Wm Morrison profits jump on strong sales

11th Mar 2010 07:29

Supermarket group Wm Morrison saw a sharp jump in profits in the year to 31 January as its value offering continued to attract customers during tough times.Pre-tax profits climbed to £858m from £655m from the same period the previous year, including an exceptional credit of £91m arising from steps taken to strengthen pension schemes, as turnover climbed to £15.4bn from £14.5bn. Like-for-like sales excluding fuel and VAT were up by 6%, lower than the 8.2% growth seen the previous year.The full-year dividend was lifted by 41% to 8.2p a share.Morrisons adapted to the subdued economic environment, initiating 30,000 price cuts through the year and enacting promotions such as the 'Big Price Crunch' and 'Essentials for Less.' Sales of the 'Value' range grew by 34%, the company said.The company opened 43 new stores during the year, taking the total to 425.'We expect the economic environment to remain challenging, disposable incomes to be under pressure and value to remain a high priority for consumers,' said chairman Ian Gibson.Morrisons said consumer confidence would continue to be affected by uncertainty arising from 'unemployment and the fear of unemployment, limited credit availability, the impact of tax increases and with an election due in 2010, uncertainty about future government tax and fiscal policy.'