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Morrisons reports pretax profit up 40%

Morrisons reports pretax profit up 40%

Untangling an expensive adventure in logistics property has helped Yorkshire supermarket chain Wm Morrisons report pretax profit up 40% and their seventh consecutive quarter of growth.

A windfall of nearly £93m from the sale of their Dordon warehouse helped nudge Morrisons' total turnover for the six months to 30 July 2017 to £8.42bn.

The Dordon warehouse, built in 2012 at Birch Coppice, Tamworth, for occupation by Ocado but owned by Morrisons, totals 700,000 sq ft.

The sale to Tritax Reit sees the supermarket chain off-load an expensive venture into being a logistics property landlord. They expect to dispose of assets worth more than £1.1bn.

In 2013 Ocado, the online grocery business, has agreed the sale and leaseback of its 350,000 sq ft Warwickshire depot with Yorkshire-based Wm Morrisons.

The deal meant a £40m, second phase at Dordon would be funded jointly funded by the supermarket chain. Completing the £200m Dordon warehouse put Ocado under financial pressure.

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