MCCOLL'S RETAIL GROUP PLC — Earnings Release 2014

Aug 27, 2014

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RNS Number : 0515Q

McColl's Retail Group plc

27 August 2014

27 August 2014

McColl's Retail Group plc

Interim Management Statement

McColl's Retail Group plc ("McColl's" or the "Group"), a leading neighbourhood retailer operating in the UK convenience and newsagent sectors, announces its interim management statement for the 13 week period from 26 May 2014 to 24 August 2014.

SOLID SUMMER TRADING IN LINE WITH EXPECTATIONS

§ Strong growth in total Q3 sales up 4.3%.

§ Q3 like-for-like sales1 slightly down year on year (-0.5%), against a strong summer in 2013.

§ Year to date total sales up 3.9% and like-for-like sales1 up 1.2%.

§ Convenience estate development on-track.

§ Excellent progress on the modernisation of our Post Office network, with the opening of our 250th Post Office conversion since 2013.

James Lancaster, Chief Executive Officer commented:

"Following on from our positive half year results announced last month, we have made good progress in the third quarter, against a strong comparison period in 2013, and we have continued to expand our Convenience Store estate.  We were also delighted to announce the opening of our 250th Post Office conversion last week. Whilst the sector remains competitive, trading figures for the important summer quarter have stood up well and the convenience market fundamentals are very positive. The Group remains in line with expectations for the full year."

Financial Highlights

Total Group sales grew by 4.3% year on year in the 13 weeks to 24 August 2014, driven by new store acquisitions.  Like-for-like sales were slightly down (-0.5%), representing a good performance against a strong summer in 2013, and are up 1.2% for the year to date. 

Operational Highlights

The Group continues to execute its strategy to enhance its offering in the convenience sector through store conversions and acquisitions, improving and extending its product range and widening the choice of services it provides.

In line with its plans for the period, the Group acquired 10 new Premium Convenience stores and converted 16 Newsagent stores to Food and Wine stores.  Year to date the Group has acquired 33 new Premium Convenience stores and 36 Food and Wine stores have been converted.  McColl's now has a total of 771 Convenience stores representing 59% of the Group's total store base of 1,298 and is on track to achieve its target of 1,000 Convenience stores by the end of 2016.

The modernisation of the Group's Post Office network continues to progress very well and has been received positively by customers.  Since 2013 the Group has completed 80 "Mains" conversions and 173 "Locals".  This includes 147 of the 191 locals to be completed during 2014.

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1 Like-for-like sales reflect sales from stores that have traded throughout the current and prior financial periods, and sales include VAT but exclude sales of fuel, lottery and mobile phone top-up.

- ENDS -

Please visit www.mccolls.co.uk or for further information, please contact:

McColl's Retail Group plc                                                                            + 44 (0)1277 372 916

James Lancaster, Chief Executive Officer

Jonathan Miller, Chief Financial Officer

Dave Thomas, Chief Operating Officer

Media Enquiries                                                                                               +44 (0)20 7404 5959

Brunswick

Simon Sporborg

Alison Kay

Cerith Evans

This information is provided by RNS

The company news service from the London Stock Exchange

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