Financial summary
• Group like-for-like (LFL) sales(1) ex-fuel/ex-VAT up 8.7% (2019/20: up 0.2%)
• Q2 Group LFL ex-fuel/ex-VAT up 12.3% (Q2 2019/20: down 1.9%), including a very strong retail contribution to LFL of 11.1% (Q2 2019/20: down 2.4%)
• Total revenue down 1.1% to £8.73bn (2019/20: £8.83bn), significantly impacted by very low demand for fuel during and after lockdown, which is now rebuilding
• Total revenue ex-fuel up 8.8% to £7.55bn (2019/20: £6.93bn)
• PBT and exceptionals(2) down 25.3% to £148m (2019/20: £198m), after COVID-19 direct net costs of £62m (£155m costs, partly offset by £93m lower business rates)
• Basic EPS before exceptionals(2) down 26.2% to 4.71p (2019/20: 6.38p)
• Statutory profit before tax down 28.2% to £145m (2019/20: £202m)
• Free cash outflow(3) £228m (2019/20: inflow £244m), due primarily to the temporary impact on working capital of the lower demand for fuel
• Net debt £2,802m (2019/20 year end: £2,458m)
• Interim ordinary dividend up 5.7% to 2.04p (2019/20: 1.93p). Decision on special dividend remains deferred
And later;
Dividend update
The 2020/21 interim ordinary dividend is 2.04p per share, up 5.7% (2019/20: 1.93p), reflecting the strong first-half trading performance and our confident outlook.
As stated at both our 2019/20 preliminary results in March and Q1 2020/21 trading statement in May, we had anticipated announcing another final special dividend relating to the second half of 2019/20, which was the period before the onset of COVID-19. However, given the unprecedented nature of events and uncertainty around COVID-19, we determined it would be prudent to defer the decision on both occasions.
While we have a good understanding of how COVID-19 is currently affecting our business and visibility of future cash flows, our decision regarding the second half 2019/20 special dividend remains deferred. This prudent approach reflects some sustained uncertainty around the potential future impact of COVID-19 on both our customers' behaviour and the broader British economy. We will again review our decisions around both the second half 2019/20 and full year 2020/21 special dividends at the time of our preliminary results in March 2021. In future we will take a decision on a potential special dividend once a year, at the time of our preliminary results in March.
The Directors propose an interim ordinary dividend of 2.04p per share, which will absorb an estimated £49m of shareholders' funds. This dividend will be paid on 30 October 2020 to shareholders who are on the register of members on 25 September 2020. The dividends paid and proposed during the period are from cumulative realised distributable reserves of Wm Morrison Supermarkets PLC.
https://www.investegate.co.uk/morrison- ... 00065483Y/