McColl’s: Predicts lower earnings for the year, ‘dip’ 33% for the stock

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The British retail company McColl’s forecast lower profits for the year, as the lack of truck drivers and insufficient supply of basic products intensified in the fourth quarter and hit revenues, sending its shares to a 33% dip.

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The company’s stock hit a record low of 11.7 pence, heading for its worst day in a seven-year trading session.

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McColl’s said it was working with wholesale partner Morrisons to restore product availability, but was unable to fully mitigate the impact of supply chain problems in stores, leading to significantly lower-than-expected revenue.

Retailers around the world are struggling with tight labor markets and stagnant supply chains as economies reopen from pandemic constraints, while Britain also faces a shortage of European Union workers due to Brexit.

“It is disappointing to see supply chain problems worsen in the second half of the year, but external factors have not eased and continue to affect much of the UK economy,” said CEO Jonathan Miller.

The company, with a network of 1,265 convenience stores across England, Scotland, Wales, now expects core business profits of between -2 20-22 million ($ 26.93-29.62 million) for the 12 months to 28 November.

Last year it had announced 29 29.1 million.

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Source From: Capital

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