TIDMMCLS
RNS Number : 6075S
McColl's Retail Group plc
17 November 2021
17 November 2021
McColl's Retail Group plc
TRADING UPDATE
-- Continued supply chain disruption impacts revenues in Q4
-- Strong performance from Morrisons Daily format leads to
accelerated roll out with over 150 stores expected by end of
November 2021
McColl's Retail Group ("McColl's" or "the Group") today issues
an update on trading.
Current trading
At the Group's Interim Results on 12 August 2021, we announced
that supply chain disruption had impacted product availability in
stores with a consequential effect on revenues, and that if these
issues did not materially improve in the second half, our full-year
performance may fall short of Board expectations.
As has been well publicised, external factors, including the
ongoing nationwide shortage of delivery drivers, labour shortages
at distribution centres and insufficient supply of key products,
including high margin branded impulse lines, continue to impact the
supply chain nationwide and have intensified in the fourth
quarter.
While we continue to work collaboratively with our wholesale
partner, Morrisons, to lessen the effect of the disruption, we have
been unable to fully mitigate the impact to stores, leading to
significantly lower revenues than initially anticipated. FY21
adjusted EBITDA pre IFRS 16 is now expected to be in the range of
GBP20m to GBP22m. The Group continues to monitor the situation with
its key stakeholders, including its lending banks, who remain
supportive.
Morrisons Daily conversions ahead of schedule
Our Morrisons Daily stores continue to deliver strong
performance, with revenue growth significantly ahead of the rest of
the estate, driven by a high grocery mix and wider product choice
for customers. The format allows us to grow customer spend,
frequency and loyalty by growing the basket size, offering
customers access to great value fresh food, under the Morrisons
fascia, in their local community.
At our capital raise we indicated a 2-3 year payback on
investment. Early indications point to a return towards the shorter
end of this range. This factor, combined with an increase in
operational capability, is leading to an acceleration of Morrisons
Daily deployment.
On 12 October 2021, we announced the opening of our 100(th)
Morrisons Daily, implementing six store conversions per week. The
pace has since accelerated, and we now expect to reach over 150
Morrisons Daily stores in operation by the end of November 2021. At
this pace, we anticipate reaching our targeted number of 350
conversions well ahead of our original date of November 2022.
Jonathan Miller, Chief Executive of McColl's, said: "It is
disappointing to see supply chain issues worsen through the second
half, but external factors have not eased, and continue to impact
much of the UK economy. We are working collaboratively with our
wholesale partner Morrisons to restore in-store product
availability as quickly as possible.
"Despite these supply chain issues, I am delighted by the step
change we are witnessing in store performance from our Morrisons
Daily conversions. This new format is showing strong sales growth
and is delivering better ROI than we expected. Our conversion
programme is moving at pace, ahead of time and on budget, and we
anticipate reaching 350 Morrisons Daily stores well in advance of
our original target.
"I would like to thank our 16,000 colleagues who are working
tirelessly to restore product availability to normal levels across
our estate so that we can continue to serve our local communities
to the very best of our abilities every single day."
Forthcoming announcement date
McColl's expects to publish a full-year trading update for the
52 weeks to 28 November 2021 on 8 December 2021.
Enquiries
Please visit www.mccollsplc.co.uk or for further information,
please contact:
Analyst & Investors: Tej Randhawa, McColl's +44 (0)1277 372916
Media: Ed Young, Headland +44 (0)203 805 4822
Rob Walker, Headland mccolls@headlandconsultancy.com
Charlie Twigg, Headland
Notes to editors
McColl's is a leading community retailer, with an estate of over
1,200 managed convenience stores and newsagents. We operate
McColl's and Morrisons Daily branded convenience stores as well as
newsagents branded Martin's across the UK, except in Scotland where
we operate under our heritage brand, RS McColl.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014
LEI: 213800R1TLR536P8YJ67
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTDDBDBSSBDGBL
(END) Dow Jones Newswires
November 17, 2021 02:00 ET (07:00 GMT)
Mccoll's Retail (LSE:MCLS)
Gráfica de Acción Histórica
De Feb 2025 a Mar 2025
Mccoll's Retail (LSE:MCLS)
Gráfica de Acción Histórica
De Mar 2024 a Mar 2025
