This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-31846566

The article has changed 5 times. There is an RSS feed of changes available.

Version 1 Version 2
Morrisons reports worst profit results in eight years Morrisons reports worst profit results in eight years
(35 minutes later)
Supermarket chain Morrisons has reported its worst results in eight years, with pre-tax profits falling by more than half from a year earlier.Supermarket chain Morrisons has reported its worst results in eight years, with pre-tax profits falling by more than half from a year earlier.
The struggling firm reported a pre-tax profit of £345m, down 52%.The struggling firm reported a pre-tax profit of £345m, down 52%.
"Last year's trading environment was tough, and we don't expect any change this year," said Morrisons chairman Andrew Higginson in a statement. "This has been a controlled and a planned reset of the business - it is painful, but it is the start of a new growth period we hope," chairman Andrew Higginson told the BBC.
New chief executive David Potts will start in the business on 16 March.New chief executive David Potts will start in the business on 16 March.
Mr Potts was picked to replace Dalton Philips, who announced his departure in January after five years at the helm of Morrisons. Mr Potts was picked to replace Dalton Philips, who announced his departure in January after five years at the helm the Bradford-based firm.
Meanwhile, it said the rollout of its M stores would be " slowed significantly", and that it would close 23 M local stores during the year, resulting in the loss of 300 jobs. It also said it would review its "site selection criteria" going forward. Meanwhile, Morrisons said the rollout of its M stores would be "slowed significantly", and that it would close 23 M local stores during the year, resulting in the loss of 380 jobs. It also said it would review its "site selection criteria" going forward.
Shares in the firm dipped by more than 2% in early morning trading.
Breathing roomBreathing room
In order to give Mr Potts more financial headroom to work with as he seeks to revitalise the firm, Morrisons said it would slash its future dividend payment to 5p or less during the 2015-2016 period. That compares to a 13.7p payout per share in 2014-2015. "Last year's trading environment was tough, and we don't expect any change this year," said Mr Higginson in a statement.
In order to give Mr Potts more financial headroom to work with as he seeks to revitalise the business, Morrisons said it would slash its future dividend payment to 5p or less during the 2015-2016 period. That compares to a 13.7p payout per share in 2014-2015.
The chain is battling falling sales. It said that same-store sales fell by 5.9% for the full year, and by 2.6% in the fourth-quarter.The chain is battling falling sales. It said that same-store sales fell by 5.9% for the full year, and by 2.6% in the fourth-quarter.
To woo consumers, Morrisons said it would invest more in cutting prices this year, as well as slow down its opening of more convenience stores.To woo consumers, Morrisons said it would invest more in cutting prices this year, as well as slow down its opening of more convenience stores.
Morrisons has been criticised for being slow in moving into the convenience store sector, as well as in setting up an online operation.Morrisons has been criticised for being slow in moving into the convenience store sector, as well as in setting up an online operation.
The company said it opened 57 stores and closed six during the past year, bringing the total number of M local stores to 153, before the 2015 announced closures.
"Candidly we got off to a slower start than we hoped" with convenience stores, Mr Higginson told the BBC.
Despite that slow start, he said that the firm would take time to re-evaluate its strategy, adding: "It doesn't make any sense at the moment to press on with something that isn't working as well as we hoped."
Analysis: Kamal Ahmed, BBC business editor
Fewer stores, fewer products in those stores and fewer promotions. For Morrisons the age of expansion was brought to a halt today as it retrenched, spoke wistfully of the bygone era of Sir Ken Morrison's northern based powerhouse and revealed that its venture into convenience stores had been underwhelming.
Its £1.3bn write-down in its property portfolio will send tremors through the supermarket sector. Many expect a similarly large write down by Tesco - the big daddy of the supermarkets - when it announces its quarterly results on 22 April.
This is the major tectonic change in the sector. Large, out of town supermarkets are just not the cash cows they once were and have therefore taken a hit on their value. Goldman Sachs estimates that the three major listed supermarkets - Tesco, Morrisons, and J Sainsbury - will need to close one in five stores to protect their profits.
Expect a lot more red ink as the Big Four supermarkets try to catch up with consumers, now more interested in smaller, local stores and the discounters Aldi and Lidl.
Supermarket focus
Mr Higginson emphasised that Morrisons remained focused on its core business of supermarkets - a good thing, according to some analysts, who said that could allow the firm to differentiate its brand.
Furthermore, the firm has been somewhat successful in its price reduction strategy.
"The positive so far is that Morrisons has repositioned itself on price," said Cantor Fitzgerald analyst Mike Dennis.
"This...can be used to further reduce debt and provide capital to invest in new value formats and reposition the convenience store business."
It is the UK's fourth-largest supermarket chain, trailing Tesco, Asda and Sainsbury's in annual sales.It is the UK's fourth-largest supermarket chain, trailing Tesco, Asda and Sainsbury's in annual sales.