Shares plunge

McColl’s warns its equity may have ‘no value’

McColls-Retail-Group
McColl’s is refinancing its balance sheet

Shares in McColl’s Retail Group plunged by more than half after it warned that its equity may have no value and is delaying its full year results until it reaches agreement on refinancing.

It said a potential financing solution is under active discussion with its key commercial partner and lenders which would resolve the short term funding issues and create a stable platform for the business. 

In a trading statement it said: “It should be noted that even if such a successful outcome is achieved it is increasingly likely to result in little or no value being attributed to the group’s ordinary shares.”

The shares closed 2.17p (55.01%) lower at 1.775p.

The group said it has experienced mixed trading since the last update on 28 February, with softer trading through the Easter period, impacted by reduced consumer spending and continued supply chain disruption across the industry.

The board now expects adjusted EBITDA for the current financial year to be no higher than the level achieved in FY21.

The group is working closely with its wholesale supplier to mitigate product availability issues.

Despite this, the group’s Morrisons Daily stores continue to perform strongly, delivering like-for-like sales growth that is at least 20% better than non-converted, comparable stores, and ahead of the total convenience market. 

The move to convert stores to the Morrisons Daily format is fundamentally reshaping the business into a more profitable and sustainable model in the medium term.

McColl’s issued a profit warning in February and last month Jonathan Miller resigned as chief executive. He was replaced by chief operating officer Karen Bird on an interim CEO basis.



Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.