Convenience Retailer Battles Through Turbulent Times
- McColls profits before tax dropped by half due to supply chain disruption
- Total revenue increased by 8.1% to £1.24bn
- Like-for-like sales down 1.4%
- Q4 FY18 sales remained flat, Q1 FY19 up 1.2%
- Net debt reduced from £142.2m to £98.6m
- Completed contract to supply 1,300 Morrisons stores in less than nine months
- 59 convenience store refreshes and 11 new stores acquired in the year
McColl’s profits before tax dropped from £18.4m to £7.9m in the 52 weeks to November 2018, primarily due to the administration of wholesaler Palmer and Harvey. The company’s total revenue increased by 8.1% to £1.24bn compared to the previous year’s figure of £1.15bn, reflecting its acquisition of 298 Co-op stores. Like-for-like sales were down 1.4%, but the group saw improvement with Q4 FY18 remaining flat and Q1 FY19 up 1.2%. The company reduced its net debt from £142.2m to £98.6m. In August, McColl’s completed a contract to supply 1,300 Morrisons stores and added 11 outlets to its portfolio. Despite the challenges, CEO Jonathan Miller remains confident in delivering strategic plans and rebuilding operational momentum.
Factuality Level: 8
Factuality Justification: The article provides accurate information about McColls’ financial performance, including profits, revenue, and acquisitions, as well as the impact of Palmer and Harvey’s administration on their business. It also includes quotes from the CEO that provide insight into the company’s strategy and plans for the future.
Noise Level: 3
Noise Justification: The article provides relevant information about McColls’ financial performance and its challenges due to Palmer and Harvey’s administration, as well as the company’s progress in transitioning to a new supply partner and expanding its store portfolio. It also includes quotes from the CEO. However, it could benefit from more analysis or context on the industry and potential future implications.
Financial Relevance: Yes
Financial Markets Impacted: McColls’ profits, Palmer and Harvey’s administration, Morrisons supply contract
Financial Rating Justification: The article discusses McColls’ financial performance, the impact of Palmer and Harvey’s administration on its profits, and the company’s new supply contract with Morrisons, which affects their revenue and operations. These topics are related to financial matters and can have an impact on financial markets and companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There are no extreme events mentioned in the article.
www.retailsector.co.uk