28th Jul 2015 08:01
LONDON (Alliance News) - McColl's Retail Group PLC on Tuesday said it turned to profit in the first half of its financial year as its total revenue rose, defying a fall in like-for-like sales, prompting the company to double its interim dividend payout.
McColl's said its pretax profit for the 26 weeks to May 31 was GBP7.6 million, compared to a GBP4 million loss a year earlier, when the group was hit by financing costs and higher administrative costs, the latter of which was reduced by the restructuring of its head office.
On the back of the company swinging to a profit, it hiked its interim dividend to 3.4 pence per share from 1.7 pence a year earlier.
The company said its total revenue was up by 3.4% in the half to GBP459.3 million, up from GBP444.2 million, despite like-for-like sales falling by 1.9%. Like-for-like food and wine premium convenience sales were flat in the half, but sales in its newsagents and standard convenience stores fell by 4.7%.
"I am pleased to report a solid financial performance in what has been a very challenging period for the sector," said Chief Executive James Lancaster.
"We are confident that our specialist position as a leading neighbourhood retailer, supported by our continued investment in convenience conversions and the acquisition of new stores, will allow us to take advantage of the market in which we operate," Lancaster said, adding the company remains on track to hit market expectations for the full year.
Shares in McColl's were up 1.3% to 160.00 pence Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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