Tesco shares surge 10% despite doubling of pension deficit

Risen from £2.6bn to £5.8bn

Tesco shares have climbed 10% this morning after reporting its third consecutive quarter of positive sales growth, although the firm's pension deficit has doubled over the last six months.

Shares were trading at 207p this morning, gaining 10.6% on yesterday's close, and are up 38% from lows of 139p at the start of the year. In its quarterly results, the firm said like-for-like sales grew 1% in the half-year to 27 August, and in the UK they rose by 0.6%, the third consecutive quarter of sales growth. Pre-tax profit fell by 28% due to one-off costs, but chief executive Dave Lewis said the retailer remains on track to make £1.2bn in full-year annual operating profit. Investors sue Tesco over accounting error However, the firm's pension deficit has doubled in six mont...