Tesco is one of the worlds leading international retailers. Since the company first the trading name of Tesco, in the mid 1920s, the group has expanded into different formats, different markets and different sectors. The UKs leading retailer Tesco was floated on the stock exchange in 1947 and in 1995 took over rival Sainsburys position as the UK number one. The principal activity of the group is food retailing, with over 2,000 stores worldwide. Tesco has a long term strategy for growth, based on four key parts: growth in the Core UK business, to expand by growing internationally, to be as strong in non-food as in food and to follow customers into new retailing services. The company launched a home shopping service in 2000, allowing customers to order their shopping online. Tesco is now expanding its convenience stores and overseas into areas such as Taiwan, Malaysia, Poland, the US and Ireland.

Upper graph = 12 month share price with 6 month moving average
Lower graph = 12 month volume (red line = volume average).

Errrrr no Cynic no.

You read that wrong.

I really do think that we should have an argument thread if MAM don't mind ,then you can go there and have a dust up , try it GF

These guys invade any thread Jimmy and start trouble.

Look how they have trolled me here onto this thread.!!!!!!!!

Jimmy - I thought that this thread was meant for just that - alas, it seems not.

Yup skinny ,just hope all on here resolve this and crack on Monday like before .

and on that subject, do you really think this stock is worth throwing money at?
i confess i do not, and avoid all these supermarket stocks as it looks as though they're all trying to undercut each other to death

No i'd short it .

EXCLUSIVE: Dave Lewis says pay deal is 'under review' in exclusive interview after £263m accounting scandal: Reward me when I rescue Tesco, pleads new chief

By Simon Watkins, Financial Mail on Sunday

Published: 22:21, 25 October 2014 | Updated: 22:21, 25 October 2014


Taking control: Dave Lewis said he joined Tesco on a package similar to his predecessor Phil Clarke

Taking control: Dave Lewis said he joined Tesco on a package similar to his predecessor Phil Clarke

Tesco chief Dave Lewis is in talks over a new bonus deal with the company’s board as he battles to reverse the retailer’s falling profits and tackle the company’s recent £263 million accounting scandal.

Lewis said he joined Tesco on a package similar to his predecessor Phil Clarke, but in an interview with The Mail on Sunday he said the details of his bonuses are now being reviewed by senior non-executives.

‘In fairness, one of the things that the chairman and remuneration committee are doing, and have asked me to look at, is reviewing what the long-term plan and the long-term incentives should be,’ said Lewis.

It has already been announced that Lewis will earn £1.25 million in salary and £525,000 a year in lieu of pension.

Previous executives have been awarded bonuses based on a range of performance targets including earnings per share and return on capital. But previous targets are likely to be inappropriate in the wake of the recent tide of bad news at the stores group.

Tesco reported a 92 per cent slump in profits last week and chairman Sir Richard Broadbent, announced he would be stepping down once a replacement had been found.

Lewis, known as an expert in turning around troubled businesses, said he agreed that senior executive bonuses should be pegged to the long-term success of their company rather than short-term targets, but said that rewards for company chiefs might have to reflect the extraordinary circumstances.

‘If you are doing a turnaround, then maybe you’d want some shorter-term targets for the leadership team,’ he said.

Lewis is already paying a personal price for mistakes made under his predecessor. Share awards he accrued over 28 years at his previous employer, Unilever, were transferred into Tesco shares when he joined the supermarket.

The shares were allocated on the basis of the Tesco share price in the first four days of Lewis’s tenure, when the price stood at about 230p.

Asked if it hurt, Lewis said: ‘Yes, it’s probably about 25 per cent down since we started.’

Lewis also revealed he had been instructed by City regulators to stop his internal probe into the accounting issues once he had established accurate figures. He had initially asked accountants Deloitte to also report on how and why the errors had occurred but had been told by the City watchdog not to do so in case it interfered with their own probe.

He said: ‘The Financial Conduct Authority said they completely agreed on our focus on being able to report the number, but they didn’t want us to focus on the how. That was the investigation they would do.

I've just been reading the early posts regarding the property portfolio... I'd be keen to hear how that currently stacks up... Anyone with info or a view?

W.

Interesting in Saturdays Sun newspaper -

Tesco value blast

Tesco was yesterday accused of over valuing its property - a day after it admitted over stating profits for the first half of the year by £263 million. The struggling stores giant portfolio is on the books at £20 billion, but top analyst Rickin Thakrar, of BEST RESEARCH, says it is really worth £10 billion, Mr Thakrar also told clients to ditch the ailing stock, saying the share price will keep diving . He wrote ''we continue to believe Tesco profits could go to zero in the UK, because of high running costs''.

WStirrup this may help -


Tesco PLC’s Property Time Bomb

By G A Chester - Sunday, 27 July, 2014


Analysts at Cazenove have painted a grim — but I think realistic — picture of the way Tesco’s UK property valuation is heading:

“The gap between the performance of large out-of-town stores and convenience stores continues to widen … This has direct and strong implications for the property valuation of the Extra stores (45% of the UK space). The company says that its UK real estate is worth £20bn based on the extrapolation of past sale and lease-back transactions to the entire estate. We believe it is likely worth less than half that value — the book value of UK land and buildings is £9.3bn and the alternative use value towards which several out of town stores are converging is a fraction of the book value”.





http://www.fool.co.uk/investing/2014/07/27/tesco-plcs-property-time-bomb/

The statement of the property portfolio by Tesco needs looking at by the Financial Conduct Authority. All basic accountancy work. The auditors are from top rank accountancy firms, Britain's cream supposedly?

http://www.dailymail.co.uk/news/article-2807913/Tesco-boss-forces-managers-eat-humble-pie-Scandal-hit-supermarket-chain-makes-executives-shop-cook-like-housewives.html

All the above post 1254 done in the 80's.

A shambles !!!!!!!!!!!!!!!!!!!!!!!!!!!

If the balance sheet's total assets has £10bn taken out of it, then doesn't this massively downvalue the whole company by £10bn?

I think it does.

Before the downvaluation: X shares = Balance sheet valuation.
After downvaluation: X shares = Balance sheet valuation minus £10bn.

Looking at this scenarion in reverse:

Let's say, that all of a sudden Tesco realised their investment into property had really paid off because all the land and buildings they had previously purchased were now worth double.

Well! That would be utterly fantastic! Massive hidden value has suddenly been unearthed.

For the moment, the book value stays as it is until the board decides to have a formal revaluation. If they never make such a decision then I don't think it affects the balance sheet.

''If the balance sheet's total assets has £10bn taken out of it, then doesn't this massively downvalue the whole company by £10bn?

I think it does.'' CORRECT .

Tesco should of had a full valuation of any property after 5 yrs of owning, with an interim valuation after 3 more yrs (ie 8yrs) and in future only when there has been a material change in value (+ or - ) Any change in the value of property due to normal market movements should be showed in a revaluation reserve, displayed separately on the balance sheet.

Hidden off the balance sheet and no notes, are property bonds that are part of the sale and lease back. In short the leases are 30yr, which can be broken by Tesco after 10yrs . This is when Tesco can buy back the property at market value and repays the bonds. In short because they have two options of buying back or paying the rent, they can avoid recording either of them by saying both are options. What is hidden off the balance sheet ?

Tesco Auditors should of captured all of the above so there should be no surprises in a great property gain or indeed a loss in value.

Tesco may be able to build on some of its land banks. If they put stores up for sale - what is the demand going to be like? with the war that's going on in the grocery market.

So everything 'property wise' is already 'correctly' already in the share price. There are no hidden surprises to the negative - or to the positive.