GG now spends rainy days trading equities and currencies. He likes to use a combination of technical analysis and news flow to make trading decisions.
On Thursday after over 50 years, Sir Ken Morrison bows out of the eponymous supermarket chain that he built up from his father’s market stalls after the Second World War.
Analysts are looking for full year pre-tax numbers to come in at about £558m after a confident trading update in January, and it is unlikely that Sir Ken will want to disappoint in his last results presentation. Rumours abound of the commencement of a share buy-back programme, possibly £500m-£1bn over the next couple of years.
At a trading level, recent data shows that Morrison’s has been the best performing of the supermarkets, increasing its market share to 11.6%, with sales growing at almost double that of the grocery market overall. Obviously getting Take That, Alan Hansen and Lulu into your ad campaign is encouraging us to spend loads more-perhaps in the vain hope that once we have they’ll take the ad off!
On Friday the ‘man from the Prudential‘ reports results. Investors will be keen to see that operating profit is moving ahead toward £2.5bn, compared with under £2bn last time. Reassurance about the company’s investment portfolio, given the uncertain nature of markets, (and high bond exposure) will be required. Signs of recovery in the UK business, which was underperforming last year will also be anticipated.
The company also believes it has up to £9bn of surplus capital in its life fund, which it has been trying to access for some time. News on how negotiations are progressing with regulators, policyholders and other stakeholders is anticipated. Pru has a flourishing set of Far Eastern business; investors will be keen to see that these continue to show good growth whilst the more mature markets of the US and UK face a more uncertain period.
March 13th, 2008 at 10:00 am
Good on you Sir Ken!
A record set of results (pre-tax up 66% to £612m) coupled with a £1bn buyback is indicative of how Morrison is currently showing the competition a clean pair of heels.
L-f-l sales were 4.6% and the dividend also goes up 20%-which suggests a degree of confidence, although with Tesco currently enjoying twice the market share, one shouldn’t be complacent!
Still not a bad way to bow out!
Stock currently down 4p to 291p.
March 14th, 2008 at 9:46 am
Decent set of results from the Pru.
Operating profit of £2.54bn and no absolute howlers (still £78m though) in the bond portfolio will have reassured. The UK business is showing a turnaround, sales in the US were strong whilst Asia remains the standout region with new business up 44%. Not much on the inherited estate-update due H1 this year.
Stock pushing ahead nicely, up 2%initially, though coming back now.