Analysts were disappointed by this week's Somerfield trading update which the multiple claimed was in line with recovery plans. Somerfield executive chairman John von Spreckelsen said the group was entering its second phase of recovery having concluded "an important refinancing of all debt facilities" which should increase capital expenditure from £110m to £150m this year. But Jonathan Pritchard of UBS Warburg commented: "Like-for-likes have slowed which is disappointing." Group like-for-like sales growth for the full year to April 27 was 1.8% and Somerfield expects to publish pre-tax profit in line with expectations on July 3. Somerfield like-for-like sales growth was 1.4%, but second half growth was 0.1% due to the cessation of promotional activities. At Kwik Save like-for-like growth for the full-year was 2.5%. Von Spreckelsen said: "There is a stretching task ahead in respect of sales growth." {{NEWS }}

Topics