FY27 Interim Results

12 November 2026        

FY27 Interim Results (Unaudited)

A Return to UK Like-for-Like Growth, driven by ‘Back to B&M Basics’

B&M European Value Retail plc (“the Group”), the UK’s leading value retailer, today announces its FY27 Interim results for the 26 weeks to 26 September 2026.

Financial Highlights

Tjeerd Jegen, Chief Executive Officer, said:

“Back to B&M Basics is starting to deliver. Over the past year, we have sharpened our pricing, improved the on-shelf availability of our best-selling brands, revamped our in-store promotions and reduced SKU count across our stores. Our goal has been to restore B&M UK to sustainable like-for-like (LFL)2 growth while making everyday life more affordable for customers facing mounting cost-of-living pressures, and our second quarter LFL performance of +3.2% shows the first phase of our strategy is working. B&M France delivered another strong quarter, with Q2 LFL sales of +6.5% and a margin similar to B&M UK. B&M France has considerable growth potential as we achieve critical scale there and deepen awareness of our differentiated value proposition with customers.

With Phase 1 of our strategic growth plan now starting to deliver, we are making progress with Phase 2, where we see an opportunity to transform the customer experience of B&M and boost the productivity of our UK estate through new store formats. Sales data from early trials have been encouraging and we plan to increase investment in re-laying and refitting stores in H2, balancing this with a slower pace of UK store rollouts in FY27.

We are restoring Group profitability through re-establishing UK LFL sales growth and improving our UK category margin while managing continued cost headwinds and investing in our business. This will support our ambition of achieving low double-digit adjusted EBITDA margins for B&M UK in the medium term as an outcome.

Early Golden Quarter trading has been positive in each of our operating businesses, with continued LFL growth at B&M UK in both FMCG and General Merchandise. Today, we introduce financial guidance for FY27 and expect Group adjusted EBITDA5 (pre-IFRS 16) in a range of £450m - £500m, versus £459m in FY26, and Group adjusted PBT of £280m – £330m, versus £284m in FY26.”

Operational Highlights

Financial Guidance

Notes:

Results Presentation

An in-person presentation and Q&A for analysts will be held today at 9.30am (UK) at Bank of America, 2 King Edward St, London, EC1A 1HQ. Attendance is by invitation only and attendees must be registered in advance.

A simultaneous live webcast and presentation will also be available. Please use the following link:

https://edge.media-server.com/mmc/p/nptgmcuf

Post-event, a replay and transcript will be available on demand via the Investors section of our website at:

https://www.bandmretail.com/investors/results-and-presentations#2026

Enquiries

B&M European Value Retail plc

For further information please contact: +44 (0) 151 728 5400

Tjeerd Jegen, Chief Executive Officer

Peter Waterhouse, Interim Chief Financial Officer

Andrew Orchard, Head of Investor Relations

[email protected]

Media

For media please contact:

Sodali & Co

David Allchurch, Rob Greening, Sam Austrums

Tel: +44(0) 207 250 1446

[email protected]

Disclaimer

This announcement contains statements which are or may be deemed to be ‘forward-looking statements’. Forward-looking statements involve risks and uncertainties because they relate to events and depend on events or circumstances that may or may not occur in the future. All forward-looking statements in this announcement reflect the Group’s present view with respect to future events as at the date of this announcement. Forward-looking statements are not guarantees of future performance and actual results in future periods may and often do differ materially from those expressed in forward-looking statements. Except where required by law or the Listing Rules of the UK Listing Authority, the Company undertakes no obligation to release publicly the results of any revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect any events or circumstances arising after the date of this announcement.

About B&M European Value Retail plc

B&M European Value Retail plc is a value retailer with 797 stores in the UK operating under the "B&M" brand, 339 stores under the "Heron Foods" and "B&M Express" brands, and 156 stores in France also operating under the "B&M" brand as at 26 September 2026. It is a constituent of the FTSE 250 index.

The B&M Group was founded in 1978 and listed on the London Stock Exchange in June 2014. For more information, please visit www.bandmretail.com

Chief Executive’s Review

Back to B&M Basics fully implemented

In my first presentation of Interim Results a year ago, I outlined a three-phase strategic growth plan for B&M UK, starting with the immediate priority of restoring sustainable LFL sales growth to our UK business through a set of actions we called Back to B&M Basics.

Twelve months on, we have implemented all four Back to B&M Basics workstreams in full, sharpening price, improving on-shelf availability in key brands, boosting the effectiveness of our promotions and reducing SKU count across our FMCG ranges. We gave ourselves between 12 to 18 months to see the financial impact of our actions. Today, I am pleased to report these actions are delivering.

The return of UK LFL sales growth of +3.2% in Q2 is an encouraging milestone. This was led by General Merchandise, which benefitted from an extended garden season following a slow weather-related start in Q1. It also included non-seasonal categories, including our Home ranges, where we are making everyday life more affordable for customers facing mounting cost-of-living pressures.

Encouragingly, our UK FMCG LFL saw improvement across Q2, ending the quarter flat. This improvement has continued in early Q3 trading, with positive FMCG LFL, giving us confidence that the actions we have taken under Back to B&M Basics are working. Our General Merchandise LFL has also remained positive, which is an important contributor to our Golden Quarter sales.

We have made further progress in restoring our UK General Merchandise category margin during the first half. We anticipate continued year-on-year improvements in the second half, which together with the restoration of UK LFL sales is a key driver of returning our UK adjusted EBITDA margin (pre-IFRS 16) to low double-digit levels over time, which we continue to see as a medium-term outcome for B&M UK.

Phase 2: Boosting the productivity of our UK estate

With Phase 1 now starting to deliver, we are making progress with our Phase 2 plans, where we see an opportunity to transform the customer experience of B&M and boost the productivity of our UK estate through investing in new store formats.

This is a departure from our previous approach, which adopted a single retail format across different sized stores in a variety of locations. Now, we have identified six store clusters with common customer profiles and shopping missions, which we are re-laying stores to match. Alongside re-lays, we are also refitting some stores where we identify an opportunity to boost sales by enhancing the customer store experience.

In August 2026, we launched our new B&M 2.0 concept store in Wigan, which embodies the design and layout elements of the B&M store of the future. Wigan 2.0 materially enhances the customer journey by introducing a landing zone, a more intuitive flow that plays to B&M's strength in General Merchandise and seasonal categories, wider aisles and a more efficient checkout experience enabled by the first installation of self-checkouts in B&M. As with Back to B&M Basics, our approach to B&M 2.0 is one of test-and-learn to determine which design elements drive the best sales outcomes.

Our Wigan 2.0 store has been recognised by The Institute of Grocery Distribution (IGD), which selected it as IGD's Store of the Month for November 2026, commending it as an excellent example of global retail execution.

Early trading at the store has been encouraging, with strong LFLs alongside positive category mix benefits. We plan to adopt the most successful format elements from Wigan 2.0 in all our new UK stores as they roll out, as well as in each store we refit, in order to progressively leverage these benefits to our wider UK estate.

All re-lays and refits will be funded through internally generated cash, with the investment requirements in FY27 balanced by a slower pace of UK store rollouts than in recent years. We now expect 15-20 gross new UK stores in FY27, versus the 25-35 gross we previously guided to, reverting to 25-35 gross in FY28. The majority of this year’s new stores will be opened in the second half. This is reflected in the phasing of our capital investment in FY27, which will be weighted more towards H2.

France: achieving critical scale

B&M France continues to perform strongly, delivering mid-single-digit LFL sales growth across H1 (+5.9%) through higher footfall and market share gains. With 156 stores, we see B&M France achieving breakthrough scale and deeper awareness with customers, who are attracted by our focus on compelling value, newness and depth of choice across our Home categories.

France’s Q2 LFL performance of +6.5% was delivered off a high base in Q2 FY26 (+9.4%), underscoring the strength and depth of the performance. B&M is taking share in France, growing transaction volumes alongside competitors that in many instances face operational and financial challenges. B&M France ended H1 with a 9.4% share of the discount market1, up +100bps since the end of FY26 and +140bps year-on-year.

We still see a strong growth runway for B&M France and now expect to open 15-20 new stores in FY27, versus the 15 we guided to with FY26 Results. France remains several years behind the UK in market consolidation, which may yet provide us with opportunities to scale the pace of our store expansion there.

To date, we have not seen a material impact of the social unrest in France on our business.

Heron Foods: delivering growth as cost-of-living pressures intensify

Heron delivered a second consecutive quarter of LFL growth, demonstrating the relevance of our everyday low price (EDLP) convenience offer in some of the UK’s most economically challenged urban areas at a time of rising cost-of-living pressures.

We continue to review Heron’s customer proposition and plan to evolve its value offer through a wider range of front-of-store convenience categories.

Leadership talent is a vital aspect of Heron’s future success and I am delighted to announce the appointment of Michael Fletcher as Managing Director of Heron Foods, effective 2 November 2026. Michael has extensive UK and International experience of a broad range of retail and wholesale operations, including senior roles at Tesco, Co-op and SPAR. His recent career has been particularly focused on developing and delivering award-winning propositions within the UK convenience sector, which will be of tremendous value to Heron as we position the business for future success. Michael takes on this role from Tony Dobbs, who has decided to step down after 35 years with Heron. I would like to thank Tony personally for everything he has contributed to Heron and the wider B&M Group. He leaves with my sincere thanks and very best wishes for the future.

Culture and values

Strategy alone cannot deliver organisational change. Culture plays a vital role in ensuring the transition we are bringing about is rooted in strong organisational foundations. That is why we embarked upon an extensive internal consultation in late 2025 to understand from our colleagues who we at B&M are today, and who we want to be in the future. The result is our new B&M DNA: a set of five core values which reflect the qualities and behaviours that colleagues told us matter most. Delighting our Customers, working as One Team, operating a business that is Simple and Agile, providing Opportunity for All and always Behaving Like an Owner: these values capture what makes B&M unique and provide a shared foundation for how we work together and serve our customers every day.

Restoring Group profitability on solid financial foundations

The operational performance we are now delivering for B&M is built on solid financial foundations. Our balance sheet leverage stood at 1.3x at the end of H1 FY27, well within our target range of 1.0 – 1.5x, reflecting prudent inventory management and the phasing of our capital investment for the year. We expect leverage to remain within this range during H2 FY27 now that our normal seasonal inventory build ahead of our Golden Quarter is behind us.

We are restoring Group profitability through re-establishing UK LFL sales growth and improving our UK category margin while managing continued cost headwinds and investing in our business. This will support our ambition of achieving low double-digit adjusted EBITDA margins for B&M UK in the medium term as an outcome.

Current trading and outlook

Early Golden Quarter trading has been positive in each of our operating businesses, with continued LFL growth at B&M UK in both FMCG and General Merchandise. Taking into account year-to-date performance and current trading, we expect to deliver FY27 Group adjusted EBITDA (pre-IFRS 16) in a range of £450m - £500m (FY26: £459m) and Group adjusted PBT of £280m - £330m (FY26: £284m).

The elements of B&M’s long-term growth algorithm remain in place. We have a clear growth story anchored in boosting productivity of our existing estate while deploying new stores into a substantial white space opportunity, both in the UK and France, generating considerable job creation in the communities we serve. We are restoring margins through improving category profitability as sustainable UK LFL growth returns. Our business enjoys strong cash conversion, which provides us with the ability to both invest in the organic growth of our business and support attractive shareholder returns.

The past twelve months have challenged us. Yet they have also provided us opportunities to test and learn new execution, format and design elements with the potential to improve sales outcomes beyond the restoration of LFL growth we are bringing about. With Phase 1 delivering, this is now our focus as we continue to transform B&M and further our ambition to be the nation's favourite place to shop.

Tjeerd Jegen

Chief Executive Officer

11 November 2026

Notes:

Financial review

Group

*includes depreciation on right-of-use assets of £99m (H1 FY26: £98m). H1 total depreciation & amortisation was £150m (H1 FY26: £146m)

Revenue

Group revenues increased by +3.6%, (+3.5% on a constant currency basis2), driven by positive LFL3 sales across all three businesses with 4 net new store openings.

Gross margin

Group gross profit margin increased by +67 bps to 37.2% primarily driven by an increase in B&M UK4 trading gross margin5 in General Merchandise and sales mix benefits, with some gross margin expansion also in B&M France.

Adjusted EBITDA (pre-IFRS 16)

Group adjusted operating costs1 grew by +5.4% to £857m (H1 FY26: £813m), reflecting estate growth, continued investment in supply chain infrastructure and operating cost inflation including wages, leading to an overall Group adjusted EBITDA1 (pre-IFRS 16) of £203m, representing an increase of +6.0% year-on-year (FY26 H1: £191m). This reflects the operating profit growth across each of the businesses.

Our Group adjusted EBITDA margin was 7.1%, an increase of +16 bps.

Net finance costs

Net finance costs, excluding IFRS 16, decreased by £4m to £28m, primarily reflecting additional financial income and lower borrowing costs due to generally higher cash levels. Finance charges relating to right-of-use assets (IFRS 16) rose slightly by £1m to £43m.

Adjusted profit before tax

Group adjusted profit before tax1 increased by +16.6% to £121m (H1 FY26: £103m), driven by higher EBITDA, a smaller net loss in relation to IFRS 16 adjustments and lower net finance costs. Depreciation and amortisation increased by +5.7% to £51m, reflecting continued growth in the store estate and investment in the supply chain over the last 18 months.

Adjusting items

Adjusting items1 were a net charge of £6m (H1 FY26: net charge of £28m). The primary drivers of this were £9m store and fixed asset impairments (H1 FY26: £13m) netted against a £3m gain (H1 FY26: £10m loss) related to non-underlying foreign exchange. H1 FY26 also included £2m of costs in relation to significant infrastructure projects and £3m of costs in relation to the redomicile. For further details, please see note 3 of the financial information. 

Profit before tax

Statutory profit before tax increased by +53.7% to £115m (H1 FY26: £75m) due to higher adjusted profit and lower adjusting items as described above.

Earnings per share

Adjusted diluted EPS1 was 8.9p, +24.3% higher year-on-year, driven by higher adjusted profit. Statutory diluted EPS was 8.3p, (H1 FY26: 5.2p) additionally caused by a decrease in adjusting items1 year-on-year.

Capital expenditure

Group net capital expenditure, excluding IFRS 16 right-of-use asset additions, was £51m (H1 FY26: £74m). This included £10m spent on 11 gross new stores opened in the first half across the Group (H1 FY26: £32m on 31 stores), £30m on maintenance works (approximately 1% of H1 revenues) to ensure that our existing store estate and warehouses are appropriately invested (H1 FY26: £22m), and a total of £11m on infrastructure projects and opportunistic freehold acquisitions or disposals (H1 FY26: £13m). H1 FY26 also included £7m of one-off expenditure on the fit out of our Ellesmere Port import centre.

We would expect H2 capital expenditure to increase as we expect to have more store openings, re-lays and refits than we have had in H1.

Post-tax free cash flow6 and leverage

Post-tax free cash flow6 generated in the first half of £132m (H1 FY26: £51m), reflected the higher cash profit, an improved working capital position, and lower capital expenditure year-on-year.

Net debt7 to last-twelve-months adjusted EBITDA1 (pre-IFRS 16) is at 1.3x at the end of H1 FY27 (H1 FY26: 1.6x) which is within our target range of 1.0x – 1.5x. Incorporating IFRS 16, net debt to last twelve-months adjusted EBITDA was 2.8x (H1 FY26: 2.9x).

Our working capital has benefitted earlier than we had originally anticipated in respect to recent process improvements and we would expect this to be maintained and to stabilise over the remainder of the year, whilst capital expenditure is expected to increase in H2 as noted above. With Golden Quarter trading to come, we would expect to remain within our target range of 1.0x-1.5x at the year end date.

Dividends

We target to pay ordinary dividends at 40-50% of after-tax adjusted earnings1 (post-IFRS 16), with the long-term outlook paying out at the mid-point of the range (approximately one-third as an interim dividend and two-thirds as the final dividend).

As such, an interim dividend of 3.6p per Ordinary Share will be paid on 18 December 2026 to shareholders on the register at 20 November 2026. The ex-dividend date will be 19 November 2026.

Performance by segment

B&M UK

In B&M UK4, total revenue increased by +2.4% to £2,248m (H1 FY26: £2,196m), with LFL3 sales increasing by +0.4%. Our Q1 LFL was -2.3%, driven by poor seasonal weather and a strong comparative, particularly in April. General Merchandise returned to growth in May and June, offsetting softer FMCG performance.

The improving trading momentum continued into Q2, with General Merchandise delivering LFL growth driven by both average selling price (ASP) and volume. FMCG trends also improved, with LFL3 sales finishing flat in the quarter. Together, this resulted in total Q2 LFL3 growth of +3.2%.

Trading gross margin5 increased by +94 bps year-on-year to 36.3% (H1 FY26: 35.4%), reflecting higher category margins across General Merchandise and a positive mix benefit from increased General Merchandise sales participation. FMCG trading margins remained below the prior year, as expected, reflecting continued price investment in key value items (KVIs) and the impact of clearance in relation to SKU rationalisation. KVI price investment annualised during August, while the impact from SKU rationalisation was more pronounced in Q2, affecting the year-on-year decrease in FMCG category margin. Statutory gross margin increased by +74 bps to 36.9% (H1 FY26: 36.2%), with the difference principally reflecting foreign exchange derivative accounting.

There was 1 gross new store opening in H1, with 3 closures. We aim to open between 15 and 20 gross new stores by the end of this financial year, lower than our previously stated target of between 25 and 35.

In addition to revenue generated in-store, B&M UK4 revenues also included £13m of wholesale revenues (H1 FY26: £15m), the majority of which represented sales made to our associate Centz Retail Holdings Limited, a chain of 59 variety goods stores in the Republic of Ireland.

Adjusted operating1 costs increased by +5.2% to £662m (29.4% of revenue), compared with £629m (28.6% of revenue) in the prior year. The increase reflected estate growth, the statutory National Minimum Wage increase, continued investment in our distribution infrastructure, including the opening of a new third-party managed distribution centre in Rugby, and broader operating cost inflation.

Adjusted EBITDA (pre-IFRS 16)1 increased by +1.5% to £168m (H1 FY26: £165m), with adjusted margin holding at 7.5% (H1 FY26: 7.5%), the LFL and trading margin growth offsetting with underlying operating cost inflation.

Adjusted profit before tax1 was £132m, a £4m increase year-on-year (H1 FY26: £128m), driven largely by the increase in Adjusted EBITDA. Statutory profit before tax for the period was £132m (H1 FY26: £128m).

B&M France

B&M France has continued to trade strongly with total revenues increasing by +13.7% to £319m (H1 FY26: £280m). This performance was underpinned by LFL3 growth of +5.9%, driven by footfall and 9 net new stores. The business is on track to open between 15 to 20 new stores by the end of the financial year.

Adjusted operating costs1 increased by +11.3% to £116m (H1 FY26: £104m) reflecting the volume growth associated with the increased level of sales. Costs improved as a percentage of revenue (36.4% of revenue) compared to the prior year (37.1% of revenue) with the business benefitting from meaningful leverage as it continues to scale.

Adjusted EBITDA1 (pre-IFRS 16) increased by +36.9% to £25m (H1 FY26: £18m) representing a margin of 7.9% (H1 FY26: 6.6%).

Adjusted profit before tax1 for the period was £17m (H1 FY26: £10m) due to the reasons outlined above.

Heron Foods

Our discount convenience offering, Heron Foods generated revenues of £281m, up +3.0% year-on-year. The performance was driven by strong growth in ambient ranges. We have made good progress in strengthening Heron’s LFL3 performance, which grew by +3.1% in Q2. We continue to review Heron’s customer proposition and plan to evolve its value offer through a wider range of convenience categories.

Heron did not open any new stores in this half and have closed 3 stores whilst the focus has been on restoring LFL3 growth. Our expectation is to open 5 gross new stores by the end of this financial year.

Adjusted operating costs1 decreased by -1.4% to £76m (27.1% of revenue) compared with £77m (28.3% of revenue) in the prior year. Adjusted EBITDA1 (pre-IFRS 16) increased by +21.7% to £13m (H1 FY26: £11m) as a result of higher LFL sales and stronger cost control.

Adjusted profit before tax1 was £8m (H1 FY26: £4m) due to the reasons outlined above. Statutory profit before tax for the period was £8m (H1 FY26: £4m).

Principal risks and uncertainties

The principal risks and uncertainties faced by the Group remain those as set out on page 22 to 28 of our Annual Report and Financial Statements 2026: supply chain; competition; economic environment; regulation and compliance; international expansion; political uncertainty; IT systems, artificial intelligence, cyber security and business continuity; key management reliance and store expansion.

Peter Waterhouse

Interim Chief Financial Officer

11 November 2026

Notes:

Condensed Consolidated Statement of Comprehensive Income

All profit and other comprehensive income is attributable to the owners of the parent.

The accompanying accounting policies and notes form an integral part of these condensed consolidated financial statements.

Condensed Consolidated Statement of Financial Position

​

The accompanying accounting policies and notes form an integral part of this financial information. The condensed financial statements were approved by the Board of Directors on 11 November 2026 and signed on their behalf by:

Tjeerd Jegen

Chief Executive Officer

11 November 2026

Condensed Consolidated Statement of Changes in Shareholders’ Equity 

The accompanying accounting policies and notes form an integral part of these consolidated financial statements.

Condensed Consolidated Statement of Cash Flows

The accompanying accounting policies and notes form an integral part of these consolidated financial statements.

Notes to the financial information

The unaudited results for the first half of the financial year have been prepared on the basis of the accounting policies set out in the Group’s latest set of consolidated financial statements released by the ultimate controlling party, B&M European Value Retail plc (the “Company”), and its subsidiaries (the “Group”). The Company is listed on the London Stock Exchange and incorporated in Jersey.

In the prior year, three Group entities relocated to Jersey from Luxembourg, B&M European Value Retail plc migrated on 27 February 2026 and both B&M European Value Retail 1 Ltd and B&M European Value Retail 2 Ltd migrated on 18 March 2026.

The financial information has been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority and IAS 34 ‘Interim Financial Reporting’ as contained in UK-adopted international accounting standards. The interim financial information for the period ended 27 September 2025 was prepared in accordance with International Accounting Standard (IAS) 34 ‘Interim Financial Reporting’ as endorsed by the European Union.

These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, and should be read in conjunction with the Group’s last annual consolidated financial statements as at and for the period ended 28 March 2026. They do not include all of the information required for a complete set of financial statements prepared in accordance with IFRS Accounting Standards. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual financial statements.

These interim financial statements were authorised for issue by the Company’s board of directors on 11 November 2026.

During the period, the Group adopted the amendments to IFRS 9 Financial Instruments for the first time. The amendments introduce additional requirements relating to the classification and measurement of financial assets and financial liabilities, including clarifications regarding the assessment of contractual cash flow characteristics and the derecognition of financial liabilities settled through electronic payment systems. We have assessed the impact of these amendments on the Group's financial instruments and have concluded that their adoption has not had a material impact on the Group's financial position.

The Group’s trade is general retail, with trading taking place in the UK and France.

The principal accounting policies have remained unchanged from the prior financial information for the Group for the period to 28 March 2026.

The consolidated financial statements for B&M European Value Retail plc for the 52 weeks to 28 March 2026 have been reported on by the Group auditor. The audit report was unqualified.

The consolidated interim financial statements are presented in pounds sterling and all values are rounded to the nearest million (£’m), except when otherwise indicated.

This consolidated financial information does not constitute statutory financial statements.

Basis of consolidation

This Group financial information consolidates the financial information of the Company and its subsidiary undertakings, together with the Group's share of the net assets and results of associated undertakings, for the period from 29 March 2026 to 26 September 2026. Acquisitions of subsidiaries are dealt with by the acquisition method of accounting, acquisitions of associates are dealt with by the equity method of accounting. The results of companies acquired are included in the consolidated statement of comprehensive income from the acquisition date.

Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

Specifically, the Group controls an investee if and only if the Group has:

When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

The Group re-assesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the statement of comprehensive income from the date the Group gains control until the date the Group ceases to control the subsidiary, excluding the situations as outlined in the basis of preparation.

Restatement

When preparing the 28 March 2026 accounts, the Group voluntarily restated the prior year reserves balances to reflect alignment between the share premium balance between the parent company and the Group. This difference arose as previously in the Group financial statements the credit previously recognised in retained earnings for share options accounting was reclassified to share premium when employee share options were exercised. This was not reflected in the parent company. The reclassification aligns the presentation in the Group accounts with that of the parent company. The comparative period ended 27 September 2025 has also been restated. The overall impact of the restatement was to increase retained earnings and decrease share premium by £10 million at 29 March 2025, as previously reported, and by a further £3 million at 27 September 2025. There was no impact on the profit or net assets in either period. No restatement was required for the period ended 28 March 2026 as the error had already been identified and reflected when this set of accounts was prepared.

Reallocation of other reserve

Our other reserve balance of £10m represented the statutory reserve brought forward from the apportionment of profit within each Luxembourg company. This was previously represented as the ‘legal reserve’ until the redomicile to Jersey completed early in 2026. Following completion of the redomicile in March 2026, this period we have recycled this reserve balance to the retained earnings reserve.

Going concern

As a value retailer, the Group is well placed to withstand volatility within the economic environment. The Group’s forecasts and projections, taking into account reasonably plausible changes in trading performance, show that the Group will trade within its current banking facilities.

In assessing the Group’s going concern at the half year, the Directors have considered the business activities including the Group’s principal risks and uncertainties. The Directors have also considered the Group’s current cash position, the repayment profile of its obligations, its financial covenants and the resilience of its 12-month cash flow forecast to a series of severe but plausible downside scenarios. Having considered these factors, the Board is satisfied the Group has adequate resources to continue in operational existence for the foreseeable future.

Consequently, the Directors are confident that the Group and Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the condensed consolidated interim financial statements and therefore have prepared the financial statements on a going concern basis.

Critical judgments and key sources of estimation uncertainty

Impairment

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required (for goodwill or indefinite life assets), the Group estimates the asset’s recoverable amount.

The Group bases its impairment calculation on detailed budgets and forecasts which are prepared separately for each of the Group’s cash-generating units (CGUs) to which the individual assets are allocated. Indications of impairment might include (for goodwill and the brand assets, for instance) a significant decrease in the like-for-like sales of established stores as a consequence of sustained negative publicity.

The B&M UK and Heron Foods impairment calculations reflect assumptions that are based upon management’s judgment. The key assumptions include the anticipated like-for-like sales performance and gross margin rates, which are based upon the historical performance of the entity and strategic decisions in relation to this entity. See note 5 for further details.

Standards and interpretations not yet applied by the Group

The following amendment to accounting standards and interpretations, issued by the International Accounting Standards Board (IASB), has not yet been applied by the Group during the period. The impact of this amendment on the Group’s financial statements is expected to be significant.

Impact of new international reporting standards, amendments and interpretations: Annual periods beginning on or after 1 January 2027

2 Segmental information

IFRS 8 (‘Operating segments’) requires the Group’s segments to be identified on the basis of internal reports about the components of the Group that are regularly reviewed by the chief operating decision maker to assess performance and allocate resources across each reporting segment.

The chief operating decision maker has been identified as the executive directors who monitor the operating results of the retail segments for the purpose of making decisions about resource allocation and performance assessment.

For management purposes, the Group is organised into three operating segments; B&M UK, Heron Foods and B&M France, each comprising a separately operated business unit within the Group.

Items that fall into the Corporate category, which is not a separate segment but is presented to reconcile the balances to those presented in the main statements, include those related to the Jersey or associate entities, group financing, corporate transactions, any tax adjustments and items we consider to be adjusting (see note 3).

The average euro rate for translation purposes was €1.1613/£ during the period, with the period end rate being €1.1617/£ (September 2025: €1.1659/£ and €1.1463/£ and March 2026: €1.1564/£ and €1.1538/£ respectively).

** Capital expenditure includes both tangible and intangible capital.

Revenue is disaggregated geographically as follows:

Non-current assets (excluding deferred tax) are disaggregated geographically as follows:

*Prior years were Luxembourg, up until the migration, detailed in note 1.

The Group operates small wholesale operations, with the relevant disaggregation of revenue as follows:

3 Reconciliation of non-IFRS measures from the statement of comprehensive income

The Group reports a selection of alternative performance measures as detailed below. The Directors believe that these measures provide additional information that is useful to the users of the accounts.

EBITDA, adjusted EBITDA, adjusted operating profit and adjusted profit are non-IFRS measures and therefore we provide a reconciliation of these amounts to the statement of comprehensive income below.

In the current period, the total of the pre-IFRS 16 adjusting items was equal to the post-IFRS 16 adjusting items at £6m.

In the period ended 27 September 2025, on a pre-IFRS 16 basis, the costs in relation to significant infrastructure projects adjusting item was £3m and the total of the pre-IFRS 16 adjusting items was £29m compared to above £28m on a post-IFRS 16 basis.

In the period ended 28 March 2026, on a pre-IFRS 16 basis, the costs in relation to significant infrastructure projects adjusting item was £10m and the total of the pre-IFRS 16 adjusting items was £60m compared to above £57m on a post-IFRS 16 basis.

Adjusted EBITDA (pre-IFRS 16), adjusted profit before tax (pre-IFRS 16) and adjusted profit (pre-IFRS 16) are calculated as follows. These are the statements of adjusted profit that excludes the effects of IFRS 16.

The effects of IFRS 16 on EBITDA caption reflects the difference between IAS 17 and IFRS 16 accounting and largely consists of the additional rent expense the Group would have incurred under the IAS 17 standard.

In reference to the captions in the tables above;

Impairment charge relates to the impairments of assets across three segments, B&M UK, Heron Foods and B&M France as a result of an assessment of individual store profitability within those segments. These have been treated as an adjusting item as they are one-off in nature and of meaningful magnitude whilst not relating to underlying performance in the period.

The impairments relate directly to the assets held by the stores, including their lease asset, and an apportionment of assets held centrally.

Costs in relation to significant infrastructure projects in the prior periods included the pre-operational and ramp up costs of our Ellesmere Port Import Centre and the dual-running costs associated with the replacement of our Middlewich DC with a third-party operated site in Rugby.

Both projects were significant in nature, with Ellesmere Port representing the largest infrastructure project within the Group since Bedford opened in 2020 and the Rugby site representing a significant project of relocating warehouse operations whilst incurring dual-running costs of running both sites during the crossover period.

The Ellesmere Port Import Centre and the Rugby DC were both fully operational early in FY27 whilst the Middlewich DC fully closed at the same time. Therefore, the costs relating to these projects are not meaningful in the current period and have not been adjusted for.

Costs in relation to the redomicile project included any fees related to the redomicile of the Group’s Luxembourg entities to Jersey.

This project was significant in nature and the costs in the prior periods were meaningful and non-recurring, and as such they were included in our adjusting items for those periods.

The project was completed in the prior year, with remaining current year costs relating only to the wind down of our Luxembourg operations which are not meaningful and have not been adjusted for in the current period.

External costs in relation to strategic business projects related to external costs incurred in operating the Back to B&M Basics project which is a significant strategic project that required external input into the formative stages of the project in the period ended 28 March 2026. In the current period, external costs in relation to this project are not meaningful and have not been adjusted for.

Costs incurred in strategic leadership reset. The senior leadership team of the business underwent significant changes during the period ended 28 March 2026, and the costs associated with those changes were meaningful and included in our adjusting items. In the current period, there have been no meaningful costs in relation to leadership change. Further details around specifically the changes in our directors are also included in note 15.

Non-underlying impact of foreign exchange includes the fair value of derivatives which have yet to mature and any gains or losses in relation to foreign exchange on intercompany balances, and any foreign exchange that arises as a point-in-time adjustment on our stock, creditor or cash balances in relation to any stock which has not yet been sold. This arises as a timing difference, since we aim to fully operationally hedge for our stock purchased in dollars, and whilst our achieved rate is directly reflected in our cost price and margins in internal reporting, we cannot account for it in this way on a statutory basis.

The actual achieved rate is reflected in the reports reviewed by the management which are used in making pricing decisions and, as such, management consider that the timing difference adjusted for is not reflective of our underlying trading performance.

Any foreign exchange arising outside of our operational hedging programme has been included in the underlying figures presented.

Adjusted tax represents the tax charge per the statement of comprehensive income as adjusted only for the effects of the adjusting items detailed above.

The following table reconciles the statutory figures to the adjusted and adjusted (pre-IFRS 16) figures in the statutory profit and loss format on a line-by-line basis: