Wednesday preview: Tesco reports first half interims

Tesco reports its first half interims on Wednesday about a year after the supermarket giant revealed £263m black hole in its accounts.

The market will be looking to see whether Tesco has redeemed itself since independent analysts from Deloitte identified the gap in the retailer’s financials last year.

Fast-forward to June 2015, first quarter sales were more positive with a like-for-like sales decline of 1.3%, the smallest drop in more than a year.

HSBC analysts expect the decrease in the second quarter to ease as the group tackles a supermarket price war and rising competition from smaller discounters including Aldi and Lidl.

First half operating profits are forecast to fall 58% to £384m, according to the bank.

In a boost to Tesco on Tuesday, Bernstein said that where its competitor Aldi isn't able to maintain price leadership, instead of running loss leaders, it is likely to reduce its branded range.

“This is good news for the big-four for two reasons: firstly it demonstrates that Aldi will not cut prices forever and secondly it improves one of their major competitive advantages – you can get the brands you love.”

Wednesday 09 December

INTERIMS
Ashtead Group, Bilby, Scholium Group, Stagecoach Group

QUARTERLY PAYMENT DATE
Unilever

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
MBA Mortgage Applications (US) (12:00)
Wholesales Inventories (US) (15:00)

Q2
Ashtead Group

FINALS
Alternative Networks, easyHotel, Focusrite, Redhall Group

IMSS
Tesco

AGMS
EastPharma Ltd GDR (Reg S), Falcon Oil & Gas Ltd., International Biotech Trust, K3 Business Technology Group, Shore Capital Group Ltd.

UK ECONOMIC ANNOUNCEMENTS
BRC Shop Price Index (00:01)