McColl's Retail Group plc Trading Statement (1295J)
25 Abril 2022 - 1:01AM
UK Regulatory
TIDMMCLS
RNS Number : 1295J
McColl's Retail Group plc
25 April 2022
25 April 2022
McColl's Retail Group plc
Update on trading and discussions with key stakeholders
McColl's Retail Group ("McColl's" or "the Group") today issues
an update on current trading, outlook and discussions with its
lenders and key commercial partner.
Current trading
The Group has experienced mixed trading since the last update on
28 February 2022. While a recovery in trading performance had
continued during the first half of March, the business has since
experienced softer trading through the Easter period, impacted by
reduced consumer spending and continued supply chain disruption
across the industry. The Group is working closely with its
wholesale supplier to mitigate product availability issues.
Despite this, the Group's Morrisons Daily stores continue to
perform strongly, delivering like-for-like sales growth that is at
least 20% better than non-converted, comparable stores, and ahead
of the total convenience market. All Morrisons Daily conversions in
2022 have benefited from the introduction of a Morrisons food-to-go
(FTG) proposition, offering customers a broadened range at a
compelling price point.
The Morrisons Daily store conversion programme continues at pace
with 69 stores opened in FY22 so far, and the Group continues to
work on the previously communicated programme of Morrisons Daily
store conversions. The move to convert stores to the Morrisons
Daily format is fundamentally reshaping the business into a more
profitable and sustainable model in the medium term.
Outlook
As a result of the challenges outlined above, including a weaker
than expected Easter performance and the widely reported impact of
cost inflation pressures, the Board now expects adjusted EBITDA for
the current financial year (FY22) to be no higher than the level
achieved in FY21 (GBP20m on a pre IFRS 16 basis). The Group
continues to review costs across all parts of the business in order
to help mitigate the challenging trading conditions, as well as
being even more targeted in its capital deployment.
Update on key stakeholder engagement
The Group acknowledges and appreciates short term credit support
received from its commercial partners and senior lenders. A
potential financing solution is under active discussion with its
key commercial partner and lenders which would resolve the short
term funding issues and create a stable platform for the business
going forward. It should be noted that even if such a successful
outcome is achieved it is increasingly likely to result in little
or no value being attributed to the Group's ordinary shares.
The Group expects to delay the publication of full year results
until the resolution of the financing discussions. This may mean
that the publication of the full year results is delayed beyond the
end of May 2022, which is the current deadline for filing under the
Listing Rules. A further update will be made as and when
appropriate.
Enquiries
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
About McColl's Retail Group
McColl's is a leading neighbourhood retailer, with an estate of
over 1,100 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.
LEI: 213800R1TLR536P8YJ67
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END
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