Mccoll's Retail Share Discussion Threads

[dirty75] 07/11/2016 10:16

nice piece in yesterdays Sunday Mail

[neilyb675] 06/10/2016 15:22

180.25 - 188.00 (GBX) at 15:20:14
on Market (LSE)

[aleman] 06/10/2016 15:20

I suppose it could be a read across from other supermarkets. Tesco is becoming profitable again, according to yesterday's update, so maybe it eases the price war pressures.

[aleman] 06/10/2016 14:18

SHare price is looking very perky of late. News coming?

[loganair] 03/8/2016 12:32

Retail Week are the latest have a positive write-up saying "it's a significante step up."

IC - Half-year figures from convenience chain McColl's were somewhat overshadowed by the group's recently announced plan to buy 298 stores from grocery rival The Co-operative Group for £117m. The acquisition was revealed just one week before half-year numbers hit the market, and helped mask a 2.2 per cent dip in like-for-like sales during the six months to May.

McColl's strategy is increasingly based on such buy-and-build growth - something made all the more evident by a 1 per cent improvement in underlying sales from recently acquired and converted stores during the reported period.

IC VIEW: McColl's appears confident in its ability to conduct a thorough conversion of all 298 Co-op sites. The shares trade on just over nine times forward earnings, around the average since listing and about right given the competitive background for grocers and the future integration risk. Hold.

[solarno lopez] 03/8/2016 12:30

all apart from the IC

[loganair] 03/8/2016 12:18

All the write-ups I've read about taking over the Coop stores are very positive and favourable and say they are a good fit for McColl's.

[isaready] 03/8/2016 12:15

shame I missed on the recent rise. I looked, then got distracted, came back then £1.50.

[dirty75] 15/7/2016 10:46

previous divi dates

Final Interim
Ex-Div 28-Apr-16 06-Aug-15
Paid 31-May-16 04-Sep-15
Amount 6.80p 3.40p

[loganair] 15/7/2016 10:16

dirty - In my opinion the worse thing any company can ever do is sale and lease back, may as well not buy the shops in the first place and in the end often will find it´s more expensive in the long run, plus if they own the assets out right any time they may get in to trouble are able to borrow against those assets.

Even Tesco has come to realise this by buying back some of their leases and the main problem Woolworths had, having only around 20 freeholds in their portfolio of over 800 shops ment they had very few assets to borrow against.

[dirty75] 14/7/2016 18:16

Also I'd imagine they'd end up shifting some of these stores and doing some sale and leasebacks. Free more cash up for bumper divis

[dirty75] 14/7/2016 18:14

Shortly . I think week 1 of August is ex-divi date for the interim payment and March for full year. Going on last years basis.

[isaready] 14/7/2016 17:26

anyone know when they are due to pay their dividends. It looks like they are 10%?

[loganair] 14/7/2016 10:53

The parts of the statement I like are:

The Board expects the Acquisition to be significantly earnings enhancing in the first full year following completion of the Acquisition.

Following the Acquisition, McColl's will continue to benefit from strong cash generation providing financial flexibility for ongoing investment and potential for a net increase in dividends.

I also note:

116 of the Portfolio stores are freehold properties, 172 stores are leasehold properties and the remaining 10 stores are mixed freehold/leasehold properties. The average remaining term of the leases for the stores on leasehold properties
is between six and seven years.

Personally I wish more of the stores were Freehold, at least over 1/3rd are.

[thorpematt] 14/7/2016 09:24

Yes surprised at the reaction because the news is not exactly been a well kept secret.

[neilyb675] 14/7/2016 09:21

TOP RISER today

[neilyb675] 13/7/2016 20:30

interested to see the open tomorrow on these, and the reaction......its a bold and good move IMO. Growth, growth, growth.

Profits and dividend returns headed the right way.

[neilyb675] 13/7/2016 18:41

boom.....

"I am delighted to announce the acquisition of 298 quality convenience stores in a transformational deal for McColl's. This opportunity substantially accelerates our growth strategy and expands our neighbourhood presence for the benefit of our customers.

"These stores are profitable, well invested, and the perfect size for our operating model. We expect the transaction to be significantly earnings enhancing for our shareholders.

"I look forward to welcoming all of our new colleagues to the business."

[haywards26] 17/6/2016 12:53

Interesting Thorpematt...

[thorpematt] 17/6/2016 09:12

H26,
I couldn't work that out either. Co-op are selling stores in its "non-convenience" portfolio". Surely MCLS are looking to but "convenience" store locations? and therefore the fit would be a poor one.

BUT I had a re-read of the annual report, check this out:-

Like-for-like sales decreased by
1.9% overall. Like-for-like sales in premium convenience
(with a wider range of products) and food and wine
decreased by just 0.6% – a strong performance in a
challenging market and another confirmation of our
strategic focus on neighbourhood convenience.
Like-for-like sales in standard convenience and
newsagents decreased by 4.0%.

So the narrative is that premium stores are better.

Also check out the items in the CEO statement headed:-
Expanding the number and nature of our stores
Evolving our stores
Bringing convenience and food-to-go together
Increasing our food-to-go offer

[haywards26] 16/6/2016 12:43

How will McColls increase the performance of the potential 300 Co-op stores that Co-op themselves feel are better to be sold off?

McColls have been and continue to be on my watchlist

[aleman] 16/6/2016 11:22

Strange that this one got clobbered with Brexit fear falls, but other stocks in the food and drug sector got hit quite hard, too. You'd think they would hold up against the rest. The market seems to be regaining itS senses, though, as food and drug is the only sector up this morning and MCLS up with it.