McColl’s completes discounted placing to speed roll out of Morrisons convenience format

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McColl’s Retail Group PLC (LSE:MCLS) has raised gross proceeds of GBP30mln with a heavily discounted placing to accelerate the roll-out of its store conversions to the Morrisons Daily format.


Under the partnership with Wm Morrisons Supermarkets PLC (LSE:MRW), the convenience store specialist said it now aims to deliver 50 additional conversions on top of the original 300 planned, and to complete the roll-out a year earlier than present plans.


McColl’s confirmed on Friday that it had raised a net GBP27.3mln after costs and still running an open offer for another GBP5mln, as announced late on Thursday afternoon.


The fundraise was completed at a price of 20p, a level last seen in October, with the shares having traded above 30p since March.


Chief executive Jonathan Miller said on Thursday that the capital raising “represents a transformational opportunity to accelerate our strategy and capitalise on the growth opportunity available to us in food-led convenience”.


With 25 new Morrisons Daily conversions during the first half of the year and a total of 56 stores currently in operation under the format, he said the group was “delighted with the progress”, with the format offering “a strong return on investment, delivering double-digit sales uplifts and fast payback”.


Rolling out six stores per week, he said the group was on track to complete 100 by the end of the year.


McColl’s also has a partnership with Uber Eats that was said to be “progressing well” across 400 stores and with a trial in Morrisons Daily stores.


The group reported a statutory loss before tax of GBP5.9mln on revenue down 5.3% to GBP572.7mln.

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