Liverpool value retailer B&M reports a 10.1% rise in annual sales to £5.5bn with 47 new stores opening across the UK. Tony McDonough reports
Value retailer B&M is reporting a 10.1% rise in sales to £5.5bn in the 12 months to March 30.
In a post-close trading statement to the stock exchange ahead of the publication of its full financial results, Liverpool-based B&M also said it had opened 47 new UK B&M stores during the year, helped by snapping up units from the collapsed Wilko chain.
B&M is based in Speke in Liverpool and employs more than 39,000 people It operates more than 700 UK B&M outlets and 119 B&M stores in France. It also runs 315 Heron frozen food stores in the UK.
In November the business said it was aiming to open hundreds of new stores over the next few years as it looks to capitalise on the trend towards discount retailing. Its original target for the UK B&M brand was 950 stores.
However, it has now revised this up to 1,200. It aims to open 125 new B&M stores in the next three years alone. And it will also open more B&M stores in France where there is a similar trend towards value retail.
Sales in its UK B&M outlets during the 12-month period came in 8.5% higher at £4.41bn. Its UK Heron Foods outlets reported sales 15.3% up at £560m while B&M stores in France saw the biggest rise, up 19.2% to £514m.
B&M expects EBITDA (an alternative measure of profitability) to come in at £629m, at the top end of its £620m to £630m guidance. This is 9.8% higher than the previous year.
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Chief executive Alex Russo said: “The group has performed well in the year delivering strong operational execution. We serve our customers through a relentless focus on everyday low prices, great product ranges and excellence in operational standards.
“This delivers profitable, cash generating growth for our shareholders. The business and team are well set up for the year ahead, our pipeline remains on track to open not less than 45 UK B&M stores in each of the next two financial years.
“Our French and Heron businesses continue to demonstrate significant profitable growth potential.”