UK discounter B&M dips on lack of current trading news

By James Davey

LONDON (Reuters) -British discount chain B&M met guidance with a 9.7% rise in 2023/24 earnings and said it was confident on the outlook for profit growth, but its shares dipped on a lack of news about recent trading.

Shares in B&M were down 6% on Wednesday, with analysts highlighting the absence of current trading or precise guidance for the year ahead.

"Consensus appears to have already anticipated a weak Q1 outturn," Jefferies analysts said.

Wet weather and cost-of-living pressures kept a cloud over British consumers in May, with one survey published on Tuesday showing the weakest spending growth in more than three years.

FTSE 100 listed B&M, which sells everything from garden furniture and electrical items to toys and food, has proved resilient, helped by a focus on low prices.

It made adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), its preferred profit measure, of 629 million pounds ($803 million) in the year to March 30 - in line with guidance issued in April.

Revenue was 5.5 billion pounds, up 10.1%, helped by 78 new store openings.

"Despite the more challenging comparatives, with continued new store openings, and a laser focus on low prices and best in class retail standards, we remain confident in our outlook for cash generation and profit growth," Chief Executive Alex Russo said.

The group ended the year with 741 stores in the UK under the B&M brand, 335 stores under the Heron Foods and B&M Express brands, and 124 stores in France.

In 2024/25, it plans to open at least a gross 45 new B&M stores in the UK, plus a "meaningful number" in France and for Heron Foods.

Its long-term target is at least 1,200 B&M UK stores and it said the potential for openings in France "remains very high".

B&M named non executive director Tiffany Hall as its new chair from July 23, succeeding the retiring Peter Bamford.

($1 = 0.7831 pounds)

(Reporting by James Davey; Editing by Sarah Young and Mark Potter)