B&M European Value Retail S.A. has published its latest set of preliminary results, covering the 52 weeks to 28 March 2020.
The UK’s leading variety goods value retailer said it had experienced solid growth and robust trading despite the challenges from Covid-19.
Highlights
● Group revenues increased by 16.5% to £3,813.4m (FY19: £3,272.6)
● UK B&M store fascia revenue growth of 12.6%, including Like-for-Like revenue growth of 3.3% for the year, including 6.6% in the fourth quarter
● Group profit before tax increased by 3.2% to £252.0m for the 52 week period (FY19:
£244.3m), diluted earnings per share 19.5p (FY19:19.5p)
● UK B&M store fascia Adjusted EBITDA growth of 8.7% to £319.8m (FY19: £294.1m)
● Progress made in France with 19 Babou stores out of a total estate of 101 stores, now trading as “B&M” but the controlled testing of the performance of the converted stores was subsequently interrupted by the 8 week Covid-19 closure period from 15 March to 11 May 2020
● Cash generated from operations of £532.6m for the 52 week period (2019: £423.0m), year end net debt of £347.5m before the payment of the £150.1m special dividend in April 2020 following the sale and leaseback of the Bedford Distribution Centre, and with net debt to EBITDA of 1.02 x (FY19: 1.91x)
● Recommended final dividend increased to 5.4p per share (FY19: 4.9p) to be paid on 28 September 2020, bringing full year ordinary dividend to 8.1p per share being an increase of 6.6%
● 36 net new B&M UK fascia stores opened in the period (51 gross) and a further 30 net new store openings planned for FY21. The rate of new openings for FY21 is impacted by disruption from Covid-19,but our overall long term target of at least 950 B&M stores in the UK remains unchanged
● The trading since the year-end has been strong
● Since the year end, the UK business delivered £1 million in cash donations to Foodbanks and gave £2.9 million of discounts to NHS workers. Store and distribution colleagues received 110% of normal pay to reflect their increased responsibilities and workload.
View the results presentation here.
Simon Arora, Chief Executive, said,
“In this last financial year our core B&M UK business delivered solid growth, as did our Heron Foods convenience store business. However, so much about our lives has changed so profoundly and so fast as a result of Covid-19 that a financial year which ended only a short time ago already seems a world away. It is an understatement to say that the progress made during the year has been overtaken by recent events. The challenges posed by the virus have been beyond anything we have experienced before; they have tested every aspect of the way we do business in recent weeks and I’m pleased to say that B&M is coming through the crisis well because of the strength of the B&M proposition and the way our team has responded to those challenges. For that, I express my gratitude to all of my colleagues across the business.
“Looking ahead, there are of course many uncertainties for the economy, consumers and not least for the retail industry. We will all be living with the consequences of the virus and the public health responses to it for a long time to come. I am however confident though that B&M with its modern network of mostly out-of-town stores, well-invested infrastructure and valued variety offer is well positioned to support the communities in which we trade for whatever lies ahead. The health and safety of our colleagues and customers will remain a priority.”
Source : Insight DIY & B&M European Value