Pension payments ramped up
TESCO’S HALF-YEAR results revealed it will ramp up payments into its group pension scheme by £15m a year to £285m from next April as it looks to tackle a hefty deficit.
The pension deficit stood at £3bn at the end of March, up £250m since the last review three years ago.
Analyst Ken Odeluga at City Index said: “Significant pension deficit progress appears to have been widely underappreciated. The most immediate risk for the group is that the CMA may either reject the Booker buy outright or mandate unattractive conditions. Even then, we would still expect the stock to close the year with gains, based on the view that Tesco could scarcely be handling the consumer outlook more adroitly.”