Thursday, March 10, 2011

MRW.L - Morrisons - results

Morrison(Wm.)Supermarkets PLC
10 March 2011

Financial summary

· Turnover up 7% to £16.5bn (2009/10: £15.4bn)
· Like-for-like sales (ex fuel, ex VAT) up 0.9% (2009/10: 6.0%)
· Underlying profits1 before tax up 13% to £869m (2009/10: £767m)
· Profit before tax £874m (2009/10: £858m including £91m exceptional credit)
· Net debt £817m (2009/10: £924m) after capital investment of £592m.
· Gearing of 15% (2009/10: 19%)
· Basic earnings per share 23.9p (2009/10: 22.8p)
· Underlying earnings per share up 12% to 23.0p (2009/10: 20.5p)
· Total dividend for the year up 17% to 9.6p (2009/10: 8.2p) - dividend cover of 2.4 times


 MRW is trading at 280.5p, with a market cap of £7.4bn, PE of 12.5,  yield of 3.3%, and a z-score of 3.5. Analysts peg FY12 with 7% growth, and FY13 with 10% growth. Share buybacks of £1bn are in the expected. Net debt has actually reduced during the year, and overall this is a pretty solid company with good prospects in a resilient sector.

1 comment:

John said...

Yep. If you look at the returns on equity, dividend growth, EPS growth etc etc over the last decade it's over 10% almost all the time, so it's growing nicely. Starting with a 3% yield and growing your capital and dividend at 10% is not bad at all.