Value chain B&M Bargains pre-tax profit rose from £33m to £35m in the 2010 calendar year as like-for-likes jumped 6%.
Turnover increased from £426.7m to £538.3m.
Joint managing director Simon Arora said trade is “satisfactory” but said the retailer would “benefit from another burst of sunshine”. He added: “Shoppers are thinking twice about discretionary spend.”
The retailer snapped up 11 stores from the administrator of Focus DIY last month, and Arora said it intends to acquire more following negotiations with landlords, but believes some stores are “over rented”.
Arora anticipates consumer spending will remain “extremely challenging” in the next two to three years and as a result he expects retail rents to fall further. “We think a large number of Focus stores are over rented. They [landlords] are not in keeping with the reality of the shopper purse,” he said.
The retailer has 240 stores and expects to have 270 at year end, with a long-term plan of 400. Arora said the retailer aims to expand into the South. It only has three stores south of the midlands at present.
B&M Bargains invested heavily in transport fleet and IT capabilities in the year, as well as a new distribution centre. Arora said: “It was a solid trading year for us, and it’s all the more pleasing as we moved our main distribution centre.”