// McColl’s CEO blames profit decline on “highly competitive” market
// In the 26 weeks to May 26, pre-tax profit dropped 91% to £200,000
// Profits were affected by the collapse of supplier Palmer & Harvey last year
McColl’s has posted a massive decline in profits in its interim report thanks to a “highly competitive” market and the collapse of wholesaler Palmer & Harvey last year.
In the 26 weeks to May 26, pre-tax profit plummeted by 91 per cent to £200,000, down from £2.3 million last year.
READ MORE:
The group said its pre-tax profits were affected by the collapse of major supplier Palmer & Harvey last year, as well as a what chief executive Jonathan Miller described as a “highly competitive” market.
McColl’s recorded a 19 per cent fall in adjusted EBITDA to £13 million, while total revenue edged up by a mere 0.1 per cent to £611.1 million.
However, McColl’s recorded a like-for-like sales uptick of one per cent, although Miller said the figures prompted the British convenience retailer to “refocus on retail execution”.
The company declared an interim dividend of 1.3p per share.
“The key priorities that we outlined for this year were to stabilise the business and to refocus on retail execution following a challenging 2018,” Miller said.
“We have made good progress on both of these fronts whilst also maintaining strong capital discipline, reducing debt whilst sustaining appropriate levels of investment.
“The market remains highly competitive, with challenging trading conditions, given the unseasonable weather and uncertain economic climate.”
The retailer now predicts its full-year results to be in line with expectations, and Miller said the company was confident in its strategy.
Click here to sign up to Retail Gazette‘s free daily email newsletter
6 Comments. Leave new
I absolutely agree, I worked for them for about 6 months, no one gives a hoot about staff, you feel really under valued. Awful till system and they are so mistrusting that you have to call s supervisor to put in an 8 digit password just to take an item off the bill.
Anything like Locksbottom shop where the manager couldn’t careless about customers I understand reason why( ie 2 Sunday in 4 failed to deliver papers but still try to charge for delivery )
Keep blaming Palmer & Harvey but that was over a year ago, the buisness needs a major shake up, and I thought the tie up with Morrisons was the answer to all future growth.
I work for McColl’s and I can tell you this; it isn’t due to loosing Palmer & Harvey they can blame it on that all they like, when it’s in fact due to poor store mamagers and lack of care the area managers show towards their staff and customers. Suggesting it’s due to a “highly competitive market” is a weak argument the store I work in is right next door to Spar and we’re number on 1 in the area.
I’m not surprised. Here in Ipswich they can seldom deliver my paper to me every day of the week.
I too worked for McColls & all my Area manager did was chase number’s never interested in what the store looked like let alone how the staff felt. We did a staff survey approximately 2 yrs ago the only thing was no one was told what the results were!