Morrison directors pick up shares following last week's sell-off

17th Mar 2014 15:57

Following last week's disappointing results, the board members at WM Morrison have put their hands in their pockets to give a show of faith in the supermarket's investment prospects. The most notable buyer was Chairman Sir Ian Gibson, who acquired 19,695 shares, taking his total holding to 127,750. The cost of the purchase was a relatively modest £40,000. Non-Executive Directors Philip Cox, Richard Gillingwater, Penny Hughes and Johanna Waterous acquired 25,000, 19,695, 9,848 and 13,500 shares respectively. Only Waterous had a previous stake in the company. All of the shares were acquired at a purchase price of 203.1p each. The directors were able to take advantage of the steep drop in the value of the shares, which were trading at levels not seen since 2006 after its profit guidance for this year missed consensus forecasts by a mile, with the company saying that it will invest to cut prices amid rising competition from fast-growing discount grocers.The company, which is the fourth-largest grocer in the UK, reported in-line results for the year ended February 2nd, but said that underlying profits would drop to £325-375m this year, less than half of last year's profit and some 30-40% below analysts' current predictions. Morrison unveiled a £1bn investment programme over the next three years as it responds to "major structural and permanent change" in the UK grocery industry, according to Chief Executive Dalton Phillips.Speaker to reporters, Phillips said that the board was "prepared to make the difficult decisions" in an effort to "carve out a clear position in the market".These decisions include lowering more prices on a permanent basis, offering fewer, more 'impactful' promotions, reinvigorating its Own Brand, improving store layouts, and launching a Morrisons loyalty card this year.Top Director BuysEnergy XXI (Bermuda) (DI) (EXXI) Director name: Mr Hill Arnold FeinbergAmount purchased: 5,000 @ $22.03 Value: $110,150Playtech (PTEC) Director name: Mr Alan M JacksonAmount purchased: 10,000 @ 707.00p Value: £70,700Energy XXI (Bermuda) (DI) (EXXI) Director name: Mr Hill Arnold FeinbergAmount purchased: 2,902 @ $22.01 Value: $63,873Morrison (Wm) Supermarkets (MRW) Director name: Mr Philip CoxAmount purchased: 25,000 @ 203.10p Value: £50,775Energy XXI (Bermuda) (DI) (EXXI) Director name: Mr Hill Arnold FeinbergAmount purchased: 2,098 @ $22.00 Value: $46,156Banco Santander S.A. (CDI) (BNC) Director name: Ms Isabel Tocino BiscarolasagaAmount purchased: 6,760 @ 528.00p Value: £35,693Morrison (Wm) Supermarkets (MRW) Director name: Mr Richard Gillingwater CBEAmount purchased: 19,695 @ 203.10p Value: £40,001Morrison (Wm) Supermarkets (MRW) Director name: Sir Sir Ian GibsonAmount purchased: 19,695 @ 203.10p Value: £40,001Morrison (Wm) Supermarkets (MRW) Director name: Ms Johanna WaterousAmount purchased: 13,500 @ 203.10p Value: £27,418Top Director SellsStandard Chartered (STAN) Director name: Mr Peter A SandsAmount sold: 14,576 @ 1,192.45p Value: £173,812BT Group (BT.A) Director name: Mr Tony ChanmugamAmount sold: 9,064 @ 395.00p Value: £35,803NR