McColl’s profits slump as it seeks new debt arrangement

McColls 2

Struggling convenience store group McColl’s has posted declining profits and sales figures and confirmed it is in discussion with lending banks about a new debt facility.

In its preliminary results for the 52 weeks to November 24, 2019, McColl’s adjusted profit before tax slumped to £7.3m from £10.5m, and total sales were down 1.8% to £1.22bn, which was due to store closures and divestments.

McColl’s said that total like-for-like sales during the period were flat and that adjusted EBITDA had fallen to £32.1m, which reflected “softer market conditions throughout the summer”.

The retailer also confirmed that it was in discussion with its lending banks about amending and extending its existing line of credit, and said it expected an announcement shortly.

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