British convenience store chain McColl’s saw shares sink over 10 percent on Monday morning, after warning on disruption in the wake of the collapse of one of its key suppliers.
Palmer & Harvey entered administration late last year,with McColl’s warning that their collapse was likely to have further disruptions in 2018.
The retailer has made contingency arrangements, including signing a new short-term supply contract with Nisa and beginning a new supply partnership with Morrisons.
‘Whilst these contingency agreements have largely ensured continuity of supply, we continue to closely manage distribution to these stores and the disruption has impacted our sales performance,’ the company said.
Like-for-like sales sales for the 11-week period ended 11 February were down 2.2 percent as a result of the supplier problem, but total sales were up 26.7 percent. Other figures were also strong, with profit before tax for the year to November by 4 percent to £18.4 million, as revenue rose by 19 percent to £1.13 billion.
Shares in McColl’s (LON:MCLS) are currently trading down 10.84 percent at 222.00 (0826GMT).
