Investors in Morrisons have called on the retailer’s board not to let short-term problems get in the way of much-needed corporate governance reforms.
David Somerlinck, of City investors Pension Investment Research Consultants, said: “There still hasn’t been any progress in the key areas of recruiting board members and succession planning. These issues are critical and should retain a sense of urgency.”
The retailer is facing increased pressure from the City after it last week announced its fifth profit warning since the acquisition of Safeway in March 2004. In its latest announcement, Morrisons reduced its projected profits for 2005/06 to between £50m and £150m, well below previous analyst forecasts of £225m to £275m.
Somerlinck refused to comment on whether or not time was running out for Sir Ken
and chief executive Bob Stott to turn things around, while speculation in the City is growing that Morrisons has appointed headhunters to look for a replacement for Stott.
Morrisons has declined to comment.
However, Somerlinck said Morrisons needed to improve in its dealings with institutional investors and get its story across more effectively. “The Safeway takeover has proved a steep learning curve for Morrisons. Prior to that it had been quietly going about its business without much interest from the City or the media.”
He added: “We have been calling for improved communication for a long time now, even before the Safeway deal went through.”
Jeeves Convenience Store in Bristol, owned by Jason Sanga (above, centre), was named best overall retailer in this year’s Booker Prize for Excellence Awards. Other winners were: Whitfield Brothers of Bristol (small convenience store), Barlby Village Stores in Yorkshire (best large convenience), Witheridge Post Office and Village Stores in Devon (best local), and Pastana’s Select & Save in Essex (best newcomer).
Ronan Hegarty