Morrisons has issued another warning on profits, with a statement revealing underlying profits are likely to be well below forecasts.
The retailer said it expected profits to be at £50 million to £70m, while analysts have been expecting profits of between £225m and £275m.
Last month, the firm said that problems with the integration of the Safeway business meant it could not give any profit guidance.
It said it is now seeking to provide “greater clarity” and would give a further update in July.
This update will follow a review by KPMG, the accountancy firm, which is working with Morrisons' board of directors.
However, the Bradford-based company added that it was upbeat about future prospects for the business when all Safeway stores had been converted.
A statement said: “In 2006/7 there remains every indication financial performance will improve significantly following completion of the (store) conversion process.”
Despite this, analysts remained unimpressed with one quoted by the BBC as describing the retailer as a “company that is out of control”.
