The initial benefits of Tesco's £641 million acquisition of the Quinnsworth/Crazy Prices chains are expected to flow through into its financial results over the six months to next February. But the main financial benefits of bringing the Irish activities into the embrace of the British group are only expected to emerge in two or three years time.

Tesco's interim results show that the Quinnsworth/Crazy Prices chains have been generating profits of £1 million a week since the completion of the takeover. The Irish businesses earned operating profits before interest of £14 million in the 14 weeks to August 9th on turnover of £368 million. With attributable funding costs of £12 million, the Irish activities contributed an initial £2 million to Tesco's pre-tax profits, and are expected to add £5 million - after financing costs - to Tesco's pre-tax profits in a full-year.

Overall, Tesco's first-half profits before tax increased by 9 per cent to £350 million on group sales up 15.2 per cent at £7.73 million after including the newly-acquired Irish operations. Excluding the Irish outlets, profits rose 9.7 per cent to £7.36 million. Net interest payable was up £15 million at £29 million mainly due to the financing costs of the acquisition in Ireland. The interim dividend is up 9.2 per cent at 3.55p.

Tesco's interim statement provides a snapshot of balance sheet adjustments relating to the purchase of the Quinnsworth/Crazy Prices acquisition from ABF for £641 million cash, including acquisition costs.

Overall, shareholders' funds tied up in the Irish businesses amounted to £174 million, supplemented by £31 million under "fair value" acquisition accounting policies, leaving £442 million goodwill to be written off against the year-end balance sheet.

Detailed figures making up £174 million shareholders' funds include £296 million fixed assets, £64 million stock, £21 million debtors and £65 million net cash. On the debit side, creditors are put at £241 million, loans at £20 million and taxation at a humble £11 million.