McColl’s CEO encouraged by stable results

Convenience retailer McColl’s Retail Group plc has reported its Interim Results for the 26 week period ended 26 May 2019, showing total revenue grew by 0.1% to £611.1m (2018: £610.4m1).

Like-for-like (LFL) sales were up 1%, and adjusted gross margin stood at 25.4% (2018: 26.1%).

The company's adjusted administrative expenses, as a percentage of revenue, was reduced to 25.2% (2018: 25.5%)

Investment in the estate continued with 17 convenience store refreshes completed. During the period, McColl's trialled the ‘Morrisons Daily’ fascia at ten refresh stores.

The group opened three new convenience stores and divested 41 underperforming newsagents and smaller convenience stores as we continue to reshape and optimise the estate.

The group further strengthened leadership team with the appointment of Richard Crampton to the newly created position of Chief Commercial Officer.

Jonathan Miller, 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.

“I am encouraged by the performance we have delivered as we regain greater operational stability, but we still have more work to do in the second half of the year. The market remains highly competitive, with challenging trading conditions, given the unseasonable weather and uncertain economic climate.

“Despite this, we expect to be broadly in line with expectations for the full year and we are confident that our strategy, combined with the cash generative and profitable nature of our business, will deliver sustainable returns for shareholders in the long term.”