Discount chain B&M European Value Retail's (BME) yearly figures were largely what analysts expected to see, but a cold March did results in a slower start to the spring/summer season. In that month alone, like-for-like sales fell 6 per cent, which puts a dampener on what was otherwise a good year for the company.
Fast forward eight weeks into the new financial year and like-for-like sales are already 3 per cent ahead, although volatile weather patterns have led to uneven trading. By the time first-quarter numbers hit the market, analysts expect an early Easter to have wiped out some of that growth, too – around 0.5 per cent – but they insist underlying trends are positive.
After all, last year the group benefited from consumers trading down to cheaper items, particularly in the grocery category. This helped justify a net 39 new openings, and has laid the foundations for a further 45 new sites this year. The acquisition of Heron Foods also boosted last year’s adjusted cash profit by £11.7m.
Analysts at Peel Hunt still expect pre-tax profit of £298m for the year ending March 2019, giving EPS of 24.1p, compared with £222m and 18p in FY2018.
| B&M EUROPEAN VALUE RETAIL (BME) | ||||
| ORD PRICE: | 410.12p | MARKET VALUE: | £4.12bn | |
| TOUCH: | 412-412.1p | 12-MONTH HIGH: | 436p | LOW: 334p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 22 | |
| NET ASSET VALUE: | * | NET DEBT: | £535m | |
| Year to 31 Mar | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 1.35 | -14.3 | -1.9 | nil |
| 2015 | 1.65 | 61.7 | 3.4 | 3.4 |
| 2016 | 2.04 | 155 | 12.5 | 4.8 |
| 2017 | 2.43 | 183 | 14.3 | 5.8 |
| 2018 | 3.03 | 229 | 18.6 | 7.2 |
| % change | +25 | +25 | +30 | +24 |
| Ex-div: | 28 Jun | |||
| Payment: | 6 Aug | |||
| *Negative shareholders' funds | ||||
