Shares in Bradford-based supermarket Morrisons fell by just over four per cent yesterday following their annual results.

Morrisons posted a loss of £313 million for 2005, the first annual loss in its 107-year history.

The company had actually made £61 million profit but was plunged into the red by massive expenditure following the takeover of Safeway.

Bosses at the supermarket chain said the worst was now behind them and that a three-year recovery strategy was in place to cut costs and put the firm back into the black.

The recovery plans will not include ann further job losses according to current chief executive Bob Stott.

As reported previously in the Telegraph & Argus, 2,500 jobs were culled at three of the firm's depots in Aylesford, Kent and Bristol and there had been widespread speculation that spiralling staffing costs would mean further cuts - fears that Mr Stott quelled yesterday.

Speculation regarding the supermarket's next chief executive continues to mount.

Current chief exec Bob Stott is due to retire in the summer and rumours regarding his successor has become a subject of interest for business analysts.

Sir Ken Morrison has refused to comment on the matter, other than to say that the firm wished to ensure it appointed the right person for the job.

Shares in the supermarket giant fell by 4.5 per cent yesterday. Losses per share were 9.46p, compared with earnings of 4.14p last year.