B&M sees strong performance continue into current fiscal year

Liverpool-based discount retail chain B&M European Value Retail announced improved sales and profits for the 52 weeks to March 28, today, and delivered a dividend for shareholders.

The Speke, South Liverpool-based group also reported encouraging trading in its current financial year.

Group revenues increased by 16.5% to £3.813bn, while group pre-tax profits rose by 3.2% to £252m.

The UK B&M store fascia revenue grew by 12.6%, including like-for-like revenue growth of 3.3% for the year, including 6.6% in the fourth quarter.

The board has recommended a final dividend of 5.4p per share, bringing the full year dividend to 8.1p per share, which is a 6.6% increase.

Today’s results said that progress has been made in the group’s French operations with 19 Babou stores out of a total estate of 101 stores now trading as ‘B&M’ but the controlled testing of the performance of the converted stores was subsequently interrupted by the eight week COVID-19 closure period from March 15, to May 11.

There were 36 net new B&M UK fascia store openings in the period (51 gross) and a further 30 net new store openings planned for the current fiscal year.

The rate of new openings for fiscal year 2021 is impacted by disruption from COVID-19, but the group said its overall long term target of at least 950 B&M stores in the UK remains unchanged.

It said trading since the year-end has been strong.

Also, since the year end, the UK business delivered £1m in cash donations to foodbanks and gave £2.9m of discounts to NHS workers.

Store and distribution colleagues received 110% of normal pay to reflect their increased responsibilities and workload.

Chief executive, Simon Arora, said: “In this last financial year our core B&M UK business delivered solid growth, as did our Heron Foods convenience store business.

“However, so much about our lives has changed so profoundly and so fast as a result of COVID-19 that a financial year which ended only a short time ago already seems a world away.

“It is an understatement to say that the progress made during the year has been overtaken by recent events.

“The challenges posed by the virus have been beyond anything we have experienced before; they have tested every aspect of the way we do business in recent weeks and I’m pleased to say that B&M is coming through the crisis well because of the strength of the B&M proposition and the way our team has responded to those challenges.

“For that, I express my gratitude to all of my colleagues across the business.”

He added: “Looking ahead, there are, of course, many uncertainties for the economy, consumers and not least for the retail industry.

“We will all be living with the consequences of the virus and the public health responses to it for a long time to come.

“I am, however, confident though that B&M, with its modern network of mostly out-of-town stores, well-invested infrastructure and value-led variety offer is well positioned to support the communities in which we trade for whatever lies ahead.

“The health and safety of our colleagues and customers will remain a priority.”

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