B&M enters FTSE 250 after private equity firm Clayton, Dubilier & Rice reduced its shareholding earlier this year.

  • B&M becomes FTSE 250 company after stake sale, making it eligible to enter
  • The discounter floated on the stock exchange in June 2014
  • Morrisons holds onto FTSE 100 place

B&M has been included in the FTSE 250 following the index’s quarterly review. The discounter became eligible for inclusion in the London FTSE 250 in February when its private equity firm Clayton, Dubilier & Rice sold a 12%stake in the business, raising £384m. The sale means more than 50% of the company is traded in public hands.

B&M Bargains floated on the stock exchange in June last year, setting its offer price at 270p, valuing the discount retailer at £2.7bn.

Meanwhile, grocer Morrisons clung on to its place in the FTSE 100, despite speculation that it would slip out of the index. Its share price recovered this week, boosted by Kantar figures showing it had edged into sales growth.

Last week, B&M reported net profits of £39.9m for its year to the end of March. This was a substantial improvement from its loss of £19.4m the previous year. Profits before tax, excluding exceptional costs and a “previous financing structure”, rose 55.7% year on year to £135m.

UK like-for-likes climbed 4.4%, which chief executive Simon Arora said was “pleasing, particularly against the very strong growth in consecutive prior years”.

A total of 52 net new stores opened in the year.