(MRW.L) Morrison (Wm) Supermarkets PLC Buy/Sell

Daily Telegraph

MORRISONS: NO SUCCESSION RUSH

Sir Ian Gibson, the non-executive chairman of WM Morrison , has said that the company hopes to have a successor to the poached chief executive Marc Bolland in place "early in the new year", but claimed that Morrisons was not in a rush and there was no deadline. Gibson made the remarks as the supermarket chain released results showing that like-for-like sales growth declined to 4.3 per cent during the 13 weeks to November. The figures were disappointing compared to City predictions of 4.6 per cent and the 7.8 percent growth seen in the first half of 2009.

INVESTEC CHIEF CONFIDENT ON RECOVERY

Investec has reported a 10 per cent fall in its pre-tax profits to 204 million pounds during the first half of 2009. The chief executive Stephen Koseff, however, noted that the bank's bad debts appear to be diminishing compared to last year. Although bad debts rose from 76 million pounds to 134 million pounds in the last six months, they had reached as high as 180 million pounds during the final half of 2008. Koseff expressed optimism for the future, whilst doubting that all the damage done by the financial crisis would be undone.

LADBROKES TO CLOSE CALL CENTRES DUE TO TAX

The bookmaker Ladbrokes is to close its call centre at Aintree, threatening 263 jobs. Employees are to be offered a chance to relocate, in order to reduce the number of redundancies. The company blamed its decision on tax regulations placed on telephone betting operators in the UK. "Telephone betting is a very competitive market", stated the Ladbrokes spokesman Ciaran O'Brien, "and one that is becoming increasingly difficult for UK-based operators, who face significantly higher levels of tax than those operating from offshore jurisdictions." Revenue fell 41.3 per cent to 9.1 million pounds during the first half of 2009.

QUESTOR

National Grid (Buy)

BG Group (Buy)

The Guardian

TESCO RINGS THE CHANGES WITH PLANS TO OFFER HOME PHONE.

Tesco is planning to increase its stake in the telecoms market, saying it sees more opportunities for big returns from mobile phone and broadband users. Tesco has recently announced a five-year deal with Cable and Wireless for it to supply Tesco with wholesale broadband packages, which it intends to supply to customers in bundled deals with its other products. Tesco is aiming to double its number of phone shops to 200 by the end of 2010.

BLUE-BLOOD CAZENOVE JOINS THE BLUE CHIPS

Cazenove has been bought-out by JP Morgan for one billion pounds. Most of Cazenove's shares were owned by current and former employees - David Mayhew, the chairman of Cazenove, stands to make 20 million pounds from the deal, with JP Morgan offering 535p a share. Mayhew has been at Cazenove for 40 years, and there have been speculations about his retirement for over a decade. He is to stay on as chairman but will no longer have a role in the management of the business.

OLIGARCHS BACK RUSSIAN NOVICE AS NEW CHIEF OF TNK-BP GROUP

In a move that proves the dominance of Moscow shareholders in the TNK-BP group, an inexperienced favourite of the Russian investors has been chosen as the new chief executive. Maxim Barsky, 36, will be trained at BP's headquarters in London for five months before assuming the position in 2011. BP has insisted that it was not steamrollered into the decision. BP's chief executive Tony Hayward said that he was "pleased" by the development.

The Times

LEGAL & GENERAL LINES UP EX-WOOLWICH BOSS AS CHAIRMAN

Legal & General, the UK's third-largest insurer, is set to appoint former Barclays chief executive John Stewart as its new chairman. L&G has been searching for almost a year for a replacement for Rob Margetts, who has served as chairman for almost ten years. L&G senior independent director Sir David Walker has begun canvassing shareholders over the prospective appointment, and the insurer is expected to announce next week that Stewart will take up the position from January.

BURBERRY TARGETS INDIA'S BRAND-AWARE MIDDLE CLASS

British fashion firm Burberry has applied for government clearance to launch a joint venture with Indian fashion retailer Genesis Colors. Burberry is hoping that it can match in India the growth it has achieved in China, where the company operates 44 stores and is enjoying double-digit percentage revenue growth. Burberry chief executive Angela Ahrendts said: "India is on a different curve. We only have about two stores there now but I see the same growth potential."

TRINITY MIRROR BIDS FOR NORTH EAST SLOT IN ITV LOCAL NEWS

Publisher Trinity Mirror is bidding alongside the Press Association and television producer Ten Alps for the chance to make an ITV regional news bulletin for the North East. Trinity Mirror is already the owner of several newspapers in the region and hopes that these would form the basis for a new Tyne-Tees news service, to be part-funded by public money. ITV has complained that regional news bulletins will become uneconomic when the UK switches to digital television, and Labour ministers are keen for money from the BBC licence fee to be used to help fund regional news on ITV.

TEMPUS

National Grid (A solid hold)

PayPoint (Too soon to check out)

AEA Technology (Take profits)

The Independent

SAB MILLER RAISES A GLASS TO UK SALES

SAB Miller has reported that volumes increased amongst its leading beer brands in the UK during the six months to 30 September. The brewer's UK business, Miller Brands, grew volumes of Peroni Nastro Azzurro by 35 per cent over the period and increased volumes of Pilsner Urquell by 26 per cent. The brewer reported earnings before interest, tax, depreciation and amortisation were down two per cent to 2.19 billion dollars over the half year period, with pre-tax profits falling to 1.5 billion dollars, after exceptional charges of 239 billion dollars.

HALFORDS PROFITS SOAR BY 24 PER CENT

Halfords has reported a 24 per cent increase in pre-tax profits to 60.9 million pounds for the 26 week period to October 2, driven by a 2.1 per cent increase in underlying sales during the second quarter and tight cost controls. David Wild, chief executive of the bike and car parts retailer, said: "We can certainly continue sales for the remainder of this quarter, but we are a bit more nervous about the first quarter of next year with VAT going up, unemployment rising and the impact of sterling on buying products from overseas."

KIER NAMES SUCCESSOR TO VETERAN CHIEF EXECUTIVE

Paul Sheffield has been appointed as the successor to Kier chief executive John Dodds when he stands down from the construction and engineering services group next April. Mr Sheffield is currently Kier's head of construction, infrastructure and overseas business, and has been with the group since joining as a graduate engineer in 1983. Out-going chief executive Dodds said: "I've worked with Paul Sheffield for over 25 years and I'm absolutely convinced that he is the right man to lead Kier into the future. Paul is highly talented and I look forward to working with him to ensure a seamless transition during the lead up to my retirement."

INVESTMENT COLUMN

National Grid (Buy)

Unite Group (Buy)

Huntsworth (Hold)

Prepared for Reuters by Durrants
Keywords: PRESS DIGEST British business Nov 20

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

RNS Number : 7523C
  Morrison(Wm.)Supermarkets PLC
  19 November 2009
   

Record number of customers

attracted to Morrisons

Wm Morrison Supermarkets PLC

Q3 Interim Management Statement

Trading

The Group's performance in the third quarter has been good, continuing the progress reported in the first half.  Sales continued to grow well ahead of the market, reflecting  good like for like growth and the contribution from the 37 stores opened so far this year. 

In the 13 weeks to 1 November total sales* excluding fuel were up by 9.1% (5.1% including fuel). Like for like sales* grew by 4.3% (1.3% including fuel). 

At our interim results announcement in September we said that commodity prices would continue to ease through the quarter, resulting in lower retail price inflation and market growth. This has proved to be the case and our underlying sales performance in the period has been consistent with the good growth we experienced in the second quarter.

In this environment we continue to deliver great value and quality to our customers whilst focusing on managing our cost base and generating profitable growth. 

Morrisons welcomed a record 10.8 million customers on average through its doors each week during this period, up by over 1.6 million since we launched our Food Specialist for Everyone strategy two years ago. Our like for like sales of 13% over this period reflect the attractiveness of our unique fresh, quality and value offer. 

Optimisation Plan

Our new regional distribution centre at Sittingbourne opened ahead of schedule in the quarter to support the additional volumes going through the business as a result of our store opening programme, and we are very pleased with its early performance. The remaining initiatives within the Optimisation Plan, which concludes in January 2010, are on track. 

Outlook

Performance in the third quarter has been good and we have confidence in the strength of our unique proposition. Our expectations for the current year remain unchanged.

Commentating on Morrisons 3rd quarter trading, CEO Marc Bolland said;

"Morrisons continues to grow ahead of the market driven by our award winning combination of outstanding quality, fresh food and great value. I am pleased that more and more customers are attracted to Morrisons, as we continue our journey from national to nationwide."

*exc VAT

Sales including VAT
                Exc. fuel  Inc. fuel
 Total            8.4%       3.7%
 Like for like    3.6%       0.0%

Enquiries:

 Wm Morrison Supermarkets
 Marc Bolland - Chief Executive                           0845 611 5000
 Richard Pennycook - Finance Director

 Investor Relations
 Niall Addison - Investor Relations Director              07764 624701

 Media Relations
 Wm Morrison Supermarkets:       Gillian Hall             0845 611 5359
 Citigate Dewe Rogerson:         Simon Rigby              020 7638 9571
                                  Sarah Gestetner
                                  Kevin Smith
  

 There will be an analyst conference call at 9 a.m. today.

 Participants dial in line:                               0800 028 1243 (UK)
                                                          +44 (0) 20 7806 1951 (international)
 Pin number:                                              3694607¿

 Replay facility:                                         0800 358 7735 (UK)
 Replay Access Number:                                    3694607¿

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
IMSEAKFNFLDNFEE

By James Davey and Mark Potter

LONDON, Nov 18 (Reuters) - British clothing and food retailer Marks & Spencer named Marc Bolland as its next leader, passing over internal candidates to poach the marketing expert who led a turnaround at Wm Morrison Supermarkets.
M&S shares rose 5.9 percent to a 17-month closing high of 390 pence, as analysts said Bolland's experience in groceries and business systems could speed a recovery in its upmarket food operations as well as drive a cost-saving supply chain upgrade.
The appointment, several months sooner than expected, also brings towards a close a 20-month row with investors over Stuart Rose's move to be both chairman and chief executive of M&S, in defiance of British corporate governance guidelines.
"A superb, credible choice," said Cavendish Asset Management fund manager Paul Mumford.
Some analysts, however, questioned whether Bolland had the expertise to help M&S's clothing business fend off the challenge from discount, fast-fashion chains like Primark.
"Turning around M&S is likely to be harder for Bolland than Morrisons was," Execution analyst Caroline Gulliver said.
Bolland, a 50-year-old Dutchman who has spent most of his career at brewer Heineken, is credited with reviving Morrison, Britain's fourth-biggest supermarket chain, after its bodged acquisition of Safeway in 2004.
Ignoring some analysts' call for a radical overhaul, he stuck with the group's traditional "Market Street" format of fresh food counters but gave it a makeover backed by innovative promotions, new product ranges, and tight cost management.
Shares in Morrison, which has been the fastest growing of Britain's top four food retailers for most of the past two years, fell as much as 5.8 percent to 278.5 pence.
"Has the Morrison story 'got as good as it gets' for Mr Bolland?" said Shore Capital analyst Darren Shirley, cutting his rating on Morrison shares to 'hold' from 'buy".
"We sense Morrison will miss him materially."

GOLDEN HELLO?
Morrison said Bolland would leave at the end of January and M&S's Rose told BBC radio he probably wouldn't start until late spring, although the date and terms were yet to be confirmed.
Analysts said he would be richly rewarded, as he was walking away from Morrison with 4 million pounds ($6.7 million) of shares unvested.
"Being CEO of M&S is the job in UK retail," said one of the top 10 investors in Morrison. "It's a bit like being asked to be England football manager isn't it? You don't turn it down."
M&S has had a torrid recession. Its shares plunged around 60 percent last year as customers switched to cheaper rivals and two internal candidates for CEO left the business.
But it has bounced back, helped by cutting prices, new clothing ranges like Indigo, and innovative food promotions like "Dine in for two" for 10 pounds.
SG analyst Anne Critchlow said Bolland was well placed to continue the good work, and might be able to speed up the 250 million pounds of benefits M&S hopes to achieve by 2015-2016 from upgrading business systems.
Investec's Katharine Wynne said his background in international brand marketing at Heineken would also strengthen the group's hand with its plans to expand more overseas.
M&S had said it would prefer an internal candidate, with finance director Ian Dyson, food chief John Dixon and clothing boss Kate Bostock seen as contenders. Analysts said they failed to impress at an investor day in October.
"We've always said ... we wanted to get the very best candidate," said Rose, who will become part-time non-executive chairman when Bolland joins.
"I'm sure if you were to ask my senior management team whether they thought Marc was a good catch, they'd all say yes," he said, adding there was no reason why any would leave.
Rose said there would be a handover period of around six weeks after Bolland joined and he would not interfere before stepping down as chairman by July 2011, as planned.
Bolland has experience taking over businesses from high-profile leaders, having taken the helm at Morrison from a founding family member and major shareholder, Ken Morrison.
Bolland will be M&S's second non-British boss, following Belgian Luc Vandevelde whose troubled tenure in the top job culminated in a second failed bid attempt for the retailer from billionaire Philip Green in 2004 and Rose's appointment as CEO.
Morrison, due to issue a third-quarter trading update on Thursday, said it would consider internal and external candidates to succeed Bolland. Analysts said finance director Richard Pennycook would be a strong contender.

For INSTANT VIEW click on:

For COLUMN click on

For TIMELINE on M&S search for new CEO click on

(Additional reporting by Raji Menon and Matthew Scuffham, Editing by Dan Lalor and Elaine Hardcastle)

($1 = 0.5946 pound) Keywords: M&S/ (james.davey@thomsonreuters.com; +44 20 7542 7674; Reuters Messaging: james.davey.thomsonreuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

By James Davey and Mark Potter

LONDON, Nov 18 (Reuters) - British clothing and food retailer Marks & Spencer named Marc Bolland as its next leader, passing over internal candidates to poach the marketing expert who led a turnaround at Wm Morrison Supermarkets.
M&S shares rose 5.9 percent to a 17-month closing high of 390 pence, as analysts said Bolland's experience in groceries and business systems could speed a recovery in its upmarket food operations as well as drive a cost-saving supply chain upgrade.
The appointment, several months sooner than expected, also brings towards a close a 20-month row with investors over Stuart Rose's move to be both chairman and chief executive of M&S, in defiance of British corporate governance guidelines.
Some analysts, however, questioned whether Bolland had the expertise to help M&S's clothing business fend off the challenge from discount, fast-fashion chains like Primark.
"Turning around M&S is likely to be harder for Bolland than Morrisons was," Execution analyst Caroline Gulliver said.
Bolland, a 50-year-old Dutchman who has spent most of his career at Dutch beer group Heineken, is credited with reviving Morrison, Britain's fourth-biggest supermarket chain, after its bodged acquisition of Safeway in 2004.
Ignoring some analysts' call for a radical overhaul, he stuck with the group's traditional "Market Street" format of fresh food counters but gave it a makeover backed by innovative promotions, new product ranges, and tight cost management.
Shares in Morrison, which has been the fastest growing of Britain's top four food retailers for most of the past two years, fell as much as 5.8 percent to 278.5 pence.
"Has the Morrison story 'got as good as it gets' for Mr Bolland?" said Shore Capital analyst Darren Shirley, cutting his rating on Morrison shares to 'hold' from 'buy".
"We sense Morrison will miss him materially."

GOLDEN HELLO?
M&S said Bolland would join in the new year and on terms to be confirmed. He will stay at Morrison until the end of January.
Analysts said he would be richly rewarded, as he was walking away from Morrison with 4 million pounds ($6.7 million) of shares unvested.
"Being CEO of M&S is the job in UK retail," said one of the top 10 investors in Morrison. "It's a bit like being asked to be England football manager isn't it? You don't turn it down."

M&S has had a torrid recession. Its shares plunged around 60 percent last year as customers switched to cheaper rivals and two internal candidates for CEO left the business.
But it has bounced back, helped by cutting prices, new clothing ranges like Indigo, and innovative food promotions like "Dine in for two" for 10 pounds.
SG analyst Anne Critchlow said Bolland was well placed to continue the good work, and might be able to speed up the 250 million pounds of benefits M&S hopes to achieve by 2015-2016 from upgrading business systems.
Some analysts were disappointed by the scale and timing of the plan when it was announced last month
M&S had said it would prefer an internal candidate, with finance director Ian Dyson, food chief John Dixon and clothing boss Kate Bostock seen as contenders. Analysts said they failed to impress at an investor day in October.
"We've always said ... we wanted to get the very best candidate," said Rose, who will become part-time non-executive chairman when Bolland joins.
"I'm sure if you were to ask my senior management team whether they thought Marc was a good catch, they'd all say yes," he said, adding there was no reason why any would leave.
Rose said there would be a handover period of around six weeks after Bolland joined and he would not interfere before stepping down as chairman by July 2011, as planned.
Bolland has experience taking over businesses from high-profile leaders, having taken the helm at Morrison from a founding family member and major shareholder, Ken Morrison.
Bolland will be M&S's second non-British boss, following Belgian Luc Vandevelde whose troubled tenure in the top job culminated in a second failed bid attempt for the retailer from billionaire Philip Green in 2004 and Rose's appointment as CEO.
Morrison, due to issue a third-quarter trading update on Thursday, said it would consider internal and external candidates to succeed Bolland. Analysts said finance director Richard Pennycook would be a strong contender.

For INSTANT VIEW click on:

For COLUMN click on

For TIMELINE on M&S search for new CEO click on

(Additional reporting by Raji Menon and Matthew Scuffham, Editing by David Cowell ad Dan Lalor)

($1 = 0.5946 pound) Keywords: M&S/ (james.davey@thomsonreuters.com; +44 20 7542 7674; Reuters Messaging: james.davey.thomsonreuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.