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.
“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)