McColl’s shares topple by a third after supply chain nightmare hits profit forecast
Convenience store chain McColl’s saw shares plummet by a third after it warned annual profits would be impacted by supply chain chaos.
The firm blamed a lack of HGV drivers for a lack of supply of key items in the final quarter of its financial year.
It said its EBITDA for the 2021 financial year was now expected to be in the range of £20m to £22m, compared to a previous analyst consensus of £27m.
Shares dropped 33 per cent on Wednesday morning and were still subdued at minus 12 per cent in the afternoon.
Jonathan Miller, chief executive of McColl’s, said: “It is disappointing to see supply chain issues worsen through the second half, but external factors have not eased, and continue to impact much of the UK economy. We are working collaboratively with our wholesale partner Morrisons to restore in-store product availability as quickly as possible.”
In good news for the firm, it reported it was accelerating the roll out of its Morrisons Daily format, with more than 150 stores anticipated by the end of the month.
Miller added: “This new format is showing strong sales growth and is delivering better ROI than we expected. Our conversion programme is moving at pace, ahead of time and on budget, and we anticipate reaching 350 Morrisons Daily stores well in advance of our original target.”
Businesses across the UK high street have been facing supply challenges, with bakery firm Greggs reporting potential shortages of products including its popular vegan sausage roll.