Sunday, February 17, 2019

Co-op acquisition dents McColl’s profits


McColl‘s Retail Group has recorded a dip in full-year profits despite rising sales in its first quarterly report, with the convenience store retailer also announcing a new non-executive chairman.

Angus Porter is to be appointed as McColl‘s new non-executive chairman when James Lancaster steps down after the annual general meeting on April 27. 

Lancaster will remain on the board as a non-executive director.

The convenience store retailer said its slide in profits was a result of the acquisition of 298 Co-op stores, which was given the green light in December.

While McColl‘s total revenue went up by 1.9 per cent to £950.4 million in its preliminary full-year update for the year to November 27, making it the sixth consecutive year of sales growth, its total like-for-like sales went down by 1.9 per cent.

McColl‘s highlighted that its adjusted EBITDA for the year stood at £36.7 million, “marginally down” on the prior year when it was £37.7 million despite “structural cost pressures” and after £500,000 being spent on the Co-op store acquisition and integration.

READ MORE: McColl‘s takeover of 298 Co-op stores given official green light

McColl‘s also acquired an additional 58 convenience stores on top of the Co-op estate, bringing its year-end total to 1001 convenience stores.

“We are pleased to have recorded our sixth successive year of revenue growth and to have met our target of operating 1000 convenience stores, which truly marks the completion of our journey to become first and foremost a convenience business,” chief executive Jonathan Miller said.

“Our transformational acquisition of 298 quality convenience stores from the Co-op substantially accelerates our growth strategy and expands our neighbourhood presence for the benefit of our customers.”

Miller also took the opportunity to acknowledge Lancaster for his work on the board.

“I would like to thank him for the great job he has done for the business over the last 40 years,” Miller said.

“We are pleased that he will remain on the board, and that Angus Porter, who joined the board as a non-executive Director in April 2016, will be his successor.

“2017 promises to be an exciting year for McColl‘s. We remain very confident about achieving further progress against our strategy.”

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