McColl’s shares plunge as it warns on profits
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.