At 12.25 PM today, embattled retailer, McColls (MCLS) asked for trading to be suspended, after they gained 52% on the session, to 1.75p. Trades were going through close to that price, as “savvy” retail investors BOTFD. Crazy. Minutes later, McColls announced it was going into administration. Only yesterday, the company warned about press speculation, noting:
I just cannot understand how anyone still owns shares in retailer McColls (MCLS) as it is, as I have been warning since November, doomed. The shares are down by 94%, since that prescient warning, at just 0.848p. Now, with more bad news today, the shares have only 0.848p to go to reach target.
On November 17, I told you to short McColls (MCLS) at 14.5p, warning that, just months after a big placing, it was going to run out of money. Of course, everyone else knew better than old Tom. Today, the shares are 3.94p, and now, it is the company warning you the shares are heading for zero.
An end-February update from McColl's Retail Group (MCLS) included that it “expects FY22 adjusted EBITDA to be slightly behind current market expectations, and net debt in the region of £100m at the end of FY22”. Now a “Directorate Change”…
Two stocks to talk about today. You may remember back in December I observed about McColl’s (MCLS) after observing plans for change - and a troubled balance sheet - at the convenience shop and newsagent operator, ‘whilst I am going to keep watching this one, I am not buying today’. That was smart as the shares have fallen from c. 10p when I wrote in December to about 7p on Friday.
Whilst I do think there are some interesting travel plays, I am far away from excited by either TUI (TUI) (which reminds me of a German equivalent of Thomas Cook) or SSP Group (SSPG) (where you will not be seeing me buying something from an Upper Crust store at a railway station or an airport). I am a bit intrigued though to see that the Taylor Wimpey (TW.) CEO has decided to move on, especially as we saw last weekend rumours that private equity players may be buying a stake. I wonder if the rumours around this have had an influence, although serving as its CEO for 14 years is a decent innings. I don’t think though I have ever written about McColl’s (MCLS), the convenience shop and newsagent operator with trading names Morrisons Daily and (naturally) McColl's.
In August, McColls (MCLS) raised £33 million gross in a placing and open offer. Natch the crony capitalsts snaffled almost £3 million of that in fees which is perfectly understandable. FFS: Do you know what inflation is running at for upper class hookers and pure Charlie? Today there was dismal profits warning which begs the question of whether another bailout will be needed. Let's do the maths.
Previously writing on UK neighbourhood retailer with over 1,200 stores McColl's (MCLS), last month with the shares around 23p I questioned how “well placed” the balance sheet with the ‘Morrisons Daily’ developments delivering the strongest performance across the business. Today a “trading statement”... and the shares currently around 15p.
Previously writing on UK neighbourhood retailer with over 1,200 stores McColl's (MCLS), in August with the shares falling below 30p I noted confirms “a potential capital raise” though how much will there be left after sufficiently strengthening the balance sheet? (strongest performance from Morrisons Daily stores – there only 31 at 29th November 2020). Today a “opens 100th Morrisons Daily store” announcement, so what of the shares now around 23p?...
Having commenced 2021 at just over 26p, shares in UK neighbourhood retailer with over 1,200 stores McColl's (MCLS) previously closed at 35p. However, they’re currently back below 30p following a “Response to media reporting”-titled announcement.
