PHILIP DORGAN PANMURE GORDON
The decision to exit the US is not unexpected and the main focus of these results will therefore be upon the shift in strategy to focus on generating positive free cash flow. We think that this will be taken well by the market, especially as it signals the end of the space race in the UK.
SAM HART CHARLES STANLEY
Tesco’s full year results were broadly in line with weak expectations. The decline in profitability reflected the downward rebasing of UK operating margin, the impact of trading hour restrictions in Korea and difficult conditions in Central and Eastern Europe. We maintain “hold”.
JONATHAN JACKSON KILLIK
Although the difficult trading environment in Europe is a concern, the performance of the UK business is pleasing, with ongoing signs of improvement flowing from the restructuring programme. We reiterate “buy”.