B&M reports strong first half performance
B&M has reported strong increases in both sales and profit in the first half of its financial year as it continues to open new stores and relocate less profitable shops.
In the six months to 24 September, group adjusted pre-tax profit climbed by 17.2% to £77.9 million while revenues grew by 18.9% to £1.1059 billion and by 17.7% on a constant currency basis.
In the UK, there was an 18% rise in sales largely driven by the company’s new store opening programme. This included 20 net new stores and the relocation of six small, low profit stores into larger more modern units.
UK like-for-like sales edged up 0.2% if including the planned impact of nearby openings and by 1.9% on an underlying basis.
Simon Arora, B&M chief executive, said: “B&M performed strongly in the first half of the financial year, serving customers well and delivering good growth in revenue, profit and cash flow.
“Naturally, we are mindful of the current economic uncertainties in the UK but given the strength of our retail model and with the full benefits now flowing from the step change investments we made last year in our store opening programme and new supply chain capacity, we are confident of meeting expectations during the remainder of this year.”
The company said the integration of its German business, Jawoll, into the group is now complete and that its plan to open 19 new stores this year is on track,
Sir Terry Leahy, B&M chairman, said: “With our strong value proposition, unique sourcing model, financial strength and well-invested store network and infrastructure, B&M is equipped to prosper in a challenging and uncertain retail environment.
“B&M has a proven strategy for growth with plenty of opportunity for high returning store expansion in our chosen markets, and we can fund that investment comfortably from our internal cash resources. These characteristics are rare in modern retailing.”
