Profits at Morrisons are down by 52% to £345m, its worst results in eight years.
New chief executive David Potts will join the company next week. In order to help him revitalise the business, Morrisons has said it will slash its future dividend payment to 5p or less during 2015-16. That compares with a 13.7p payout per share in 2014-15.
The chain is battling falling sales. It said that same-store sales fell by 5.9% for the full year, and by 2.6% in the fourth-quarter.
The company now plans to focus on cutting prices as well as slowing down its convenience store roll-out – 23 M Local stores will close, resulting in the loss of 380 jobs.
Morrisons says the company opened 57 convenience stores and closed six during the past year, bringing the total number of M Local stores to 153, before the 2015 announced closures.
Morrisons is currently the UK’s fourth-largest supermarket chain, trailing Tesco, Asda and Sainsbury’s in annual sales.