• Half-year pre-tax profits up 8.1% to £8.2m
  • Like-for-likes slip 2.2%
  • Total sales up 2.2%

McColl’s has reported an increase in pre-tax profits in the six months to the end of May, although like-for-likes fell during the period.

The group, which agreed a deal this month to acquire 298 Co-op convenience stores, revealed pre-tax profits of £8.2m, up 8.1%, in the 26 weeks to May 29.

However like-for-likes fell 2.2% in the period.Total sales rose 2.2% to £469.2m.  

Like-for-likes in recently acquired and converted stores were up 1% while like-for-likes in premium and food and wine stores fell 1.5%.

In newsagents and standard convenience stores, like-for-likes were down 3.7%. McColl’s attributed this to “continued pressure on traditional categories”.

It said in a stock exchange announcement that it was on track to deliver its expected results for the year.

Chief executive Jonathan Miller said: “We are committed to enhancing our convenience proposition through growing market share, developing our product ranges and delivering great customer service.”

He described the Co-op deal as ”a pivotal moment for the business and allows us to accelerate our growth ambitions and considerably increase our neighbourhood presence”. 

McColl’s aims to have an estate of 1,000 convenience stores by the end of 2016.

At the end of the reporting period it had 433 newsagents and 933 convenience stores. This is an increase of 30% in convenience stores since its IPO in 2014.

It acquired 24 new convenience stores during the six months.

McColl’s is also rolling out Collect+ and Amazon lockers across its estate.

 

 

 

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