10th Dec 2020 15:48
McColl's Retail Group PLC - convenience store chain - Revenue rises 2.3% to GBP1.25 billion in financial year that ended November 29 from GBP1.22 billion year before, which it says reflects strong demand at the start of the Covid-19 pandemic, offset by store closures as part of its store optimisation programme. Like-for-like sales growth is 12% in financial 2020, versus none in financial 2019. In the fourth quarter alone, like-for-like sales growth is 11%.
Less positively, says shifts in shopping behaviour results in a change in product mix, hurting margins. Services revenue is lower, and McColl's incurs Covid-19 related costs. Says adjusted earnings before interest, tax, depreciation and amortisation will be between GBP29 million and GBP30 million, down as much as 9.7% from GBP32.1 million in financial 2019.
Looking to financial 2021, McColl's says it expects like-for-like revenue growth to moderate and its sales mix to normalise over the course of the years. "The importance of neighbourhood stores has never been greater," says Chief Executive Jonathan Miller, "and we are well positioned to continue enhancing our convenience offer by further developing our partnership with [Wm Morrison Supermarkets PLC], and further improving the quality of our estate and our overall customer experience."
Current stock price: 24.41 pence, down 22% on Thursday
Year-to-date change: down 36%
By Tom Waite; [email protected]
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