3rd Dec 2020 16:53
(Alliance News) - B&M European Value Retail SA on Thursday said it expects annual earnings to top market estimates and became the latest retailer to announce that it will forego business rates relief.
The value retailer said during first nine weeks of the third-quarter, customer numbers and like-for-like sales "have been slightly ahead" of the first half.
B&M expects annual adjusted earnings before interest, tax, depreciation and amortisation between GBP600 million and GBP650 million, topping the consensus estimate of GBP571 million.
"In line with its capital allocation policy, the board will continue to evaluate capacity to return any surplus cash to shareholders," B&M said.
B&M added: "The above adjusted Ebitda range and consensus is prior to any voluntary payment of business rates in financial 2021. The group welcomed the government's business rates relief, given the disproportionate burden business rates places on physical stores versus online competitors, particularly at a time when the nature and duration of Covid-19 restrictions were unknown."
The company noted that although there is still uncertainty due to the virus, it explained "it is now right" to forego the business rates relief it was granted, roughly GBP80 million, B&M estimated.
"Having voluntarily returned furlough money, B&M will now engage with local authorities on an appropriate mechanism to waive the business rates relief," the company said.
"The group calls on government to create a level playing field that requires all essential and online retailers to contribute proportionately in terms of taxation and business rates."
B&M shares closed 0.7% lower at 474.70 pence each in London on Thursday.
By Eric Cunha; [email protected]
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