- Pre-tax profits jump 25.4% to £66.4m
- B&M opened 47 stores in the half, double the rate of openings last year
- Like-for-likes edge up 1.2% after cannibalisation caused by new store openings
B&M’s half-year profits and revenues have surged on the back of a record level of store openings as the value retailer snaps up the shops of more established retailers.
Pre-tax profits jumped 25.4% to £66.4m for the six months to September 26, while group revenues increased 25.8% to £930.3m.
During the period B&M doubled the rate of its store opening programme year on year as it increased net stores by 47.
Like-for-like revenues increased 1.2% in the half, as they were held back by the rate of new store openings due to cannibalisation of sales.
However, B&M said the return on investment from existing stores “remains favourable”.
B&M chief executive Simon Arora 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.”
B&M opened a new distribution centre in Runcorn, Cheshire in June and commissioned a new centre in Middlewich in September in order to support growth.
The extension of the German warehouse that supports its Jawoll business is on schedule to be completed by April 2016.
The company had 479 stores in the UK operating under the “B&M” brand and 54 stores in Germany primarily operating under the “Jawoll” brand as of October 31.
B&M said the retail property market conditions are favourable for its aggressive expansion plans due to downsizing by some traditional national retailers. Both Homebase and B&Q are currently closing a number of stores, some of which are being snapped up by B&M.
The retail group added it was “pleased with early progress” at German business Jawoll and added trial new format stores, which are closer to the B&M format in terms of size and assortment, have performed “in line with expectations”.
As a result, B&M has been encouraged to roll out more new store openings.