More misery for McColl’s as revenue falls 11%

McColl’s has seen revenue fall and debt grow in what its management admitted was a “tough year” for the convenience retailer.

However, shares edged up when markets opened this morning, signalling the results may not have been as bad as some investors feared.

In the 52 weeks to 28 November, revenue dipped 11.2 per cent since 2020 to £1.11 billion.

McColl’s said that supply chain disruption and lockdown restrictions had a “significant impact on the results”.

READ MORE: McColl’s ‘named and shamed’ for failing to pay minimum wage

Adjusted EBITDA – earnings before interest, taxes, depreciation, and amortisation – is expected to be around £20 million to £22 million, down from £29.1 million.

Like-for-like sales declined by 3.3 per cent, but are up 9.1 per cent on 2019.

Debt is forecast to rise by £7.4 million to £97 million, despite McColl’s plans to reduce it with part of its £30 million capital raise this summer.

The cash call, added to warnings of reduced profits, sent its share price careering to record lows.

“FY21 has undoubtedly been a tough year for the business, starting with the impact of Covid-19 restrictions and ending with the… ongoing supply chain challenges,” chief executive Jonathan Miller said.

“Although we have been able to partly mitigate these external factors, they have still had a significant impact on underlying trading”.

Miller added that the company had made “excellent progress” in converting 154 stores into Morrisons Daily sites.

McColl’s intends to complete a total of 350 to 450 conversions by the end of next year.

Shares stood at 12.74p, up 6.2 per cent since yesterday.

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1 Comment. Leave new

  • Philip Randles
    December 8, 2021 2:25 pm

    Once again another set of poor results along with the usual excuses for poor performance and heavily burdened with debt.


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