Company in talks with banks for a longer-term agreement amidst financial challenges
- McColl’s Retail Group plc seeks new funding to prevent collapse
- Talks with lending banks for a longer-term agreement
- Revenues fell 11% to £1.11bn in FY21 compared to FY20
- Adjusted EBITDA pre IFRS16 at £20m, down 31% year-on-year
- Net debt pre IFRS 16 at £97m, down 7% from FY20
- Improved product availability in stores since start of new financial year
- Footfall dropped due to Omicron over Christmas period
- Revenues in first quarter behind expectations
- Board expects FY22 adjusted EBITDA slightly below market expectations
- Net debt expected at £100m end of FY22
- Two-year like-for-like sales growth 5.9% in 11 weeks to 13 February 2022
- Morrisons Daily stores deliver 20% better sales than comparable stores
McColl’s Retail Group plc is seeking new funding to prevent its collapse as it reports a drop in revenues. The company has confirmed ongoing discussions with lending banks towards a longer-term agreement, following an announcement on 29 November 2021. Revenues fell 11% to £1.11bn for the 52-week period ending 28 November 2021 (FY21), compared to £1.25bn in FY20. The group’s financial results were in line with previous guidance, including adjusted EBITDA pre IFRS16 of £20m, down 31% year-on-year from £29.1m and net debt pre IFRS 16 of £97m, down 7% from £89.6m in FY20. Since the start of the new financial year, McColl’s has seen an improvement in product availability in stores. However, footfall dropped due to Omicron over the Christmas period which impacted trading. While demand has picked up, revenues in the first quarter are behind expectations. The board now expects FY22 adjusted EBITDA to be slightly below current market expectations and net debt at £100m end of FY22. McColl’s successfully completed a placing and open offer in September 2021, raising net proceeds of £30m for Morrisons Daily store rollout.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about McColl’s Retail Group’s financial situation, including its efforts to secure funding, revenue decline, and impact of Omicron on trading. It also includes relevant details about the company’s performance and growth in Morrisons Daily stores.
Noise Level: 3
Noise Justification: The article provides relevant information about McColl’s Retail Group’s financial situation, including its efforts to secure funding, revenue decline, and impact of Omicron on trading. It also mentions the company’s performance in the first quarter and the progress of Morrisons Daily stores. The information is mostly factual and stays on topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: McColl’s Retail Group’s financial situation and potential impact on hedge funds and lending banks
Financial Rating Justification: The article discusses McColl’s Retail Group’s efforts to secure new funding, its financial performance, and the impact of Omicron on its revenues. This is relevant to financial topics as it pertains to a company’s financial situation and potential market implications for hedge funds and lending banks.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event occurred in the last 48 hours.
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