McColl’s shares plunge 33% as it blames supply chain disruptions

Convenience store chain McColl’s has confirmed it is seeking a capital injection in a bid to prevent its collapse.
Despite raising £30m from a placing and open offer in September 2021 annual revenue for the company dropped by 11 per cent to £1.1bn in the latest financial year.
// McColl’s warns over annual earnings, blaming the lorry driver crisis & supply chain disruptions
// The retailer said its full year performance may fall short of expectations

The Convenience chain retailer McColl’s has said continued disruption to its supply chain has impacted its fourth quarter revenue.

In a trading update issued the morning, the retailer said its full year performance may fall short of expectations if the issues  do not materially improve.

The business, which has a network of 1,265 convenience stores and news agents across the UK, said a shortage of lorry drivers and a reduced supply of key products intensified in the final quarter of its financial year.

READ MORE: McColl’s beats target to launch 100th Morrisons Daily store

McColl’s chief executive Jonathan Miller said: “It is disappointing to see supply chain issues worsen through the second half, but external factors have not eased, and continue to impact much of the UK economy. We are working collaboratively with our wholesale partner Morrisons to restore in-store product availability as quickly as possible.”

The retailer not provide any figures on the extent of the fall in sales expectations except to say it would be “significantly lower”.

It forecast that adjusted pre-tax profit expectations for the year to the end of November would now come in the range of £20 million to £22 million, compared to a previous forecast of £27 million.

Giving an update on the conversion of some stores to Morrisons Daily, the retailer said the pace of work has now accelerated and that it now expects to have over 150 Morrisons Daily stores in operation by the end of this month.

Miller added:  “Despite these supply chain issues, I am delighted by the step change we are witnessing in store performance from our Morrisons Daily conversions. This new format is showing strong sales growth and is delivering better ROI than we expected.

“Our conversion programme is moving at pace, ahead of time and on budget, and we anticipate reaching 350 Morrisons Daily stores well in advance of our original target.”

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