This week, UK supermarket chain William Morrison posted positive results for 2000 and pledged to help the farming families worse affected by the current agricultural crisis. The chain is now worth £3bn in the sector and pre-tax profits for the year have risen 16% to £219.1m. Like-for-like sales are up 8.3% and share dividends have increased 20% to 1.8p.
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Based in Bradford, Yorkshire, Morrison buys directly from local livestock suppliers, and has also agreed to complete all bill payments within 48 hours. Chairman Sir Kenneth Morrison revealed: “We have a very real understanding of the hardship many are facing,” and as a result a donation of £200,000 will be given by the chain to charities that help those in greatest need.
The chain saw its shares leap 18p to an all-time high of 201p amid reports that the fifth largest supermarket chain in the UK could become a target for acquisition if the sector trend for consolidation continues.
Martin Ackroyd, financial director of Morrison, curtly dismissed this rumour: “We would be very disappointed if shareholders thought that somebody else could do a better job.” Morrison could well face a leadership crisis however if Kenneth Morrison retires. Ackroyd admits that the 7% stake holder “is 70 and has always told the board that he would go if he could not add anything to the business.”
Yesterday (22 March), Sir Kenneth attacked the government, arguing that competition is not encouraged among the largest four supermarket chains.
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