12 September 2019 – interim results

The supermarket group has announced its interim results for the six months to 4 August and these have revealed that total revenues increased by 0.4% to £8.83bn, with profit before tax and exceptional items rising by 5.3% to £198m (2018: £188m).  Earnings per share in the same basis were 4.1% higher at 6.38p (2018: 6.13p).  The interim dividend was raised by 4.3% to 1.93p (2018: 1.85p) and there was also a special dividend declared of 2p.  Net debt at the end of the period was little changed from the year end at £2.35bn.  These are solid results in a period when consumer confidence is low due to concerns over Brexit and in the face of strong figures last year helped by the hot summer, royal wedding and the World Cup.  The company has extended its partnership with Amazon and will extend the roll out of its same day delivery service to 5 new cities this year.  We continue to believe that the shares are GOOD VALUE.