NEWS RELEASE NEWS RELEASE NEWS RELEASE NEWS RELEASE 31 January 2007 Wm MORRISON SUPERMARKETS PLC New income statement format Introduction As previously announced, Wm Morrison Supermarkets PLC will be reformatting its Income Statement at the time of its preliminary results announcement for the financial year ending 4 February 2007. In order to prepare for this change and in the interest of clarity, we are today issuing a restated Income Statement for the 52 weeks ended 29 January 2006. This change will bring the Group in line with comparable companies in the Food and Drug Retailers sector where the practice is to show Cost of Sales and a subtotal of Gross Profit. The Directors regard the costs of operating Morrisons’ integrated manufacturing businesses as part of the cost of sales of the retail business and therefore these will also be incorporated in the Cost of Sales line in the accounts. Overview of impact on results for the 52 weeks ended 29 January 2006: Operating profit before exceptional items unchanged. Total exceptional items unchanged. Raw materials subsumed into cost of sales. Staff costs, impairment and depreciation split between cost of sales and administrative expenses as appropriate. Administrative expenses consist of those costs incurred centrally that do not relate specifically to stores or the supply chain. Cost of sales consists of all other costs. Revised income statement 52 weeks ended 29 January 2006 Before Safeway Safeway integration integration & & conversio conversio n costs n costs Total £m £m £m Turnover 12,114.8 - 12,114.8 (11,793.0) (184.8) (11,977.8 Cost of sales ) Gross profit 321.8 (184.8) 137.0 Other operating income 18.5 - 18.5 Administrative expenses (236.3) (172.9) (409.2) Profit/(loss) arising on property related 7.5 (16.7) (9.2) transactions Operating profit /(loss) 111.5 (374.4) (262.9) Finance costs (73.2) - (73.2) Finance income 21.0 - 21.0 Share of post-tax profits from BP joint venture 2.2 - 2.2 Profit /(loss) before taxation 61.5 (374.4) (312.9) Taxation (15.6) 78.2 62.6 Profit /(loss) for the financial period 45.9 (296.2) (250.3) Morrisons will publish its results for the 53 weeks ending 4 February 2007 on 15 March 2007. At this time, Marc Bolland will announce the outcome of his review, including brand development, distribution infrastructure, the role of vertical integration and IT.
Pages to are hidden for
"Wm MORRISON SUPERMARKETS PLC New income statement format"Please download to view full document