Operating profit at convenience retailer McColl’s was down 38 per cent to £4.6 million in the first half as it focused on stabilising the business following last year’s supply chain disruption that resulted from the administration of Palmer and Harvey.
Chief executive Jonathan Miller said: “The key priorities that we outlined for this year were to stabilise the business and to refocus on retail execution following a challenging 2018. We have made good progress on both of these fronts while also maintaining strong capital discipline, reducing debt while sustaining appropriate levels of investment.”
Revenue was flat at £611 million in the first half.
“I am encouraged by the performance we have delivered as we regain greater operational stability, but we still have more work to do in the second half of the year. The market remains highly competitive, with challenging trading conditions, given the unseasonable weather and uncertain economic climate,” said Miller.
“Despite this, we expect to be broadly in line with expectations for the full year and we are confident that our strategy, combined with the cash generative and profitable nature of our business, will deliver sustainable returns for shareholders in the long term.”