10th Dec 2019 11:20
(Alliance News) - Convenience store retailer McColl's Retail Group PLC warned Tuesday annual profit is set to slightly miss expectations due to the difficult environment for UK retailers.
McColl's has guided for adjusted earnings before interest, taxes, depreciation, and amortisation for the 52 weeks to November 24 of GBP32 million, "marginally" below expectations. It blamed this on softer second-half conditions due to unseasonable weather and dampened UK consumer confidence.
Revenue for the year has declined 1.9%, mainly due to store sales, with like-for-like sales flat after a 1.4% fall in the prior year.
Brentwood-based McColl's posted revenue of GBP1.24 billion in its year to November 2018, with adjusted Ebitda coming in at GBP35.0 million.
"While 2019 has been another challenging year for the business, we have made good progress against our goals of operational stability and good retail execution. We are also pleased to confirm that we have continued to reduce net debt, with further progress anticipated due to our ongoing capital discipline," said Chief Executive Jonathan Miller.
"The fundamentals of the convenience channel are strong and we remain a resilient, profitable and cash generative business. We are confident in our plans to rebuild momentum in 2020, and look forward to providing a fuller strategy update at our preliminary results in February.
McColl's shares were 3.5% lower in London on Tuesday morning at a price of 39.90 pence each.
By George Collard; [email protected]
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