B&M discount chain doubles its annual profits

Profits at discount chain B&M have more than doubled in the 12 months to 27 March.

The retailer reported group pre-tax profits of £525.4m, up from £252m the year before, thanks to strong trading during lockdowns.

B&M is planning to open 43 more stores across the business in 2021.

However, the group warned of "unpredictable" trading patterns for the rest of the year.

B&M group, which also owns convenience food outlet Heron Foods and French discount chain Babou, saw revenues increase by almost 26% in the last year to £4.8bn.

Chief executive Simon Arora said the business benefited from being an essential retailer and remaining open throughout the pandemic.

"The last year has been an exceptional one," he said. "Our results reflect the speed at which we responded to the challenges presented by Covid-19 and the strength of our execution.

"The core B&M UK business, as an essential retailer, traded throughout the year and welcomed a number of new shoppers, with colleagues working tirelessly to maintain on-shelf availability and provide a safe shopping environment."

The chain is planning to open 25 new B&M stores in the UK by the end of the year, 12 Heron Foods outlets and three more Babou shops, which would take their total retail footprint to 1,091.

But Mr Arora sounded a note of caution for the rest of the year, saying there were "uncertainties" ahead as lockdowns eased.

"Trading patterns are likely to be unpredictable for much of the year," he said.

"Within our UK business, we will be up against the strong comparatives from last year but we remain confident that the B&M customer proposition, with its modern network of predominantly out-of-town stores and value-led variety offer, will prove highly relevant to the needs of shoppers."