Sir Ken leaves on a high

SIR Ken Morrison unveiled record profits and turnover and a £1bn share buyback by Morrisons as he stepped down after more than half a century at the helm.

The Bradford-based supermarket group saw pre-tax profits leap to £612m from £369m on turnover up 6% to £13bn in the year to February 3.

Sir Ken will become Honorary President of the company founded by his father as an egg and butter stall in 1899 and which he joined in 1952 after National Service.

He is replaced as chairman by Sir Ian Gibson.

Like-for-like sales at the Bradford based grocer, excluding fuel sales, rose 4.6%, compared to a 5.2% rise in 2007.

The results are clear evidence that the UK's fourth-largest supermarket chain has revived its fortunes after buying Safeway in 2004.

“In my last statement as chairman of Morrisons, it gives me particular pleasure to be reporting record earnings and to see that more customers than ever before are experiencing the freshness, quality and value that Morrisons has to offer,” said Sir Ken.

Chief executive Marc Bolland said “This has been a strong year for Morrisons, with growing customer numbers. We have always delivered good availability and service. Now we are also recognised for our great fresh foods. Customer numbers have grown by an extra half million per week and we are well on track to becoming the 'food specialist for everyone'.”

He said that the store refurbishment programme was on track to complete in July while the group had seen a “significant” increase in customers in the last quarter of its financial year.

Mr Bolland said that a total of £1bn would be returned to shareholders this year and in 2009 via a share buyback programme whilst the group has raised its final dividend by 20% to give a total for the year of 4.8p.

Morrisons opened eight new stores last year, including York, and will open another eight this year and said it achieved its strongest sales growth in Scotland and the South of England.

Sir Ken said that the Competition Commission inquiry into British supermarkets, due to report next month, would not change the way Morrisons does business and might “afford opportunities” to the company in areas of the country where it is “under-represented”.

He also underlined the group's determination to fight allegations from the Office of Fair Trading that it was among supermarket groups that fixed milk prices.

Commenting on his time at Morrisons, Sir Ken said: “I have been with the business now for some 55 years and must say that the experience has been both demanding and fulfilling, but nonetheless it has always been enjoyable. I am prepared for a situation where I will have more time to look around and I intend to develop new interests in a number of fields. I will keep in touch with the progress of the company and no doubt maintain contact with a number of what will be my former colleagues.

“It seems a long time since I was demobilised from the army in 1952 and started to learn about how to run a retail grocery business. I believe that over the years I have learned one or two things and would set out what I consider to be the important aspects for my successor. I think it is important to assume a leading position and to never forget the business principles that we might be a large company and fairly sophisticated but we do carry out a simple task – we buy things and sell them.

“Our task is to ensure that we always please the customer with the quality of what we offer for sale and that at all times we ensure outstanding value for money. This can only be achieved by strict control of all costs and remaining in touch with all aspects of what is a fascinating industry.

“The ownership of freehold property and the willingness to invest and re-invest in fixed assets has always kept the company in good heart. This can, of course, be achieved whilst also maintaining a prudent balance sheet.

“Any success I have achieved in my career has always been due to the presence and help of numerous team members who possessed great ability, dedication and skill. I would like to take this opportunity to thank everyone I have been fortunate enough to work with over the years and at the same time wish the company every success in the future.

“I think the present economic climate provides a wonderful opportunity for the company to continue to prosper as long as it remains true to its founding

principles. It has been great fun, and I am delighted that I enjoyed the confidence of shareholders, staff and customers alike. I have never forgotten that retailers are always on duty as we are in a dynamic business, 7 days a week, 52 weeks a year.”

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