If you'd invested in: Tesco and Associated British Foods

Tesco has seen its market value rise almost 50% in a year, while AB Foods has seen shares slide despite a rise in profits.

If only...

906_Good

Tesco (LSE: TSCO), the UK's biggest retailer, has seen its market value rise almost 50% in a year. In April, barely three years after it reported the second largest loss in UK corporate history, it posted pre-tax profits of nearly £1.3bn in the year to the end of February, up from £145m the year before. This came from sales that rose 2.8% to £57.5bn. It also cut net debt by nearly 30% to £2.6bn. The results prompted it to announce a 3p dividend, the first payout in three years. In July, Tesco and its French counterpart Carrefour joined forces to fend off competition from discounters.

Be glad you didn't...

906_Bad

Associated British Foods (LSE: ABF) is a clothing as well as a food retailer, as it owns Primark. Last November it reported a 50% rise in pre-tax profits to £1.6bn, which was due to brisk business at Primark, a rebound in sugar profits and a boost from sterling's weakness. Yet the shares fell after the firm said it would be reducing the size of US Primark stores. This month ABF said profits would be higher than expected as the heatwave has boosted sales at Primark. But ABF also warned of lower annual profits at its sugar business as European sugar prices are currently low.

Recommended

How the FTSE 100 could get propelled to 10,000
FTSE 100

How the FTSE 100 could get propelled to 10,000

It would have seemed crazy just months ago, but British blue-chip stocks are about to get a big boost that could take the FTSE 100 index to 10,000, sa…
21 Mar 2021
Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
19 Feb 2021
The FTSE 100 index is ready to rally
UK stockmarkets

The FTSE 100 index is ready to rally

The FTSE 100 index – made up of unfashionable “old economy” stocks – has lagged other major stockmarkets. But global reflation should see its weakness…
19 Feb 2021
UK stocks: how the FTSE 100 is finding its feet again
UK stockmarkets

UK stocks: how the FTSE 100 is finding its feet again

The FTSE 100, Britain’s blue-chip stockmarket index, has undergone constant churn in the 37 years since its inception, says Max King. But it is now …
12 Feb 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021