Morrisons to pay special dividend as profits rise

Marco Green
March 14, 2018

Full-year profits jumped 11% to £374 million, despite increased costs and a challenging United Kingdom retail market.

The Bradford-based supermarket said on an underlying and comparative 52-week basis, pre-tax profits lifted 9.5 per cent to £374m.

The top line was partly boosted by an 11pc jump in petrol sales, but revenues at stores open more than one year, excluding fuel and Value-Added Tax, also rose 2.8pc.

Talking about how Morrisons was now entering its third consecutive year of growth, Chairman Andrew Higginson said: "Morrisons is now entering its third consecutive year of growth, which is a credit to the whole team". It will issue a final ordinary dividend of 4.43p, taking the full year ordinary dividend up 6.09p, up from 4.43p.

The supermarket said it has seen "meaningful, sustainable sales and profit growth, with strong cash flow" for 2017, having returned £237m to shareholders in accordance with its capital allocation framework and reducing its debt by £221m to £973m, below the £1bn year-end target.

The retail group began a programme to supply McColl's convenience stores nationwide with both branded products and the renewed Safeway brand, as well as expanding its online services, and extending the geographical reach of the "Morrisons at Amazon" partnership.

Chief executive David Potts said the company was making "good progress" with a "colleague-led turnaround and becoming more competitive for customers".

Following the year end, the retailer signed a wholesale supply agreement for the Channel Islands with SandpiperCl and acquired egg supplier Chippindale Foods.

Other reports by Click Lancashire

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