Newsagent and convenience store McColl’s has seen first half losses widen as it re-arranges its board to split the roles of chairman and chief executive.

In the 26 weeks ended May 25th, the group saw a loss before tax of £3.96m, from a loss of £2.47m a year earlier.

However, total sales were up 3.6% to £444.2 million and like-for-like sales were up 2.1%.
James Lancaster, chairman and chief executive officer, said: "McColl's has delivered solid progress during the first half of the year, and we remain on track to deliver the expected results for the full year, building on the success of our IPO in February. Our store conversion and expansion strategy continues to progress well, underpinned by our strengthened balance sheet and strong cash flow.  With the opening of our 750th store in June, we are on track to achieve our target of 1,000 convenience stores by the end of 2016.

In addition to our store transformation, we are also focused on expanding our products and services to provide more convenient ways for our customers to shop.  We have begun the roll out of Post Office 'locals' across our portfolio.  We have also completed our supply chain transformation which is helping to increase basket spend.

Notwithstanding the competitive landscape, I am encouraged by the strong fundamentals of the convenience retail sector and the ability of McColl's to capture growth in this market."

In a separate statement, the group said that it would be splitting Mr Lancaster’s role so that he can “become fully focused on his role of chief executive”

John Coleman, currently deputy chairman, will become on-executive chairman.

Meanwhile, the group’s chief operating officer, Martyn Aguss, has resigned from the group and Dave Thomas, currently operations director, will become COO.