Value retailer B&M has announced the resignation of its chief financial officer, after an issue with international freight costs caused it to revise its profit forecast for the financial year.

In a statement to the City today, B&M said it had found £7m of overseas freight costs had “not correctly [been] recognised in cost of goods sold” and that while the “underlying system issue” responsible has since been resolved, “its financial impact is material to our outlook” for FY26.

As a result, chief financial officer Mike Schmidt has “advised the board of his intention to step down” from his role.

The retailer’s board has said it also “intends to commission a comprehensive third-party review of this matter”.

B&M has reduced its group adjusted EBITDA outlook for the full financial year to between ÂŁ470m and ÂŁ520m, compared to a previous estimate of between ÂŁ510m and ÂŁ560m, and adjusted EBITDA to approximately ÂŁ191m, compared to the previous guidance of ÂŁ198m.

The retailer said it expects like-for-like sales growth “to be the principal driver of the outcome within this range”, for which “we reaffirm our assumption of a second half UK LFL percentage growth rate of between low-single-digit negative and low-single-digit positive levels”.

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