THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
McColl's profits impacted by Co-op stores acquisition

Convenience chain operator McColl’s has reported a fall in pre-tax profit in the first half of its financial year after it incurred costs relating to its acquisition of 298 stores from the Co-operative Group.

GENERAL MERCHANDISE

McColl's profits impacted by Co-op stores acquisition

Convenience chain operator McColl’s has reported a fall in pre-tax profit in the first half of its financial year after it incurred costs relating to its acquisition of 298 stores from the Co-operative Group.

In the six months to 28 May, pre-tax profit declined to £4.5 million from £8.2 million in the previous year after taking account of exceptional costs of £2.3 million and pre-opening costs of £1.3 million.

Total revenue rose by 7.6% to £504.8 million as the company benefited from the addition of the Co-op stores, around two thirds of which were trading at the end of the period.

Meanwhile, like-for-like sales edged up 0.2% following a 1.4% uplift in the second quarter.

Adjusted EBITDA increased to £16.5 million from £16 million a year earlier.

Jonathan Miller, McColl’s chief executive, said: "I am encouraged by the performance we have delivered over the first half of the year as our business has continued to gain momentum. We have traded well in a challenging environment and also benefited from the recent hot weather, which has helped to drive sales in key growth categories including grocery and alcohol.”

McColl’s said the remaining Co-op stores will all be trading by the end of July. Like-for-like sales in the recently acquired and converted stores increased by 2.8% in the period.

Miller added: “With all 298 stores now on board, they are expected to make a material contribution to sales and profit in the second half of the year and beyond.”

The company said its full year results are forecasted to be in line with management's expectations.

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process