Morrisons (LON:MRW), one of the worst performing supermarkets in Britain’s ‘big four’, is set to drop out of the FTSE 100 after months of tumbling share prices.
The company has been in the FTSE 100 for more than 14 years but fell out of the running today, as its share price has fallen 17 percent this year alone. It currently has a market capitalisation of around £3.51bn.
Back in March Morrisons reported a 52% drop in annual profits to £345 million, its worst results in eight years and significantly weakening its competition against rivals Tesco, Sainsbury’s and Asda.
The chain’s problems reflect wider problems within the sector, with Britain’s major supermarkets seeing an unprecedented fall in sales and profits over the last couple of years, as budget buyers flock over to cut price shops such as Aldi and Lidl.
However, new chief executive Dave Potts’ has been appointed to turn the chain’s fortunes around with a five-year plan which, if it proves successful, could make buying shares in Morrisons at the current share price a lucrative opportunity.
Other companies which have fallen out of the FTSE 100 include the security group G4S and the engineering group, Meggitt, with Worldpay and Provident Financial taking their places.
Morrisons are currently trading down 0.20 percent at 151.00 pence per share. (0600GMT)