Distil Share Discussion Threads

[clermontace] 05/1/2021 09:51

Supermarket chain Morrisons has said it saw a shift in shoppers' behaviour in the run-up to Christmas as a result of Covid-19 restrictions.

The retailer said sales jumped over the key Christmas trading period as customers shopped early to secure their festive treats amid restrictions.

Traditional Christmas purchases also had a sales boost, the UK's fourth-largest supermarket said.

Champagne sales jumped 64%, while sales of whole salmon increased by 40%.

Overall sales rose by 9.3% in the three weeks to 3 January, compared with the same time last year.

Morrisons chief executive David Potts said: "The pandemic has had a severe effect on people and communities around Britain for nine months now but it has been especially hard at Christmas time.

"I'm very pleased with the way the Morrisons team has helped our customers across the nation enjoy their Christmas in the best way they could."

Supermarket websites feel the strain of new lockdown
Morrisons sales rise but profits hit by Covid costs
The supermarket also suggested that festive sales had been driven by the fact that rules around larger family gatherings changed in England, meaning customers had to buy for last-minute smaller festivities.

In the nine weeks to 3 January, like-for-like sales, stripping out the effect of new shops opening and fuel sales, were up 8.5% and in the six months to the same date they rose 8.1% compared with a year ago, boosted by strong online sales and that of its wholesale business.

'Indulging after a tough year'
Morrisons said it had also benefitted from out-of-home eating and drinking being restricted by strict Covid-19 regulations.

Supermarkets were classified as essential retailers in England's second national lockdown between 5 November and 2 December, while restaurants and cafes could only operate takeaway services.

According to new figures from market research firm Kantar, British people forked out £11.7bn in supermarkets throughout December in the sector's busiest month ever.

Christmas dinner
IMAGE COPYRIGHTGETTY IMAGES
image captionChristmas food sales soared with many hospitality venues shut except for takeaways in December
Supermarket trading was boosted by the £4bn that would normally have been spent on food and drink outside the home over the Christmas season, it said.

"While celebrations may have been more low key, there were also signs of consumers keeping merry and indulging after a tough year", said Fraser McKevitt, head of retail and consumer insight at Kantar.

Cheese sales, for example, increased by 17% and chilled deserts by 15%. Meanwhile, alcohol sales rose by £310m, with options to drink in pubs, bars and restaurants limited.

The firm also found that online grocery sales accounted for 12.6% of total spend in December, compared with 7.4% in 2019.

Online sales boost
Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said the trading update on Tuesday marked a "significant milestone" for supermarket chain Morrisons.

"Morrison's is an underdog in some ways, especially when looking at the online business, which is smaller than some rivals.

"The pandemic has given the group a chance to address this, and digital sales have more than tripled so far this quarter."

"The question now is if Morrison's can keep a firm grasp on that momentum, and push growth long and hard enough to give its competitors something to worry about", she added.

[clermontace] 05/1/2021 09:05

Good figures coming out of the supermarkets.

Morrisons sales up 9%.

[clermontace] 05/1/2021 08:56

Thanks Berny.

30 - 35% growth for H2 would be exceptional (!) and ahead of my personal expectations.

I am looking for +10% in Q3 as a very bullish signal.....and I would be more than satisfied with that.

H1 was well ahead of where I thought it would be, so I'm not looking to be greedy for H2.

I am interested to see what positive influence RG might be able to impart upon the business.

It's all an unknown at present.

[clermontace] 05/1/2021 08:50

Berny3....you are casting pearl before swine.

GOOD if RG can call a meeting. Maybe he has some decent suggestions! And you don't need 20% of a business in order to do that, so the point made is empty and entirely irrelevant. Stating what he might feasibly call an imagined meeting for, an unknown reason, is pure speculation.....and I'm not sure what the point is.

These are empty suggestions from someone who most probably does not hold any stock.

And it's a cheap shot to suggest that he already has the BOD "jumping to his tune". There are no grounds for this.

He may well have been actively encouraged aboard in order to assist in the companies next stage of growth.

If you look back through past RNS' it was only relatively recently that the company publicly stated that it was looking to strengthen the BOD and inward investment.

[berny3] 05/1/2021 08:40

CA - Q1 (July 2020) trading update expectations for 6 months

Revenue increase 75 - 85%
Marketing spend +100-120% increase
Operating Profit £50-70K

Interim results (Oct 2020) Actual figures

Revenue +128%
Marketing +158%
Operating profit £150K

By my calls current market price is pricing in 10% growth in Q3+Q4 actual figures over last year.

With no guidance from the firm I believe that means they do not need to update the market on expectations. we now that market data from Rum and Gin sales showed 35% growth over the period to interim results. The company exceeded that partly through export sales. How those have been affected we don’t know. We can assume UK Rum and Gin sales maintained on the trajectory of 30-35% ahead of previous year. If we can achieve a 30-35% growth in Q3+Q4 revenues over last year the company is in a very strong position.

[janekane] 05/1/2021 08:28

Berny
RG has enough shares to call a meeting
Example (1)
4 directors each with the same amount of shares one wants a meeting before the usual date and calls a meeting
The other tree refuse and say they will wait til normal date
Example (2)
4 directors 1 with 20.38%of total amount of shares in issue calls for a meeting
The other 3 directors hold less than 10.19% of shares in issue between them
RGs holding of shares is more than 50% of the other 3 put together he has a legal right to call a meeting that will be adhered to
I can understand why you can’t grasp the act as a laymen Like yourself would never have a reason to know company law as set out in the companies act
Hope this helps
Have a nice day
Jane

[clermontace] 05/1/2021 07:59

Interesting figures released from Aldi today. Sales up 10% during the Q3 period.....which was led by outperformance in Beers Wines and Spirits. Now, whilst I appreciate that we're not in Aldi, it will be very interesting to see if this overall sales split trend will be repeated in all the other main supermarkets, where we do very much have presence.

[berny3] 04/1/2021 22:12

Then RG has more than 50% of all directors voting rights

That is the part of what you wrote that does not make sense.

[janekane] 04/1/2021 20:53

Barney copy of directors right to call a meeting
305
Power of members to call meeting at company's expense
(1)
If the directors—
(a)
are required under section 303 to call a meeting, and
(b)
do not do so in accordance with section 304,
the members who requested the meeting, or any of them representing more than one half of the total voting rights of all of them, may themselves call a general meeting.
(2)
Where the requests received by the company included the text of a resolution intended to be moved at the meeting, the notice of the meeting must include notice of the resolution.
(3)
The meeting must be called for a date not more than three months after the date on which the directors become subject to the requirement to call a meeting.
(4)
The meeting must be called in the same manner, as nearly as possible, as that in which meetings are required to be called by directors of the company.
(5)
The business which may be dealt with at the meeting includes a resolution of which notice is given in accordance with this section.
(6)
Any reasonable expenses incurred by the members requesting the meeting by reason of the failure of the directors duly to call a meeting must be reimbursed by the company.
(7)
Any sum so reimbursed shall be retained by the company out of any sums due or to become due from the company by way of fees or other remuneration in respect of the services of such of the directors as were in default.
Commencement Information
I1
S. 305 wholly in force at 1.10.2007; s. 305
Hope that helps

[janekane] 04/1/2021 20:50

I posted the way and the legality of RG calling a meeting I never posted anything regards quorums,proposals or resolutions or the way in which the meeting progresses
I know the way meeting of directors go as I attend one
So I ask the you read my post again as I only posted the rule and his right in calling a meeting
Hope that helps

[berny3] 04/1/2021 19:34

JK - now I understand it is an easy mistake. I think you are confused as to how a board meeting works. Each director gets one vote. Irrespective of their shareholding. If a special resolution is tabled this must go to the shareholders and sufficient time given to all shareholders to consider and vote. Not to the shareholding’s of the directors in the meeting.

Shareholders would not be present in a board meeting as it is a meeting of the board of a company not a shareholders meeting.

[janekane] 04/1/2021 19:08

Not as baffled as I am with your post and how you changed it

[berny3] 04/1/2021 18:45

JK baffled by your understanding of UK company law.

Under S303 Companies Act 2006 states any member with 5% can request a director to calla general meeting. Note as RG is a director now so his ability to request a general meeting as a member is a mute point.

RG holds20%of the share capital (voting) and therefore does not have the ability to pass a special resolution.

As a non exec it is his role to question the performance of the company and help formulate strategy. He should not be involved in an executive capacity. A director has a duty of care to the company not the shareholder.

[janekane] 04/1/2021 18:12

R G has the power now to call a general meeting under the company’s act S304
If you add all the voting rights held by all the directors IE shares held and voting rights attributed to same (one vote per share )
Then RG has more than 50% of all directors voting rights
Hope that helps
Expecting news tomorrow

[clermontace] 04/1/2021 12:24

Thanks haggis.

I'd be very surprised if there hasn't been any prior contact or business done in one form or another between the two parties.

They are, at my best guess only, known quantities to one another.

I'm relaxed as to how things are set.

Organic growth was strong at the last count. Any strategic advantages our new investor can contribute will be a bonus.

[haggismchaggis] 04/1/2021 12:01

The significance was that his first BoD meeting will be his first opportunity to explain what he's up to. If it's significant then the BoD may want to tell us.

[berny3] 04/1/2021 11:55

Haggis, I woudl imagine a quarterly board meeting where he is appoionted

[clermontace] 04/1/2021 11:10

haggis - I don't understand the significance of the question?

[haggismchaggis] 04/1/2021 11:05

Here's a question for you all to ponder over for the week!

RG has been appointed to the board, but when would his first board meeting happen? Would it have happened immediately after his appointment, so the rest of the BoD could welcome him? Or would there be one prior to the trading update in a few weeks? If not, then when?

[clermontace] 04/1/2021 11:02

Thanks Berny.

[berny3] 04/1/2021 10:59

Haggis - wishful thinking on my side I feel. But I am always the optimist and hoping things turn around for the better.

As I am sure others can see three recent trades

09:40 50,000 @2.13
10:41 45,004 @2.2
10:46 67,659 @2.2

WINS and JBER on Ask @ 2.2
SCAP, PEEL and CFFP on Bid @2.00

CFEP 2-2.5
PEEL 2-2.4
WINS 1.90-2.20
JBER 1.70-2.20
SCAP 2.0-2.30

JBER wont have much access to stock in my opinion, WINS will have greater liquidity and better access to information where all your online trades are.

[clermontace] 04/1/2021 10:57

2022 haggis, but point taken.

Back to full ask for modest volume.

And over the mid price on the bid for big volume. MMs looking for stock.

More upward movement on the way looks likely imho.

[rampmeister] 04/1/2021 09:39

Have taken small initial position here. Seems to tick a lot of boxes.

RM

[clermontace] 04/1/2021 09:26

>10% growth in Q3 and it could trigger an 'ahead of market expectations'.

But will we get that?

Interim figures were excellent but it's unclear how much seasonal pipe fill was included up to September end.

[clermontace] 04/1/2021 09:23

I was discussing this very point last night.

The company has already proven that it can grow sales and actively benefit from a stringent lockdown.

If the vaccine is effectively rolled out, not only will on trade reopen (you would think, with some large stocking orders) but duty free will kick back in and yes, you can imagine a summer of people reclaiming the one they lost in 2020.

Basically, to put it bluntly, people will be drinking (for 'BETTER' or for 'WORSE').

DIS is unusual in that it can capitalise on either outcome regarding Covid.