Core business underpins profit and revenue at B&M European Value

B&M European Value Retail reported a jump in full-year revenue and profit on Thursday as its core division saw good trading momentum.

In the year to 30 March, pre-tax profit rose 8.7% to £249.4m on revenue of £3.5bn, up 17.1% on the year. The final dividend was lifted to 4.9p a share from 4.8p in 2018, taking the full-year dividend to 7.6p, up 5.7%.

The company said its core B&M business had a good year, tempered in part by the weak performance of its homewares categories in the second and third quarters. However, it said this was a temporary issue that has now been resolved.

In Germany, its performance was held back by the need to clear obsolete stock to make way for new ranges and a greater proportion of product sourced through B&M's supply chain, it said, adding that most of this costly activity is now done.

The group said it had had a “pleasing” start to the first quarter, with mid-single digit like-for-like growth in B&M UK fascia stores.

Chief executive Simon Arora said: "B&M has again delivered strong results against the challenging backdrop of continued structural change in our industry, rising costs and uncertain times for consumers, demonstrating that its value credentials remain as resonant as ever with customers, whether they need a bargain or just enjoy one.

“We have made important progress in establishing platforms for further long term expansion in both Germany and France although there is much work to be done to implement the disruptive, value-led B&M model in these large new markets.

“We enter the new financial year with renewed trading momentum particularly in the UK, a high quality new store expansion programme in place, and investing in our new infrastructure to support future growth. I'm confident B&M is well-positioned to deliver further strong progress in the current year and beyond."