Tesco 2006 Annual Report Download - page 20

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18 Tesco plc
Directors’ report
The Directors present their annual report to shareholders
on the affairs of the Group and Company, together with the
audited financial statements of the Group and the audited
financial statements of the Company for the year ended
25 February 2006.
Principal activity and business review
The principal activity of the Group is retailing and associated
activities in the UK, the Republic of Ireland, Hungary, Poland,
the Czech Republic, Slovakia, Turkey, Thailand, South Korea,
Taiwan, Malaysia, Japan and China. A review of the business
is contained in the Annual Review and Summary Financial
Statement 2006 which is published separately and, together
with this document, comprises the full Tesco PLC Annual
Report and Financial Statements.
Group results
Group revenue rose by £5,588m to £39,454m, representing
an increase of 16.5%.
Group profit before tax increased by £341m, to £2,235m. Profit
for the year was £1,576m, of which £1,570m was attributable to
equity holders of the parent.
Dividends
The Directors recommend the payment of a final dividend
of 6.10p per ordinary share, to be paid on 14 July 2006 to
members on the Register at the close of business on 5 May
2006. Together with the interim dividend of 2.53p per ordinary
share paid in December 2005, the total dividend for the year
will be 8.63p compared with 7.56p for the previous year, an
increase of 14.2%.
Fixed assets
Capital expenditure amounted to £2,802m compared with
£2,450m the previous year. In the Directors’ opinion, the
properties of the Group have a market value in excess of
the carrying value of £13,748m included in these financial
statements. In the year we received £484m from our new
property joint ventures with Consensus and Morley.
Share capital
The authorised and called-up share capital of the Company,
together with details of the shares allotted during the year,
are shown in note 24 of the financial statements. Details of
treasury shares held by Tesco PLC are shown in note 25 of the
financial statements.
Company’s shareholders
The Company has been notified that as at the date of this
report FMR Corporation/Fidelity International held 5.02% of
the issued share capital of the Company.
Except for the above, the Company is not aware of any ordinary
shareholders with interests of 3% or more in the issued share
capital of the Company.
Directors and their interests
The names and biographical details of the present Directors
are set out in the separately published Annual Review and
Summary Financial Statement 2006.
Mr C L Allen, Mr R Brasher, Mr P A Clarke and Mr A T Higginson
retire from the Board by rotation and, being eligible, offer
themselves for re-election.
The interests of Directors and their immediate families in the
shares of Tesco PLC, along with details of Directors’ share
options, are contained in the Directors’ remuneration report
set out on pages 25 to 38.
At no time during the year did any of the Directors have a
material interest in any significant contract with the Company
or any of its subsidiaries.
Aqualifying third party indemnity provision as defined in
Section 309B(1) of the Companies Act 1985 (as amended)
is in force for the benefit of each of the Directors and
the Company Secretary (who is also a Director of certain
subsidiaries of the Company) and remains in force for
Mr G F Pimlott who retired as a Non-executive Director
in the year ended 25 February 2006.