date:Jun 22, 2012
se it can compress margins through operational gearing. In Morrisons case, however, such negative operational gearing pressures may be even more compounded by the vertical integration of the business with 20%+ of volumes going through its own plants. Such pressures are expected to offset underlying self help within the business in our view.
Shore Capital said in its note:Our downgrades come fast on the heels of notable concerns raised by former chairman of Morrisons, Sir Kenneth Morrison, at th