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Annual Results

McColl's Retail sees FY results in line with its views

01 December 2015 07:41

McColl's Retail sees its FY results in line with its views. Total sales were up 2.7% in the 13 weeks to Nov. 29., but like-for-like (LFL) sales in Q4 were down 1.8% over that period, albeit an improvement on Q3.

For the FY, LFL sales were down 1.9% against the comparable 52-week period. Performance in the premium convenience and food and wine estate held up well at only 0.6% down for the year, once again validating the group's strategy of focussing on the convenience sector.

"I am delighted to report significant progress on our strategic initiatives for the financial year, continuing our expansion into convenience and capturing further market share," said CEO James Lancaster in a statement.

"Whilst the sector continues to be challenging, total company like-for-like sales improved in the quarter, and have held up well in our developed convenience stores over the course of the year."

STRATEGIC AND OPERATIONAL REVIEW

The group continues to deliver its strategic objective of enhancing its offering in the convenience sector through store conversions and acquisitions, improving and extending its product range and widening the choice of services provided.

In line with its plans for the year, the group acquired 60 convenience stores and converted 45 newsagents to the food and wine format, further extending its convenience offer. The group now operates 893 convenience stores representing two thirds of the group's total store base of 1,352, and remains on track to achieve the target of 1,000 convenience stores by the end of 2016.

The group also made good progress in expanding its food to go offer this year, through the introduction of coffee and snacking modules in 115 stores and the installation of 33 full food to go modules. McColl's also opened its first Subway franchise during the quarter, in an existing petrol forecourt site in Tamworth, with encouraging early results.

This year 100 of the group's newsagents had alcohol added to expand the range on offer. In the final quarter, following a review of its portfolio of stores, the group decided to sell approximately 100 of its other newsagents which no longer fit with its long term plans. The divestment is expected to be earnings neutral in 2016, and the funds generated will be used to invest further in convenience.

During the year, the group also reviewed opportunities to improve efficiency and reduce costs resulting in restructuring some support services within head office and field operations.

Story provided by StockMarketWire.com

Related Company: MCLS

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