McColl’s shares plunge as it warns on prof­its

The Daily Telegraph - Business - - Business - By Char­lie Tay­lor-Kroll

McCOLL’S has warned that prof­its would be about a fifth less than the City had been ex­pect­ing from the newsagent, blam­ing the col­lapse of the whole­saler Palmer & Har­vey a year ago.

Shares in the con­ve­nience store chain, which were listed in London in 2014 at 191p a piece, fell by 29.7pc to close at 82.9p.

The re­tailer said the col­lapse of Palmer & Har­vey had “se­verely dis­rupted” trad­ing. As a re­sult, it now ex­pects ad­justed prof­its in the year to Novem­ber to come in at £35m, down from the £44m a year ago.

CEO Jonathan Miller also warned of trou­ble ahead, say­ing the na­tional liv­ing wage, com­pe­ti­tion in the sec­tor and weak con­sumer spend­ing would hit trad­ing.

The profit warn­ing came as McColl’s re­ported a 1.4pc drop in like-for-like sales. To­tal sales were up 8pc, boosted by the ac­qui­si­tion of 300 Co-op stores last year.

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