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Morrisons profits soar in first half, but company sees slower growth in second half

Published: 17:43 10 Sep 2009 AEST

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William Morrison Supermarkets PLC (LSE: MRW) reported a step rise in pretax profits for the first half to August 2 2009, to £449 million from £309 million a year earlier, while turnover rose 5 percent year-on-year to £7.5 billion.

However, the supermarket chain expects market growth to slow in the second half as inflationary pressures ease.

The business' performance to date, the successful implementation of the Optimisation Plan and its continuing customer gains give the board confidence that the group will deliver full-year profits in line with expectations, it said in a statement.

Morrisons is raising the interim dividend by 35 percent to 1.08 pence a share.

Excluding fuel, turnover was up 9.2 percent, comprising a like-for-like increase of 7.8 percent and a further 1.4 percent contribution from new stores, of which it opened 22 in the period under review.

The consumer environment in the first half of 2009 remained difficult, with disposable incomes continuing to be under pressure and unemployment and the fear of unemployment affecting consumer behaviour, it added.

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