McColl’s experiences softer trading
Convenience retailer McColl’s has said it has experienced mixed trading in recent weeks due to the impact of reduced consumer spending and continued supply chain disruption across the retail sector.
In a trading update, the company said sales had continued to recover during the first half of March, but were softer during the Easter period.
Despite this, the company said its Morrisons Daily stores have continued to perform well with like-for-like sales growth at least 20% better than non-converted, comparable stores. The conversion programme is continuing at pace with 69 Morrisons Daily stores opened in the current financial year as part of plans to reshape the business into a more profitable and sustainable model.
Due to the weaker than expected Easter performance and the impact of cost inflation pressures, McColl’s said it now expects adjusted EBITDA for the current financial year to be no higher than the previous year’s £20 million. The company is continuing to review costs to help mitigate the impact of challenging trading conditions.
McColl’s has also revealed that its is in active discussions with its key commercial partner and lenders on a potential financing solution, which it said would resolve its short term funding issues and create a stable platform for the business going forward.
The company will be delaying the publication of full year results until the financing discussions reach a resolution, although it warned that this could mean that the publication is delayed beyond the end of May 2022, which is the deadline for filing under listing rules.
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