Convenience and CTN chain Martin McColl has posted a 37.4% drop in full-year profits following a fine from the OFT.

The retailer posted pre-tax profits of £6.1m in the year to 30 November 2008, down from £9.8m the year before, on sales up 11% to £775m. It paid a £3.9m fine to the OFT in July last year following an investigation into the price-fixing of tobacco products.

The company was still in a strong financial position, insisted chairman and CEO James Lancaster, as it had used £19m from the sale of 27 hospital stores to Compass Group in December to down debt.