McColl’s H1 losses widen to £2.1m
The company also reported a 5.3% year-on-year fall to total revenues of £572.7m in H1 FY21
McColl’s Retail Group, the convenience shop and newsagent operator, saw its losses before tax widen to £2.1m for the 26-week period ended 30 May 2021, up from H1 FY20’s £500,000 losses.
The company also reported a 5.3% year-on-year fall to total revenues of £572.7m in H1 FY21.
McColl’s claimed that the results were “principally reflecting store closures”, as like-for-like sales increased 1% on the same period last year and 7.4% on FY19.
Jonathan Miller, chief executive at the group, said: “Many of the changes in consumer behaviour we have seen since the onset of the pandemic have continued in 2021, with customers spending less on impulse goods, but buying more take-home and multipack products, impacting overall margins.
“Alongside the impact that the industry-wide shortage of delivery drivers has had on our product availability, we are confident that these temporary trading effects will reverse as restrictions ease and distribution returns to normal.”
He added that “whilst the wider economic outlook remains uncertain”, the firm will continue to roll-out its Morrisons Daily stores “to help drive sustainable, profitable growth over the medium term”.
Alongside the H1 results, McColl’s announced a proposed capital raising via a firm placing to raise £30m, as well as an open offer to raise up to £5m.
