Fuel sales drop and petrol forecourt business sold
- Morrisons posts £1.1bn loss for the year
- Debt payments rise due to takeover by Clayton Dubilier and Rice
- Finance costs increase by 23% to £735m
- Revenues drop to £1.84bn
- Underlying profits reach £970m
- Fuel sales decrease by over £560m
- Petrol forecourt business sold to Motor Fuel Group for £2.5bn
- Six consecutive quarters of like-for-like growth
- Statutory profits impacted by non-cash items
- Strong underlying performance of the business
Morrisons has reported a loss before tax of £1.1bn for the year ended 29 October 2023, primarily due to increased debts following its takeover by Clayton Dubilier and Rice. The company’s finance costs rose by 23% to £735m, driven by external debt and inter-company loans. Revenues declined from £1.87bn to £1.84bn, but underlying profits excluding debt interest costs reached £970m. Additionally, Morrisons experienced a significant decrease in fuel sales, amounting to over £560m, just before selling its petrol forecourt business to Motor Fuel Group for £2.5bn. Despite the loss, the company highlighted its six consecutive quarters of like-for-like growth and emphasized the strong underlying performance of the business, although statutory profits were impacted by non-cash items.
Factuality Level: 8
Factuality Justification: The article provides specific financial figures and details about Morrisons’ performance, including its loss before tax, finance costs, revenues, underlying profits, and fuel sales. The information seems to be based on factual data and financial reports, without significant bias or misleading content. The article also includes a statement from a Morrisons spokesperson to provide additional context.
Noise Level: 3
Noise Justification: The article provides relevant information about Morrisons’ financial performance, including details on losses, debts, revenues, and profits. It also includes quotes from a company spokesperson. However, the article lacks in-depth analysis, antifragility considerations, and accountability of decision-makers. It stays on topic and supports its claims with data, but it could benefit from more actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Morrisons
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to the financial performance of Morrisons, a company in the retail sector. It discusses the company’s loss before tax, increase in finance costs, and drop in revenues. There is no mention of any extreme event.
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