ClickAJob News

Wm Morrison Supermarkets has reported a rise in pre-tax profit to £612 million for the year ending March 13th and announced the retirement of chairman Sir Ken Morrison.

The company's optimisation plan was progressing well, Morrison said, with a successful advertising campaign in the second half of the year featuring celebrities such as Lulu and Alan Hansen drawing in customers.

Turnover was up six per cent to £13 billion, while like-for-like sales increased 4.6 per cent.

The supermarket also reduced its debt burden over the year to £543 million from £772 million last year.

Morrison said it would return £1 billion to shareholders over 2008 and 2009, through a share buyback.

The board is also recommending a final dividend of 4.1p, a 20 per cent rise on last year, bringing the total dividend to 4.8p.

The grocer's outlook for the year was positive. 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."

Sir Ken, founder of the chain, also announced his retirement. Sir Ian Gibson, currently deputy chairman, will succeed him, as non-executive chairman.

Morrison said Sir Ken has accepted the position of honorary president.