Tesco sees 'significant optionality for competitive growth'

In a corporate presentation published on the grocer's website ahead of its Capital Markets Day, the company said: "We have significant optionality for sustainable competitive growth.

"We have the further cost reduction and mix opportunities that allow us to offset inflation, improve our customer offer and/or increase margin.

"We have the systems and processes which enable us to enhance cash growth ahead of profit."

Echoing that sentiment, earlier on Friday ShoreCap's Clive Black and Darren Shirley told clients that "there is reasonable scope to anticipate good earnings, free cash and income growth to come for investors through FY2020 and into the medium-term."

In its presentation, the grocer said also saw potential in adding high-end stores and in expanding its footprint into Asia, namely in Thailand.

As of 1446 BST, shares of Tesco were jumping by 3.79% to 235.60p.