McColl’s posts drop in sales and profits as it begins to implement change programme
McColl’s has reported a drop in full year sales and profits as it begins to implement a strategic change programme to build the foundations for future growth.
In the 52 weeks to 24 November, total revenue fell by 1.8% to £1.22 billion after the retailer closed some shops as part of a store optimisation programme.
While like-for-like sales were level with the previous year, adjusted pre-tax profit declined from £10.5 million to £7.3 million year-on-year.
Jonathan Miller, McColl’s chief executive, said: “We have stabilised the business and refocused on retail execution in 2019, in line with our key priorities for the year. Against challenging trading conditions we have made good operational progress, whilst reducing debt and making appropriate levels of investment.
“Looking ahead to FY20, we are embarking on a strategic change programme, refining our model and better tailoring our offer to the customers and communities we serve, using the learnings to build the foundations for future growth.”
Giving an update on more recent trading, McColl’s said sales in early 2020 have been encouraging with a like-for-like improvement of 0.5% for the 11 week period to 9 February.
The retailer said 2020 will be a transitional year as it implements the transformation programme. As a result, it expects adjusted EBITDA for the full year to be broadly in line with 2019.
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