Morrisons Loss?

[jomifl]

I'm trying to make sense of the report on sky news that Morrisons have made a loss of £170 odd millions whilst at the same time making a £700 odd million profit. Is this a strange way of saying that their profits are down from what was expected? or are the news people just confused?

[Baldric]

Is there a story we should be reading somewhere?

[Fibonacci]

http://www.bbc.co.uk/news/business-26558110

[Old_Geezer]

I've not checked but maybe one is net and the other gross ?
(Otherwise maybe it's deception ?)

[Booldawg]

yes, I heard that on the radio and it confused me.

[Baldric]

Thanks, I guess the op didn't think it was needed even though It is common practice to offer a link to the news article you would like to discuss

[jomifl]

Thanks Fibonacci, that clarifies it somewhat. It was just cr@p reporting on Sky news..

[jomifl]

Baldric I don't have the capability to give a link to a satellite channel any more than many on AB can give a link to the 'street' or 'enders'.

[DaisyNonna]

Probably made a loss when they opened in my town. Difficult to access without a car and once inside it is like shopping in an aircraft hanger. Never returned.

[jomifl]

Our local Morrisons always smelt of gone off prawns being baked, so puzzling since they didn't sell baked prawns, not even not gone off prawns.

[AB Editor]

"Baldric I don't have the capability to give a link to a satellite channel any more than many on AB can give a link to the 'street' or 'enders'."

We can link to East Enders - if that's what you mean?

[AB Editor]

Sorry, a source, like this:

http://news.sky.com/story/1225160/morrisons-plots-price-cuts-after-annual-loss

[Gromit]

It is largely an accounting procedure probably for tax purposes.

They made a profit of £785m for the year.

But they have re-evaluated what they think some of their assets, such as buildings are worth. They reckon they are worth about £1000m less than what their book value is. Which means they are presenting the year as a £176m loss.

[New Judge]

It’s nothing to do with net or gross figures, nor is it deception.

What they have done is to “write down” (i.e. reduce) the value of their capital assets in the form of property. This and additional IT costs hit the bottom line to the tune of £903m, hence the difference in the two figures.

[Old_Geezer]

Hmmm ... IMO property and other assets should be revalued each year anyway, and show as costs. Not become large hits to the company valuation when they choose to do so. It's part of ongoing fixed costs. Otherwise the claimed value is artificially high in between corrections.

[Baldric]

I don't think anyone was expecting a link to a satellite channel, just a link to the story would have been good.

[Gromit]

The write down of KiddieCare is perplexing. They bought that for £70million in 2011 and plan to expand to 25 stores, aiming for £200million turnover by 2016.

http://www.retail-week.com/multichannel/kiddicare-hails-new-era-as-it-targets-200m-sales/5040980.article

[Gromit]

// One of the biggest writedowns was on the Kiddicare business, which was bought only three years ago for £70 million, with Philips admitting that £163 million will be spent offloading the baby superstore.

He said: “I’m disappointed with the losses incurred, but we got tremendous learning from it. The market has structurally changed and Kiddicare doesn’t fit with the core strategy in these times.” //

Whoops.

[jomifl]

Ed. I cannot link to iplayer as it is not available outside the Uk

[jomifl]

Baldric, I was referring to the story on a satellite channel...to which I cannot give a linkj. I did however mention that the news item was on 'sky news'

[Peter Pedant]

the back story is less wonderful

They have moved into the market where Ocado trade and so have spent a lot of money becoming like Ocado stores....

can you see what is coming ?

SO far it has not been terrribly successful, and so there is a loss rptd
and the share price has dipped and so....

can you see what is coming ?

they are more vulnerable to a take over ( cheaper as shares are cheaper )
and er... that would nt be by a company whose name begins with 'O' would it ?

but surely surely doing that means you are disadvantaging the share holders in favour of the 'O' company doesnt it ? No no that cannot be the back-story. The back story must be that Morission have made some iffy market decisions quie by chance. Poor M. Poor shareholders