The Investment Column: Tesco powers on to new heights
Wednesday 17 September 1997
Like-for-like sales growth of 6 per cent in the half-year and in current trading sets the benchmark for the rest to follow. The rise in Tesco's UK market share from 14.2 to 15 per cent probably comes more at the expense ofgroups like the Co-Op and the independents than the other three superstore groups, but it is impressive nevertheless.
The 9 per cent profits advance was achieved despite lower European profits and a pounds 2m loss on the start-up of its financial services division. In financial services, Tesco is pushing ahead with a savings account like Sainsbury's and mortgages could be on the way. It is also targeting non- food ranges in store and is keen to sell more newspapers, childrenswear, health and beauty products. If the manufacturers can be encouraged to supply them, the group will also soon be selling perfume, branded sportswear and televisions at lower prices.
With the UK business firmly under control, Tesco is looking further afield. The pounds 600m Quinnsworth acquisition in Ireland is being bedded in and organic expansion in central Europe, where sales are powering ahead, will continue. The Catteau chain in France has been disappointing. Tesco would like to increase its share in France with a deal, but it is finding the prices attached to the larger chains too rich.
On NatWest's full-year profits forecast of pounds 819m, the shares, up 5.5p to 441.5p, trade on a forward rating of 17.
That is a slight premium to the market but justified given the track record. Still worth picking up.
- 1 Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
- 2 'Help me I'm trapped in a factory' messages keep being found on bottles of vitamin water
- 3 Right to die: Belgian doctors rule depressed 24-year-old woman has right to end her life
- 4 Wimbledon 2015: Dustin Brown knocks Rafael Nadal out of the championship
- 5 Primark and Penny's heir Barry Ryan drowns trying to save his 21-year-old son
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Russell Brand condemns moment of silence for Tunisia attack victims as a 'minute of bulls**t'
Right to die: Belgian doctors rule depressed 24-year-old woman has right to end her life
Worker killed by robot at Volkswagen car factory
BP hit with record $18.7 billion fine over Deepwater Horizon Gulf oil spill
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
They are neither a 'state' nor 'Islamic': Why we shouldn't call them Isis, Isil or IS
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...