B&M European Value Retail S.A. Trading Update (5118H)
December 03 2020 - 10:20AM
UK Regulatory
TIDMBME
RNS Number : 5118H
B&M European Value Retail S.A.
03 December 2020
3 December 2020
B&M European Value Retail S.A.
FY21 Q3 Trading Update and waiver of Business Rates Relief
B&M European Value Retail S.A. ("the Group"), the UK's
leading variety goods value retailer, today provides a trading
update relating to its Third Quarter ("Q3") performance to date,
and relating to business rates relief.
On 12 November 2020, the Group announced that it had made a
strong start to the second half of its financial year and, against
a highly uncertain economic backdrop and continued impacts from
Covid-19, B&M was well placed to continue to grow profitably in
the UK whilst developing the proposition in France.
Over the first 9 weeks of Q3 at B&M UK stores, there has
been a steadily improving customer count and like-for-like(1)
("LFL") sales growth has been slightly ahead of H1, but is expected
to moderate over the balance of the financial year.
Accordingly, the Group now expects adjusted EBITDA(2) (on a
pre-IFRS 16 basis) for the twelve months to 27 March 2021 ("FY21")
to be in the range of GBP 600 m to GBP 650 m. The analysts'
consensus estimate(3) for FY21 adjusted EBITDA(2) (on a pre-IFRS 16
basis) is currently GBP571m. In line with its capital allocation
policy, the Board will continue to evaluate capacity to return any
surplus cash to shareholders.
The above adjusted EBITDA range and consensus is prior to any
voluntary payment of business rates in FY21. The Group welcomed the
Government's business rates relief, given the disproportionate
burden business rates places on physical stores versus online
competitors, particularly at a time when the nature and duration of
Covid-19 restrictions were unknown. Although significant
uncertainty remains, the Group believes it is now right to forego
the business rates relief granted to B&M, which is
approximately GBP80m this financial year. Having voluntarily
returned furlough money, B&M will now engage with local
authorities on an appropriate mechanism to waive the business rates
relief.
The Group calls on Government to create a level playing field
that requires all essential and online retailers to contribute
proportionately in terms of taxation and business rates.
Simon Arora, Chief Executive, said:
"The safety of the Group's colleagues and customers remains the
key priority in these difficult times. We are proud of the role we
have played in this crisis, working very hard in our supply chain
and stores to ensure our shoppers can rely on us for their everyday
essentials, whilst creating over 1,800 new jobs, making charitable
donations to local food banks, extending discounts to NHS workers
and currently supporting "Mission Christmas", an important
initiative that aims to deliver over GBP15m of gifts to 400,000
under-privileged children this Winter.
We request urgent reform of the outdated business rates system
that is contributing to job losses across the retail sector and is
acting as a deterrent to B&M and other potential occupiers
taking up vacant space in many locations."
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regulation.
1. Like-for-like revenues relates to the B&M estate only and
includes each store's revenue for that part of the current period
that falls at least 14 months after it opened compared with its
revenue for the corresponding part of the previous period. This 14
month approach has been taken as it excludes the two month halo
period which new stores experience following opening.
2. The Directors consider adjusted EBITDA figures to be more
reflective of the underlying business performance of the Group and
believe that this measure provides additional useful information
for investors on the Group's performance. Adjusting items are the
effects of derivatives, one off refinancing fees, foreign exchange
on the translation of intercompany balances and the effects of
revaluing or unwinding balances related to the acquisition of
subsidiaries and the voluntary payment of business rates.
3. The consensus estimate for adjusted EBITDA in FY21 is based
upon the average of 10 analyst estimates that have been updated
since announcing our FY21 Interim results on 12 November 2020.
B&M European Value Retail S.A.
For further information please contact +44 (0) 151 728 5400 ext
5763
Simon Arora, Chief Executive
Alex Russo, Chief Financial Officer
Jonny Armstrong, Head of Investor Relations
Investor.relations@bandmretail.com
Media
For media please contact +44 (0) 207 379 5151
Sam Cartwright, Maitland
bmstores-maitland@maitland.co.uk
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTBLBDDIBGDGGX
(END) Dow Jones Newswires
December 03, 2020 11:20 ET (16:20 GMT)
B&m European Value Retail (LSE:BME)
Historical Stock Chart
From Feb 2024 to Mar 2024
B&m European Value Retail (LSE:BME)
Historical Stock Chart
From Mar 2023 to Mar 2024