// 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.
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.