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Dividend being kept the same a little disappointing but results pretty much as expected. Additional costs are in the past now but imo the business is now in a much better place than it was pre covid. Happy to hold and will add should the sp fall back further. That said, the Market is much more forward thinking and can see the sp recovering as we approach the close.
Or maybe he could hire you to teach him what he has to learn
Although I can’t find an estimated cost of Covid in the results, I think the following was very positive
“.....we expect a strong recovery in profitability and retail free cash flow as the majority of the additional costs incurred as a result of the pandemic in the 2020/21 financial year will not be repeat”
In two weeks everything will be back to normal.
Ken Murphy has a lot to learn coming from a none food retail business, the markets have no perception of charity in the business world of supermarkets people will always take what's considered free, ie being paid full wages while isolating or being given free food, he has to be complimented on this but Tesco is not the government they paid their business rates so charity should come from the government, not Tesco, yes they can build on the results from now on but I think perhaps he could take a leaf from the Coop CEO.
Lakcaj, tesco bought a supplier of catering business a few years ago, hence the call to get people to pubs and restaurants.
So there a 20% drop in annual profit as covid hit revenue. Maybe keeping the corporate tax relief they paid back the government would of helped. Everyone screaming about giving it back not knowing they had and still do have tremendous costs. Also king Murphy telling people they should go to the pub instead of buying alcohol from his stores...what a great business man.
failed consolidation and the dividend poor imo.....
So we are effectively getting less in dividend payment due to the consolidation!
Agree teej. After all the hoohaa and IMO the failure of the share consolidation, the dividend should most definitely have been more than last year, even an extra penny to 7p sends the good message to the patient shareholders. This will continue to move like a dinosaur.
as good as could have been expected. Divi held and I was most happy to read about dispensing free fruit and veg to 500,000 needy families which must have been a big help. Tesco had greatly increased costs due to Covid and have improved their business model substantially. Good job. Bank not so good but we all knew that would not be satisfactory.
Thought the divi might be higher due to fewer shares. Have seen no benefit to consolidation. Good results though
Well this is what analysts were expecting so results look to have beaten those expectations.
"Tesco, Sophie Lund-Yates Equity Analyst
It’s been a pretty exceptional year for this supermarket giant. Navigating mammoth changes in demand patterns that come with a pandemic, hiring an army of new staff and going full throttle on online expansion, all mean profits aren’t going to be stellar for the full year. Analysts expect operating profit to fall around 37.5%. It’s important to focus on the longer-term picture.
We’d like to know what expectations are for margins. As the group continues to ramp up investment, we wonder what that means for the operating margins (currently around 4.2%) Tesco worked so hard to rebuild.
One of the biggest threats for all the grocers is enormous competition. That means we’ll be looking closely for any commentary on trading in the run up to Easter. Tesco put in a very strong performance over the Christmas period, and some analysts expected consumers to pull out all the stops for Easter this year. We wonder if Tesco was able to repeat that strength in the run up to the latest round of celebrations."
Hopefully. One can pray
more like a can of coke shaken its going to explode !
NYR
TSCO is kind of like Heinz tomato soup. You know exactly what you are going to get.
It is, as Gary said, a dividend play. Sure the share price will fluctuate but it is all about the dividend.
Eccles, I've had quite a result following Questor's tips, I know who I'd trust more out of him or you!
Eccles, if you are in this purely for dividends you would be getting 5% per annum if you brought at close today. As you brought about 10% lower you are doing better. Anyone in this for a large capital gain medium term had better think again. TSCO is as simple a dividend play as there is, safe(ish) a bit like ULVR & DGE in my book.
NYR
I don’t there is too much concern about the finals. Xmas update was good and from what I have seen and read footfall has been exceptional. Booker will be almost up to speed as restrictions get lifted.
All that said. As always the sp is under the influence of the institutions but I am always an optimist.
I first bought on 18th March and have topped up another 3 times since, the last being on Friday.
I've gone from putting in£10 k with a B/E of 2.25849 to £50k with a B/E of 2.30297.
This is more than I usually have in one share. I was hoping for a bit more of a rise before Wednesday to reduce my holding and B/E a bit so i'm feeling a bit nervous now.
What do you guys think the worse outcome might be if the results are bad......a drop to around 2.2 and then a slow creep upwards towards the dividend date?
Eccles
Your comments don’t stack up. If you bought last year then you would have received the dividend, the special dividend and also a capital gain of 10%
You also stated, from memory you were selling here to buy MRW which again did not make sense as you would invested in the same sector.
Like you said earlier. Nothing you, I or the Telegraph says makes any difference in a ‘blue chop company.
Not calling you a liar but certainly a lot of what you post is inconsistent.
Bought a few last year £2.12 can't think why. Think I will get out soon, there are better yields elsewhere.
Agree with you leas,what can be classed as a good comment can change overnight with events out of any control.
eccles04,may i ask if you are invested here.
eccles
It is an opinion. Nothing more, nothing less. Maybe if this was a small AIM with little volume then yes, their comments good or bad can influence a share valuation.