McColl's looks to raise £50 million through flotation
Newsagent and convenience store operator McColls Retail Group has announced that it is looking to raise £50 million by floating on the London Stock Exchange.
Established in 1973 by executive chairman and chief executive James Lancaster, McColl’s has 1,276 stores across the UK which serve the convenience and newsagent sectors.
The group said the proceeds from the float would be used to reduce the level of outstanding borrowings under its existing debt facilities.
McColl's is currently working to transform its store portfolio from newsagents into higher quality convenience stores through food and wine conversions and selective convenience store acquisitions to enhance its convenience offering.
The group is targeting a store portfolio of approximately 1,350 stores by the end of 2016, consisting of around 1,000 convenience stores and 350 newsagents.
The initial public offering is expected to complete by end of this month and is excpected to raise £50 million for the group.
McColl's increased its revenue from £804.8 million in 2011 to £869.4 million in 2013. In the same period, adjusted EBITDA rose from £31.2 million £34.9 million.
In the six weeks to 5 January 2014, like-for-like sales climbed by 1.5% with total sales rising by 2.6%.
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