There has been no shortage of institutional coverage for B&M European Value Retail (B&M) since last year's IPO. In the wake of its maiden full-year figures as a public entity, a host of analysts have posted positive updates - it's easy to see why.
The discount retailer, which is chaired by former Tesco boss Sir Terry Leahy, increased cash profits by a third to £150m through to its March year-end, while an already healthy gross margin ticked up 60 basis points to 34.6 per cent.
The group remains in expansive mode. During the period B&M opened another 52 net stores, bringing its total to 425. This rollout continues apace, with another 60 openings anticipated by the 2016 year-end. The retailer has also established an international presence through last year's deal to acquire Jawoll, a successful mixed retail business based in northern Germany. Despite this rapid expansion, the balance sheet isn't overly stretched, with net debt representing 53 per cent of B&M's book value and 2.5 times operating cash flow.
| B&M EUROPEAN VALUE RETAIL (BME) | ||||
|---|---|---|---|---|
| ORD PRICE: | 337p | MARKET VALUE: | £3.4bn | |
| TOUCH: | 336-337p | 12-MONTH HIGH: | 342p | LOW: 227p |
| DIVIDEND YIELD: | 1.0% | PE RATIO: | 99 | |
| NET ASSET VALUE: | 72p* | NET DEBT: | 53% | |
| Year to 28 Mar | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 0.76 | 53.8 | na | nil |
| 2013 | 0.99 | 62.3 | na | nil |
| 2014 (55 weeks) | 1.35 | -14.3 | -1.9 | nil |
| 2015 | 1.65 | 61.7 | 3.4 | 3.4 |
| % change | +22 | - | - | - |
Ex-div: 25 Jun Payment: 7 Aug *Includes intangible assets of £935m, or 93p a share. | ||||
