Morrison has always been scale disadvantaged relative to its peers and the pace of change from Dalton Philips has not turned out to be fast enough. As we expect the industry to remain just as competitive and consumer demand to remain subdued...we feel Morrison will struggle to outperform its peerS.
PHILIP DORGON PANMURE GORDON
Interim pretax profits are flat, which is slightly worse than we were going for and we are downgrading for the full year by £5m. We are sellers because we believe that Morrison’s P&L has more risk than its peers, primarily because investment in new formats and new revenue streams has only just begun.
DARREN SHIRLEY SHORE CAPITAL
Management paints a challenging outlook for the second half...though it states it will meet expectations for the year...We may well need to upwardly adjust our bottom of the range forecasts...though with concerns remaining around the trading momentum within the group,..we remain cautious.