McColl’s like-for-like sales up 2.1% in first half
Newsagent and convenience store chain McColl’s has said it is on track to achieve full year results in line with expectations after like-for like sales rose by 2.1% in the 26 weeks to 25 May.
The company, which floated on the London Stock Exchange earlier this year, grew its total sales by 3.6% to £444.2 million in the period.
Operating profit before exceptional items rose by 14.6% to £10 million while adjusted EBITDA increased by 10.9% to £15.9 million.
However, McColl’s made a statutory loss before tax of £4 million after a deducting exceptional costs of £6.2 million which were mainly related to the IPO.
Never Miss a Retail Update!McColl’s chairman and chief executive James Lancaster said: “McColl’s has delivered solid progress during the first half of the year, and we remain on track to deliver the expected results for the full year, building on the success of our IPO in February.
“Our store conversion and expansion strategy continues to progress well, underpinned by our strengthened balance sheet and strong cash flow. With the opening of our 750th store in June, we are on track to achieve our target of 1,000 Convenience stores by the end of 2016.”
McColl’s said it is also focusing on expanding its products and services to provide more convenient ways for customers to shop. This has included the roll out of Post Office ‘locals’ across its portfolio and a transformation of its supply chain which is helping to increase basket spend.
Lancaster added: “Notwithstanding the competitive landscape, I am encouraged by the strong fundamentals of the convenience retail sector and the ability of McColl’s to capture growth in this market.”
