McColl’s profit slides in ‘competitive market’
McColl’s has seen its half-year pre-tax profit drop to £0.2 million from £2.3 million in the same period in the previous year.
In the 26 weeks to 26 May, adjusted EBITDA fell by £3 million to £13 million, although revenue edged up 0.1% to £611.1 million.
On a like-for-like basis sales were up 1%.
The company was working to improve gross margin in the period following a supply chain transition in 2018.
Jonathan Miller, McColl’s chief executive, said: “The key priorities that we outlined for this year were to stabilise the business and to refocus on retail execution following a challenging 2018. We have made good progress on both of these fronts whilst also maintaining strong capital discipline, reducing debt whilst sustaining appropriate levels of investment.”
During the period, McColl’s opened three new shops and refreshed 17 convenience stores. It also divested 41 underperforming newsagents and smaller convenience stores as part of plans to reshape its store estate.
