Shares digital

In the race for Christmas winners Morrisons (MRW) can claim the lead among supermarkets after reporting underlying sales growth of 9.5%, far stronger than its rivals. Sales were especially buoyant in the south and the increased emphasis on fresh foods paid off with its Market Street offerings enjoying growth of over 10%.

Sales of fresh salmon and fresh turkeys grew by 40% and 50% respectively, buoyed by the Christmas feeding frenzy. Andy Wade of Seymour Pierce believes the shares will outperform the rest of the sector as ‘there is a lot more to come’. The company is ‘widening the range, refreshing the stores, improving the systems,’ he says. It has also has confirmed to Shares that it is not being distracted from its immediate tasks by bidding for Somerfield or developing an internet presence. Similarly any property deals are ‘stalled for the moment’, a spokesman said.

Shares says: The market is forecasting profits of some £550 million placing the shares on a PE of 18 at 304p, attractive in view of the momentum the company is enjoying.

by: John Marshall

The writer holds shares in this company