Annual Report and Accounts 2017

With 1,611 stores across the UK we’re a pretty big business these days, but no two are the same. With our flexible model we are focused on bringing the best product offer, and convenient services, to all the local communities we serve, so we can achieve our vision to be your neighbourhood’s favourite shop.


+19.1% 2016


Adjusted earnings per share*
+14.3% 2016


Capital expenditure excluding acquisition*
-21.7% 2016


Adjusted EBITDA*
+20.0% 2016


Profit before tax
+4.2% 2016

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Shaping the future

It has been another year of transformation for McColl’s and the business continues to go from strength to strength. With a clear vision and strategy, never has the business had so many opportunities to drive growth.

Transformational acquisition

In 2017 we completed the transformational acquisition of 298 stores from the Co-op, integrating all of the stores over the course of seven months. They are driving a step-change in sales and profit growth in the business, and are a great addition to the Group.

New supply partnership

Our new long-term partnership with Morrisons will provide McColl’s with a best-in-class fresh food and grocery offer through the Safeway brand. It will also simplify our operations as we move to a single wholesale supply partner.

Driving organic growth

This year we completed the second stage of our convenience store refresh trial that involves redesigning and relaying our older convenience stores. The results have been very encouraging and our refresh programme provides a great opportunity to drive organic growth in the business.

Grocery sector remains competitive

Shoppers continue to favour convenience stores and it’s been a year of unprecedented change for the channel. In particular we have seen increased activity and competition within the wholesale supply market for convenience stores. Amidst this competitive environment, we have aligned ourselves with a new supply partner, ensuring we are well positioned to maximise the growth opportunities that the convenience channel offers.

Three strategic goals

Our three strategic goals are clear and are underpinned by strong business plans aligned to our five key building blocks – brand, customer, stores, colleagues and offer.

Growing convenience offer

Working with our carefully selected supply partners we offer an ever-greater range of products and services to meet the evolving needs of neighbourhoods across the UK.

Excellent customer service

Understanding customers and doing everything that we can to meet their everyday needs is at our core. We strive to build loyalty and strengthen our reputation in the neighbourhoods we serve, by providing a warm and friendly welcome along with a host of services that make the lives of our customers easier.

Increase neighbourhood presence

We will grow our neighbourhood presence by strengthening our brand and acquiring new stores. The convenience market remains highly fragmented with plenty of opportunities for acquisition and consolidation.

A bigger, stronger McColl's

This has been my 27th year in the business and my first full year as Chief Executive. I am immensely proud of what we have achieved and I believe the business is in the best place it’s ever been. I can’t recall a year when we have experienced more change in the grocery sector and never has there been a more exciting time to be in convenience.

Building an exciting future for McColl's

If 2016 was about laying solid foundations for the future of McColl’s, then 2017 has been about cementing in place the building blocks that will support our growth for years to come. With the on-boarding of over 300 new stores, the successful conclusion of our store refresh trial, and having agreed a groundbreaking new supply deal, McColl’s is well set for sustainable growth in 2018 and beyond.

*Growth in sales is a ratio that measures year-on-year movement in Group sales for continuing operations for 52 weeks. It shows the annual rate of increase in the Group’s sales and is considered a good indicator of how rapidly the Group’s core business is growing.

Adjusted Earnings per share: Earnings per share before the impact of adjusting items.

Capital expenditure, excluding the acquisition: The additions to property, plant and equipment and intangible assets that do not relate to the acquisition of, or further investment in, the 298 stores acquired from the Co-op.

Adjusted EBITDA: This profit measure shows the Group’s Earnings Before Interest, Tax, Depreciation and Amortisation adjusted for both Property gains and losses and other adjusting items, in order to provide shareholders with a measure of true underlying performance of the business.