax£m 272.00319.00 326.00369.00 356.00
double tax relief£m 0.000.00 0.000.00 
unrelieved ACT w'off£m 0.000.00 0.000.00 
foreign tax£m 10.008.00 8.0033.00 56.00
deferred tax£m 50.0035.00 64.0070.00 151.00
share of associates' tax£m 1.00 9.00 17.00 26.00 30.00
charge for year£m 333.00371.00 415.00498.00 593.00
prior year element£m -42.00-29.00 -46.00-23.00 -37.00
benefit from tax losses£m 0.000.00 0.000.00 
tax norm adjusted£m 0.000.00 0.000.00 
tax IIMR adjusted£m 0.000.00 0.000.00 
share of assoc. exceptionals tax£m 0.000.00 0.000.00 
share of assoc. struct tax£m 0.00 0.00 0.00 0.00 
gross tax losses cfwd£m 0.000.00 0.000.00 

Cash Flow Statement
year ended 26-Feb  24-02-01 23-02-02 22-02-03 28-02-04 2005
days  364 364 364 371 364
operating profit£m 1,166.001,322.00 1,484.001,735.00 1,949.00
share of associates£m 0.000.00 0.000.00 
depreciation chgs£m 468.00524.00 581.00700.00 728.00
profits on disposals£m 0.000.00 0.000.00 
incr/decr in provisions, write downs£m 8.0010.00 21.0052.00 67.00
incr/decr stocks£m -174.00-93.00 -129.00-92.00 -67.00
incr/decr debtors£m -72.00-88.00 -28.0017.00 -48.00
incr/decr creds£m 459.00359.00 443.00515.00 575.00
tax on FII£m 0.000.00 0.000.00 
foreign exchange adjs£m 0.000.00 0.000.00 
discontinued activities£m 0.000.00 0.000.00 
reorg, other costs£m 82.00 4.00 3.00 15.00 -200.00
OPERATING CASH FLOW£m 1,937.00 2,038.00 2,375.00 2,942.00 3,004.00
interest rec'd£m 49.0044.00 37.0041.00 83.00
interest paid£m -210.00-236.00 -255.00-337.00 -346.00
other investment receipts£m 0.0015.00 11.00295.00 135.00
ord divs paid£m -254.00-297.00 -368.00-303.00 -448.00
prefs, minorities£m 0.00 0.00 0.00 0.00 
INVEST RETURNS & FINANCE£m -415.00 -474.00 -575.00 -304.00 -576.00
UK tax paid£m -272.00-378.00 -366.00-326.00 -483.00
overseas tax paid£m 0.000.00 0.000.00 
tax on capital items£m 0.00 0.00 0.00 0.00 
TAXATION£m -272.00 -378.00 -366.00 -326.00 -483.00
purchases of undertakings£m -41.00-31.00 -386.00-216.00 -81.00
purchases of associates£m -35.00-65.00 -50.00-56.00 -152.00
investment purchases£m -58.00-85.00 -52.000.00 0.00
property purchases£m -1,518.00-1,341.00 -1,460.00-1,510.00 -1,576.00
other asset purchases£m -435.00-536.00 -572.00-729.00 -728.00
disposals of undertakings£m 0.000.00 0.000.00 5.00
disposals of associates£m 0.000.00 0.000.00 
investment disposals£m 0.000.00 0.000.00 
property disposals£m 36.0032.00 23.0035.00 420.00
other asset disposals£m 7.0010.00 9.0027.00 436.00
net short term investments£m 0.0027.00 -14.00-220.00 97.00
net outward loans£m 0.000.00 0.000.00 -10.00
restructuring costs£m 0.000.00 0.000.00 
investment exes£m 0.00 0.00 0.00 0.00 
INVESTING ACTIVITIES£m -2,044.00-1,989.00 -2,502.00-2,669.00 -1,589.00

Cash Flow Statement Notes
year ended 26-Feb  24-02-01 23-02-02 22-02-03 28-02-04 2005
days  364 364 364 371 364
share issues£m 88.0082.00 73.00868.00 146.00
new borrowings£m 941.00916.00 1,023.0075.00 128.00
repayment of borrowings£m 0.000.00 0.00-180.00 -18.00
cap element finance leases£m -46.00-24.00 -73.00-73.00 -348.00
capital redemptions£m 0.000.00 0.00-51.00 -143.00
issue expenses£m 0.000.00 0.000.00 
other£m 0.00 0.00 0.00 0.00 
FINANCING£m 983.00 974.00 1,023.00 639.00 -235.00
RECONCILIATION      
opening balance£m -1,070.00-992.00 -656.00-20.00 496.00
net cash incr,decr£m 189.00171.00 -45.00282.00 121.00
foreign exch adj£m 2.00 2.00 -2.00 -6.00 52.00
closing balance£m -879.00 -819.00 -703.00 256.00 669.00
cash£m 534.00670.00 638.001,100.00 1,146.00
short term debt£m -1,413.00 -1,489.00 -1,341.00 -844.00 -477.00
cash & equivalents£m -879.00 -819.00 -703.00 256.00 669.00
CASH FLOW ATTRIBUTABLE TO ORDS      
operating cash flow£m 1,937.002,038.00 2,375.002,942.00 3,004.00
invest returns and finance£m -415.00-474.00 -575.00-304.00 -576.00
add back ordinary divs£m 254.00297.00 368.00303.00 448.00
taxation£m -272.00 -378.00 -366.00 -326.00 -483.00
NET ADJUSTMENT£m 1,504.001,483.00 1,802.002,615.00 2,393.00

Full Five Year Balance Sheet
year ended 26-Feb  24-02-01 23-02-02 22-02-03 28-02-04 2005
days  364 364 364 371 364
FIXED ASSETS (GROSS)      
intangibles£m 174.00184.00 941.001,058.00 1,207.00
property£m 9,471.0010,849.00 11,940.0013,365.00 14,970.00
plant, equipment£m 2,882.003,661.00 4,004.004,379.00 4,406.00
other fixed assets£m 330.00421.00 681.00453.00 453.00
fixed investments£m 304.00 317.00 343.00 336.00 414.00
 £m 13,161.0015,432.00 17,909.0019,591.00 21,450.00
accumulated depreciation£m 3123.00 3929.00 3848.00 4196.00 4497.00
 £m 10038.00 11503.00 14061.00 15395.00 16953.00
FIXED ASSETS (NET)      
intangibles£m 154.00154.00 890.00965.00 1,044.00
investment properties£m 0.000.00 0.000.00 
other real estate£m 8241.009136.00 10402.0011656.00 
plant, equipment£m 1,009.001,475.00 1,745.001,985.00 2,320.00
other fixed assets£m 330.00421.00 681.00453.00 453.00
related, associated coys£m 203.00248.00 284.00330.00 407.00
other fixed investments£m 101.00 69.00 59.00 6.00 7.00
TOTAL£m 10,038.00 11,503.00 14,061.00 15,395.00 16,953.00
CURRENT ASSETS:      
assets held for resale£m 0.000.00 0.000.00 
unclassified£m 0.000.00 0.000.00 
stocks & WIP£m 838.00929.00 1,140.001,199.00 1,309.00
debtors£m 322.00454.00 662.00826.00 1,002.00
investments£m 255.00225.00 239.00430.00 346.00
cash & equivalents£m 279.00 445.00 399.00 670.00 800.00
TOTAL£m 1,694.00 2,053.00 2,440.00 3,125.00 3,457.00
CURRENT LIABILITIES:    
borrowings£m -1,413.00-1,489.00 -1,341.00-844.00 -477.00
creditors, accruals£m -2,976.00 -3,320.00 -4,031.00 -4,672.00 -5,595.00
TOTAL£m -4,389.00 -4,809.00 -5,372.00 -5,516.00 -6,072.00
net current assets£m -2,695.00 -2,756.00 -2,932.00 -2,391.00 -2,615.00
long-term borrowings£m -1,925.00-2,741.00 -4,034.00-4,346.00 -4,511.00
tax over 1 year£m 0.000.00 0.000.00 
other long term payables£m -2.000.00 -15.00-22.00 -20.00
deferred tax£m -402.00-440.00 -505.00-579.00 -731.00
other provisions£m 0.00 0.00 -16.00 -14.00 -19.00
TOTAL NET ASSETS£m 5,014.00 5,566.00 6,559.00 8,043.00 9,057.00

Balance Sheet - Notes 1
year ended 26-Feb  24-02-01 23-02-02 22-02-03 28-02-04 2005
days  364 364 364 371 364
ordinary shares£m 347.00350.00 362.00384.00 389.00
redeemable pref shares£m 0.000.00 0.000.00 
other preference shares£m 0.000.00 0.000.00 
share premium£m 1,870.002,004.00 2,465.003,470.00 3,704.00
revaluation reserves£m 0.000.00 0.000.00 
goodwill reserve£m 0.000.00 0.000.00 
other reserves£m 40.0040.00 40.0040.00 40.00
profit & loss account£m 2,721.00 3,136.00 3,649.00 4,104.00 4,873.00
shareholders' funds£m 4,978.005,530.00 6,516.007,998.00 9,006.00
minority interests£m 36.00 36.00 43.00 45.00 51.00
TOTAL£m 5,014.00 5,566.00 6,559.00 8,043.00 9,057.00
retained profit for period£m 382.00440.00 503.00584.00 779.00
prior year adj£m 0.000.00 0.000.00 
fx translation adjs£m -2.0012.00 22.00-157.00 35.00
revaluations£m 0.000.00 0.000.00 
other gains, losses£m 0.000.00 0.00186.00 64.00
new share cap (net of exes)£m 162.00100.00 461.00844.00 130.00
purch goodwill for period£m 0.000.00 0.000.00 
old goodwill trans P&L re Sales£m 0.000.00 0.000.00 
goodwill trans P&L re Sales£m 0.000.00 0.000.00 
other P&L transfers£m 0.00 0.00 0.00 0.00 
net movements£m 542.00 552.00 986.00 1,457.00 1,008.00
opening shareholders' fund£m 4,436.004,978.00 5,530.006,541.00 7,998.00
net movements above£m 542.00 552.00 986.00 1,457.00 1,008.00
CLOSING SHAREHOLDERS' FUNDS£m 4,978.00 5,530.00 6,516.00 7,998.00 9,006.00
attributable to:      
shares redeemable 1 year£m 0.000.00 0.000.00 
other non-equity interests£m 0.000.00 0.000.00 
equity interests£m 4,978.00 5,530.00 6,516.00 7,998.00 9,006.00
TOTAL£m 4,978.005,530.00 6,516.007,998.00 9,006.00

Balance Sheet - Notes 2
year ended 26-Feb  24-02-01 23-02-02 22-02-03 28-02-04 2005
days  364 364 364 371 364
real estate held for sale£m 24.0021.00 18.003.00 3.00
raw materials£m 0.000.00 0.000.00 
work in progress£m 0.000.00 0.000.00 
long term contracts (net)£m 0.000.00 0.000.00 
finished goods£m 814.00 908.00 1,122.00 1,196.00 1,306.00
STOCKS & WIP£m 838.00 929.00 1,140.00 1,199.00 1,309.00
prepayments£m 18.0047.00 48.0048.00 267.00
trade debtors£m 0.000.00 0.000.00 
other debtors£m 242.00394.00 597.00630.00 547.00
debtors over 1 year£m 62.00 13.00 17.00 148.00 188.00
TOTAL DEBTORS£m 322.00 454.00 662.00 826.00 1,002.00
listed£m 255.00225.00 239.00430.00 346.00
unlisted£m 0.00 0.00 0.00 0.00 
INVESTMENTS£m 255.00 225.00 239.00 430.00 346.00
trade creditors£m 1,538.001,830.00 2,196.002,434.00 2,819.00
payments rec'd on account£m 0.000.00 0.000.00 
accruals£m 159.00164.00 263.00320.00 660.00
taxation£m 292.00259.00 230.00308.00 221.00
dividends payable£m 246.00283.00 319.00370.00 416.00
other creditors£m 741.00 784.00 1,023.00 1,240.00 1,479.00
CREDITORS, ACCRUALS£m 2,976.00 3,320.00 4,031.00 4,672.00 5,595.00
convertibles£m 0.000.00 0.000.00 
bank loans£m 1,389.001,474.00 1,286.00775.00 471.00
other loans£m 24.0015.00 55.0069.00 6.00
SHORT TERM BORROWINGS£m 1,413.00 1,489.00 1,341.00 844.00 477.00
convertibles£m 0.000.00 0.000.00 
bank loans£m 0.000.00 0.000.00 
other loans£m 1,925.002,741.00 4,034.004,346.00 4,511.00
LONG TERM BORROWINGS£m 1,925.00 2,741.00 4,034.00 4,346.00 4,511.00
under 1 year£m 1,413.001,489.00 1,341.00844.00 477.00
1 to 2 years£m 218.0024.00 85.00195.00 754.00
2 to 5 years£m 290.001,064.00 1,231.001,824.00 1,611.00
over 5 years£m 1,417.001,653.00 2,718.002,327.00 2,146.00
unanalysed 1 to 5 years£m 0.000.00 0.000.00 
unanalysed over 1 year£m 0.00 0.00 0.00 0.00 
TOTAL BORROWINGS£m 3,338.004,230.00 5,375.005,190.00 4,988.00


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