0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Morrisons Plots Turnaround After Profits Slide to 8-Year Low

Written by: Keith Tully

Published: 12th March 2015

Morrisons Plots Turnaround After Profits Slide to 8-Year LowThe supermarket chain Morrisons has posted its worst set of financial results in eight years and seen its profits for the full year to February 1st more than halved as compared with the previous 12 months.

Despite still generating £345 million in profits, Morrisons has been battling to turn around falling sales across its business and to compete more effectively with new and established rivals in the supermarket sector.

With a new chief executive set to take his post on March 16th, the business is planning to slow the rollout of new ‘M’ convenience stores after having opened 57 such locations across the UK in the past year. 

In fact, statements from the company have indicated that the new store rollout process will be “slowed significantly” and that 23 ‘M’ local stores will be closed over the course of the current financial year, with 380 jobs to be lost as a result.

Speaking to the BBC, Morrisons’ chairman Andrew Higginson said: “It doesn’t make any sense at the moment to press on with something that isn't working as well as we hoped.”

“Candidly, we got off to a slower start than we hoped,” he said, in reference to the relative lack of revenues being generated through the new M stores in recent quarters.

“Last year’s trading environment was tough, and we don’t expect any change this year,” Higginson said in his official statements issued alongside the company’s full-year financial report.

“David Potts joins as Chief Executive next week. Under his leadership, we will focus on building trading momentum and being more like the Morrisons our customers expect,” he added.

Morrisons bosses have also said that they will look to cut prices in order to attract customers to their stores around the UK and turnaround falling same-store sales, which dropped by 5.9 per cent overall last year.

The promise of price cuts from a major supermarket might though come as more bad news for companies within the grocery retailing supply chain, many of whom have been forced out of business over the past year due to increased pressure on their profit margins and cash flows.

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners