Analysts said results from discount retailer B&M left them with “more questions than answers” today, as the chain offered little insight into current trading despite a strong performance in the year to 31 March.
Profit for the year rose to almost £500 million as revenue grew by 10% to £5.5 billion. But there were signs of growth slowing during the first three months of 2024.
Analysts at Investec said guidance on B&M’s performance in recent weeks would have been helpful, as the business is lapping tough comparatives.
In a research note titled “more questions than answers”, they added: “At the same time, it is disappointing that despite management’s focus on ‘controlled profitable sales growth’, gross margin momentum appears to have slowed.”
B&M plans to open at least 45 more UK shops this year, and another 45 the year after, as it continues its march towards 1,200 stores across the country. It opened 47 last year, including 21 former Wilko shops that B&M bought when its rival collapsed into administration.
The shares lost 5.6% to 515p today, putting them back into negative territory for the year to date.
B&M boss Alex Russo said: "FY24 has been another good year for B&M. The three key components of our business - buying, logistics and retail, are working in balance and we continue to deliver excellent products at everyday low prices to our consumers. We are well set for the years ahead.
“We have demonstrated strong volume-led momentum in our business throughout our trading history and that has continued, driving our profits ahead of both pandemic and pre-pandemic benchmarks. 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.”
