Tesco PLC — Interim / Quarterly Report 2021

Jan 25, 2021

TESCO PLC

REGISTERED NUMBER: 00445790

INTERIM PARENT COMPANY FINANCIAL STATEMENTS FOR THE 44 WEEKS ENDED 2 JANUARY 2021

PREPARED FOR THE PURPOSE OF S838 COMPANIES ACT 2006

TESCO PLC REGISTERED NUMBER: 00445790 INTERIM PARENT COMPANY FINANCIAL STATEMENTS FOR THE 44 WEEKS ENDED 2 JANUARY 2021

Income statement	44 weeks ended 2 January 2021
	Note	£m
Income from shares in Group undertakings	2	4,300
Administrative expenses		(221)
Interest receivable and similar income		17
Interest payable and similar charges		(204)
Profit before tax		3,892
Income tax expense		-
Profit for the period		3,892

TESCO PLC REGISTERED NUMBER: 00445790 INTERIM PARENT COMPANY FINANCIAL STATEMENTS FOR THE 44 WEEKS ENDED 2 JANUARY 2021

Balance sheet statement		2 January 2021
	Note	£m
Non-current assets
Investments		17,895
Receivables		278
Derivative financial instruments		1,666
		19,839
Current assets
Receivables		5,536
Cash and cash equivalents		285
		5,821
Current liabilities
Borrowings		(144)
Payables		(905)
		(1,049)
Net current assets		4,772
Non-current liabilities
Borrowings		(2,278)
Payables		(1,232)
Derivative financial instruments		(688)
		(4,198)
Net Assets		20,413
Equity
Share capital		490
Share premium		5,165
Other reserves		2,992
Retained earnings	2	11,766
		20,413

Approved by the Board

ALAN STEWART

DIRECTOR

22 JANUARY 2021

TESCO PLC REGISTERED NUMBER: 00445790 INTERIM PARENT COMPANY FINANCIAL STATEMENTS FOR THE 44 WEEKS ENDED 2 JANUARY 2021

Statement of changes in equity

				O he t r r ese rv es
	S ha re ita l ca p £m	S ha re ium p rem £m	Cu rre nc y ba is s res erv e £m	Ca ita l r de ion t p e mp res erv e £m	dg ing He res erv e £m	Ow n ha he l d s res £m	M erg er Re ser ve £m	ine d Re ta ing ea rn s £m	l To ta ity eq u £m
A 2 9 2 0 2 0 t Fe br ua ry	4 9 0	1 6 5, 5	( 1 9 )	1 6	1 3 5	( 2 0 ) 5	3, 0 0 5	8, 8 4 7	1 4 2 7, 5
Pr f it / ( los ) for he io d t er o s p	-	-	-	-	-	-	-	3, 8 9 2	3, 8 9 2
O he he ive in / ( los ) t r c om p re ns co me s Ga ins / ( los ) h f low he dg ses on ca s es	-	-	( 3 )	-	3 4	-	-	-	3 1
las i f ie d a d r d in he Co Re te t c s n ep or mp an y
inc ta tem t om e s en	-	-	-	-	( ) 2 2	-	-	-	( ) 2 2
la ing f o he Ta t to ts t x r e co mp on en o r
he ive inc co mp re ns om e	-	-	3	-	( ) 8	-	-	-	( ) 5
ive in / ( ) To ta l o t he he los r c om p re ns co me s	-	-	-	-	4	-	-	-	4
To l c he ive in / ( los ) ta om p re ns co me s	-	-	-	-	4	-	-	3, 8 9 2	3, 8 9 6
ion i Tr t t h o an sa c s w wn er s
ha f o ha Pu rc se o wn s res	-	-	-	-	-	( 2 2 8 )	-	-	( 2 2 8 )
ha ba d p S nts re- se ay me	-	-	-	-	-	2 6 6	-	( ) 2 9	2 3 7
iv i de ds D n	-	-	-	-	-	-	-	( ) 9 4 4	( ) 9 4 4
To l ion i h o ta tra t t ns ac s w wn er s	-	-	-	-	-	3 8	-	( 9 7 3 )	( 9 3 5 )
A 2 2 0 2 1 t Ja nu ar y	4 9 0	1 6 5, 5	( 1 9 )	1 6	1 5 7	( 2 1 2 )	3, 0 0 5	1 1, 6 6 7	2 0, 4 1 3

Notes to the financial statements

1. Basis of preparation

Tesco PLC (the Company) is a public limited company incorporated and domiciled in the United Kingdom (UK) under the Companies Act 2006 (Registration number 00445790). The address of the registered office is Tesco House, Shire Park, Kestrel Way, Welwyn Garden City, AL7 1GA, UK.

The Company is proposing to pay a special dividend of c.£5bn, subject to shareholder approval at the General Meeting to be held on 11 February 2021.These interim accounts have been prepared, under sections 836 and 838 of the Companies Act 2006 (the Act), for the purposes of confirming that the Company now has sufficient distributable reserves to support the proposed dividend.

These financial statements contain information about Tesco PLC solely as an individual company. The statements have been prepared on the basis of the same recognition and measurement basis as adopted by the Company in preparing the Company's financial statements included within the Tesco PLC annual report for the year ended 29 February 2020. The interim accounts have been properly prepared in accordance with s838 of the Act, subject only to those departures, under s838(3), which the directors have considered are not material for determining whether the proposed distribution is permitted by s830 and s831 of the Act. The directors have chosen not to present comparative figures for the period and the note disclosures that would normally form part of a set of complete financial statements.

2. Retained earnings

The company's profits being used for this distribution arose from receipt, since 29 February 2020, of £4.3bn of cashsettled dividends, and £0.7bn in cash settlement of dividends previously considered unrealised, from various Group subsidiaries arising from the proceeds of the sale of the Group's businesses in Thailand and Malaysia. The Company lent the cash received above to another member of the Group to deposit in Money Market Funds, with this loan being repayable upon demand ahead of payment of the proposed dividend.

The Company has considered the profits available for distribution to shareholders. At 2 January 2021, the Company had retained earnings of £11.8bn, of which the unrealised profit elements are £2.3bn of share-based payment reserves and £0.8bn of dividends received from subsidiary undertakings not yet settled by qualifying consideration. After deducting the cost of its own shares held in trust of £0.2bn, the Company had profits available for distribution of £8.5bn.