Tesco Financial Years - Case Study Example

ABOUT TESCO Tesco, is the king of supermarkets in Britain and the worlds third largest. It was founded in 1919 by Jack Cohen in East London. Its headquarters is in Cheshunt, England. Apart from being the national leader in the food sector, it is proud of selling everything to satisfy all its customers' needs - books, CD/DVD/mini-discs, hi-fi and household appliances, household equipment, flowers, wine, apparel... the list goes on and on. Tesco is a global player. It is well established in Ireland, Central Europe and Asia. Tesco's current market value of 24.58 billion pound is also likely to increase as it is expanding itself out side the Britain. Financial performance Tesco is listed on the London Stock Exchange under the symbol TSCO. It also has a secondary listing on the Irish Stock Exchange with the name TESCO PLC. Its market capitalization (as on 11/5/2008) is 33.09 billion pound, revenue is 47.3 billion pound (2008), operating income is 2.97 billion pound(2008) and net income 2.13 billion pound (2008). All figures below are for the Tesco's financial years, which run for 52 or 53 week periods to late February. The figures in the table below include 52 weeks/12 months of turnover for both sides of the business as this provides the best comparative. UK market share 52/3 weeks ended Turnover (m) Profit before tax (m) Profit for year (m) Basic earnings per share (p) 23 February 2008 47,298 2,803 2,130 26.95 24 February 2007 46,600 2,653 1,899 22.36 25 February 2006 38,300 2,210 1,576 19.70 26 February 2005 33,974 1,962 1,366 17.44 Table showing the market share of Tesco Supermarket Consumer Spend (000s) Market Share 20th April 2008 Change Tesco 6,336,887 31.1% 0.3% Asda 3,444,410 16.9% 0.1% Sainsbury's 3,265,244 16.0% 0.4% Morrisons 2,317,304 11.4% 0.3% (i) Total Shareholder Return(TSR) Total Shareholder Return (TSR) shows the return on investment a shareholder receives over a specified time frame and takes into consideration the share price appreciation/depreciation and dividends received. The TSR is calculated by adding the dividend per share to the capital gain/loss and dividing this by the share price and is expressed as a percentage change over time. Calculation of Total Shareholder Return (TSR) for Tesco I have extracted the data for 4 years for Tesco and Sainsbury and have taken the dividend comprising of the interim and final dividend paid by Tesco along with the stock prices appearing as on the close of every financial year as well as in the beginning of the year for the financial years from 2004-05 till 2007-08. PARTCULARS OF DIVIDEND PAID BY TESCO DIVIDEND IN PENCE/SHARE PARTCULARS OF SHARE PRICES AS ON PARTICULAR DATE - TESCO SHARE PRICE TSR FOR TESCO Interim - 10/10/07 3.20 As on 23/02/2008 - End 400 Final - 23/04/08 7.70 As on 24/02/2007 - Beginning 446 Total 10.90 Difference in prices - 46 [(-46+10.9)/ 446]*100 = 7.87% Interim - 11/10/06 2.81 As on 24/02/2007 - End 446 Final - 25/04/07 6.83 As on 25/02/2006 - Beginning 335 Total 9.64 Difference in prices 111 [(111+9.64)/ 335]*100 = 36.01% Interim - 28/09/05 2.53 As on 25/02/2006 - End 335 Final - 03/05/06 6.10 As on 26/02/2005 - Beginning 308 Total 8.63 Difference in prices 27 [(27+8.63)/ 308]*100 = 11.57% Interim - 29/09/04 2.29 As on 26/02/2005 - End 308 Final - 20/04/05 5.27 As on 27/02/2004 - Beginning 258 Total 7.56 Difference in prices 50 [(50+7.56)/ 258]*100 = 22.31% TSR ANALYSIS FOR TESCO : As it is quite clear from the calculations that the Total Shareholder Return for the Company has been quite volatile in nature and has been variable for the four years period and the same was negative for the current financial year 2007-08. This is on account of the fluctuating share price although the dividend per share has been on a constant rising scale. Moreover the performance of the stock has been quite volatile for TESCO and for the current financial year 07-08, it showed a downward trend. (ii) Market Value Added(MVA) A calculation that shows the difference between the market value of a company and the capital contributed by investors (both bondholders and shareholders).In other words, it is the sum of all capital claims held against the company plus the market value of debt and equity. Calculated as: MVA = Company's Market Value - Invested Capital The higher the MVA, the better.A high MVA indicates the company has created substantial wealth for the shareholders. A negative MVA means that the value of management'sactions and investmentsare less than the value of the capital contributed to the company by the capital market (or thatwealthand value have been destroyed). MVA is the present value of a series of EVA values. MVA is economically equivalent to the traditional NPV measure of worth for evaluating an after-tax cash flow profile of a project if the cost of capital is used for discounting. (a) WEIGHTED AVERAGE COST OF CAPITAL (WACC) FOR TESCO PLC PARTICULARS 2007-08 2006-07 2005-06 2004-05 EQUITY SHARE CAPITAL 393 397 395 389 + SHARE PREMIUM A/C 4511 437 3988 3704 + OTHER RESERVES 40 40 40 40 + FREE RESERVES & SURPLUS/RETAINED EARNINGS 6871 5693 4957 4470 = SHAREHOLDERS' FUNDS*(E) 11815 10506 9380 8603 DIVIDEND PER SHARE(DPS) 10.9 9.60 8.63 7.56 MARKET PRICE OF SHARE(MPS) 400 446 335 308 GROWTH RATE (g)*** [Growth in dividends on Y-o-Y basis] 13.07 11.7 14.15 10.53 COST OF EQUITY (ke) = (DPS/MPS*100) + g 15.8 13.86 16.73 12.98 TOTAL DEBT BORROWINGS 5972 4146 3742 4563 TOTAL DEBT(D) 5972 4146 3742 4563 INTEREST ON BORROWINGS 250 216 241 235 TOTAL INTEREST(Interest) 250 216 241 235 COST OF DEBT (BEFORE TAX) -kd - In Percentage = (Interest/ Debt)*100 4.19 5.21 6.44 5.15 COST OF DEBT (AFTER TAX) - kd(1-t)] = kd(1-.30) since Tax rate(t) = 30% 2.93 3.65 4.51 3.61 TOTAL CAPITAL (SHAREHOLDERS FUNDS + TOTAL DEBT) 17787.00 14652.00 13122.0 13166.0 TOTAL INTEREST & DIVIDEND COST (AFTER TAX) or cost of capital employed = D*kd(1-t) + E*ke 2041.24 1607.84 1737.93 1281.24 WEIGHTED AVERAGE COST OF CAPITAL (WACC) = [D*kd(1-t) + E*ke] / (D+E) *100 11.48 10.97 13.24 9.73 * Minority Interest is excluded in determining the Shareholders Funds. (b) MARKET VALUE ADDED (MVA) FOR TESCO PLC PARTICULARS 2007-08 2006-07 2005-06 2004-05 Net Profit after tax & before exceptional item (NPAT) 2130.00 1899.00 1576.00 1347.00 Interest (I) 250.00 216.00 241.00 235.00 Add : Interest after Tax = I(1-t), t=30% 175.00 151.20 168.70 164.50 Net Operating Profits After Taxes (NOPAT) = (NPAT+ Interest after Tax) 2305.00 2050.20 1744.70 1511.50 Cost of Capital Employed(COCE) [WACC*CAPITAL EMPLOYED] taken from above table 2041.24 1607.84 1737.93 837.07 WEIGHTED AVERAGE COST OF CAPITAL (WACC) 11.48 10.97 13.24 9.73 CAPITAL EMPLOYED 17787.00 14652.0 13122.0 8603.00 EVA (NOPAT-COCE) 263.76 442.36 6.77 674.43 Cost of Capital used for discounting EVA values 11.48 10.97 13.24 9.73 PV taking 2004-05 as the Base (MARKET VALUE OF FIRM) =EVA/ (1+WACC/100)^1/n 256.69 427.42 6.36 614.63 CAPITAL EMPLOYED 17787.0 14652.0 13122.0 8603.0 MARKET VALUE ADDED (MVA) MVA = MARKET VALUE OF THE FIRM - CAPITAL EMPLOYED -17530.31 -14224.58 -13115.64 -7988.37 MARKET VALUE ADDED ANALYSIS FOR TESCO : The MVA for Tesco has been continuously on a negative rising scale due to the reason that Company's cost of capital employed has shown a rising trend. Moreover the EVA values have also been quite volatile. This has led the Market Value Added to become negative which is mainly because of the over capitalization in the company. The company can reduce it by retiring some of its debts or buy back the shares from the shareholders of the company so that the financial position can be improved. FINANCIAL RATIOS OF TESCO PLC. Sr. No TYPES OF RATIOS TESCO PLC 2007-08 2006-07 2005-06 2004-05 A LIQUIDITY RATIOS ANALYSIS (i) Current Ratio = Current Assets / Current Liabilities 1.59 1.28 1.09 1.31 Ratio is ideal for the current financial year. B TURNOVER OR ACTIVITY RATIOS (i) Inventory Turnover Ratio (In Times) = Sales / Closing Inventory 19.46 22.08 26.95 25.87 This ratio is decreasing which means that the activity of stock of goods getting converted into sales is reducing. (ii) Total Asset Turnover (In Times) = Sales / Total Net Assets 3.97 4.03 4.18 3.91 This ratio is again on a downward trend specifying that the either assets are not properly utilized or are obsolete in order to generate higher sales. (iii) Account Receivable Turnover Ratio (ARTR) (In Times) = Sales / Trade and other receivables 36.08 39.52 44.23 44.04 This ratio is also on a downward trend which means that the company is allowing more credit to its customers because of stiff competition due to which the average collection period has also increased. (iv) Average collection period (In Days) = 365 / ARTR 9.24 8.25 8.29 10.12 9.24 8.25 8.29 - C LEVERAGE/ CAPITAL STRUCTURE RATIOS (i) Debt Equity Ratio = Long Term Debt / Equity Shareholders' Funds 0.50 0.39 0.40 0.53 The amount of debt is less which means that the company is less geared. D PROFITABILITY RATIOS (i) Net Profit Margin (PAT) (In Percentage) = PAT / Sales*100 4.50 4.45 3.99 3.98 The profit margins are quite low. However the same is on a rising trend. (ii) Return on Capital Employed (ROCE) (In Percentage) = PBIT (Profit before Interest, Tax & Exceptional Item) / Capital Employed 24.98 26.15 18.78 16.11 The Returns are on a rising scale although the company is over capitalized and the can improve the financial position by going for buy back of its shares. ASSESMENT OF THE FINANCIAL POSITION OF TESCO : The Company is mainly financed through the share capital as evident from the Debt Equity Ratio, although the company seems to be over capitalized since it is not able to generate adequate revenues and income. The Company's assets are also not fully utilized as the asset turnover ratio is low. The Company due to stiff competition has to allow more credit to its debtors for making payment. The Company's production cycle is also taking much time to get the stock converted into sales because of the competition existing in the market. Moreover the Net Profit Margins as well as the Return on Capital Employed(ROCE) margins are also significantly low for the Company. TESCO VS. SAINSBURY COMPARISON : Tesco as compared to Sainsbury is performing much better since the Turnover of the Company is almost 3 times more than that of Sainsbury. Moreover the administrative expenses are higher for Sainsbury as compared to Tesco. The ratios for Tesco are much better placed as against Sainsbury. The Inventory Turnover as well as the Accounts Receivable ratio is higher in case of Sainsbury are higher then Tesco because of better production cycle and lesser credit period allowed to its customers. On the other hand, Profit Margins and the Return on Capital Employed(ROCE) are much higher than in case of Tesco as against Sainsbury because of higher sales and Profits. RECOMMENDATIONS FOR TESCO : The Company needs to focus on the issue of over capitalization and should ideally opt for buy back of its shares from the shareholders. The Company's assets are also not fully utilized as the Asset Turnover Ratio is quite low. The company needs to reduce the production cycle and focus more on increasing its sales as against the closing stock. The Company can also think of making its credit policies stringent and should realize its debts faster in order to improve its current position. The Company is less geared due to which the company can think of raising funds through debts. APPENDIX WEIGHTED AVERAGE COST OF CAPITAL (WACC) FOR SAINSBURY PARTICULARS 2007-08 2006-07 2005-06 2004-05 EQUITY SHARE CAPITAL 499 495 489 620 + SHARE PREMIUM A/C 896 857 782 761 + CAPITAL REDEMPTION RESERVE 680 670 668 547 + OTHER RESERVES 494 143 (1) 87 + FREE RESERVES & SURPLUS/RETAINED EARNINGS 2366 2184 1948 2012 = SHAREHOLDERS' FUNDS*(E) 4935 4349 3886 4027 DIVIDEND PER SHARE(DPS) 12.00 9.75 8.00 7.80 MARKET PRICE OF SHARE(MPS) 336.50 548.50 327.25 291.00 GROWTH RATE (g)*** [Growth in dividends on Y-o-Y basis] 23.08% 21.88% 2.56% -50.29% (Last Year Div. Was 15.69) COST OF EQUITY (ke) = (DPS/MPS*100) + g 26.65% 23.66% 5.01% 2.68% (g is negative,hence g ignored) TOTAL DEBT BORROWINGS 2084 2090 2178 1793 TOTAL DEBT(D) 2084 2090 2178 1793 INTEREST ON BORROWINGS 132 137 155 132 TOTAL INTEREST(Interest) 132 137 155 132 COST OF DEBT (BEFORE TAX) -kd - In Percentage = (Interest/ Debt)*100 6.33 6.56 7.12 7.36 COST OF DEBT (AFTER TAX) - kd(1-t)] = kd(1-.30) since Tax rate(t) = 30% 4.43 4.59 4.98 5.15 TOTAL CAPITAL (SHAREHOLDERS FUNDS + TOTAL DEBT) 7019.00 6439.00 6064.00 5820.00 TOTAL INTEREST & DIVIDEND COST (AFTER TAX) or cost of capital employed = D*kd(1-t) + E*ke 1407.50 1124.90 303.15 200.26 WEIGHTED AVERAGE COST OF CAPITAL (WACC) = [D*kd(1-t) + E*ke] / (D+E) *100 20.05 17.47 4.99 3.44 * Minority Interest is excluded in determining the Shareholders Funds. (i) MARKET VALUE ADDED (MVA) FOR SAINSBURY PARTICULARS 2007-08 2006-07 2005-06 2004-05 Net Profit after tax & before exceptional item (NPAT) 329.00 324.00 58.00 188.00 Interest (I) 132.00 107.00 155.00 132.00 Add : Interest after Tax = I(1-t), t=30% 92.4 74.9 108.5 92.4 Net Operating Profits After Taxes (NOPAT) = (NPAT + Interest after Tax) 421.40 398.90 166.50 280.4 Cost of Capital Employed(COCE) [WACC*CAPITAL EMPLOYED] taken from above table 1407.50 1124.90 303.15 200.26 WEIGHTED AVERAGE COST OF CAPITAL (WACC) 20.05 17.47 4.99 3.44 CAPITAL EMPLOYED 7019.00 6439.00 6064.00 5820.00 EVA (NOPAT-COCE) -986.10 -726.00 -136.65 80.14 Cost of Capital used for discounting EVA values 20.05 17.47 4.99 3.44 PV taking 2004-05 as the Base (MARKET VALUE OF FIRM) =EVA/ (1+WACC/100)^1/n -941.83 -688.15 -133.32 77.50 CAPITAL EMPLOYED 7019.00 6439.00 6064.00 5820.00 MARKET VALUE ADDED (MVA) MVA = MARKET VALUE OF THE FIRM - CAPITAL EMPLOYED -7960.83 -7127.15 -6197.32 -5742.50 (ii) TOTAL SHAREHOLDER RETURN FOR SAINSBURY PARTCULARS OF DIVIDEND PAID BY SAINSBURY DIVIDEND IN PENCE/ SHARE PARTCULARS OF SHARE PRICES AS ON PARTICULAR DATE - SAINSBURY SHARE PRICE TSR FOR SAINSBURY Interim 04-05 2.15 As on 26th Mar, 05 291.00 (7.80+27.25) / 263.75*100 = 13.29% Final 04-05 5.65 As on 27th Mar, 04 263.75 Total 7.80 Difference 27.25 Interim 05-06 2.15 As on 25th Mar, 06 327.25 (8.00+36.25)/ 291.00*100 = 15.21% Final 05-06 5.85 As on 26th Mar, 05 291.00 Total 8.00 Difference 36.25 Interim 06-07 2.40 As on 24th Mar, 07 548.50 (9.75+221.25) / 327.25*100 = 70.59% Final 06-07 7.35 As on 25th Mar, 06 327.25 Total 9.75 Difference 221.25 Interim 07-08 3.00 As on 22nd March, 08 336.50 (12.00-213.00) / 549.50 = - 36.58% Final 07-08 9.00 As on 23rd Mar, 07 549.50 Total 12.00 Difference -213.00 FINANCIAL RATIOS OF SAINSBURY PLC. Sr. No TYPES OF RATIOS SAINSBURY PLC 2007-08 2006-07 2005-06 2004-05 A LIQUIDITY RATIOS (i) Current Ratio = Current Assets / Current Liabilities 0.66 0.71 0.79 0.59 B TURNOVER OR ACTIVITY RATIOS (i) Inventory Turnover Ratio (In Times) = Sales / Closing Inventory 26.19 29.07 27.88 27.19 (ii) Total Asset Turnover (In Times) = Sales / Total Net Assets 3.61 3.94 4.05 3.69 (iii) Account Receivable Turnover Ratio (ARTR) (In Times) = Sales / Trade and other receivables 86.59 87.06 58.19 47.66 (iv) Average collection period (In Days) = 365 / ARTR 9.24 8.25 8.29 4.22 4.19 6.27 7.66 C LEVERAGE/ CAPITAL STRUCTURE RATIOS (i) Debt Equity Ratio = Long Term Debt / Equity Shareholders' Funds 0.42 O.48 0.55 0.44 D PROFITABILITY RATIOS (i) Net Profit Margin (PAT) (In Percentage) = PAT / Sales*100 1.84 1.89 0.36 1.24 (ii) Return on Capital Employed (ROCE) (In Percentage) = PBIT (Profit before Interest, Tax & Exceptional Item) / Capital Employed 7.55 8.08 3.73 - 4.03 BALANCE SHEET OF TESCO PARTICULARS YEARS 2007-08 2006-07 2005-06 2004-05 FIGURES IN MILLION POUNDS Non-Current Assets Goodwill and other intangibles assets 2,336 2,045 1,525 1,408 Property, plant and equipment 19,787 16,976 15,882 14,521 Investment property 1,112 856 745 565 Investment in joint ventures and associates 305 314 476 416 Other investments 4 8 4 7 Derivatives financial instruments 216 - - - Deferred tax assets 104 32 12 14 23,864 20,231 18,644 16,931 Current assets Inventories 2,430 1931 1,464 1,309 Trade and other receivables 1,311 1,079 892 769 Derivatives financial instrument 97 108 70 - Current tax asset 6 8 - - Short term investments 360 - - - Cash and cash equivalent 1,788 1,042 1,325 1,146 Non current classified as he for sale 308 408 168 Current Liabilities 6,300 4,576 3,919 3,224 Trade other payables 7,277 6,046 5,083 4,974 Financial liabilities Borrowing 2,084 1,554 1,646 482 Derivative financial instruments and other liabilities 443 87 293 - Current tax liabilities 455 461 462 221 Provision 4 4 2 3 10,263 8,152 7,432 5,680 Net current liabilities 3,963 3,576 3,599 2,456 Non-current liabilities Financial liabilities Borrowings 5,972 4,146 3,742 4,563 Derivatives financial instrument and other liabilities 322 399 294 - Post employment benefit obligations 838 950 1,211 735 Other non current payables 42 29 29 21 Provisions 23 25 5 6 7,999 6,084 5,601 5,821 Net asset 11,902 10,571 9,444 8,654 Equity Share capital 393 397 395 389 Share premium account 4,511 4,379 3,988 3,704 Other reserves 40 40 40 40 Retained earning 6,871 5,693 4,957 4,470 Equity attributable to equity holder of the parent 11,815 10,506 9,380 8,603 Minority interests 87 65 64 51 Total equity 11,902 10,571 9,444 8,654 PROFIT & LOSS ACCOUNT OF TESCO PATRTICULARS YEARS 2007-08 2006-07 2005-06 2004-05 FIGURES IN MILLION POUNDS Continuing operation Revenue (sale excluding VAT) 47,298 42,641 39,454 33,866 Cost of sales (43,668) (39,401) 36,426 (31,231) Pensions adjustment -Finance Act 2006 - 258 - - Impairment of the gerrards cross site - (35) - - Gross profit 3630 3,463 3,028 2,635 Administration expenses (1,027) (907) (825) (732) Profit arising on property 188 92 77 49 Operating profit 2,791 2,648 2,280 1,952 Share of post- tax profit of joint ventures and associates pound on property -related items (2006/7-pound 47m gain 75 106 82 74 Profit on sale of investment in associates - 25 - Finance income 187 90 114 103 Finance cost 250 16 (241) 235 Profit before tax 2,803 2,653 2,235 1,894 Taxation 673 772 (649) 541 Profit for the year from continuing operation 2,130 1,881 1,586 1,353 Discontinued operation Profit for the year from discontinued operation - 18 10 6 Profit of the year 2,130 1,899 1,576 1,347 Attributable to: Equity holders of the parent 2,124 1,892 1,570 1,344 Minority interest 6 7 6 3 2,130 1,899 1,576 1,347 Earnings per share from continuing and discontinued operation Basic 26.65p 23.84p 20.07p 17.44p Diluted 26.61p 23.54p 19.92p 17.22p Earning per share from continuing operation Basic 26.95p 23.61p 20.20p 17.52p Diluted 26.61p 23.31p 19.92p 17.30p BALANCE SHEET OF SAINSBURY PLC PARTICULARS YEARS 2007-08 2006-07 2005-06 2004-05 FIGURES IN MILLION POUNDS Non-Current Assets Goodwill and other intangibles assets 165 175 191 203 Property, plant and equipment 7,424 7,176 7,060 7,076 Investment subsidiaries - - - - Investment in joint ventures and associates 148 98 10 20 Available -for -sale financial assets 106 137 113 - Other receivable 55 50 - - Amount due from Sainsbury bank customer 1473 1331 Deferred income tax assets - - 55 - Retirement benefit asset 495 - - - 8,393 7,636 8,902 8,630 Current assets Inventories 681 590 576 559 Trade and other receivables 206 197 276 319 Amount due from Sainsbury bank customer and other bank - - 1888 1,227 Available for sale financial assets - 52 - Cash and cash equivalent 719 1,128 1,028 706 Non current classified as he for sale 112 25 25 87 1,722 1940 3,845 Total asset 10,115 9,576 12,747 11,618 Current Liabilities Trade and other payables 2,280 2,267 2,,094 2,093 Amount due from Sainsbury bank customer and other bank - - 2,299 2,464 Short -term borrowing 118 373 253 354 Derivative financial instruments 6 2 10 - Tax payable 191 65 63 55 Provision 10 14 91 70 2605 2,721 4,810 5,036 Net current liabilities 883 781 965 2,048 Non-current liabilities Other payable 89 33 30 Long term Borrowings 2,084 2,090 2,178 1,793 Amount due from Sainsbury bank customer and other bank - - 1,009 22 Derivatives financial instrument 18 43 2 - Deferred income tax liability 321 168 - - Retirement benefit obligation - 103 658 536 Provisions 63 69 95 87 2,575 2,506 3,972 2,470 Net asset 4,935 4349 3,965 4,112 Equity Share capital 499 495 489 620 Share premium account 896 857 782 761 Other reserves 494 143 1 87 Retained earning 2,366 2,184 1,948 2,012 Capital redemption reserve 680 670 668 547 Minority interests - - 79 85 Total equity 4,935 4,349 3965 4,112 PROFIT & LOSS ACCOUNT OF SAINSBURY PLC PATRTICULARS YEARS 2007-08 2006-07 2005-06 2004-05 FIGURES IN MILLION POUNDS Continuing operation Revenue (sale excluding VAT) 17,837 17,151 16,061 15,202 Cost of sales (16,835) (15,979) (14,994) (14,544) Gross profit 1,002 1,172 1,067 658 Administration expenses (502) (669) (839) (830) Other Income 30 17 1 21 Operating profit /(loss) 530 520 229 (151) Finance income 83 64 30 44 Finance cost (132) (107) (155) (132) Share of post- tax from joint ventures (2) - - 1 Profit before taxation 479 477 104 (238) Analysed as : Underlying Profit before Tax 488 380 267 238 Business Review and Transformation operating costs - - (51) (497) IT sourcing costs - - (63) - Profit on sale of properties 7 7 1 21 Financing fair value movements (4) 8 (12) - One-off items (12) 82 - - Debt Restructuring Costs - - (38) - 479 477 104 Income Tax (expense)/credit (150) (153) (46) 51 Profit / (loss) from continuing operations - - - (187) *Profit attributable to discontinued operations - - - 375 Profit for the financial year 329 324 58 (188) Attributable to: Equity holders of the parent 329 324 64 184 Minority interests - (1) (6) 4 329 324 58 188 Earnings per share Basic 19.1p 19.2p 3.8p 4.1p Diluted 18.6p 18.9p 3.8p 4.1p Underlying Basic 19.6p 14.7p - 17.4p Underlying Diluted 19.1p 14.5p - 17.4p References 1. Tesco Annual Reports, Share Prices, Dividend, Retrieved October 15, 2008, For Annual Reports of 2007-08 : http://www.tescoreports.com/ For Annual Reports of 2006-07, 2005-06, 2004-05 : http://www.tescoplc.com/plc/ir/ar/archive/ For Share Prices http://www.tescoplc.com/plc/ir/shareinfo/calculator/ For Dividend http://www.tescoplc.com/plc/ir/shareinfo/div_calculator/ For Total Shareholder Return (TSR) Definition and Formula http://www.tescoplc.com/plc/ir/shareinfo/tsr_chart/ 2. Sainsbury Annual Reports, Share Prices, Dividend, Retrieved October 19, 2008, For Annual Reports of 2007-08 : http://www.j-sainsbury.co.uk/ar08/index.shtml For Annual Reports of 2006-07 http://www.j-sainsbury.co.uk/ar07/index.shtml For Annual Reports of 2005-06 http://www.j-sainsbury.co.uk/ar06/index.shtml For Annual Reports of 2004-05 http://www.j-sainsbury.co.uk/ar05/index.asppageid=1 For Share Prices http://www.j-sainsbury.co.uk/index.asppageid=23&subsection=historic_download For Dividend http://www.j-sainsbury.co.uk/index.asppageid=246 Read More