Morrisons - comment

Bonds will be a little higher on the back of what were decent operational Q3 results in a very tough UK market. Management reiterated its full-year guidance, and so are we. Morrisons continues to see volumes fall, albeit more slowly and needs to keep the price support level in the medium term. Revenue of £3.9bn was 1.5% above our forecast; EBITDA of £172m was £12m above our forecast, although this was adjusted for the EPR tax. OCF of £225m was in line; FCF of £212m was £66m above our expectation due to lower Capex (£16m) and £46m from the sale of the shuttered Rathbones site.