27% Somerfield rise leaves investors cool
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Maiden results from Somerfield, the supermarket group whose summer flotation was dogged by problems, were yesterday greeted with a cool response from investors and analysts, writes Nigel Cope.
Announcing a 27 per cent rise in half-year profits to pounds 54.6m, Somerfield's chief executive, David Simons, said the group was "delivering the goods". However, analysts pointed to a weak like-for-like sales increase of just 1.7 per cent as evidence that Somerfield remained a weak player in a highly competitive sector. Several downgraded their full-year profits forecasts to around pounds 100m as the shares fell 5.5p to 168.5p.
Though the core Somerfield format has been trading relatively well, with same-store sales 4.3 per cent higher in the period, the old Gateway stores and Food Giant discount format are experiencing sharp sales falls of 5.5 per cent and 6 per cent respectively.
Current trading is also weak with total sales up just 1.2 per cent in the first nine weeks of the second half. The maiden interim dividend was 3.4p.
Investment column, page 21
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments