Confident Morrisons set to hike half-year dividend

They also forecast revenues of £8.7billion, an increase of 3.8 per cent on the same period the previous year.

House broker shore Capital also has the firm reporting a 5 per cent increase in its like-for-like sales for the second quarter, despite the ongoing supermarket price war.

However, Morrison’s pre-tax profits for the six months to July are tipped to be down 4.5 per cent to £191million, due to a £33million one-off hit from debt reduction.

It is generating strong quantities of cash and in June it spent £262.2 million on buying back some of its bonds or ioUs held by investors to cut its gross debt by over £230million and slash its interest repayments bill.

Shore Capital believes the grocer’s increased financial strength means shareholders are likely to get regular special dividend bonus payouts going forward.

At its full-year results in March, Morrisons announced that it would hand £94 million to investors via a special dividend of 4p per share.

Daily Express :: City and Business Feed

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