McColl’s has warned on profit as rescue talks continue, following ‘mixed trading’ over the first few months of the year and a weaker-than-expected performance over Easter.
As a result, the convenience store chain, which operates more than 1,100 branches across the UK, expects its full-year adjusted core profit to be less than its 2021 figure of £20 million. It will “continue to review costs” across all parts of the business in order to help mitigate the challenging trading conditions.
The company said it has experienced a mixed performance since the end of February with strong trading over the first half of March, but saw a ‘softer performance’ over the Easter period due to lower consumer spending and supply chain disruptions.
McColl’s has also confirmed it is in talks with its key commercial partner and lenders over a potential financing solution, which is “under active discussion” and would resolve short-term funding issues and stabilise the business going forward.
However, is also warns that a potential financing solution is “likely to result in little or no value” being added to the company’s shares.
The current financing talks mean that McColl’s 2021 earnings are being delayed until the end of May, the current deadline for publishing them under London Stock Exchange rules.