BRADFORD (dpa-AFX) - Morrison(Wm.) Supermarkets plc (MRW.L) reported a loss before tax of 176 million pounds for the 52 weeks ended 2 February 2014, compared to profit of 879 million pounds, previous financial year. Loss for the period attributable to the owners of the company was 238 million pounds compared to profit of 647 million pounds. Loss per share was 10.23 pence compared to profit of 26.57 pence.
Underlying profit before tax was down 13% to 785 million pounds from 901 million pounds. Underlying earnings per share was 25.09 pence, compared to 27.17 pence, previous year.
Turnover was down 2% to 17.7 billion pounds from 18.1 billion pounds. Like-for-like sales (ex-fuel, ex-VAT) was down 2.8%.
The Board of the Group recommended a final dividend of 9.2 pence per share, bringing the total dividend for the year to 13.0 pence, an increase of 10% on 2012/13. The Group said the dividend increase is in line with its policy of increasing dividend by a minimum of 10% in each of the three years to 2013/14.
In respect of the year ending 1 February 2015 the Board anticipates that the total annual dividend will be not less than 13.65 pence.
'Thereafter we expect dividends to grow more slowly than earnings, as dividend cover rebuilds towards our target level of around two times,' Sir Ian Gibson, Chairman of the Group, said.
The Group anticipates that underlying profits in 2014/15 will be in the range of 325 million pounds-375 million pounds, after charging 65 million pounds of new business development costs and 70 million pounds of one-off, non-recurring costs.
The Group said it will continue to implement a wide range of measures to address the sales performance of the business and progress strategic initiatives.
Dalton Philips, Chief Executive of the Group, said: 'The strategy we are announcing today is a bold and comprehensive response to the fundamental structural changes that are taking place in grocery retail. We are significantly reducing our cost base and will invest £1bn into our proposition over the next three years, to improve our value even further and to defend and strengthen our competitive position. Customers will see this in our stores as well as in our fast growing online and convenience offers. At the same time we will exit non-core activities, significantly reduce our capital expenditure and deliver improved operating cashflow and return on capital employed.'
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