17th Nov 2015 07:54
LONDON (Alliance News) - B&M European Value Retail SA Tuesday said it swung to a profit in the first half of its financial year while growth in revenue was boosted by new store openings.
The value retailer said it made a GBP66.7 million pretax profit in the 26 weeks ended September 26, having suffered a GBP16.5 million pretax loss in the same period the year before as it was hit by higher finance costs which did not repeat in the current year. Revenue rose by more than a quarter to GBP930.3 million from GBP739.8 million.
It said revenue was boosted by new store openings, of which 47 net news stores were opened in the UK during the period, taking the total number of stores to 472. In the comparative period, only 20 stores were opened. B&M said it is on track to deliver 80 net new stores in the full year and has a strong pipeline for next year.
However, B&M did warn that the "greater-than-budgeted" store opening level allied with the opening of two new UK distribution centres has brought some short-term operational challenges and therefore an effect on like-for-like sales performance in the build up the peak trading period, although it did say overall earnings growth and return on investment remains strong.
"The unusually mild temperatures have led to a slow start for cold weather and seasonal ranges but we are well prepared for Christmas trading. We are confident both in the full year outlook and in the longer term potential for our unique retail model as we continue the roll out of our store estates in the UK and Germany," Chief Executive Simon Arora said in a statement.
B&M will pay an interim dividend of 1.6 pence per share, a 78% increase on the 0.9p it paid the prior year.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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