Wednesday 11 January 2012

Questor share Tip: Wm Morrison offers a fascinating history of growth

Supermarket chain focused on the Yorkshire Morrisons published the results of the exercise last week. Profit before tax in the year to January 30 increased 858 m £ 874 million pounds on sales of £ 16 5bn. Debt fell from 924 m £ 817 million to £.

The company has one of the strongest balance sheets in the sector. Almost 90pc of its properties are free, which means that it is much rich. Last week, the company said that it will return £ billion to shareholders and is committed to increasing its dividend at least 10pc for the next three years.

In addition to solid foundations, history of growth of the retailer seem persuasive. Morrisons supermarket is fourth in the United Kingdom, which is not a great place to be.

However, Dalton Philips, its CEO, energetic, is inciting the plans for growth on several fronts. Morrisons will launch a small chain of convenience stores along the M62 corridor and was purchasing dotcom businesses it seeks to move in internet shopping.

Last week she paid 32 million pounds sterling for a 10pc set in the site Web of New York FreshDirect, an eccentric but probably useful travel. He is also playing with addition of non-food product lines to its lines (including speaking them to George Davies, founder of the next, on the design of a line of clothing).

Remains 7 m UK households without easy access to a Morrisons, which means that there is great potential for new stores.

Morrisons trades on a 2012-2013 coefficient of 9.8 times. This is lower than its rivals. With a market capitalization of £ 7 5.3, it is second retailer listed in the United Kingdom after Tesco.

Surprisingly, it is useful as Marks & Spencer, Dixons and Ocado combined.

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