New stores deliver strong first half performance for B&M

B&M has delivered another strong performance In the six month period to 24th September 2016, with total group adjusted pre-tax profit up 17.2% to £77.9m while sales increased by 18.9% to £1.106bn, up 17.7% on a constant currency basis.

Performance in the UK was once again strong, with an 18% uplift in sales on the back of their new store opening programme, which included 20 net new stores and the relocation of six smaller, low profit stores into larger units. Like for like sales increased just 0.2% including the planned impact of nearby openings and by 1.9% on an underlying basis.

B&M chief executive Simon Arora, said: "B&M performed strongly in the first half of the financial year, serving customers well and delivering good growth in revenue, profit and cash flow. Naturally, we are mindful of the current economic uncertainties in the UK but given the strength of our retail model and with the full benefits now flowing from the step change investments we made last year in our store opening programme and new supply chain capacity, we are confident of meeting expectations during the remainder of this year.”

The company confirmed that the integration of Jawoll, its German business into the group is now complete and that its plan to open 19 new stores this year is on track,

Chairman of the group, Sir Terry Leahy  said: "With our strong value proposition, unique sourcing model, financial strength and well-invested store network and infrastructure, B&M is equipped to prosper in a challenging and uncertain retail environment.

B&M has a proven strategy for growth with plenty of opportunity for high returning store expansion in our chosen markets, and we can fund that investment comfortably from our internal cash resources. These characteristics are rare in modern retailing."

If you want to hear more B&M news, then sign up for our weekly newsletter here.

Source: Insight DIY Team