McColl’s is delaying full annual results reporting until it has found a refinancing resolution, which will not add any value for shareholders.
The convenience store group stated that a potential financing solution is under active discussion with its commercial partners and lenders, which should help create a stable platform for growth.
A trading update explained: “It should be noted that even if such a successful outcome is achieved it is increasingly likely to result in little or no value being attributed to the group’s ordinary shares.”
The group has experienced mixed trading since its last update on 28 February, with performance improving during the first half of March, before experiencing “softer trading” through the Easter period - impacted by the reduced consumer spending and continued supply chain disruption.
Mid-morning trading saw McColl's shares fall by 2.30p - or 58.17% - lower at 1.76p.
Despite this, the group's Morrisons Daily stores continue to perform strongly, delivering like-for-like sales growth at least 20% better than non-converted, comparable stores, and ahead of the total convenience market.
The move to convert stores to the Morrisons Daily format is “fundamentally reshaping” the business into a more profitable and sustainable model in the medium term, according to the statement.
McColl's confirmed that it was expecting its earnings before tax to not be higher than the level achieved last year - around £20m.
Last February, the group issued a profit warning and its chief executive Jonathan Miller resigned.
Chief operating officer Karen Bird replaced Miller on an interim chief executive basis.
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