Morrisons ceo Potts invests £500,000 in shares

By Alice Foster contact

- Last updated on GMT

Morrisons boss David Potts invests £500,000 in the supermarket's shares
Morrisons boss David Potts invests £500,000 in the supermarket's shares

Related tags: Stock, Chief executive officer, Executive officer

Morrisons ceo David Potts has invested £500,000 in the business, shortly after reaffirming the retailer’s commitment to food and drink manufacturing.

Potts has backed his turnaround plans for Morrisons by buying 314,881 more shares in the supermarket despite a slump in share price and profits during the first half. 

The ex-Tesco executive now holds 822,881 stocks in the company after having invested £1M​ in shares within a week of his appointment as ceo in March. 

A statement issued by Morrisons today (September 18) said: “David Potts, chief executive officer, purchased 314,881 ordinary shares of 10 pence each in the company on the London Stock Exchange at a purchase price per share of 158.79p.” 

Finance director buys shares​ 

Morrisons finance director Trevor Strain also signalled his faith in efforts to turn the supermarket around by buying shares worth nearly £100,000 earlier this month.   

Last week Potts stressed the retailer’s commitment to in-­house​ food manufacturing, saying it offered an essential service to customers.

Analyst's view

“I doubt that Mr Potts’ comments are the end of the story.”

  • Julian Wild, head of the food team at Rollits solicitors  

He argued that food manufacture was a key point of difference between Morrisons and other big supermarkets and limited range discount stores. 

But analyst Julian Wild, head of the food team at Rollits solicitors, believes that the supermarket must outsource production and sell off dedicated factories​ to be competitive. 

Not ‘end of story’ 

“I doubt that Mr Potts’ comments are the end of the story,”​ Wild told FoodManufacture.co.uk.

But Shore Capital’s Clive Black and Darren Shirley have urged Potts to make food manufacturing a “weapon” ​and stressed the importance of its Market Street fresh produce concept. 

Morrisons experienced a busy few days last week as the retailer posted a nearly 50% fall in profits before tax and 2.7% fall in like-­for-­like sales in the six months to August 2. 

The supermarket also announced the agreed sale of its convenience business and the closure of 11 supermarkets, cutting 900 jobs.

What you can buy for £500k... with change left over

  • Two Lamborghini Aventador supercars (about £494k)
  • London home with average house price (about £482k) 
  • 1M pints of milk from Morrisons (£450k) 

Related topics: Ambient foods, Fresh produce, Frozen

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1 comment

Too little far too late

Posted by Voice of reason,

As a former employee of Morrisons, it angers and upsets me the way the company has self destructed over the past few years.I could see it coming a mile off,as could so many of my colleagues. The problem is blatantly obvious,the people at the top never really listen to those on the front line.They go on about focus on market street and manufacturing,when they should be focusing on the stores, and the staff where the money is made and taken. They don't want to hear of Mr Potts spending half a million on shares,which by the way would take your average manager 25 years to earn,they want to keep their profit share,and extra money for sunday working,probably their only 2 real perks are being stripped away.Also as a start get rid of the ridiculous, outdated 43 hour contracted working week for managers,with an hours compulsory lunch,then the extra you are 'expected' to do on top,the average dept manager is in the building 10 hours a day, absolute minimum.Think about the morale boost if it was a normal week of 38-39 hours with half an hour lunch.Also the element of fear that runs through retail,especially Morrisons, needs to go.Getting the staff to run around like mad just because an area manager is on his way is pathetic.The customers are the most important people,not someone in a suit with company car that rolls up once a month to strike fear into everyone.In the store I worked at we were regularly told we had the best warehouse on his area,eventually a new guy came in,and just to put his stamp on things he made us move the whole place around for no actual reason!!! Why??? In short,They need to get rid of a lot of pointless paperwork and tasks,get rid of the 'Morrisons way' and listen to the staff,really listen.People at the top,stop flashing your money around when the staff are getting poorer. The amount wasted on Dalton Philips and Ant and Dec was absolutely ridiculous and all it does is push morale down even further.Invest in what matters and stop trying to line your own,already well padded pockets. These so called top businessmen all seem to have one thing in common,blindness as to what the real issues are.All I have put in this post is just the very tip of the iceberg,and there are plenty of other ideas to try and rescue the sinking ship

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