McColl’s pre-tax losses widen
The McColl’s convenience chain has announced that its pre-tax losses widened in the first half of its financial year.
In the six months to 30 May, the retailer posted a statutory pre-tax loss of £5.9 million compared to a £1.3 million loss in the corresponding period in the prior 12-month period. Revenue was also down, falling by 5.3% to £572.7 million, although like-for-like sales grew by 1%.
Jonathan Miller, McColl’s chief executive, said: “We have continued to play an important role serving local neighbourhoods through the challenges of Covid-19, sustaining like-for-like sales growth despite the strong prior year comparator in Q2 following the first national
lockdown.
“Many of the changes in consumer behaviour we have seen since the onset of the pandemic have continued in 2021, with customers spending less on impulse goods, but buying more take-home and multipack products, impacting overall margins. Alongside the impact that the industry-wide shortage of delivery drivers has had on our product availability, we are confident that these temporary trading effects will reverse as restrictions ease and distribution returns to normal.”
McColl’s has also announced that it plans to raise £35 million through a placing and open offer at 20p per share as it looks to accelerate its growth strategy. The funds will be used to increase the number of Morrisons Daily stores from 56 to 350 by November 2022 and improve the grocery infrastructure at the sites.
Looking ahead, Miller said: “Whilst the wider economic outlook remains uncertain, we have clear demand for our grocery-led convenience offer, and our focus in the second half will firmly be on the continued roll-out of the Morrisons Daily stores, to help drive sustainable, profitable growth over the medium term.”
