Home / Knowledge / News / Apparel/Garments / Tesco interim dividend down 75% from last fiscal year
Tesco interim dividend down 75% from last fiscal year
02
Sep '14
A combination of challenging trading conditions and ongoing investment in customer offers, led retailer Tesco to revise its trading profit guidance for the first half ending August 23, 2014 and full fiscal year 2015.

In the process, Tesco reduced interim dividend to 1.16 pence per share, down 75% from last fiscal year’s interim dividend.

In a statement, Tesco said, “The business continues to face a number of uncertainties, including market conditions and the pace at which benefits from the investments we are making flow through in the second half. Consequently the Board has revised its outlook for the full year.”

The retailer now expects trading profit for fiscal year 2015 to be in the range of £2.4 to £2.5 billion and £1.1 billion for six months ending August 23, 2014.

Tesco also announced that Dave Lewis will now join Tesco as CEO from September 1 and that he will be reviewing all aspects of the Group in order to improve its competitive position and deliver attractive, sustainable returns for shareholders.

The board is focused on maintaining a strong financial position in order to maximise its business and strategic options, Tesco informed.

“Reflecting this and our current expectations for future performance, the Board anticipates that it will set the interim dividend at 1.16 pence per share, down 75% from last year’s interim dividend”, it added.

Tesco said it will also implement further reductions in capital expenditure and for fiscal 2015; it will now be no more than £2.1 billion, around £0.4 billion less than originally planned and a reduction of £0.6 billion from prior fiscal year.

This, Tesco informed, will be achieved in a number of areas including IT and the slower roll-out of its store refresh programme.

Sir Richard Broadbent, Chairman, said, “The Board’s priority is to improve the performance of the Group. We have taken prudent and decisive action solely to that end. Our new CEO Dave Lewis, will be reviewing every aspect of the Group’s operations”.

He further added, “The actions announced today regarding capital expenditure and, in particular, dividends have not been taken lightly. They are considered steps which enable us to retain a strong financial position and strategic options."

Fibre2fashion News Desk - India

Must ReadView All

Jalila Essaïdi working with cow dung to create fabrics. Courtesy: Mike Roelofs

Fashion | On 29th Aug 2016

From dung to fashion

Dutch designer Jalila Essaïdi has developed a new material using cow...

Textiles | On 29th Aug 2016

India to build China’s Keqiao like mega textiles city

NITI Aayog’s proposal to build a mega textile city on the lines of...

Apparel/Garments | On 29th Aug 2016

NRF welcomes release of online sales tax bill draft

The National Retail Federation (NRF), an apex body of US retailers...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
August 2016

F2F Magazine

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search