Mccoll's Retail Share Discussion Threads

[loganair] 30/3/2018 22:54

McColl's Retail Group transitioning into a significant fresh food business:

Simon Fuller, chief financial officer of McColl's Retail Group tells Proactive's Andrew Scott the future for them lies in being a bigger fresh food business

"The big transformation for us now is to go from what was originally a newsagent business to a convenience business and now to a food business".

"That's really the next stage of our evolution".

Fuller adds: "We're in a growing part of the market ... if you look at the cyclical trend it tends to be that convenience stores are slightly more immune - smaller basket sizes and we tend to be a little more resilient to the ups and downs in the market".

[davr0s] 19/3/2018 19:09

My advice is to ignore brokers. Historical analyses show they are right 50% of the time so you might as well toss a coin. I sold up a while back when trend broke back down

[loganair] 19/3/2018 17:51

I am surprised to see a nearly 10% fall in the share price considering today Liberum Capital came out with a 'Buy' rating on McColl's with a 300p price target.

[loganair] 22/2/2018 19:53

Analysts at Peel Hunt cautioned investors against focusing too much on the supply problems caused by the collapse of P&H, adding: "We think this is purely one-off and ignores the bigger, rosy picture.”


In a note to clients, analysts at Liberum Capital noted that the fall in current LFL sales was well below their forecast for a 0.4% decline.

They said: "We expect this to see consensus forecasts come down towards an EBITDA range of £50m-51m (vs. c.£54m currently)."

But, the analysts added: "That said, we believe this short-term impact needs to considered in the light of overall strategic progress being made by the group, including the transition to Morrisons as its single supplier over 2018. Whilst there may be some disappointment today, it is not wholly unexpected and we maintain our buy on the long-term view.”

[loganair] 12/2/2018 11:58

Consumers name top convenience store:


The full Which? poll rating was: M&S Simply Food (69%), Little Waitrose (62%), Best One (52%), Tesco Express (52%), Sainsbury’s Local, Co-operative Food (50%), One Stop (49%), Costcutter (48%), Nisa (45%), Londis (44%), Budgens (43%), Premier (43%), Spar (42%), and McColl’s (37%).

Alex Neill, managing director of Which? home products and services, said: “Convenience store sales are booming and these smaller shops are becoming a bigger feature of people’s everyday lives as more us use them to top up our bigger supermarket or online shop.

“Our survey show shoppers believe M&S Simply Food and Little Waitrose have raised the bar with tidy stores and a great range of fresh products, leaving rivals like McColl’s looking poor value for money.”

However, McColl’s is due to refit 125 stores this year and a new range of food under the Safeway brand is being introduced.

[neilyb675] 05/1/2018 18:30

The Group's Preliminary Results for the 52 week period ended 26 November 2017 will be released on 19 February 2018.

[loganair] 05/12/2017 09:28

Kamcity - Implications:

Key will be how McColl’s handles the seismic changes and consolidation taking place in UK convenience.

Suppliers need to anticipate the ‘final’ shape of the sector…

…and somehow try to place their McColl’s business in that context.

Meanwhile, short term mode might be the best strategy.

[walbrock82] 04/12/2017 16:43

Sales grew 19% for the full year and up 28.9% in the quarter helped by the 298 acquired convenience stores. I feel the bad news is McColl’s struggle to grow Like-for-like sales. For the full year, it came in at ONLY 0.1% and, LFL for Q4 is down 1.1% due to bad weather.
LFL is important, and grocery businesses should be recovering due to high food inflation, although volume and average basket per customer is unknown.

On the whole, the update is mixed, but McColl’s LFL Sales have been negative in the past couple of years.

This didn’t deter the share price rising since they made their debut in 2014. It outperformed the other supermarket since then (to see chart, click

As well as Net debt rising to £110m or a-third of total assets. I feel the shares will trade sideways for the next three months.

We wait for the annual results next year. In the meantime, I have compiled 10 things about McColl’s that an investor should know. For more, click

[loganair] 04/12/2017 08:55

Nisa offers short term supply contract to McColl's after collapse of Palmer and Harvey:

Starting on 4 December, the contract will cover those McColl’s stores that were previously supplied by the collapsed wholesaler, Palmer and Harvey.

In a statement, Nisa said it had moved “at pace” to mobilise its support while ensuring its existing availability levels will be maintained for all members throughout the Christmas trading period.

All of the McColl’s stores previously supplied by Palmer and Harvey will receive ambient stock delivered through existing Nisa-supplied McColl’s stores for onward transfer by McColl’s teams.

Arnu Misra, interim chief executive of Nisa, said: “I’m very pleased that Nisa has been selected by McColl's to further support them at this crucial time. We have a highly flexible distribution model that enables us to scale quickly to members needs and as demand dictates. As a result, we will continue to manage both existing and new members without impacting our traditionally high levels of service, especially over the peak trading period.”

[loganair] 05/10/2017 19:50

Translated from Estonian:

Maxima's owner purchases a stake in the UK retail chain.

Klar, a Lithuanian investor and Nerijus Numavicius, is buying a stake in the UK retail chain.

In particular Klaris Group OÜ Klarus Capital OÜ, a subsidiary of Klarus Capital Ltd, buys 9.9 percent of the McColl Retail Group. The transaction costs £ 33.6 million.

"Today's retail market is facing challenges, and in this light, the convenience store model is very promising. The British convenience store market is several times bigger than the Baltic retailing market, "said Aurelijus Burda, director of private limited company Klarus Capital Limited, in a press release. In his opinion, in the UK last year, there were 50,000 convenience stores - and 1,650 of them belonged to the McCool group. McColl's Retail Group's stock fell slightly less than a percentage point on the London Stock Exchange today and traded at 2.87 pounds.

"I believe that it is still possible to go further and repeat Maxima's success story, but in this case, on the other hand, in the market of convenience stores," commented Nerijus Numavicius.

The richest man in the Baltics

The owner of Klarus Grupp is the Nerijus Numavicius, who is known as the Maxima Archbishop of Estonians. Since a large part of his investments is made through Estonia, Numavičius has also reached the high point of Äripäev Rikaste TOP. This year, the Rich Thorium, which is based only on Estonian assets, is Nerijus Numavicius with 114.3 million on the 13th place, while Vladas Numavicius finds 45.6 million euros. Nerijus Numavicius is considered the most prosperous person in the Baltics.

Brothers Nerijus and Vladas Numavičius laid the foundation for one of Lithuania's largest groups, Vilniaus Prekybale, which currently operate at Maxima, Euroapotheca, Hermitage and Akropolis Grupp. In addition, Nerijus Numavicus also has a private equity fund NDX, whose activities have expanded to 18 countries.

Numavičius operates in Estonia in 2009 through the Klarus Group.

[loganair] 05/10/2017 19:41

Klarus Capital holds an 11.39% stake in McColl's Retail Group following a transaction on Tuesday.

Klarus either held no stake or a nominal holding in McColl's prior to the transaction, but now has 13.1 million shares in the convenience store operator.

McColl's shares closed 0.5% higher on Wednesday at 289.50 pence. At that price, Klarus would own a stake valued at around GBP38 million.


The only shareholder of Klarus is Mr Aruelijus Burda who is Lithuanian. He also also the director of Primrose Health and Manager of Lenus Trading, all three companies set up this year, 2017.

Translated from Lithuanian:

Klarus Capital Limited, a UK-based company linked to the Unexpected Number, for EUR 33.6 million. Pound Sterling (GBP) acquired McColl's Retail Group PLC, the UK's second-largest convenience store (9.9%) for consumer-friendly retail space. a shareholder and became one of the largest shareholders of this company,

"The segment of" changing "retail market" convenience "looks very attractive. Only the convenience market in the United Kingdom is several times larger than the entire Baltic food retail market, says Aurelijus Burda, director of Klarus Capital Limited.

According to him, last year in the United Kingdom was 50 thousand. Convenience store formats. McColl's, managing 1,650 small-scale stores, is the second-largest "convenience" market player behind Tesco.

The Convenience Market is currently up to 68%. shops are managed by individuals. Thus, this market is highly fragmented.

The head of Klarus Capital Limited says the acquisition of McColl's stake is a long-term strategic investment of our company. He also adds that the stock exchange has been monitored for some time, and related companies have already purchased about 1.4%. shares of this British retailer.

"With this acquisition, the Aurelija Burd team has taken a solid step in the UK market. I believe that it is possible to go further here and repeat Maxima's business success story only in the "convenience" segment, "says N. Numavičius.

The report states that Klarus Capital Limited is a United Kingdom company established in 2017 whose main business is investment in the market of this country. The sole shareholder of the company is Klarus Finance OÜ, an Estonian company.

Klaru Group was founded in Estonia in 2009, reorganizing the then Vilnius trade in order to develop business outside of Lithuania.

After acquiring McColl's stake, Klarus Capital Limited's authorized capital will be raised to 35 million.

GBP DELFI reminds Klarus Capital Limited, as well as Vilniaus prekybos, Nerijus Numavičius, Ignas Staškevičius, Vladas Numavičius and Mindaugas Marcinkevičius. Most of the shares - 71.7%. - owned by N. Numavicius.

McColl's Retail Group PLC is a British convenience store chain that manages 1,650 stores with McColl's, Martin's, and RS McColl's (Scotland) brands.

2016 McColl's Retail Group PLC's turnover reached 950 million. GBP, and the turnover for the first half of this year was 7.6%. higher than last year and amounted to 504.8 million. GBP 2016 EBITDA amounted to LTL 36.7 million. GBP, and in the first half of this year it increased by 2.9%, compared to the same period last year, and amounted to 16.5 million. GBP

[douglas fir] 05/10/2017 18:49

Overview

Klarus Capital Limited is an active company incorporated on 23 May 2017 with the registered office located in Greater London. Klarus Capital Limited has been running for 4 Months. There are currently 1 active directors and 0 active secretaries according to the latest confirmation statement submitted on 23 May 2017.

hxxps://suite.endole.co.uk/insight/company/10785309-klarus-capital-limited

hxxps://suite.endole.co.uk/insight/people/22894659-mr-aurelijus-burda

any views?

[loganair] 05/10/2017 18:09

It seems that Klarus Capital has come from an non-notifiable stake to holding 11.39%

[loganair] 05/10/2017 18:07

THE co-founder of convenience chain McColl’s has stepped down from the board and cashed in his remaining £33.6 million stake amid speculation that he is set to lead a rescue of grocery wholesaler Palmer & Harvey.

James Lancaster, who started the business – then a cigarette vending operation – more than 40 years ago, owned a 28 per cent stake worth £56 million when the company floated on the stock market three years ago.

Its shares have jumped from a listing price of 191p and Lancaster sold his remaining 10 per cent holding, or 11 million shares, at 295p.

Lancaster said: “It’s the right time for me to stand down. I have every confidence that under the stewardship of the board, McColl’s will continue to thrive.”

Lancaster has reportedly been sounded out by private equity group Carlyle, which is working on a takeover of Palmer & Harvey, to become the wholesaler’s non-executive chairman.

Cigarettes giant Imperial Brands said last week it was working with other stakeholders to “create a sustainable future for Palmer & Harvey, with whom we have a close trading relationship”.

Imperial and rival Japan Tobacco have already provided combined loans of about £60 million.

McColl’s declined to comment on Lancaster’s possible move.

[che7win] 05/10/2017 17:20

P/E for 2018 is 12

[douglas fir] 05/10/2017 16:34

re yesterday trades and rns....presumably the lack of a corresponding rns on the purchase side indicates a large stock overhang ?...

[che7win] 03/10/2017 15:22

Interesting trades this afternoon.

[loganair] 09/9/2017 16:07

Beaufort Securities:

Our View: McColl's Q3 performance was strong, with both revenue and LFL sales growth boosting the year-to-date figures. Whilst LFL sales of +0.7% in Q3 has slowed from +1.4% seen in Q2, the latter had benefitted from favourable weather and a weaker comparative (Q2 FY2016: LFL -2.6%, Q3 FY2016: LFL -2.0%). Perhaps more importantly, the LFL performance of recently acquired and converted stores continued to be strong at +2.6% (Q2 FY2016: +3.8%). Looking ahead, the management confirmed that the Group remains on track to achieve full year results in line with its expectations. Having 'refreshed' three convenience stores during the period, the Group said further 20 stores are planned by the end-FY2017.

McColl's recently commissioned research with IGD suggests that convenience stores are estimated to continue enjoy strong growth at +18% to £47.1bn over the next five years. This suggests that the demand for convenience is there, becoming increasingly dominated by a smaller number of more sophisticated players that are capable of offering range and buying power that traditional mom-and-pop stores simply cannot.

Given its wide and successful experience in identifying and integrating such opportunities amid an inexorable phase of closure and consolidation amongst the UK's highly fragmented base of independents, McColl's can be expected to identify further significant opportunities over the medium-term.

The Group's operational scale and customer reach is something that the national supermarkets are also likely to be keen to tap into, in terms of potential mergers and takeovers. Considering this background and recent broker upgrades, share price has increased sufficiently to take the Group's FY2017E and FY2018E P/E multiples to 16.6x and 12.9x, while being accompanied with dividend yields of 3.6% and 3.8%, respectively. This now appears to price in just about all of the near-term excitement and Beaufort accordingly reiterates its Hold recommendation on the Share.

[loganair] 01/9/2017 21:33

McColl’s shares rise by 10pc after suggestion value is ‘way too low’:

Shares in McColl’s rose nearly 10pc after a note from analysts at Peel Hunt suggested the retailer’s value is “way too low” and tipped it as a potential takeover target for other retailers.

On Thursday, McColl’s had announced a 31pc lift in sales in the last three months after it was boosted by its acquisition of 298 Co-operative shops earlier this year.

The convenience chain has also recently signed a new supply deal with Morrisons in a move that will resurrect the Safeway brand.

Jonathan Pritchard, analyst at Peel Hunt, said: “We think the Safeway product is a complete step change on the own-label brands present now and the like-for-like uplift could be very material,” adding that the expected effect on the firm’s margins was “exciting̶1;.

He said that as food retailers seek other areas of growth, such as Sainsbury’s purchase of Argos, McColl’s would be looked at as a potential target.

“McColl’s is without doubt a prime strategic asset and the valuation is way too low,” he said, suggesting that Peel Hunt’s target price of 325p was “profoundly conservative”.

Shares soared 26p to 295p, their highest ever price. Liberum analyst Adam Tomlinson also highlighted the chain as having value to a buyer: “The sector remains in flux, which may bring further material M&A opportunities for McColl’s and also highlights the business as a potential strategic M&A target itself,” he said.

[dirty75] 01/9/2017 13:09

whole sector has been on the move for months now.

[davr0s] 01/9/2017 11:50

The ask actually rose to 320 (for a moment I thought they might have been taken out) but no trades at that level. But shows that there aren't many sellers about atm

[davr0s] 01/9/2017 11:49

The orders on the ask had been weakening all week so all it needed was an increase in volume which was duly obliged around 11 today - no other reason needed

[pj fozzie] 01/9/2017 11:45

But why the sudden surge - I can't see this makes sense? What has changed from yesterday?

(Not that I'm complaining!)

Cheers,
PJ