NEWS

B&M Bargains reveals first-half profit

Published on: 18th November 2015

The discount retailer has opened 47 stores in six months.

B&M-480Bargain store B&M swung to a profit after opening multiple new UK stores in the first half of the year.

The discount retailer made a pre-tax profit of £66.7m in the 26 weeks leading up to 26th September, compared with a loss of £16.5m in the same period last year, when it was saddled with costs associated with its flotation in July 2014.

B&M, chaired by former Tesco boss Sir Terry Leahy, is on track to open 80 new stores in the UK this year, with plans to open a further 50 next year. It currently has a total of 472 stores across the UK and 55 in Germany under the Jawoll name.

Terry said: “B&M has made good progress in the first half of the financial year towards its strategic goals of reaching at least 850 UK stores and creating a platform for longer term growth in Germany, whilst delivering further pleasing growth in sales, profits and cash generation. We are well prepared for the rest of the year and beyond”.

B&M is among the bargain retailers, including Poundland, Aldi and Lidl, that are taking sales from the big four supermarkets and other traditional retailers.

First-half revenue increased by 26% to £930.3m, up from £739.8m last year.

Against the backdrop of a broadly flat market, B&M’s like-for-like sales in the UK grew 1.2% in the first half, compared with 4.8% over the same period last year.

Simon Arora, B&M’s chief executive, said: “Our unique retail model continues to deliver strong revenue growth as we extend our geographic footprint. The business is growing at an annualised rate of over £400m per year, which brings its own operational challenges. However, the investment made in our supply chain infrastructure and in other core functions will support the next stage of our expansion. Our colleagues have worked incredibly hard over the period and I am very proud of their continued achievements. ”

The value retailer has also opened two new distribution centres in the UK this year while its German arm has opened two new stores with plans to open three more before Christmas.

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