CFO Simon Fuller Leaves Amidst Turbulent Times for Retailer
- McColl’s CFO Simon Fuller resigns amid challenging period
- Total revenue increased by 19.2% to £601.7m due to Co-op stores acquisition
- Profits dropped from £4.5m to £2.3m in the 26-week period ending May 27th
- Like-for-like sales decreased by 2.7% due to supply chain disruption
- Gross margin fell from 25.4% to 25%
- Adjusted EBITDA down to £16m from £16.5m in 2017
- Net debt increased from £110.8m to £112.6m
- CEO Jonathan Miller confident in strategy for sustainable returns
- Switch to Morrisons supply completed early August ahead of schedule
- Simon Fuller joins Reach as CFO
McColl’s CFO Simon Fuller has resigned amid the company’s most challenging period, during which profits almost halved. The British convenience store retailer saw a 19.2% year-on-year increase in total revenue to £601.7m due to the acquisition of around 300 Co-op stores but reported profits of £2.3m, down from £4.5m for the 26-week period ending May 27th. The failure of Palmer & Harvey impacted its supply chain, causing like-for-like sales to drop by 2.7%. Gross margin fell from 25.4% to 25%, and adjusted EBITDA was slightly down at £16m compared to £16.5m in 2017. Net debt increased from £110.8m to £112.6m. CEO Jonathan Miller expressed pride in the company’s performance, stating that the temporary upheaval affected sales and margin performance in 700 stores formerly supplied by P&H and had knock-on effects on the rest of the estate. The switch to Morrisons supply for 1,300 stores was accelerated and will be completed in early August, ahead of schedule. McColl’s also announced Fuller’s departure as he joins Reach as CFO.
Factuality Level: 8
Factuality Justification: The article provides accurate information about McColl’s financial performance, including revenue growth, profit decline, and supply chain disruptions. It also reports on the resignation of CFO Simon Fuller and his reasons for leaving the company. The information is presented in a clear and concise manner without any apparent bias or misleading statements.
Noise Level: 3
Noise Justification: The article provides relevant information about McColl’s financial performance and the resignation of its CFO, Simon Fuller. It also mentions the impact of supply chain disruptions on sales and the company’s plans to switch suppliers. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions. The article could benefit from more context about the industry and potential solutions for similar challenges faced by other businesses.
Financial Relevance: Yes
Financial Markets Impacted: McColl’s, Palmer & Harvey, Co-op stores, Morrisons
Financial Rating Justification: The article discusses financial performance and changes in leadership at McColl’s, as well as the impact of supply chain disruptions on the company’s profits and its transition to a new supplier, Morrisons. This affects the financial markets through the performance of these companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.
