TIDMMRW

RNS Number : 1062E

Morrison(Wm.)Supermarkets PLC

02 July 2019

News Release

Release date: 2nd July 2019

2018/19 Financial Statements - restated for IFRS 16

As previously announced, Morrisons is adopting the fully retrospective approach to the new IFRS 16 lease standard.

At the 2018/19 preliminary results, we outlined the impact of IFRS 16. It will have no economic effect on the business or cash flow. It does however impact the way assets, liabilities and the income statement are presented.

Our first Financial Statements to be prepared under IFRS 16 will be the 2019/20 interims, to be reported on 12 September. Ahead of those results, we are today publishing first half and full year restated 2018/19 results on a post-IFRS 16 basis.

Morrisons is predominantly a freehold business, and we own 86% of our stores, which means the impact of the new lease accounting standard on profit is relatively low. As previously announced, restated 2018/19 profit before tax and exceptionals is GBP10m lower under IFRS 16, falling from GBP406m to GBP396m (2.5%). This move comprises GBP103m lower rent, GBP58m higher depreciation and GBP55m higher finance costs.

Operating profit before exceptionals increases by GBP45m, to GBP510m, and operating margin by 25 basis points, to 2.9%.

On the balance sheet, the Group will be recognising lease liabilities of GBP1,397m and corresponding right-of-use assets of GBP745m. The net result is restated net assets for 2018/19 of GBP4,325m, GBP306m lower than the previously reported position.

Full details of the post-IFRS 16 2018/19 Financial Statements can be found here: https://www.morrisons-corporate.com/investor-centre/

Morrisons is hosting an IFRS 16 seminar for sell-side analysts at 11.00am UK time today.

 
 Enquiries: 
 
 Wm Morrison Supermarkets plc 
 
 Trevor Strain - Group Chief Finance and Commercial Officer                     0845 611 5000 
 Andrew Kasoulis - Investor Relations Director                                  0778 534 3515 
 
 Media Relations 
 
 Wm Morrison Supermarkets plc:                                 Julian Bailey    0796 906 1092 
 Citigate Dewe Rogerson:                                       Simon Rigby      0203 926 8522 
  Kevin Smith                                                                   0203 926 8509 
 

- ENDS -

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END

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July 02, 2019 02:00 ET (06:00 GMT)

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