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Morrisons Trading Statement

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idpickering
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Morrisons Trading Statement

#191854

Postby idpickering » January 8th, 2019, 7:09 am

For the nine weeks to 6 January, Group like-for-like* (LFL) sales excluding fuel were up 3.6%, comprising contributions from retail of 0.6% and wholesale of 3.0%. Group LFL including fuel was up 3.4%. Total sales* were up 4.0% excluding fuel (3.8% including fuel).

As has been widely reported, there was a change in consumer behaviour during the period. Morrisons performed well, sustaining a strong offer and trading the business hard for customers. We were again more competitive, with the price of our basket of key Christmas items the same as last year.

Customer satisfaction increased significantly. It is an important measure of our turnaround progress, especially during the busiest weeks ahead of Christmas and New Year. The strongest areas of improvement were colleague friendliness and checkout experience, which was thanks to the continued hard work and dedication of our team of food makers and shopkeepers.


https://www.investegate.co.uk/morrison- ... 00034338M/

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Re: Morrisons Trading Statement

#191864

Postby idpickering » January 8th, 2019, 8:06 am

Not received well on weak market opening it seems, with Morrisons down over 2%. Anyone tempted?

Ian.

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Re: Morrisons Trading Statement

#191866

Postby Arborbridge » January 8th, 2019, 8:14 am

idpickering wrote:Not received well on weak market opening it seems, with Morrisons down over 2%. Anyone tempted?

Ian.


No, yield too low. However, it's a share I still hold and it bumbles along.
I'm surprised the inital reaction is down since these results look reasonable - the guy on Radio 4 thought they were OK - but maybe anything retail is regarded as suspect, particularly in view of Amazon flexing its muscles in this direction. There's a moral dilemma for me here, since Amazon and Morrisons are forging links and I do not want to help these disruptive insurgents.


Arb.

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Re: Morrisons Trading Statement

#191868

Postby idpickering » January 8th, 2019, 8:16 am

Arborbridge wrote:
idpickering wrote:Not received well on weak market opening it seems, with Morrisons down over 2%. Anyone tempted?

Ian.


No, yield too low. However, it's a share I still hold and it bumbles along.
I'm surprised the inital reaction is down since these results look reasonable - the guy on Radio 4 thought they were OK - but maybe anything retail is regarded as suspect, particularly in view of Amazon flexing its muscles in this direction. There's a moral dilemma for me here, since Amazon and Morrisons are forging links and I do not want to help these disruptive insurgents.


Arb.


Thanks Arb. I've never been tempted by these, and hold Sainsbury's in the sector.

Ian.

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Re: Morrisons Trading Statement

#191889

Postby Dod101 » January 8th, 2019, 10:00 am

Arborbridge wrote:No, yield too low. However, it's a share I still hold and it bumbles along.
I'm surprised the inital reaction is down since these results look reasonable - the guy on Radio 4 thought they were OK - but maybe anything retail is regarded as suspect, particularly in view of Amazon flexing its muscles in this direction. There's a moral dilemma for me here, since Amazon and Morrisons are forging links and I do not want to help these disruptive insurgents.


Retailing in general is not a good place to be. As for disruptive insurgents they are here to stay. In fact they have always been around. Look at what happened to the greengrocer, the baker etc. A new invention, a supermarket, where you could buy all these items under one roof came along.

Dod

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Re: Morrisons Trading Statement

#191908

Postby Arborbridge » January 8th, 2019, 11:05 am

Dod101 wrote:
Arborbridge wrote:No, yield too low. However, it's a share I still hold and it bumbles along.
I'm surprised the inital reaction is down since these results look reasonable - the guy on Radio 4 thought they were OK - but maybe anything retail is regarded as suspect, particularly in view of Amazon flexing its muscles in this direction. There's a moral dilemma for me here, since Amazon and Morrisons are forging links and I do not want to help these disruptive insurgents.


Retailing in general is not a good place to be. As for disruptive insurgents they are here to stay. In fact they have always been around. Look at what happened to the greengrocer, the baker etc. A new invention, a supermarket, where you could buy all these items under one roof came along.

Dod


Your absolutely correct Dod, but the difference with these new kids on the block is how they do not contribute what they should to our society, - indeed are helping to undermine it - and governments seem unable to devise ways of making them pay. We all know it is not fair that a huge enterprise like Amazon only pays in tax what a couple of branches of Debenhams added together pay in business rates (if what I heard on R4 yesterday is correct), which is a different order of disruption to the ones you mentioned above. The supremarket revolution killed many local shops but provided much decent employment, pension schemes paid tax and arguable brought choice, cleanliness and quality to new heights.
Amazon does not: it is an mostrous insult that they allowed to get away with it and people even encourage it by buying products which they could get just down the road for a similar price. Indeed, I cheerfully pay more to support my local high street. There's nothing I've needed to buy from Amazon in years, apart from a few kindle books. I am content with what is nearby and the prices are similar. Not only that, I get to feel and choose and enjoy a shoppiong expedition. I understand this might by different for people in far flung places, but not for people near conurbations.

Arb.

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Re: Morrisons Trading Statement

#192164

Postby Arborbridge » January 9th, 2019, 12:42 pm

I did a double take at the Times today, in which it made MRW a hold, but showed its yield as 5.9% and confirmed this in the write up, calling it "nearly 6%". What have they been smoking?
Even taking the dividend two years hence, I only make it 3.5%.

Did I miss-read it? Maybe they meant earning yield, but even that doesn't exactly fit, though closer.

Arb.

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Re: Morrisons Trading Statement

#192168

Postby Crazbe7 » January 9th, 2019, 1:04 pm

Did I miss-read it? Maybe they meant earning yield, but even that doesn't exactly fit, though closer.

5.78% if they pay another special dividend.

See link https://www.dividenddata.co.uk/dividend ... y?epic=MRW

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Re: Morrisons Trading Statement

#192186

Postby Arborbridge » January 9th, 2019, 1:52 pm

Oops, yes Crazebe7, I've just noticed that includes specials - so actually not a bad yield at all - if it continues.
Because my June 2018 special was paid in a lump with the ordinary, I 've only just realised it was special!
So, I've amended my spreadsheet.

Arb.

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Re: Morrisons Trading Statement

#192198

Postby Bouleversee » January 9th, 2019, 3:10 pm

Dod101 wrote:
Arborbridge wrote:No, yield too low. However, it's a share I still hold and it bumbles along.
I'm surprised the inital reaction is down since these results look reasonable - the guy on Radio 4 thought they were OK - but maybe anything retail is regarded as suspect, particularly in view of Amazon flexing its muscles in this direction. There's a moral dilemma for me here, since Amazon and Morrisons are forging links and I do not want to help these disruptive insurgents.


Retailing in general is not a good place to be. As for disruptive insurgents they are here to stay. In fact they have always been around. Look at what happened to the greengrocer, the baker etc. A new invention, a supermarket, where you could buy all these items under one roof came along.

Dod


Don't remind me, Dod. My father had grocery and bakery business and was doing OK till the supermarkets came along. Had he not developed MS in his thirties, he would probably have started his own chain as he was very ambitious and enterprising.

I have a lot of retail shares. Some are on the verge of bankruptcy (Carpetright, Mothercare) but the odd few are doing well (Greggs are at a high and WHSmith have done very well, according to sod's law not in my ISA, which contains all the losses!), several are off their lows and could recover in time (Next has climbed quite a bit since we discussed a few days ago) , Sainsburys prices seem to have risen a lot and quality deteriorated (I have just got my money back for some inedible steak), Card Factory's trading statement due out tomorrow may bring some cheer, but it's anyone's guess what will happen before the Brexit farce unwinds. I think there is going to be a lot of sitting on hands for a while longer. Dividends are building up in my ISAs which I have no wish to lose. School fees may be the best place for them.

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Re: Morrisons Trading Statement

#192209

Postby Arborbridge » January 9th, 2019, 4:03 pm

Arborbridge wrote:Oops, yes Crazebe7, I've just noticed that includes specials - so actually not a bad yield at all - if it continues.
Because my June 2018 special was paid in a lump with the ordinary, I 've only just realised it was special!
So, I've amended my spreadsheet.

Arb.


I note that the potential problem with continuing specials at the current rate would be that they would be only just covered. I therefore wouldn't advise anyone to think in terms of continued specials in the manner of Admiral.
It's just a welcome bonus if it happens, no more.

Arb.

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Re: Morrisons Trading Statement

#192216

Postby idpickering » January 9th, 2019, 5:04 pm

Bouleversee;

Greggs are at a high quote....


Greggs put their trading update out today;

· Total sales up 7.2%

· Company-managed shop like-for-like sales up 2.9% (H1: 1.5%, H2:4.2%)

· 149 new shops opened in the year, 50 closures

· 1,953 shops trading as at 29 December 2018

· Full year underlying profit before tax expected to be at least £88m


https://www.investegate.co.uk/greggs-pl ... 00015509M/

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Re: Morrisons Trading Statement

#192291

Postby UncleEbenezer » January 10th, 2019, 2:25 am

Arborbridge wrote:Your[sic] absolutely correct Dod, but the difference with these new kids on the block is how they do not contribute what they should to our society, - indeed are helping to undermine it -

You mean like opening shop in all those horrible edge-of-town locations convenient for nothing but the motorist? Yes of course that's been a force for marginalisation, disenfranchisement and social exclusion. Aren't you happy that today's trend is towards inclusion, as the rise of internet retailers presents new options for the less-mobile?

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Re: Morrisons Trading Statement

#192305

Postby Arborbridge » January 10th, 2019, 8:14 am

UncleEbenezer wrote:
Arborbridge wrote:Your[sic] absolutely correct Dod, but the difference with these new kids on the block is how they do not contribute what they should to our society, - indeed are helping to undermine it -

You mean like opening shop in all those horrible edge-of-town locations convenient for nothing but the motorist? Yes of course that's been a force for marginalisation, disenfranchisement and social exclusion. Aren't you happy that today's trend is towards inclusion, as the rise of internet retailers presents new options for the less-mobile?


It would be even better if they were forced to make a decent and proportionate contribution through the taxes they paid. By not doing so they are counteracting whatever good you might think they are doing.

A slightly tangential observation, one can see degradation of our infrastructure of town and country all around if you care to look, yet non-tax paying monkeys suck cash away from this country to their corporate heartlands enriching their overpaid executives.

Arb.

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Re: Morrisons Trading Statement

#192313

Postby daveh » January 10th, 2019, 8:52 am

Bouleversee wrote:
Don't remind me, Dod. My father had grocery and bakery business and was doing OK till the supermarkets came along. Had he not developed MS in his thirties, he would probably have started his own chain as he was very ambitious and enterprising.



Yet I go back to my Mum's and the local baker (Botham's) is doing well as is the local butcher in Ruswarp - queuing out of the door when I was there. They provide quality artisanal products and they are not cheap, but they seem to be trading well and the town is not without supermarkets with a Lidl, Coop and Sainsbury and an Aldi being built. My Mum buys from Lidl, the CooP and from Bothams and the butcher in Ruswarp

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Re: Morrisons Trading Statement

#192359

Postby Bouleversee » January 10th, 2019, 12:01 pm

idpickering wrote:Bouleversee;

Greggs are at a high quote....


Greggs put their trading update out today;

· Total sales up 7.2%

· Company-managed shop like-for-like sales up 2.9% (H1: 1.5%, H2:4.2%)

· 149 new shops opened in the year, 50 closures

· 1,953 shops trading as at 29 December 2018

· Full year underlying profit before tax expected to be at least £88m


https://www.investegate.co.uk/greggs-pl ... 00015509M/


Yes, I saw that, thanks. Not a HYP buy at this moment but I bought exactly 8 years ago and they are up 216.5% on what I paid then with a very high current yield on that sum. (Their vegan sausage rolls are apparently even more delicious that the meat version.) I wish they were all like that.
I was rather hoping that Card Factory and Halfords would jump on latest figures but alas! they went the other way, overreaction in both cases imo.


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