Wm Morrisons Supermarkets has revealed a major turnaround in fortunes by reporting a bumper rise in annual profits of 66 per cent to £612 million, while at the same time announcing chairman Sir Ken Morrison’s retirement from the company .
The veteran chairman, who joined the family firm in 1952, said it gave him “particular pleasure” to report the record profits haul.
The supermarket’s pre-tax profit of £612 million (for the year ending March 13th) comes after the group saw total sales grow by 6 per cent to £13 billion last year and a 4.6 per cent increase in like-for-like sales, excluding fuel .
The supermarket also saw its debt burden reduced over the year to £543 million from £772 million last year.
Commenting on the retailer’s positive outlook for the year, Sir Ken said: “Household budgets are tight, with disposable incomes under pressure and global commodity price rises feeding through to the cost of basic foodstuffs and energy .”
“At the same time, the period of cheap credit has come to an end. This environment presents an opportunity for Morrisons .”
“While many of our programmes are designed to improve product quality or the overall shopping experience, the great value we offer our customers will be at the forefront of our activity in the year ahead.”
As a parting gift to shareholders, the veteran retailer said the company was committed to returning a total of £1 billion to investors this year and in 2009 through a share buy back scheme .
Sir Ken has helped transform Morrisons from a small market trader into the UK’s fourth largest supermarket chain since opening its first store in Bradford in 1958 and as a result will be honoured with the role of president at the firm .
Sir Ken said he will be replaced as chairman of the group by current deputy chairman, Sir Ian Gibson.
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