DOCSLIB.ORG

Serving Shoppers a Little Better Every Day. Annual Report and Financial Statements 2019

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text

Load more

Tesco PLC Annual Report and Financial Statements 2019 Serving shoppers a little better every day. Annual Report and Financial Statements 2019. Our business was built with a simple mission – to be the champion for customers, helping them to enjoy a better quality of life and an easier way of living. Our mission hasn’t changed in the one hundred years since. Customers want great products at great value, and it’s our job to deliver this in the right way for them. That’s why ‘serving shoppers a little better every day’ is our core purpose - putting customers at the heart of everything we do and guiding every decision we make. As we celebrate our centenary year, we’re reiterating our commitment to great value, for every one of our key stakeholders and in every part of our business. Tesco PLC Annual Report and Financial Statements 2019 Strategic report 2019 highlights Headline measures. Group salesΔ Group operating profit before exceptional and other itemsΔ(a) £56.9bn £2,206m 11.5% 2018: £51.0bn* 34.0% 2018: £1,646m* Diluted EPS before exceptional and other itemsΔ(b) Dividend per share 15.40p 5.77p 29.4% 2018: 11.90p* 92.3% 2018: 3.00p Retail operating cash flowΔ(c) Net debtΔ(c) £2,502m £(2.9)bn (9.8)% 2018: £2,773m (9.1)% 2018: £(2.6)bn Statutory measures. Statutory revenue Operating profit £63.9bn £2,153m 11.2% 2018: £57.5bn* 17.1% 2018: £1,839m* Statutory profit before tax Statutory diluted EPS £1,674m 13.55p 28.8% 2018: £1,300m* 11.9% 2018: 12.11p* Δ Alternative performance measures (APM) Measures with this symbol Δ are defined in the Glossary section on pages 178 to 181. All measures reported on a continuing operations basis. (b) Diluted EPS before exceptional and other items refers to diluted earnings per share from Change shown at actual exchange rates. continuing operations before exceptional items and amortisation of acquired intangibles, (a) Excludes amortisation of acquired intangibles and excludes exceptional items net pension finance costs and fair value remeasurements on financial instruments. by virtue of their size and nature in order to reflect management’s view of the (c) Net debt and Retail operating cash flow exclude the impact of Tesco Bank. underlying performance of the Group. * Restated for the adoption of IFRS 15 as explained in Note 1 and Note 36. Contents. Strategic report. Financial statements. 2019 highlights ................................................................................................................................... 1 Independent auditor’s report to the members of Tesco PLC ...........84 Chairman’s statement ..............................................................................................................2 Group income statement ...................................................................................................92 Group Chief Executive’s review ........................................................................................3 Group statement of comprehensive income/(loss) ...................................93 Celebrating 100 years of great value ............................................................................8 Group balance sheet ..............................................................................................................94 About Tesco ......................................................................................................................................10 Group statement of changes in equity ...................................................................95 Our business model .................................................................................................................. 12 Group cash flow statement .............................................................................................. 97 Our six strategic drivers ........................................................................................................14 Notes to the Group financial statements .............................................................98 Our key performance indicators ...................................................................................16 Tesco PLC – Parent Company balance sheet .................................................162 Financial review ............................................................................................................................18 Tesco PLC – Parent Company statement of changes in equity ......163 Little Helps Plan ...........................................................................................................................24 Notes to the Parent Company financial statements ................................164 Non-financial reporting statement...............................................................................31 Related undertakings of the Tesco Group .........................................................169 Principal risks and uncertainties ...................................................................................32 Other information. Corporate governance. Supplementary information (unaudited) ............................................................. 174 Corporate governance report ........................................................................................38 Task Force on Climate-related Financial Disclosures ................................177 Chairman’s letter .............................................................................................................38 Glossary (including APM definitions) .........................................................................178 Board of Directors ......................................................................................................... 40 Five-year record .......................................................................................................................182 Executive committee ....................................................................................................44 Shareholder information ...................................................................................................183 Corporate governance framework ..................................................................46 Nominations and Governance Committee ...............................................54 The screen icon indicates where further Corporate Responsibility Committee ............................................................55 information is available online. We have also produced a number of short videos, available Audit Committee ..............................................................................................................56 at www.tescoplc.com/ar2019. Directors’ remuneration report ....................................................................................62 Directors’ report ........................................................................................................................ 80 Tesco PLC Annual Report and Financial Statements 2019 1 Chairman’s statement Continued progress. In support of that, members of the Board have spent time engaging with customers, colleagues and a wide range of stakeholders. There have been two changes to the composition of the Board in the year: – Due to illness, Charles Wilson stepped down from the Board in July, but we are very pleased that his recovery has been successful. Charles continues to lead Booker and, as a member of the Executive Committee, the wider Tesco business benefits from his continued involvement in matters of strategy. – In September, we were delighted to welcome Melissa Bethell to the Board, bringing a broad range of experience and skills from a background in strategy, finance and technology. Melissa is also a member of the Audit Committee. Throughout the year, the Board’s discussions have focused on longer-term strategic planning. With the progress that the business has made against our six strategic drivers – the medium-term ambitions that we outlined in October 2016, and which are detailed on pages 14 and 15 of this report – we have dedicated significant time and energy to developing our plans for sustainable “Our strong performance is a growth into the future. reflection of the hard work For every one of our stakeholders – our customers, colleagues, of our 450,000 colleagues” suppliers and shareholders – the direction of our future plans will build on the momentum of our last four years of turnaround, John Allan putting customers at the heart of everything we do. Non-executive Chairman From a shareholder perspective, the lens through which the Executive team manage the business will be four-fold, with a focus on customer satisfaction, cash profitability, free cash flow and earnings growth. Visit www.tescoplc.com/ar2019 to hear more from John Allan. Importantly, the Directors’ discussions on sustainable growth do not focus solely on financial metrics. The Board considers it critical that we monitor and respond to broader issues of sustainability, including climate change and responsible sourcing, so that our business is well placed to succeed in the years ahead. This has been another strong year for Tesco. We have made further We also believe in developing a sustainable pool of talent within progress with our plans to create value for customers, at the same Tesco, and we are committed to supporting people at every level time as delivering significant returns for shareholders – with and from every background, to develop their careers with us. operating profit for the Group exceeding £2bn for the first
Recommended publications
  • The Global Grocery and General Merchandising Market Marketing Essay

    The Global Grocery and General Merchandising Market Marketing Essay

    The Global Grocery And General Merchandising Market Marketing Essay Jack Cohen founded Tesco in 1919 when he began to sell surplus groceries from a stall at Well Street Market, Hackney, in the East End of London (ironically, the market is now much smaller than in those days; a large Tesco Metro store now sits on the site.)[11] The Tesco brand first appeared in 1924. The name came about after Jack Cohen bought a shipment of tea from T.E. Stockwell. He made new labels using the first three letters of the supplier’s name (TES), and the first two letters of his surname (CO), forming the word TESCO.[12] The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. Tesco was floated on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited.[11] The first self-service store opened in St Albans in 1956 (which remained operational until 2010, with a period as a Tesco Metro),[13] and the first supermarket in Maldon in 1956.[11] During the 1950s and the 1960s Tesco grew organically, and also through acquisitions, until it owned more than 800 stores. The company purchased 70 Williamsons stores (1957), 200 Harrow Stores outlets (1959), 212 Irwins stores (1960, beating Express Dairies Premier Supermarkets to the deal), 97 Charles Phillips stores (1964) and the Victor Value chain (1968) (sold to Bejam in 1986).[14] Originally specialising in food and drink, it has diversified into areas such as clothing, electronics, financial services, telecoms, home, health, car, dental and pet insurance, retailing and renting DVDs,[10] CDs, music downloads, Internet services and software.
  • Tesco Annual Report 2018

    Tesco Annual Report 2018

    Tesco PLC Annual Report and Financial Statements 2018 Statements Financial and Report Annual PLC Tesco Serving shoppers a little better every day. Annual Report and Financial Statements 2018 Welcome to our Annual Report. The screen icon indicates where further information is available online. We have also produced a number of short videos, available at www.tescoplc.com/ar2018. Strategic report Tesco at a glance As a leading retailer, our 440,000(a) colleagues serve around 80 million customers every week, in more than 6,800(b) stores and online. +2.3% +2.8% +28.4% +80.6% £51.0bn∆(c) £57.5bn (c) £1,644m∆(c) £1,837m (c) Group sales Statutory revenue Group operating profit before Operating profit (2016/17: £49.9bn) (2016/17: £55.9bn) exceptional items (2016/17: £1,017m) (2016/17: £1,280m) +795.2% +62.7% +>100% +21.7% £1,298m (c) 11.88p∆(c) 12.08p (c) £2,773m∆ Statutory profit before tax Diluted EPS pre-exceptional items, Statutory diluted EPS Retail operating cash flow (2016/17: £145m) IAS 19 finance costs and IAS 39 fair (2016/17: 0.81p) (2016/17: £2,278m) value remeasurements (2016/17: 7.30p) 29.6% down ∆ Alternative performance measures (APM) Measures with this symbol ∆ are defined in the Glossary ∆(d) section of the Annual Report on pages 150 to 153. (a) Based on an actual year-end headcount. £(2.6)bn 3.0p (b) Includes franchise stores. Net debt Dividend per share (c) Reported on a continuing operations basis. (2016/17: £(3.7)bn) (2016/17: 0.0p) (d) Excludes the net debt of Tesco Bank.
  • Business Management Review Semester 2 – 2010 BUSINESS MANAGEMENT REVIEW Tesco PLC

    Business Management Review Semester 2 – 2010 BUSINESS MANAGEMENT REVIEW Tesco PLC

    By Dionne van het Kaar Student no. 09028730 Class: ES3-1C Tutor: Mr. L.J. Harris Course: Management of Organisations in Europe Business Management Review Semester 2 – 2010 BUSINESS MANAGEMENT REVIEW Tesco PLC Introduction Description of the company: Tesco is an international hypermarket chain. It was founded in 1924 in Britain. It is the largest British retailer by its global sales and local market share. Tesco is the third largest retailer in the world behind Wal-Mart in the United States, and Carrefour of France. The chain uses the slogan: "Every Little Helps". Brief History Tesco was founded by British businessman Jack Cohen in 1919, who began to sell groceries from a stall in East London (Hackney). He became market stall holder of a number of stalls and started a wholesale business. In 1924 the Tesco brand made its appearance. The name originates from when Jack Cohen ordered a shipment of tea from tea supplier T.E. Stockwell. He took the two initials of the supplier and the first letter of his surname (TES), and then he combined it with the first two letters of his own surname (CO), forming ‘TESCO’ as the brand name.The first domestic brand sold by Cohen was Tesco Tea. The first Tesco store was established in 1929 in Burnt Oak, Edgware, Middlesex. In 1932 Tesco Stores Ltd became a private limited company (PLC) and by 1939, Jack owned a hundred Tesco stores. Tesco Stores (Holdings) Ltd floated on the stock exchange with a share price of 25 pence in 1947. Expansion and successes During the 1950s and the 1960s Tesco grew significantly, until it eventually had more than 800 stores.
  • No.1 Retailer in Britain Uses 'Clubcard' to Thwart Wal-Mart by Cecilie Rohwedder from Wall Street Journal, 6 June 2006

    No.1 Retailer in Britain Uses 'Clubcard' to Thwart Wal-Mart by Cecilie Rohwedder from Wall Street Journal, 6 June 2006

    No.1 Retailer in Britain Uses 'Clubcard' to Thwart Wal-Mart by Cecilie Rohwedder from Wall Street Journal, 6 June 2006 (c) 2005Dow Jones & Company, Inc.Reproduced with permission of copyright owner.Further reproduction or distribution is prohibited without permission. CHESHUNT, England -- When Wal-Mart Stores Inc. entered the British market in 1999 by buying a chain of stores here, many expected it to dominate. Instead, Wal-Mart's largest non-American operation has been struggling recently, and its top local rival is thriving. That rival is Tesco PLC, Britain's largest retailer. Its big weapon is information about its customers. Tesco has signed up 12 million Britons for its Clubcard program, giving cardholders discounts in exchange for their name, address and other personal information. The Clubcard has helped boost Tesco's market share in groceries to 31%, nearly double the 16% held by Wal-Mart's Asda chain, according to market-research firm Taylor Nelson Sofres. The data let Tesco tailor promotions to individual shoppers and figure out quickly how new initiatives are working. After Tesco introduced Asian herbs, cooking oil and other ethnic foods in neighborhoods with many Indians and Pakistanis, the data showed the new products were also popular with affluent white customers. The company quickly expanded the rollout. Tesco's computers often turn up counterintuitive results. Shoppers who buy diapers for the first time at a Tesco store can expect to receive coupons by mail for baby wipes, toys -- and beer. Tesco's analysis showed that new fathers tend to buy more beer because they are home with the baby and can't go to the pub.

  • Ready to Take on U.S. RETAIL MARKET the No.1 Player in the U.K

    TESCO Ready To Take On U.S. RETAIL MARKET The No.1 player in the U.K. retail world is set to launch a major U.S. venture. BY TOMMY LEIGHTON Editor’s Note: In looking to provide the readers of PRODUCE BUSINESS both in its own back yard and internationally. With annual group with a more comprehensive understanding of Tesco as it establishes a U.S. turnover of $85 billion (£43.1 billion) in 2006 and profits in excess base, we thought it appropriate to reach out to an editor in the United King- of $3.9 billion in both of its last two fiscal years, Tesco is now the dom who has been focusing on Tesco for years. world’s fifth largest grocery retailer. I asked my friend Tommy Leighton, editor of FPJ, the U.K.’s weekly The might of Tesco in the United Kingdom is such that around trade publication for the fresh produce industry, to share his understanding £1 of every £6 spent by British consumers goes through a Tesco till of what makes Tesco tick. Many thanks to Tommy and to FPJ for this contri- at one of its 1,800-plus stores. With more than 30 percent of the bution to our understanding of what we have to look forward to as Tesco U.K. supermarket sector in its pocket, the group has built steadfast comes to America. — Jim Prevor foundations from which to launch its international empire. Just a dozen years after opening its first overseas store, Tesco is esco, which is headquartered in Cheshunt, Hertford- the market leader in five of the 12 European and Asian markets in shire, England, will enter the U.S.

  • FINAL DOCUMENT.Indd

    London Councils' Directory 2007 A GUIDE TO LOCAL GOVERNMENT IN LONDON London Councils (formerly the Association of London Government) 591/2 Southwark Street, London SE1 0AL Tel: 020 7934 9999 Fax: 020 7934 9991 ISBN: 1 85494 121 6 Price £35.00* September 2006 *£17.50 to London boroughs & voluntary organisations 1 2 CONTENTS About us 7 Greater London Employment Forum 11 Grants Committee 12 Leaders’ Committee 10 Staff 14 Transport and Environment Committee 13 London Government A brief history 17 Recent changes to London’s government 17 The London boroughs 19 Borough election results 2006 21 Town Hall addresses 24 About the data 27 The London boroughs Barking and Dagenham 28 Barnet 33 Bexley 40 Brent 46 Bromley 52 Camden 58 Croydon 63 Ealing 69 Enfield 76 Greenwich 82 Hackney 89 Hammersmith and Fulham 95 Haringey 100 Harrow 107 Havering 113 Hillingdon 119 Hounslow 125 Islington 132 Kensington and Chelsea 137 Kingston upon Thames 143 Lambeth 150 Lewisham 156 Merton 161 Newham 166 3 CONTENTS The London boroughs (continued) Redbridge 173 Richmond upon Thames 181 Southwark 188 Sutton 195 Tower Hamlets 201 Waltham Forest 208 Wandsworth 214 Westminster 222 City of London 228 Greater London Authority 236 London Development Agency 239 London Fire and Emergency Planning Authority 241 Metropolitan Police Authority 244 Transport for London 246 London MPs 247 London MEPs 249 Government departments 250 London local government professional associations 253 Health care in London 256 London Learning and Skills Councils 262 Other useful addresses 265 Media

  • Annual Report and Financial Statements 2014 Statements Financial and Report Tesco Annual PLC

    BACK COVER FRONT COVER OUTSIDE FLAP Contents Tesco PLC AnnualTesco Report and Financial Statements 2014 Strategic report IFC Tesco at a glance IFC Highlights 01 Chairman’s statement 03 Report from the Chief Executive 08 Market overview 10 Business model 12 Financial review 16 Key performance indicators 19 Other statutory disclosures 20 Principal risks and uncertainties Corporate governance 26 Board of Directors 28 Executive Committee 30 Corporate governance report 41 Directors’ remuneration report 62 Directors’ report Tesco PLC Financial statements 64 Statement of Directors’ responsibilities Annual Report and 65 Independent auditors’ report to the members of Tesco PLC 69 Group income statement Financial Statements 2014 70 Group statement of comprehensive income 71 Group balance sheet 72 Group statement of changes in equity 73 Group cash flow statement 73 Reconciliation of net cash flow to movement in net debt note 74 Notes to the Group financial statements 122 Tesco PLC – Parent Company balance sheet 123 Notes to the Parent Company financial statements 131 Independent auditors’ report to the members of Tesco PLC (Parent Company financial statements) Other information 132 Supplementary information (unaudited) 143 Financial calendar 143 Glossary 144 Five-year record There’s a lot more content online Go online to find out more about our performance, hear from our leadership team and explore our business in more detail. You’ll find PDF and Excel downloads of our financial statements too. Visit www.tescoplc.com/ar2014 Tesco PLC Tesco House

  • TESCO CASE STUDY 18/9/13 09:40 Page 2

    TESCO CASE STUDY 18/9/13 09:40 Page 2 Vision, values and business strategies STRATEGY Introduction Tesco’s continuing success depends on it reassessing and formulating clear business strategies. Tesco aims to improve Tesco was founded in 1919 by Jack Cohen from a market stall in customer loyalty and its core UK business in order to help it London’s East End. Today it is one of the largest retailers in the develop the shopping experience for its customers. It committed world. Tesco’s core business is retailing in the UK, which provides £1 billion to an investment programme to achieve this. Strategies 60% of all sales and profits. Tesco has the widest range of food of to improve competitiveness were then developed. The driving any retailer in the UK. Its two main food brands are its Finest and forces behind these strategies are price, quality, range and Everyday Value ranges, each sell over £1 billion per year. innovation as well as delivering great multichannel customer service, for example, through its ‘Click & Collect’ service. The position of Tesco as a leading global brand is clearly illustrated by its expansion of operations into 12 countries including China, This case study examines Tesco strategies, the reasons behind Czech Republic, India, Malaysia, Ireland, Hungary and Poland. In each component and how vision, aims and cultural value inter- 2013 Tesco employed in excess of 530,000 colleagues. This level relate to make the strategies successful. of success does not happen by chance. Tesco’s leaders have always set high standards and clear goals, never settling for Vision and Mission anything less than the best.
  • Transforming Tesco

    Transforming Tesco

    PROFILE TRANSFORMING TESCO Treasury director Adrian Marsh talks about the people and process changes he’s made since joining the supermarket giant Words: Sally Percy / Photos: Will Amlot Back in 1919, tailor’s son Jack Cohen started selling groceries Once he had his feet under the desk, Marsh decided it was on a market stall in London’s East End. The business he time for Tesco’s treasury to get closer to the business, “putting the founded went on to become a supermarket empire, serving right team in the right places”, as he puts it, and working with the tens of millions of customers in 14 countries around the world, property and commercial teams to understand their needs and including in the US, Eastern Europe and Asia Pacific, raking in the broader retail environment. He set up simple forecasting and revenues of over £64bn for its last financial year. reporting mechanisms that were appropriate for a multinational Nearly a century later, the man who now occupies what company and created policy frameworks and funding plans for was Jack Cohen’s corner office in Old Tesco House, an the board to sign off. The end result is “a high-performing team unprepossessing building in Cheshunt, north of London, is that has the confidence of the board”, he explains. Adrian Marsh, Tesco’s director of tax, treasury and corporate Treasurers who work in a retail environment need to be finance. Marsh, who was previously European finance director fleeter of foot than their peers in other industries. “The pace at pharmaceutical giant AstraZeneca, took the job in 2010, is a lot faster in retail, the margins are a lot smaller and so the attracted by Tesco’s global reach and the breadth of the role.

  • London Government Directory Greater London Enterprise

    London government directory Greater London Enterprise Property investment and development Programme management and consulting Commercial finance Enterprise development London’s economic development company bringing commercial know-how to public policy, and delivering economic regeneration .gle.co.uk For more information, please contact: Greater London Enterprise www 28 Park Street London SE1 9EQ Tel: 020 7403 0300 [email protected] www.gle.co.uk The London Government Directory 2006 A GUIDE TO LOCAL GOVERNMENT IN A A GUIDE TO LOCAL GOVERNMENT IN LONDON ©Association of London Government 591/2 Southwark Street, London SE1 0AL Tel: 020 7934 9999 Fax: 020 7934 9991 ISBN: 1 85494 165 8 Price £35.00* September 2005 *£17.50 to London boroughs & voluntary organisations 1 Minimum Environmental Impact for Maximum Printed Impact! Photograph by Jeff [email protected] Every year Sprinters looks at the way we affect our environment and how we can reduce waste when printing the literature our capital city needs. This year we have introduced a new press which operates on a waterless litho system with fully recyclable plates. The result is less chemistry and a more energy efficient output while still offering a full range of recycled papers and boards. For more information about Sprinters please call or visit our website. Sprinters (London) Limited Churchill House, 114 Windmill Road, Brentford, Middlesex TW8 9NB Tel: 020 8847 2128 Fax: 020 8569 8681 ISDN: 020 8560 9547 [email protected] www.sprinters.co.uk CONTENTS London Government A brief history
  • Local Election Results 2006

    Local Election Results 2006

    Local Election Results 4th May 2006 Andrew Teale Version 0.02 March 16, 2008 2 LOCAL ELECTION RESULTS 2006 Typeset by LATEX Compilation and design © Andrew Teale, 2008. The author grants permission to copy and distribute this work in any medium, provided this notice is preserved. This file (in several formats) is available for download from http://www.andrewteale.me.uk/ Please advise the author of any corrections which need to be made by email: [email protected] Contents Introduction and Abbreviations5 I London Boroughs7 1 North London8 1.1 Barking and Dagenham.......................8 1.2 Barnet................................... 11 1.3 Brent.................................. 14 1.4 Camden................................ 17 1.5 Ealing.................................. 20 1.6 Enfield................................. 24 1.7 Hackney................................ 27 1.8 Hammersmith and Fulham...................... 31 1.9 Haringey................................ 34 1.10 Harrow................................. 37 1.11 Havering................................ 40 1.12 Hillingdon............................... 45 1.13 Hounslow............................... 49 1.14 Islington................................. 51 1.15 Kensington and Chelsea....................... 55 1.16 Newham................................ 58 1.17 Redbridge................................ 61 1.18 Tower Hamlets............................ 64 1.19 Waltham Forest............................ 68 1.20 Westminster.............................. 72 2 South London 75 2.1 Bexley.................................
  • Tesco PLC Annual R Eport and Financial S Tatements 2011 Ov 2 3

    Tesco PLC Annual R Eport and Financial S Tatements 2011 Ov 2 3

    Tesco PLC Tesco Contents OverviEw 2 Financial highlights 3 Chairman’s statement 4 Chief Executive’s review 6 Our vision BuSiness reviEw* 14 Our business 16 Growing the UK core 22 To be an outstanding international retailer 26 To be strong in everything we sell 30 Growing retail services 34 Community at the heart of what we do 38 Building brands 42 Building our team 46 Property – developing and building for customers 48 Key performance indicators 50 Group financials 51 Principal risks and uncertainties 58 General information GOvernance 60 Our Board of Directors* 62 Directors’ report on corporate governance* 74 Directors’ remuneration report FiNanciaL statements 92 Statement of Directors’ responsibilities 93 Independent auditors’ report to the members of Tesco PLC 94 Group income statement 95 Group statement of comprehensive income 96 Group balance sheet 97 Group statement of changes in equity 98 Group cash flow statement 98 Reconciliation of net cash flow to movement in net debt note 99 Notes to the Group financial statements 146 Five year record 147 Tesco PLC – Parent Company balance sheet 148 Notes to the Parent Company financial statements 156 Independent auditors’ report Annual Report and Financial Statements 2011 Statements and Financial Annual Report to the members of Tesco PLC IBC Financial calendar * These sections form the Report of the Directors Tesco PLC Tesco House Delamare Road Cheshunt Hertfordshire EN8 9SL http://ar2011.tescoplc.com oVeRVIEW finanCial statements tesco around the world europe Headingfinancial calendar Revenue*