Convenience store and newsagents McColl’s has reported a 91% decline in pre-tax profits for the six months to 26 May, to £200,000.
The profit drop is in spite of a 1% increase in like-for-like sales and a small increase in total revenue. Net debt also reduced to £89.7m from £112.6m last year.
The group has said the two reasons behind the drop is down to a “highly competitive” market, and the collapse of supplier Palmer and Harvey last year.
Jonathan Miller, CEO of McColl’s 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 whilst also maintaining strong capital discipline, reducing debt whilst sustaining appropriate levels of investment.
“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.”