B&M European revenue up as it opens 500th UK store

Multi-price value retailer B&M European Value Retail announced its interim results for the 26 weeks to 24 September on Tuesday, with group revenues increasing by 18.9% to £1,105.9m, or by 17.7% at constant currencies.

The FTSE 250 company opened a net of 20 new stores in the UK during the period, including the 500th store in April, and remained on track to open at least 50 new stores this financial year.

Its German business, Jawoll, opened 10 net new stores in the period, and was on track to open 19 new stores this financial year.

UK like-for-like revenues were reportedly up 0.2% including the planned impact of nearby openings, but up 1.9% on an underlying basis.

Group adjusted EBITDA increased by 14.6% to £99.2m, while group EBITDA increased by 9.6% to £95.7m.

B&M’s group adjusted profit before tax increased by 17.2% to £77.9m.

Adjusted diluted earnings per share were up 17.3% to 6.1p, while diluted earnings per share at 5.8p were up 11.5%.

Cash flow from operations during the period were £77.7m, a year-on-year increase of 76.0%.

The board reiterated in the results the £100m special dividend - or 10p per share - paid to shareholders in July 2016, in line with its capital structure policy.

It increased the interim dividend by 18.8% to 1.9p per share, to be paid on 23 December.

“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,” said chairman Sir Terry Leahy.

“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.”

Simon Arora, chief executive, said B&M performed strongly in the first half of the financial year, 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.

“Everyone loves a bargain and when customers need to seek out value, our proposition comes into its own.”