Tesco to Pay Back GBP585 Million of Business Rates Relief to UK
December 02 2020 - 2:47AM
Dow Jones News
By Matteo Castia
Tesco PLC said Wednesday that it will repay to the U.K.
government and the devolved administrations the 585 million pounds
($785.1 million) of business rates relief it received as support to
face the coronavirus pandemic.
The U.K.'s largest grocer by market share said the business
rates relief was a "game changer" amid the spring lockdown, when
panic buying, pressure on supply lines and safety concerns created
a real and immediate risk to the supermarkets' ability to continue
to work.
Tesco said the business rates relief helped to partially
mitigate coronavirus-related costs, which is estimated to be GBP725
million for this year.
The cash impact of the repayment of the GBP585 million will be
split into GBP535 million in fiscal 2021 and GBP50 million in
fiscal 2022, the company said.
"Excluding the repayment, our guidance for retail operating
profit before exceptional items for fiscal 2021 is unchanged: we
expect it to be at least the same level as fiscal 2020 on a
continuing operations basis," Tesco said.
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
December 02, 2020 02:32 ET (07:32 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Tesco (PK) (USOTC:TSCDY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tesco (PK) (USOTC:TSCDY)
Historical Stock Chart
From Apr 2023 to Apr 2024