Morrisons price crunch campaign sees figures ahead of expectations

As supermarket Morrisons reports figures ahead of expectations Graham Spooner, investment adviser at The Share Centre, explains what this means for investors.

“The supermarket reported half year figures ahead of expectations with turnover rising to £8.7bn from £8.1bn last year. In a challenging trading environment Morrisons benefited from its value for money offers as consumers cut back on spending. This campaign and extended opening hours saw the company’s like-for-like sales increase by 2.2% and pre-tax profits rise to £449m from £412m.

“This slight rise, along with Morrisons’ defensive qualities, will be attractive for investors in the current climate and they will be pleased by news of a rise in its dividend to 3.17p.     

“However, we would warn investors not to get too excited as competition and trading conditions are tough. In the present economic environment it is unlikely the company will break out of its trading range, or if they do it will be very slowly. We continue to recommend investors ‘hold’ for now.” 

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THIS DATA IS PROVIDED BY GRAHAM SPOONER, INVESTMENT ADVISER AT THE SHARE CENTRE. THIS IS NOT INTENDED TO CONSTITUTE AN OFFER OR AGREEMENT TO BUY OR SELL INVESTMENTS.

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2011-09-13 11:39:03 © Moneyextra.com