UK convenience retailer McColl's Retail Group has posted a 1.8% year-on-year decline in revenue to £1.22 billion (€1.45 billion) in its financial year ended 24 November 2019.
The company attributed this decline to store closures and divestments, which were a part of its store optimisation programme.
Total like-for-like sales remained flat during this period, compared to a 1.4% decline in 2018.
Adjusted EBITDA for the period declined to £32.1 million (€38.1 million) from £35.0 million (€41.6 million) a year ago.
The retailer's adjusted profit before tax amounted to £7.3 million (€8.7 million), while its net debt reduced to £94.1 million (€111.7 million) from £98.6 million (€117.1 million) in 2018.
'Challenging Trading Conditions'
Commenting on the company's performance, chief executive Jonathan Miller said, "We have stabilised the business and refocused on retail execution in 2019, in line with our key priorities for the year. Against challenging trading conditions we have made good operational progress while reducing debt and making appropriate levels of investment."
The company reported a 0.5% growth in like-for-like sales in the 11 weeks ended 9 February 2020.
Total sales dropped by 4.2% in this period as a result of the annualisation of its ongoing store optimisation programme, the company said.
Outlook
McColl's Retail Group expects 2020 to be a transitional year as the company aims to implement its strategic change programme.
Miller explained, "Looking ahead to FY20, we are embarking on a strategic change programme, refining our model and better tailoring our offer to the customers and communities we serve, using the learnings to build the foundations for future growth.
"The fundamentals of the convenience sector remain strong and, with our improving customer proposition, I am confident in delivering sustainable returns for shareholders over the long term."
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
