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McColl’s has experienced “softer trading” through the Easter period, impacted by reduced consumer spending and continued supply chain disruption across the industry.
The board said it now expects adjusted EBITDA for the current financial year (FY22) to be “no higher” than the level achieved in FY21 (£20m on a pre IFRS 16 basis).
In search for a bidder to prevent its collapse, the group said it has debts of almost £170m.
McColl’s continues to review costs across all parts of the business in order to help mitigate the “challenging” trading conditions, as well as being “even more targeted” in its capital deployment.
The group added that it is “working closely” with its wholesale supplier to mitigate product availability issues.
Additionally, a financing solution is under discussion with its key commercial partner and lenders which would resolve the short term funding issues and create a “stable platform” for the business going forward. It “appreciates” short term credit support received from its commercial partners and senior lenders.
It is noted that even if a successful outcome is achieved it is likely to result in “little or no” value being attributed to the group’s ordinary shares.
This means it is expected that the publication of its full-year results will be delayed beyond the end of May 2022, which is the current deadline for filing under the Listing Rules.
