23rd May 2019 08:15
LONDON (Alliance News) - B&M European Value Retail SA on Thursday reported a positive annual performance with both revenue and profit increasing on the prior year.
For the year ended March 30, the discount homewares retailer posted pretax profit up 8.7% to GBP249.4 million from GBP229.3 million a year prior.
This was achieved on the back of revenue jumping 17% year-on-year to GBP3.48 billion from BP2.97 billion.
UK B&M store fascia revenue rose 8.7%, 0.7% on a like-for-like basis. Just in the fourth quarter, revenue for the company's store fascia was up 5.8%, unadjusted for Easter timing, with a 6.7% increase if adjusted.
"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," Chief Executive Officer Simon Arora said.
The retailer upped its final dividend 2.1% to 4.9 pence per share from 4.8p declared a year ago. This will take the company's total payout to 7.6p, up 5.7% on the prior year.
During the year, B&M opened 54 stores and closed 10, for a net value of 44. It is now planning "at least" further 50 gross stores during the new year.
Looking ahead, the company reported a "pleasing start" to the first quarter of financial 2020, with mid-single digit like-for-like growth in B&M UK fascia stores.
Arora added: "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."
B&M shares were trading down 1.6% at 374.00 pence each early Thursday morning.
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