TIDMBME
RNS Number : 0080S
B&M European Value Retail S.A.
11 November 2021
11 November 2021
B&M European Value Retail S.A.
FY22 Interim Results Announcement
Strong sales and profit growth versus pre-pandemic levels
B&M European Value Retail S.A. ("the Group"), the UK's
leading variety goods value retailer, today announces its interim
results for the 26 weeks to 25 September 2021.
HIGHLIGHTS
-- Group revenues increased by +1.2% on prior year to
GBP2,268.0m (+1.4% constant currency(1) ) or +26.8% on a two-year
basis versus H1 FY20
-- B&M UK fascia(2) revenue up +1.3% on prior year, with
like-for-like(3) ("LFL") revenues decreasing by (5.0)%
o On a two-year basis vs H1 FY20, LFL revenues were +16.8% as
sales densities remained significantly higher than pre-pandemic
levels
-- Gross margin in the B&M UK business was particularly
strong, driven by a change in the sales mix towards General
Merchandise and high sell-through across Spring/Summer seasonal
ranges leading to limited markdown activity
-- Group adjusted EBITDA(4) of GBP282.2m on a pre-IFRS16 basis
versus GBP295.6m(5) in the prior year, or GBP255.7m in the prior
year on a comparable basis when reflecting the voluntary charge
relating to business rates subsequently made in H2 FY21
o On a two-year basis versus H1 FY20, Group adjusted EBITDA(4)
increased +86.4% due to higher sales densities and a favourable
sales mix
-- Group statutory profit before tax (post-IFRS16) increased
+2.4% to GBP241.4m (H1 FY21: GBP235.6m(5) ) and Group adjusted
profit before tax(4) (pre-IFRS16) decreased by (6.2)% to GBP238.0m
(H1 FY21: GBP253.6m(5) )
-- Statutory diluted earnings per share of 19.0p (H1 FY21:
18.7p) and adjusted diluted earnings per share(4) of 18.7p (H1
FY21: 20.1p)
-- 14 gross new B&M UK store openings and 9 store closures in H1 FY22
-- More challenging trading conditions in Heron Foods as average
transaction values for grocery shopping normalise to pre-pandemic
levels, but satisfactory earnings through careful cost control and
cash discipline
-- Strong strategic and financial progress in France, with 100
out of 104 stores trading as B&M and adjusted EBITDA(4) of
GBP11.4m (H1 FY21: GBP2.7m)
-- Group cash generated from operations was GBP201.7m (H1 FY21:
GBP403.2), reflecting a strong EBITDA performance and the impact of
an earlier build of inventory compared to the prior period
-- Ordinary half year dividend(6) increased by 16.3% to 5.0p per
share (H1 FY21: 4.3p), to be paid on 17 December 2021
-- Good stock availability heading into peak trading having
deliberately taken delivery of imported General Merchandise earlier
than normal, with supply chains across the Group remaining
robust
-- Ongoing evaluation of current leverage and cash position, in
line with our capital allocation framework
Simon Arora, Chief Executive, said,
"The Group has performed strongly throughout the first half of
our financial year, with customers continuing to be drawn to our
value for money offer .
We have responded decisively to supply chain challenges by
leveraging our strong supplier relationships and we have improved
in-store execution. As a consequence, we are fully stocked heading
into the Golden Quarter, with stores already showcasing our
excellent Christmas ranges. To colleagues across the Group, I
express my gratitude for their dedication, skill and commitment,
which have made these results possible.
Although the pathway to a 'new normal' remains uncertain and the
industry faces a number of supply and inflationary pressures as we
enter the second half of the financial year, we are very confident
that the B&M Group is well positioned to navigate these and
will continue to be successful both in the UK and in France."
Financial Results (unaudited)
H1 FY22 H1 FY21 Change
Number of stores
Group 1,097 1,059 +3.6%
B&M UK 686 657 +4.4%
Heron Foods 307 299 +2.7%
France 104 103 +1.0%
-------------- --------------- -----------
Total Group revenues GBP2,268.0m GBP2,242.1m +1.2%
B&M UK GBP1,909.5m GBP1,885.4m +1.3%
Heron Foods GBP203.1m GBP216.2m (6.1)%
France GBP155.4m GBP140.6m +10.6%
Total Group revenues at - - +1.4%
constant currency(1)
-------------- --------------- -----------
Group adjusted EBITDA GBP282.2m GBP295.6m(5) (4.6)%
(4)
GBP257.4m GBP274.7m (6.3)%
B&M UK
GBP13.4m GBP18.3m (26.7)%
Heron Foods
GBP11.4m GBP2.7m +324.9%
France
-------------- --------------- -----------
Group adjusted EBITDA
(4) margin % 12.4% 13.2% (75) bps
-------------- --------------- -----------
Group adjusted profit
before tax(4) GBP238.0m GBP253.6m (6.2)%
-------------- --------------- -----------
Group statutory profit
before tax GBP241.4m GBP235.6m +2.4%
-------------- --------------- -----------
Adjusted diluted EPS(4) 18.7p 20.1p (7.2)%
-------------- --------------- -----------
Statutory diluted EPS 19.0p 18.7p +1.7%
-------------- --------------- -----------
Ordinary dividends(6) 5.0p 4.3p +16.3%
-------------- --------------- -----------
1. Constant currency comparison involves restating the prior
year Euro revenues using the same exchange rate as that used to
translate the current year Euro revenues.
2. References in this announcement to the B&M business
includes the B&M fascia stores in the UK except for the
'B&M Express' fascia stores. References in this announcement to
the Heron Foods business includes both the Heron Foods fascia and
B&M Express fascia convenience stores in the UK.
3. One-year like-for-like revenues relate to the B&M UK
estate only (excluding wholesale revenues) and include 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 FY21. This 14 month approach has been adopted
as it excludes the two month halo period which new stores
experience following opening. Two-year like-for-like revenues also
relate to the B&M UK estate only, and includes each store's
revenue for that part of the current period that falls at least 26
months after it opened compared with its revenue for the
corresponding part of FY20.
4. The Directors consider adjusted 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. Further details can be found
in notes 3 and 4 . Adjusted figures exclude the impact of
IFRS16.
5. In the prior year, H1 FY21 Group adjusted EBITDA of GBP295.6m
did not include a charge relating to business rates amounting to
approximately GBP40m. Subsequent to the H1 FY21 reporting period,
the Group announced it would forgo the UK Government business rates
relief, with this amount being charged in H2 FY21. Further details
can be found in note 3.
6. Dividends are stated as gross amounts before deduction of
Luxembourg withholding tax which is currently 15%.
7. Net capital expenditure includes the purchase of property,
plant and equipment, intangible assets and proceeds of sale of any
of those items. These exclude IFRS16 lease liabilities.
8. Net debt was GBP654.6m at the period end. This reflects
GBP746.9m of gross debt netted against GBP92.3m of cash.
Analyst & Investor webcast & conference call
An Analyst & Investor only webcast and conference call in
relation to these FY22 Interim Results will be held today at 9.45am
(UK).
The conference call can be accessed live via a dial-in facility
on:
UK & International: +44 330 336 9128
US: +1 929 477 0402
Confirmation code: 5209689
A simultaneous audio webcast and presentation will be available
via the B&M corporate website at www.bandmretail.com
Enquiries
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 announcement contains statements which are or may be deemed
to be 'forward-looking statements'. Forward-looking statements
involve risks and uncertainties because they relate to events and
depend on events or circumstances that may or may not occur in the
future. All forward-looking statements in this announcement reflect
the Company's present view with respect to future events as at the
date of this announcement. Forward-looking statements are not
guarantees of future performance and actual results in future
periods may and often do differ materially from those expressed in
forward-looking statements. Except where required by law or the
Listing Rules of the UK Listing Authority, the Company undertakes
no obligation to release publicly the results of any revisions to
any forward-looking statements in this announcement that may occur
due to any change in its expectations or to reflect any events or
circumstances arising after the date of this announcement.
Notes to editors
B&M European Value Retail S.A. is a variety retailer with
686 stores in the UK operating under the "B&M" brand, 307
stores under the "Heron Foods" and "B&M Express" brands, and
104 stores in France operating under both the "Babou" and "B&M"
brands as at 25 September 2021. It was admitted to the FTSE 100
index on 21 September 2020.
The B&M Group was founded in 1978 and listed on the London
Stock Exchange in June 2014. For more information please visit
www.bmstores.co.uk
OVERVIEW OF FY22 INTERIM RESULTS
The Group performed strongly throughout the first half of the
financial year, executing its plans well and navigating a number of
widely reported supply chain challenges impacting the retail
industry. In the core B&M UK business, the two-year
like-for-like sales performance suggests that many of the new
customers acquired during FY21 have been retained. Gross margin
performance was particularly strong due to a favourable sales mix
and limited end-of-season markdown activity across General
Merchandise categories, whilst performance in Grocery was also
pleasing.
The Heron Foods business had a more challenging period, as
average basket spend normalised versus the 'stockpiling' seen at
the start of the pandemic last year. Despite ongoing volatility in
trading patterns, performance has been satisfactory and should
improve over H2 FY22 as footfall gradually recovers.
In France, the strong momentum from FY21 has continued and it
has been another six months of good progress against the strategic
and financial objectives for this year.
Financial performance
The Group financial statements have been prepared in accordance
with IFRS16, however underlying figures presented before the impact
of IFRS16 continue to be reported where they are relevant to
understanding the performance of the Group.
Group revenues for the 26 weeks ended 25 September 2021 grew by
+1.2% to GBP2,268.0m and by +1.4% on a constant currency basis(1) .
On a two-year basis versus H1 FY20, Group revenues were +26.8%
higher.
B&M UK
In the B&M UK fascia(2) business, revenues grew by +1.3% to
GBP1,909.5m (H1 FY21: GBP1,885.4m). On a one-year basis,
like-for-like(3) ("LFL") sales decreased (5.0)%, which was
relatively consistent across H1 with Q1 (4.4)% and Q2 (5.6)%
despite the weekly volatility of the prior year comparatives.
Two-year LFL sales in H1 were +16.8%, representing a significant
increase in pre-pandemic store sales densities.
In addition to strong LFL performance versus H1 FY20, the new
store opening programme also contributed to revenue growth, with
the annualisation of 43 gross new stores opened last year plus 14
gross new openings in H1 FY22. The performance of recent openings
continues to be very strong, with both the FY21 and H1 FY22 cohorts
of new stores delivering a higher store contribution margin than
the company average. New stores do not require a maturity period to
achieve profitability, due to the disruptive nature of the retail
offer and a capital light model, making the new store payback
economics highly attractive.
B&M UK revenues also included GBP24.0m of wholesale revenues
(H1 FY21: GBP20.4m), the majority of which represented sales made
to the associate Centz Retail Holdings Limited, a chain of 38
variety goods stores in the Republic of Ireland.
Gross margins improved 153 bps year-on-year to 37.3% (H1 FY21:
35.8%), which was above initial expectations at the start of the
year. The performance of higher margin General Merchandise and
Seasonal categories was particularly strong, with high sell-through
rates leading to limited end of season markdowns. Although there
were favourable tailwinds in terms of consumer demand once again in
H1 FY22, the improved execution of categories such as Homewares and
Gardening has supported the sales mix shift seen in the B&M UK
business since the start of FY21.
Operating costs, excluding depreciation and amortisation,
increased by 13.8% to GBP454.8m (H1 FY21: GBP399.7m), representing
23.8% of revenues. On a comparable basis versus H1 FY20, when
operating costs were 24.6% of revenues, this is an improvement of
76 bps. In H1 FY21, the B&M UK business initially recognised
the benefit of UK Government business rates relief, amounting to
c.GBP37m of operating costs not included in the prior year figure
above. In December 2020 the business decided to forgo this relief,
meaning a full year business rates charge was incurred in H2
FY21.
Transport and distribution costs, store colleague costs and rent
were all managed effectively as a percentage of revenues despite
the slightly negative LFL sales performance, as the business worked
hard to retain much of the operating leverage delivered in the
prior year. The business has a long-standing shipping partner for
goods sourced out of Asia, with freight rates fixed at contracted
rates and service levels and availability remaining strong
throughout H1.
Adjusted EBITDA(4) decreased by (6.3)% to GBP257.4m (H1 FY21:
GBP274.7m), with adjusted EBITDA(4) margin decreasing by (109) bps
to 13.5% (H1 FY21: 14.6%). When compared to H1 FY20, adjusted
EBITDA(4) has increased 87.4% with a margin expansion of 405 bps
over that two-year period, driven by higher sales densities, a
sales mix shift towards General Merchandise and unusually limited
markdown activity versus pre-pandemic levels as noted above.
Heron Foods
The discount convenience chain, Heron Foods(2) , generated
revenues of GBP203.1m (H1 FY21: GBP216.2m). This performance was
satisfactory given the elevated comparatives from H1 FY21 and
average transaction values normalising.
Adjusted EBITDA(4) decreased by (26.7)% to GBP13.4m (H1 FY21:
GBP18.3m) with an adjusted EBITDA(4) margin of 6.6%, down (186) bps
year-on-year (H1 FY21: 8.5%). On a two-year basis versus H1 FY20,
the adjusted EBITDA(4) margin has remained stable, actually
improving slightly by 6 bps.
France
In France, revenues increased by 10.6% to GBP155.4m (H1 FY21:
GBP140.6m). This represented a strong performance given there were
6 weeks of 'soft lockdown' restrictions in force at the start of
the financial year. These restrictions were lifted in full on 19
May 2021, with encouraging LFL revenue growth since then.
Gross margin increased by 390 bps to 45.8% (H1 FY21: 41.9%),
driven by a strong performance of General Merchandise categories
such as Homewares and Seasonal, alongside the ongoing reduction in
Clothing and Footwear sales.
Adjusted EBITDA(4) increased significantly to GBP11.4m (H1 FY21:
GBP2.7m), representing an adjusted EBITDA(4) margin of 7.3%.
At the end of H1 FY22 the French estate consisted of 104 stores
in total, of which 100 were under the B&M banner. The
performance of the re-branded locations continues to be
encouraging, and the local team remain focused on maintaining
recent momentum in H2 FY22, subject to any potential Covid-19
restrictions which may be re-introduced.
Group
Group adjusted EBITDA(4) decreased (4.6)% to GBP282.2m (H1 FY21:
GBP295.6m(5) ), representing an adjusted EBITDA(4) margin of 12.4%
(H1 FY21: 13.2%), a reduction of just (75) bps year-on-year despite
the prior period not having UK business rates charges. When
compared to pre-pandemic levels of H1 FY20, Group adjusted
EBITDA(4) has increased 86.4% with a margin expansion of 398 bps
over that two-year period.
Depreciation and amortisation expenses, excluding the impact of
IFRS16, grew by 6.7% to GBP32.1m (H1 FY21: GBP30.1m). This was due
to continued investment in new stores across all fascias, with 38
more stores year-on-year across the Group at the end of H1.
In relation to finance costs, excluding IFRS16, the adjusted net
interest charge increased slightly to GBP12.0m (H1 FY21: GBP11.9m).
The IFRS16 lease interest charge for the period was GBP29.9m (H1
FY21: GBP30.6m).
The Group's adjusted profit before tax(4) decreased by (6.2)% to
GBP238.0m (H1 FY21: GBP253.6m), whilst statutory profit before tax
increased by 2.4% to GBP241.4m (H1 FY21: GBP235.6m). The impact of
IFRS16 on the Group interim financial statements was to decrease
profit before tax by GBP6.6m.
Capital expenditure, cashflow and leverage
Group net capital expenditure(7) , excluding IFRS16 right-of-use
asset additions, was GBP43.0m (H1 FY21: GBP31.5m). This included
GBP12.2m spent on 23 new stores opened in the first half across the
Group (H1 FY21: GBP14.2m on 20 stores), GBP18.4m on maintenance
works to ensure that our existing store estate and warehouses are
appropriately invested (H1 FY21: GBP9.0m), and a total of GBP12.4m
on infrastructure projects and 3 opportunistic freehold
acquisitions to support the continued growth of the business (H1
FY21: GBP8.3m).
Cash generated from operations was GBP201.7m (H1 FY21:
GBP403.2), reflecting a strong EBITDA performance and the impact on
working capital of an earlier build of inventory compared to the
prior period.
The Group remains comfortably within its stated leverage ceiling
of 2.25x, with a net debt(8) to last-twelve-months adjusted
EBITDA(4) ratio of 1.1x at the end of H1 FY22 (H1 FY21: 0.7x),
calculated on a pre-IFRS16 basis. The current leverage and cash
position continues to be evaluated in line with the Group's capital
allocation framework.
Dividend
An Ordinary interim dividend of 5.0p(6) per Ordinary Share will
be paid on 17 December 2021 to shareholders on the register at 19
November 2021. The ex-dividend date will be 18 November 2021. The
dividend payment will be subject to a deduction of Luxembourg
withholding tax of 15%.
Shareholders and Depository Interest holders can obtain further
information on the methods of receiving their dividends on our
website www.bandmretail.com or by visiting the website of our
Registrar, Capita Asset Services at www.capitashareportal.com .
Strategic performance
Whilst the macroeconomic backdrop has continued to be uncertain,
with a number of well-documented challenges being experienced by
the sector, the Group has remained focused on delivering its
strategic priorities. In this regard, H1 FY22 has been another
period of strong execution and pleasing progress across all four
strategic pillars as outlined below.
1. Delivering great value to our customers
B&M is all about providing consistently great value on the
things customers buy regularly for their homes and families. Only
the best sellers are stocked in any category, so there is always
something that shoppers will want or need that can be bought
quickly, cheaply and conveniently in store.
Alongside great value, B&M also offers constant newness with
typically 100 new lines added each week, predominantly across
General Merchandise categories. This remains a crucial part of the
appeal of B&M, as customers often make impulse purchases in
store regardless of their initial reason for visiting. The
combination of "Big Brands, Big Savings" alongside increasingly
popular own-branded General Merchandise ranges, such as Homewares
and Seasonal, makes for a compelling customer proposition.
Last year, B&M saw a number of new customers discover the
brand. In particular, the socio-economic profile of these customers
included large numbers of middle-income households, suggesting the
appeal of value retailing was broadening to encompass slightly more
affluent consumers who may not need a bargain, but certainly enjoy
a bargain.
The strong two-year LFL sales performance of +16.8% in H1 FY22,
which was broad based across a number of product categories, would
suggest that many of those new shoppers from FY21 are continuing to
shop with B&M.
Spring/Summer seasonal ranges were particularly successful this
year. At the very start of the financial year, a combination of
favourable Spring weather and Covid-related restrictions led to
early demand for Gardening products. Demand remained strong through
the Summer months even after the lifting of restrictions, such that
the sell-through of General Merchandise ranges was high. End of
season markdown activity was therefore limited and further
contributed to a gross margin out-performance for the first half as
a whole.
These factors create an exciting opportunity for B&M to hold
on to market share gains over the past two years, and take further
steps to cement its position as a destination store for value for
money General Merchandise.
2. Investing in new stores
The Group remains committed to investing in new stores across
all its geographies and fascias.
In the core B&M UK business, 14 gross new stores were opened
across the UK. The business continues to be selective in its store
estate, regarding quality as important as quantity.
There were 9 closures in H1 FY22, of which 2 were relocations,
meaning that there was a net increase of 5 stores overall. The
closed stores were typically opened over a decade ago and were in
catchments where a larger, more modern store had been opened in a
prior financial year and which is delivering materially superior
returns.
Looking ahead to H2 FY22, the new store pipeline remains
healthy. There is a risk, however, that up to 5 stores included in
the original expectation of 45 gross new stores for FY22 may now
fall into early FY23, due to the current moratorium on tenant
evictions until 25 March 2022. Longer term, the business still has
a long runway of growth from the current base of 686 B&M fascia
stores to the stated UK store target of 950 stores. Moreover, given
the sustained increase in sales densities in existing stores versus
pre-pandemic levels, this rollout target appears conservative.
Heron Foods opened 8 gross new stores and closed 7 stores in H1
FY22, bringing the total to 307. These closures included 3 stores
that had been unprofitable since opening, and 4 relocations where
there was an opportunity to move to a more attractive site within
the same local catchment area.
Heron Foods remains on track to achieve 15 gross new stores in
the financial year as a whole. The pace of rollout in Heron Foods
will always be slower than that of the core B&M UK fascia due
to the geographical clustering of locations required to support
convenience food retailing. Notwithstanding those constraints, the
Heron Foods store estate has the potential to be multiple times
larger than its current size over the longer term, and the Group is
committed to carefully expanding its UK footprint.
In France, the operational priority has been very much on
converting the existing Babou portfolio, rather than pursuing a
rollout of new stores. In that regard, a further 45 stores were
re-branded during H1 FY22 such that at the end of the period only 4
out of the total of 104 stores in France remained under the "Babou"
brand.
3. Developing the international business
In France, H1 FY22 has been another period of pleasing
operational execution by the local team. For the first 6 weeks of
the financial year, the business operated under lockdown
restrictions imposed by the French Government during which only
essential goods could be sold. Despite this, France has delivered
strong sales growth, a step-up in adjusted EBITDA(4) quantum and
margin, and significant progress against its strategic
priorities.
The evolution of the product offer towards that of B&M is
now well advanced. As planned, Clothing & Footwear ranges were
reduced further and represented only c.14% of the sales mix in H1
FY22. Much like in the UK, the performance of General Merchandise
categories such as Homewares was very strong, such that the
business was awarded "Best Store for Home Decoration & Gifts"
in the annual "Best Store Chain in France" survey of 655,000
shoppers and despite the B&M brand being new in the market.
Synergies from working alongside the UK buying teams and leveraging
the B&M supply chain are now well embedded.
The product range changes have complemented the successful
programme of re-brands, as noted above. When re-branding the store
fascia, the internal layout has also been made more akin to that of
a B&M store in the UK, facilitating an improved customer
experience and better store standards. The remaining 4 stores
branded "Babou" will all be converted before the end of the
calendar year.
With strong foundations now in place, the upcoming Golden
Quarter takes on particular importance for the French team.
Notwithstanding the potential for Covid-related restrictions to
return, the Group is optimistic that recent momentum will be
sustained and another strong performance will be delivered in the
second half.
Performance in H1 FY22 has reaffirmed the Groups conviction that
its aspirations for the French business are achievable. This
includes delivering a 7% adjusted EBITDA margin for the business.
Achieving this will require a clear focus, and as such no other
international geographies are currently being evaluated so as to
not risk management distraction.
4. Investing in people and infrastructure
The Group operates an in-house Transport and Distribution
operation, which is well invested and scalable. As such, whilst
there have been minor instances of labour shortages and some cost
inflation in this part of the business, the Group's cost structure
and business model are such that these costs are not as significant
as at some competitors, particularly those multi-channel retailers
with significant online operations.
The existing network of five main B&M UK Distribution
Centres remains adequate to service the sustained increase in sales
volumes versus pre-pandemic levels. With productivity at the
Bedford facility targeted to improve, no large-scale capital
investment in additional capacity is anticipated in the near term,
albeit there will be investment in a new Warehouse Management
System to underpin the continued growth of the B&M UK
business.
Given the sustained demand for larger, higher ticket General
Merchandise items over the past two years the business has been
evaluating what opportunities may exist to access new customers and
incremental revenue streams. As such, B&M is planning an online
trial where a curated range of products will be made available for
home delivery, with an anticipated launch date in calendar year
2022.
Developing colleagues remains an integral part of the Group's
success, for example through the "Step Up" programme for store
managers and a "Warehouse to wheels" initiative aimed at offering
training opportunities for warehouse colleagues to become HGV
drivers.
The Group created over 550 new retail jobs in H1 FY22 through
its new store opening programme in the UK. It currently has over
1,500 colleagues working under the Government's "Kickstart"
programme which aims to help long-term unemployed people get back
into work in their local communities, and a further 141 colleagues
enrolled on to various apprenticeships.
On 9 November 2021, Paula MacKenzie was welcomed to the Board as
a Non-Executive Director. Paula brings with her a wealth of retail
knowledge and experience, and will contribute significantly to the
ongoing growth of the Group. Following the appointment, female
representation at Board level is now 43%, demonstrating the Board's
commitment to diversity and inclusion.
Outlook
Having performed strongly in H1 FY22, the B&M UK fascia
business will annualise even higher comparatives from FY21 in H2.
In the first six weeks of Q3, one-year LFL sales have been (8.9)%,
with the prior year six week period seeing highly elevated sales
due to unusually early Christmas trading. On a two-year basis
versus pre-pandemic levels of FY20, LFL sales have been +14.7%.
Inventory levels and in-store availability remain good, having
taken receipt of imported goods earlier than normal in direct
response to the well-reported supply chain constraints and shipping
disruption in both Asia and the UK. As such, the business remains
focused on maintaining a very strong two-year performance for the
second half of the financial year.
In terms of gross margin, although the return of Seasonal
markdown activity did not materialise as expected in H1, it is too
early to accurately predict the extent to which this remains a
feature in H2. It will largely be determined by demand levels for
Seasonal products seen over the peak Christmas period, and this
will be a key driver of the full year outturn. Like the retail
sector as a whole, the Group faces a number of potential cost
headwinds and inflationary pressures heading into 2022, but
considers itself well positioned to navigate these challenges due
to its agile business model, strong supplier relationships and
customer value proposition. Given the strong adjusted EBITDA(4)
margin of 12.4% delivered in H1, the Group is confident of
maintaining profit margins materially above historical levels.
The new store pipeline for the B&M fascia in the UK remains
healthy, although there is a risk that up to 5 stores included in
the original expectation of 45 gross new stores for FY22 may be
delayed until next financial year. The Heron Foods business remains
on track to open 15 gross new stores this financial year, whilst in
France we will continue to focus on strong operational execution
and laying the foundations for future growth.
Environmental, Social & Governance
The Group recognises the rising importance of Environmental,
Social & Governance ("ESG") considerations to all stakeholders.
The Board and Executive Management team continue to evaluate what
the most appropriate metrics and targets for a growth retailer such
as B&M are, and to develop an appropriate strategy. These
include, but are not limited to:
-- Reporting under the requirements of the Task Force for
Climate-related Financial Disclosures in FY22;
-- Disclosing Scope 1, 2 and 3 carbon emissions and setting a
long term science based target for each;
-- Ongoing rollout of LED lighting and Building Energy
Management Systems in stores to reduce our carbon footprint;
and
-- Having a positive impact on society through extending the
reach of B&M's value-for-money proposition to even more
customers and creating job opportunities across the Group.
Alongside this work, the Group has continued to play a key role
in helping customers navigate the economic impact of the pandemic
on households with limited budgets by offering value for money
across a range of products. It has also supported the regeneration
of local communities through the opening of 38 new stores and
creation of over 550 new retail jobs. The Group continues to invest
in training, diversity and inclusion, as in part seen above under
the "Investing in people and infrastructure" section.
The Group looks forward to sharing the results of its ongoing
ESG strategy review in more detail as part of its FY22 Preliminary
Results in June 2022.
Principal Risks and Uncertainties
There are a number of risks and uncertainties which could have a
material negative impact on the Group's performance over the
remainder of the current financial year. These could cause actual
results to materially differ from historical or expected results.
The Board does not believe that these risks and uncertainties are
materially different to those published in the Annual Report for
the year ended 27 March 2021.
These risks comprise all those associated with the Covid-19
pandemic, disruption in the supply chain, high levels of
competition, the broader economic environment and market
conditions, failure to comply with laws and regulations, inherent
risks in international expansion, failure to maintain and invest in
key infrastructure, disruption to key IT systems, cyber security
and business continuity, fluctuations in commodity prices and cost
inflation, key management reliance, availability of suitable new
stores and failure of stock management controls.
Detailed explanations of these risks are set out on pages 24 to
32 of the Annual Report 2021 which is available at
https://www.bandmretail.com/investors/presentations/year/2021
Response to voting at the 2021 Annual General Meeting
("AGM")
At the AGM in July 2021, all proposed resolutions were passed
with strong shareholder support. The Board did, however, note that
the vote in favour of the resolution to approve the Directors'
Remuneration Report fell just below the 80% level, and invited
shareholders to provide feedback. In response, a number of
shareholders have since acknowledged the Board's willingness to
consider their views during the consultation process prior to the
AGM, and have expressed their continued support for the Board's
overall approach to Remuneration. The Board remains committed to
shareholder engagement and will continue to seek feedback from
shareholders as part of an ongoing open and constructive
dialogue.
Simon Arora
Chief Executive
11 November 2021
Consolidated statement of Comprehensive Income
26 weeks 52 weeks
26 weeks ended ended ended
25 September 26 September 27 March
2021 2020 2021
Note GBP'000 GBP'000 GBP'000
Revenue 2 2,267,981 2,242,112 4,801,425
Cost of sales (1,419,925) (1,440,592) (3,031,455)
Gross profit 848,056 801,520 1,769,970
Administrative expenses (565,326) (518,926) (1,156,556)
Operating profit 282,730 282,594 613,414
Share of profits of investments in associates 600 - 1,795
Profit on ordinary activities before interest
and tax 283,330 282,594 615,209
Finance costs on lease liabilities (29,918) (30,577) (61,411)
Other finance costs (12,139) (16,414) (28,654)
Finance income 92 33 295
Profit on ordinary activities before tax 241,365 235,636 525,439
Income tax expense 5 (50,791) (48,460) (97,335)
Profit for the period 190,574 187,176 428,104
-------------- ------------- -----------
Other comprehensive income for the period
Items that may be subsequently reclassified
to profit or loss:
Exchange differences on retranslation of
subsidiaries and associates 296 (52) (1,222)
Fair value movements recorded in the hedging
reserve 18,167 (10,235) (20,393)
Tax effect of other comprehensive income (3,452) 1,859 4,509
-----------
Total comprehensive income for the period 205,585 178,748 410,998
-------------- ------------- -----------
Earnings per share
Basic earnings attributable to ordinary
equity holders (pence) 4 19.0 18.7 42.8
Diluted earnings attributable to ordinary
equity holders (pence) 4 19.0 18.7 42.7
All comprehensive income is from continuing operations and is
fully attributable to owners of the parent in all presented
periods.
The accompanying accounting policies and notes form an integral
part of these financial statements.
Consolidated statement of Financial Position
25 September 26 September 27 March
2021 2020 2021
Assets Note GBP'000 GBP'000 GBP'000
Non-current
Goodwill 6 920,768 922,502 920,729
Intangible assets 6 118,642 118,882 118,240
Property, plant and equipment 7 350,008 312,383 336,364
Right-of-use assets 8 1,057,604 1,067,737 1,070,581
Investments accounted for using
the equity method 5,079 5,700 4,479
Other receivables 7,208 7,680 7,084
Deferred tax asset 33,688 22,091 32,242
------------ ------------ -----------
2,492,997 2,456,975 2,489,719
------------ ------------ -----------
Current
Cash and cash equivalents 92,330 438,763 217,682
Inventories 886,903 695,904 605,126
Trade and other receivables 68,750 49,198 42,160
Other current financial assets 16,042 4,462 3,767
Income tax receivable 5,941 - -
1,069,966 1,188,327 868,735
------------ ------------ -----------
Total assets 3,562,963 3,645,302 3,358,454
------------ ------------ -----------
Equity
Share capital 9 (100,123) (100,073) (100,082)
Share premium (2,476,160) (2,474,858) (2,475,108)
Retained earnings (188,120) (378,324) (127,585)
Hedging reserve (7,216) (904) 7,499
Legal reserve (10,010) (10,010) (10,010)
Merger reserve 1,979,131 1,979,131 1,979,131
Foreign exchange reserve (7,109) (7,983) (6,813)
(809,607) (993,021) (732,968)
------------ ------------ -----------
Non-current liabilities
Interest-bearing loans and borrowings 10 (698,650) (705,113) (723,736)
Lease liabilities (1,137,177) (1,143,393) (1,138,634)
Other liabilities - (483) -
Deferred tax liabilities (36,592) (26,327) (27,476)
Provisions (8,003) (788) (4,511)
-----------
(1,880,422) (1,876,104) (1,894,357)
------------ ------------ -----------
Current liabilities
Interest-bearing loans and borrowings 10 (42,177) (55,076) (6,875)
Trade and other payables (644,310) (532,558) (524,260)
Lease liabilities (171,511) (160,985) (162,735)
Other financial liabilities - (6,115) (16,141)
Income tax payable (5,796) (14,256) (12,511)
Provisions (9,140) (7,187) (8,607)
------------ ------------ -----------
(872,934) (776,177) (731,129)
------------ ------------ -----------
Total liabilities (2,753,356) (2,652,281) (2,625,486)
------------ ------------ -----------
Total equity and liabilities (3,562,963) (3,645,302) (3,358,454)
------------ ------------ -----------
The accompanying accounting policies and notes form an integral
part of this financial information. The condensed financial
statements were approved by the Board of Directors on 10 November
2021 and signed on their behalf by:
S. Arora, Chief Executive Officer.
Consolidated statement of Changes in Shareholders' Equity
Total
Foreign Share-
Share Retained Hedging Legal Merger exchange holders'
Share capital premium earnings reserve reserve reserve reserve equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 28 March 2020 100,058 2,474,318 244,829 9,280 10,010 (1,979,131) 8,035 867,399
------------- --------- --------- -------- -------- ----------- --------- ---------
Ordinary dividend payments
to owners - - (54,035) - - - - (54,035)
Effect of share options 15 540 354 - - - - 909
------------- --------- --------- -------- -------- ----------- --------- ---------
Total for transactions
with owners 15 540 (53,681) - - - - (53,126)
------------- --------- --------- -------- -------- ----------- --------- ---------
Profit from continuing
operations - - 187,176 - - - - 187,176
Other comprehensive income - - - (8,376) - - (52) (8,428)
------------- --------- --------- -------- -------- ----------- --------- ---------
Total comprehensive income
for the period - - 187,176 (8,376) - - (52) 178,748
------------- --------- --------- -------- -------- ----------- --------- ---------
Balance at 26 September
2020 100,073 2,474,858 378,324 904 10,010 (1,979,131) 7,983 993,021
------------- --------- --------- -------- -------- ----------- --------- ---------
Ordinary dividend payments
to owners - - (43,032) - - - - (43,032)
Special dividend payments
to owners - - (450,330) - - - - (450,330)
Effect of share options 9 250 800 - - - - 1,059
------------- --------- --------- -------- -------- ----------- --------- ---------
Total for transactions
with owners 9 250 (492,562) - - - - (492,303)
------------- --------- --------- -------- -------- ----------- --------- ---------
Profit from continuing
operations - - 240,928 - - - - 240,928
Other comprehensive income - - 895 (8,403) - - (1,170) (8,678)
------------- --------- --------- -------- -------- ----------- --------- ---------
Total comprehensive income
for the period - - 241,823 (8,403) - - (1,170) 232,250
------------- --------- --------- -------- -------- ----------- --------- ---------
Balance at 27 March 2021 100,082 2,475,108 127,585 (7,499) 10,010 (1,979,131) 6,813 732,968
Ordinary dividend payments
to owners - - (130,107) - - - - (130,107)
Effect of share options 41 1,052 68 - - - - 1,161
------------- --------- --------- -------- -------- ----------- --------- ---------
Total for transactions
with owners 41 1,052 (130,039) - - - - (128,946)
------------- --------- --------- -------- -------- ----------- --------- ---------
Profit for the period - - 190,574 - - - - 190,574
Other comprehensive income - - - 14,715 - - 296 15,011
------------- --------- --------- -------- -------- ----------- --------- ---------
Total comprehensive income
for the period - - 190,574 14,715 - - 296 205,585
------------- --------- --------- -------- -------- ----------- --------- ---------
Balance at 25 September
2021 100,123 2,476,160 188,120 7,216 10,010 (1,979,131) 7,109 809,607
------------- --------- --------- -------- -------- ----------- --------- ---------
Consolidated statement of Cash Flows
26 weeks 52 weeks
26 weeks ended ended ended
25 September 26 September 27 March
2021 2020 2021
Note GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from operations 11 201,653 403,211 944,048
Income tax paid (59,221) (60,241) (117,422)
---------------- -------------- ----------
Net cash flows from operating activities 142,432 342,970 826,626
---------------- -------------- ----------
Cash flows from investing activities
Purchase of property, plant and equipment (48,227) (30,708) (86,606)
Purchase of intangible assets (1,476) (418) (1,312)
Business disposal net of cash disposed - 9,074 9,074
Disposal of interest in associate company - - 316
Proceeds from the sale of property, plant
and equipment 6,783 6,159 6,448
Finance income received 92 33 295
Dividends received from associates - - 2,186
---------------- -------------- ----------
Net cash flows from investing activities (42,828) (15,860) (69,599)
---------------- -------------- ----------
Cash flows from financing activities
Newly issued corporate bonds net of bonds
repaid 10 - 150,000 150,000
New group bank facilities net of bank facilities
repaid 10 - (82,430) (82,121)
Net receipt/(repayment) of Group revolving
bank loans 20,000 (120,000) (120,000)
Net repayment of Heron bank facilities (673) (1,089) (5,150)
Net (repayment)/receipt of government backed
loan in France (8,371) 45,695 22,762
Net repayment of French bank facilities 10 (1,637) (288) (1,164)
Repayment of the principal in relation
to right-of-use assets (63,179) (51,577) (140,790)
Payment of interest in relation to right-of-use
assets (29,918) (30,577) (61,411)
Fees on refinancing 10 - (10,835) (10,797)
Other finance costs paid (11,955) (10,991) (23,186)
Receipt from exercise of employee share
options - 30 30
Dividends paid to owners of the parent (130,107) (204,123) (697,485)
Net cash flows from financing activities (225,840) (316,185) (969,312)
---------------- -------------- ----------
Effects of exchange rate changes on cash
and cash equivalents 884 561 2,690
Net (decrease)/increase in cash and cash
equivalents (125,352) 11,486 (209,595)
Cash and cash equivalents at the beginning
of the period 217,682 427,277 427,277
---------------- -------------- ----------
Cash and cash equivalents at the end of
the period 92,330 438,763 217,682
---------------- -------------- ----------
Cash and cash equivalents comprise:
Cash at bank and in hand 92,330 438,763 217,682
Overdrafts - - -
---------------- -------------- ----------
92,330 438,763 217,682
---------------- -------------- ----------
Notes to the financial information
1 General information and basis of preparation
The results for the first half of the financial year have not
been audited and are prepared on the basis of the accounting
policies set out in the Group's last set of consolidated accounts
released by the ultimate controlling party, B&M European Value
Retail S.A. (the "company"), a company listed on the London Stock
Exchange and incorporated in Luxembourg.
The financial information has been prepared in accordance with
the Disclosure and Transparency Rules of the Financial Conduct
Authority (DTR) and with International Accounting Standard (IAS) 34
'Interim Financial Reporting' as endorsed by the European
Union.
The Group's trade is general retail, with trading taking place
in the UK and France.
The principal accounting policies have remained unchanged from
the prior financial information for the Group for the period to 27
March 2021.
The financial statements for B&M European Value Retail S.A.
for the period to 27 March 2021 have been reported on by the Group
auditor and delivered to the Luxembourg Registrar of Companies. The
audit report was unqualified.
The financial information is presented in pounds sterling and
all values are rounded to the nearest thousand (GBP'000), except
when otherwise indicated.
This consolidated financial information does not constitute
statutory financial statements.
Basis of consolidation
This Group financial information consolidates the financial
information of the company and its subsidiary undertakings,
together with the Group's share of the net assets and results of
associated undertakings, for the period from 28 March 2021 to 25
September 2021. Acquisitions of subsidiaries are dealt with by the
acquisition method of accounting. The results of companies acquired
are included in the consolidated statement of comprehensive income
from the acquisition date.
Control is achieved when the Group is exposed, or has rights, to
variable returns from its involvement with the investee and has the
ability to affect those returns through its power over the
investee.
Specifically, the Group controls an investee if and only if the
Group has:
-- Power over the investee (i.e. existing rights that give it
the current ability to direct the relevant activities of the
investee)
-- Exposure, or rights, to variable returns from its involvement with the investee, and
-- The ability to use its power over the investee to affect its returns
When the Group has less than a majority of the voting or similar
rights of an investee, the Group considers all relevant facts and
circumstances in assessing whether it has power over an investee,
including:
-- The contractual arrangement with the other vote holders of the investee
-- Rights arising from other contractual arrangements
-- The Group's voting rights and potential voting rights
The Group re-assesses whether or not it controls an investee if
facts and circumstances indicate that there are changes to one or
more of the three elements of control. Consolidation of a
subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the
subsidiary. Assets, liabilities, income and expenses of a
subsidiary acquired or disposed of during the year are included in
the statement of comprehensive income from the date the Group gains
control until the date the Group ceases to control the subsidiary,
excluding the situations as outlined in the basis of
preparation.
Going concern
As a value retailer, the Group is well placed to withstand
volatility within the economic environment. The Group's forecasts
and projections, which are prepared through to March 2023 and take
into account reasonably possible changes in trading performance
show that the Group will trade within its current banking
facilities for that period.
The Group refinanced in July 2020 and the current banking
facilities do not mature until April 2025, with the current high
yield bonds maturing in July 2025.
The Covid-19 pandemic has not had a material impact on this
assessment, with our UK stores remaining open and able to continue
to trade profitably. Whilst the French stores have had to close due
to a national lockdown between 3 April 2021 and 19 May 2021, when
open they have traded successfully and that segment has returned a
positive result for the year and is expected to continue to grow
successfully. The French stores do not make up a significant
proportion of the Group (see note 2).
After making enquiries and considering severe but plausible
downside scenarios the Directors are confident that the Group has
adequate resources to remain a going concern even in those
circumstances.
Accordingly they continue to adopt the going concern basis in
preparing these financial statements.
Critical judgments and key sources of estimation uncertainty
There are no significant changes to the items listed in the 2021
Annual Report.
2 Segmental information
IFRS 8 ('Operating segments') requires the Group's segments to
be identified on the basis of internal reports about the components
of the Group that are regularly reviewed by the chief operating
decision maker to assess performance and allocate resources across
each reporting segment.
The chief operating decision maker has been identified as the
executive directors who monitor the operating results of the retail
segments for the purpose of making decisions about resource
allocation and performance assessment.
For management purposes, the Group is organised into three
operating segments, UK B&M, UK Heron and France B&M
(previously France Babou) segments comprising the three separately
operated business units within the Group.
Items that fall into the corporate category, which is not a
separate segment but is presented to reconcile the balances to
those presented in the main statements, include those related to
the Luxembourg or associate entities, Group financing, corporate
transactions, any tax adjustments and items we consider to be
adjusting (see note 3).
The average euro rate for translation purposes was EUR1.1648/GBP
during the period, with the period end rate being EUR1.1673/GBP
(March 2021: EUR1.1203/GBP and EUR1.1691; September 2020:
EUR1.1161/GBP and EUR1.0935/GBP respectively).
26 week period to UK UK France
25 September 2021 B&M Heron B&M Corporate Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 1,909,499 203,083 155,399 - 2,267,981
EBITDA (note 3) 257,877 13,403 11,387 9,540 292,207
EBITDA (IFRS 16) (note
3) 339,371 19,070 27,370 9,540 395,351
Depreciation and amortisation (83,970) (11,054) (16,997) - (112,021)
Net finance expense (23,592) (1,158) (6,102) (11,113) (41,965)
Income tax (expense)/credit (42,896) (1,271) (1,274) (5,350) (50,791)
Segment profit/(loss) 188,913 5,587 2,997 (6,923) 190,574
Total assets 2,855,545 286,676 359,524 61,218 3,562,963
Total liabilities (1,588,165) (119,804) (257,446) (787,941) (2,753,356)
Capital expenditure* (38,557) (4,120) (7,026) - (49,703)
26 week period to UK UK France
26 September 2020 B&M Heron B&M Corporate Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 1,885,390 216,168 140,554 - 2,242,112
EBITDA (note 3) 276,053 18,291 2,680 (6,057) 290,967
EBITDA (IFRS 16) (note
3) 352,611 23,621 17,539 (6,057) 387,714
Depreciation and amortisation (78,211) (10,478) (16,431) - (105,120)
Net finance expense (24,228) (1,329) (6,186) (15,215) (46,958)
Income tax (expense)/credit (50,144) (2,244) 1,534 2,394 (48,460)
Segment profit/(loss) 200,028 9,570 (3,544) (18,878) 187,176
Total assets 2,929,493 295,742 390,167 29,900 3,645,302
Total liabilities (1,463,060) (121,246) (258,759) (809,216) (2,652,281)
Capital expenditure* (20,561) (5,267) (5,298) - (31,126)
52 week period to UK UK France
27 March 2021 B&M Heron B&M Corporate Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 4,077,564 414,777 309,084 - 4,801,425
EBITDA (note 3) 592,186 24,567 11,111 (4,954) 622,910
EBITDA (IFRS 16) (note
3) 758,082 35,014 42,314 (4,954) 830,456
Depreciation and amortisation (160,710) (20,386) (34,151) - (215,247)
Net finance expense (48,411) (2,527) (12,668) (26,164) (89,770)
Income tax (expense)/credit (106,896) (1,890) 1,239 10,212 (97,335)
Segment profit/(loss) 442,065 10,211 (3,266) (20,906) 428,104
Total assets 2,687,274 282,204 347,927 41,049 3,358,454
Total liabilities (1,476,745) (117,425) (239,863) (791,453) (2,625,486)
Capital expenditure* (65,203) (13,174) (9,541) - (87,918)
* Capital expenditure includes both tangible and intangible
capital
Revenue is disaggregated geographically as follows:
26 weeks ended 26 weeks ended 52 weeks ended
25 September 26 September 27 March
Period to 2021 2020 2021
GBP'000 GBP'000 GBP'000
Revenue due to UK operations 2,112,582 2,101,558 4,492,341
Revenue due to French operations 155,399 140,554 309,084
-------------- -------------- --------------
Overall revenue 2,267,981 2,242,112 4,801,425
-------------- -------------- --------------
The Group operates a small wholesale operation, with the
relevant disaggregation of revenue as follows:
26 weeks ended 26 weeks ended 52 weeks ended
25 September 26 September 27 March
Period to 2021 2020 2021
GBP'000 GBP'000 GBP'000
Revenue due to sales made in stores 2,243,961 2,221,699 4,754,031
Revenue due to wholesale activities 24,020 20,413 47,394
-------------- -------------- --------------
Overall revenue 2,267,981 2,242,112 4,801,425
-------------- -------------- --------------
3 Reconciliation of non-IFRS measures from the statement of comprehensive income
The Group reports a selection of alternative performance
measures as detailed below. The Directors believe that these
measures provide additional information that is useful to the users
of the accounts.
EBITDA, adjusted EBITDA and adjusted profit are non-IFRS
measures and therefore we provide a reconciliation of these amounts
to the statement of comprehensive income below.
26 weeks ended 26 weeks ended 52 weeks ended
25 September 26 September 27 March
Period to 2021 2020 2021
GBP'000 GBP'000 GBP'000
Profit on ordinary activities before
interest and tax 283,330 282,594 615,209
Add back depreciation and amortisation 112,021 105,120 215,247
-------------- -------------- --------------
EBITDA (IFRS 16) 395,351 387,714 830,456
Exclude effects of IFRS 16 on administrative
expenses (103,144) (96,747) (207,546)
--------------
EBITDA 292,207 290,967 622,910
Reverse the effect of ineffective derivatives (10,250) 6,242 6,775
Foreign exchange on intercompany balances 194 (1,569) 3,219
Release of exceptional French stock
provision - - (6,505)
Adjusted EBITDA 282,151 295,640 626,399
Pre IFRS 16 depreciation and amortisation (32,135) (30,127) (62,413)
Net adjusted finance costs (see below) (12,047) (11,863) (23,841)
--------------
Adjusted profit before tax 237,969 253,650 540,145
Adjusted tax (50,858) (52,171) (105,644)
-------------- -------------- --------------
Adjusted profit for the period 187,111 201,479 434,501
-------------- -------------- --------------
All adjusted profit for the period is fully attributable to
owners of the parent.
Adjusted EBITDA (IFRS 16) and Adjusted Profit (IFRS 16) are
calculated as follows. These are the statements of adjusted profit
that includes the effects of IFRS 16.
26 weeks ended 26 weeks ended 52 weeks ended
25 September 26 September 27 March
Period to 2021 2020 2021
GBP'000 GBP'000 GBP'000
Adjusted EBITDA (above) 282,151 295,640 626,399
Include effects of IFRS 16 on EBITDA 103,144 96,747 207,546
Adjusted EBITDA (IFRS 16) 385,295 392,387 833,945
Depreciation and amortisation (112,021) (105,120) (215,247)
Interest costs related to lease liabilities (29,918) (30,577) (61,411)
Net adjusted other finance costs (12,047) (11,863) (23,841)
-------------- -------------- --------------
Adjusted profit before tax (IFRS 16) 231,309 244,827 533,446
Adjusted tax (48,351) (50,481) (106,617)
-------------- -------------- --------------
Adjusted profit for the period (IFRS
16) 182,958 194,346 426,829
-------------- -------------- --------------
Net adjusted finance costs reconcile to finance costs in the
statement of comprehensive income as follows;
26 weeks ended 26 weeks ended 52 weeks ended
25 September 26 September 27 March
Period to 2021 2020 2021
GBP'000 GBP'000 GBP'000
Other finance costs from the statement
of comprehensive income (12,139) (16,414) (28,654)
Add back one-off costs of refinancing - 4,518 4,518
Finance income from the statement of
comprehensive income 92 33 295
Net adjusted finance costs (12,047) (11,863) (23,841)
-------------- -------------- --------------
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. Adjusted tax
represents the tax charge per the statement of comprehensive income
as adjusted only for the effects of the adjusting items detailed
above. All adjusting items are considered to relate to the
corporate segment.
In December 2020 the Group announced that we would voluntarily
repay the business rates relief granted to B&M by the
Government for FY21. At the half year to September 2020 the
additional rates that would have been accrued totalled GBP39.9m
(GBP37.1m B&M, GBP2.8m Heron).
In order to aid comparability we present key statistics for the
half year to September 2020 adjusted for these business rates as
follows:
As Reported Adjustment Revised
GBP'000 GBP'000 GBP'000
Profit before tax 235,636 (39,911) 195,725
Profit after tax 187,176 (32,328) 154,848
Adjusted EBITDA 295,640 (39,911) 255,729
Adjusted profit before tax 253,650 (39,911) 213,739
Adjusted profit after tax 201,479 (32,328) 169,151
Adjusted EBITDA and related measures are not measures of
performance or liquidity under IFRS and should not be considered in
isolation or as a substitute for measures of profit, or as an
indicator of the Group's operating performance or cash flows from
operating activities as determined in accordance with IFRS.
4 Earnings per share
Basic earnings per share amounts are calculated by dividing the
net profit for the financial period attributable to ordinary equity
holders of the parent by the weighted average number of ordinary
shares outstanding at each period end.
Diluted earnings per share amounts are calculated by dividing
the net profit attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares
outstanding during each year plus the weighted average number of
ordinary shares that would be issued on conversion of any dilutive
potential ordinary shares into ordinary shares.
Adjusted (and adjusted (IFRS 16)) basic and diluted earnings per
share are calculated in the same way as above, except using
adjusted profit attributable to ordinary equity holders of the
parent, as defined in note 3.
There are share option schemes in place which have a dilutive
effect on all periods presented. The increase in the number of
shares used in the calculation of the basic earnings per share is
due to the exercise of some of these options.
The following reflects the income and share data used in the
earnings per share computations:
Period to
25 September 26 September 27 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Profit for the period attributable to owners
of the parent 190,574 187,176 428,104
Adjusted profit for the period attributable
to owners of the parent 187,111 201,479 434,501
Adjusted (IFRS 16) profit for the period attributable
to owners of the parent 182,958 194,346 426,829
Thousands Thousands Thousands
Weighted average number of ordinary shares
for basic loss per share 1,000,894 1,000,627 1,000,695
Effect of dilution:
Employee share options 1,740 1,220 1,382
---------- ---------- ----------
Weighted average number of ordinary shares
adjusted for the effect of dilution 1,002,634 1,001,847 1,002,077
---------- ---------- ----------
Pence Pence Pence
Basic earnings per share 19.0 18.7 42.8
Diluted earnings per share 19.0 18.7 42.7
Adjusted basic earnings per share 18.7 20.1 43.5
Adjusted diluted earnings per share 18.7 20.1 43.4
Adjusted IFRS 16 basic earnings per share 18.3 19.4 42.7
Adjusted IFRS 16 diluted earnings per share 18.2 19.4 42.6
------ ------ ------
Diluted earnings per share after adjusting for waived rates
relief for the 26 weeks to 26 September 2020 (see note 3) were
15.5p (adjusted diluted earnings per share: 16.9p).
5 Taxation
The continuing tax charge for the interim period has been
calculated on the basis of the corporation tax rate for the full
year of 19% (UK) and 28.5% (France) and then adjusted for
allowances and non-deductibles in line with the prior year.
6 Intangible assets
Goodwill Software Brands Other Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost or valuation
At 28 March 2020 921,911 10,010 115,274 1,113 1,048,308
Additions - 418 - - 418
Disposals - - - - -
Effect of retranslation 591 6 93 25 715
-------- -------- ------- ------- ---------
At 26 September 2020 922,502 10,434 115,367 1,138 1,049,441
Additions - 894 - - 894
Disposals - - - - -
Effect of retranslation (1,773) (18) (277) (74) (2,142)
At 27 March 2021 920,729 11,310 115,090 1,064 1,048,193
Additions - 1,476 - - 1,476
Disposals - - - - -
Effect of retranslation 39 - 7 2 48
-------- -------- ------- ------- ---------
At 25 September 2021 920,768 12,786 115,097 1,066 1,049,717
-------- -------- ------- ------- ---------
Accumulated amortisation / impairment
At 28 March 2020 - 6,095 606 - 6,701
Charge for the period - 1,132 202 - 1,334
Disposals - - - - -
Effect of retranslation - 6 16 - 22
-------- -------- ------- ------- ---------
At 26 September 2020 - 7,233 824 - 8,057
Charge for the period - 1,038 199 - 1,237
Disposals - - - - -
Effect of retranslation - (14) (56) - (70)
At 27 March 2021 - 8,257 967 - 9,224
Charge for the period - 888 194 - 1,082
Disposals - - - - -
Effect of retranslation - - 1 - 1
-------- -------- ------- ------- ---------
At 25 September 2021 - 9,145 1,162 - 10,307
-------- -------- ------- ------- ---------
Net book value at 25 September 2021 920,768 3,641 113,935 1,066 1,039,410
-------- -------- ------- ------- ---------
Restated net book value at 27 March 2021 920,729 3,053 114,123 1,064 1,038,969
-------- -------- ------- ------- ---------
Net book value at 26 September 2020 922,502 3,201 114,543 1,138 1,041,384
-------- -------- ------- ------- ---------
Impairment reviews of the B&M UK, Heron and B&M France
segments were carried out at the year end, see the 2021 annual
report for further details.
Management have judged that there are no identifiable triggers
for a further impairment test in any of the three segments to be
carried out. Full impairment tests will next be carried out at the
Groups next year end date of 26 March 2022.
7 Property, plant and equipment
Plant,
Land and buildings Motor Vehicles fixtures and equipment Total
GBP'000 GBP'000 GBP'000 GBP'000
Cost or valuation
At 28 March 2020 85,803 15,900 380,432 482,135
Additions 6,230 1,383 23,095 30,708
Disposals (3,427) (257) (2,849) (6,533)
Effect of retranslation - 1 861 862
------------------ -------------- ----------------------- -------
At 26 September 2020 88,606 17,027 401,539 507,172
Additions 11,479 3,214 41,205 55,898
Disposals (306) (830) (3,153) (4,289)
Effect of retranslation - (1) (2,730) (2,731)
At 27 March 2021 99,779 19,410 436,861 556,050
Additions 16,525 1,190 30,512 48,227
Disposals (4,301) (155) (2,478) (6,934)
Effect of retranslation - - 49 49
------------------ -------------- ----------------------- -------
At 25 September 2021 112,003 20,445 464,944 597,392
------------------ -------------- ----------------------- -------
Accumulated depreciation
At 28 March 2020 19,470 5,085 145,382 169,937
Charge for the period 2,024 1,516 23,877 27,417
Disposals (198) (219) (2,440) (2,857)
Effect of retranslation - - 292 292
------------------ -------------- ----------------------- -------
At 26 September 2020 21,296 6,382 167,111 194,789
Charge for the period 2,149 2,234 25,357 29,740
Disposals (244) (590) (2,981) (3,815)
Effect of retranslation - - (1,028) (1,028)
At 27 March 2021 23,201 8,026 188,459 219,686
Charge for the period 2,243 1,338 26,348 29,929
Disposals (215) (128) (1,906) (2,249)
Effect of retranslation - - 18 18
------------------ -------------- ----------------------- -------
At 25 September 2021 25,229 9,236 212,919 247,384
------------------ -------------- ----------------------- -------
Net book value at 25 September 2021 86,774 11,209 252,025 350,008
------------------ -------------- ----------------------- -------
Net book value at 27 March 2021 76,578 11,384 248,402 336,364
------------------ -------------- ----------------------- -------
Net book value at 26 September 2020 67,310 10,645 234,428 312,383
------------------ -------------- ----------------------- -------
8 Right of use assets
Plant,
Land and buildings Motor vehicles fixtures and equipment Total
GBP'000 GBP'000 GBP'000 GBP'000
Net book value
At 28 March 2020 1,061,273 17,866 7,479 1,086,618
Additions 54,420 57 1,799 56,276
Modifications 2,642 2 - 2,644
Disposals (3,927) (19) (47) (3,993)
Impairment (1,134) - - (1,134)
Depreciation (71,513) (3,062) (1,795) (76,370)
Foreign exchange 3,781 6 (91) 3,696
------------------ -------------- ----------------------- ---------
As at 26 September 2020 1,045,542 14,850 7,345 1,067,737
Additions 98,265 2,706 1,228 102,199
Modifications 4,037 - - 4,037
Disposals (8,874) (36) (62) (8,972)
Impairment (4,008) - - (4,008)
Depreciation (74,274) (3,072) (1,803) (79,149)
Foreign exchange (11,181) (18) (64) (11,263)
------------------ -------------- ----------------------- ---------
As at 27 March 2021 1,049,507 14,430 6,644 1,070,581
Additions 63,871 157 423 64,451
Modifications 10,283 - - 10,283
Disposals (6,931) - (20) (6,951)
Depreciation (76,509) (2,881) (1,620) (81,010)
Foreign exchange 239 - 11 250
------------------ -------------- ----------------------- ---------
As at 25 September 2021 1,040,460 11,706 5,438 1,057,604
------------------ -------------- ----------------------- ---------
The vast majority of the Group's leases are in relation to the
property comprising the store and warehouse network for the
business. The other leases recognised are trucks, trailers, company
cars, manual handling equipment and various fixtures and fittings.
The leases are separately negotiated and no subgroup is considered
to be individually significant nor to contain individually
significant terms.
The Group recognises a lease term appropriate to the business
expectation of the term of use for the asset which usually assumes
that all extension clauses are taken, and break clauses are not,
unless the business considers there is a good reason to recognise
otherwise.
9 Share capital
Nominal value Number of shares
Allotted, called up and fully paid GBP'000
B&M European Value Retail S.A. Ordinary
shares of 10p each;
At 28 March 2020 100,058 1,000,582,898
Shares issued due to exercise of employee
share options 15 150,249
------------- ----------------
26 September 2020 100,073 1,000,733,147
Shares issued due to exercise of employee
share options 9 86,541
------------- ----------------
At 27 March 2021 100,082 1,000,819,688
Shares issued due to exercise of employee
share options 41 407,148
------------- ----------------
At 25 September 2021 100,123 1,001,226,836
------------- ----------------
Ordinary Shares
Each ordinary share ranks pari passu with each other ordinary
share and each share carries one vote.
In addition to the issued share capital, the company has an
authorised but unissued share capital of 2,970,995,386 ordinary
shares.
The outstanding share options can be summarised as follows;
25 September 26 September 27 March
2021 2020 2021
Vested, available to exercise 112,901 285,027 87,046
Not vested, not subject to conditions
(in holding) 712,600 346,876 357,664
Not vested, subject to conditions 2,282,682 2,286,801 2,292,268
------------ ------------ ---------
Total outstanding share options 3,108,183 2,918,704 2,736,978
------------ ------------ ---------
For the dilutive effect of these see note 4.
10 Financial liabilities - borrowings
25 September 26 September 27 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Current
Revolving facility bank loan 20,000 - -
French government backed loan facility 13,493 46,639 -
France other loan facilities 3,042 3,572 3,298
Heron loan facilities 5,642 4,865 3,577
------------ ------------ --------
42,177 55,076 6,875
------------ ------------ --------
Non-current
High yield bond notes 397,224 396,421 396,860
Term facility bank loan 296,721 295,830 296,257
French government backed loan facility - - 21,810
France loan facilities 4,705 7,350 6,071
Heron loan facilities - 5,512 2,738
------------ ------------
698,650 705,113 723,736
------------ ------------ --------
Refinancing
In the prior year on 13 July 2020 the Group refinanced their
main facilities by repaying the previously existing GBP250m high
yield bond notes, the GBP300m term loan and the EUR92m acquisition
facility, and drawing down a new main facility of GBP300m and
issuing GBP400m of high yield bonds. The maturity dates on the new
facilities are April 2025 and July 2025 respectively.
The previously held GBP150m revolving loan facility has also
been replaced by a GBP155m revolving loan facility which was not
drawn on the date of the refinancing.
GBP100m of the high yield bonds issued were purchased by a
related party. See note 13 for further details.
The carrying values given above include fees incurred on the
refinancing which are to be amortised over the terms of those
facilities. More details of these are given below.
In the prior year the following fees were expensed through other
finance costs in relation to the loans and bonds which have been
repaid.
GBP'000
Remaining unamortised fees associated with
the repaid term loan 845
Remaining unamortised fees associated with
the repaid acquisition loan 65
Remaining unamortised fees associated with
the repaid high yield bonds 983
Early repayment charge associated with the
corporate bonds 2,578
Breakage fees 47
--------
Total fees expensed through other finance
costs 4,518
--------
The following fees were incurred on refinancing and have been
capitalised within the debt balance, to be amortised over the term
of the debt to which it relates.
GBP'000
Capitalised fees relating to the term loan
facility 4,348
Capitalised fees relating to the high yield
bonds 3,742
--------
Total fees capitalised within the debt balances 8,090
--------
The figure on the cashflow of GBP10.8m includes the above
GBP8.1m capitalised fees, GBP2.6m early repayment/breakage charges
and GBP0.1m of fees associated with an earlier extension of the
acquisition facility.
French government backed loan
In the prior year, in April 2020, the French government mandated
that our France stores were required to close as part of their
response to the Covid-19 pandemic. As a mitigation they introduced
government backed loans to assist the company's affected by this
measure. As a precaution and due to the uncertainty over the
progression of the virus and the impact on trade, the Group's
French entity took a EUR51m loan under this scheme.
The loan had an initial maturity of 1 year, which is interest
free but attracts a guarantor's fee of 0.5%.
The loan was refinanced in February 2021 such that EUR25.5m was
repaid with the remainder retained in order to cover continuing
uncertainty over further measures in relation to the pandemic.
The retained element has a maturity of April 2022, attracts a
guarantor's fee of 1.0% with an additional average interest rate
margin of 0.2%. The balances are held with a range of banks.
In September 2021 a further repayment was made reducing the
outstanding balance to EUR15.8m.
The loan is only for use in the French business, in respect to
their working capital cash flows, and as such the cash balance
remains in that entity and did not impact the Group refinancing
decisions taken in that period.
Other loan details
The French loan facilities are held in Euros. All other
borrowings are held in sterling.
The term facility bank loan and high yield bonds have a book
value lower than the cash amount that is outstanding due to the
allocation of fees to these facilities on their inception.
The gross cash values of these facilities are GBP300m for the
term facility bank loan (Sept 20, Mar 21: GBP300m) and GBP400m for
the high yield bonds (Sept 20, Mar 21: GBP400m). All other loans
have book value equal to the gross cash value.
The current applicable interest rates and maturities on the
Group's loans are as follows;
Interest rate Maturity
Revolving facility loan 1.75% + LIBOR Oct-21
Term facility bank loan A 2.00% + LIBOR Apr-25
High yield bond notes 3.625% Jul-25
Heron loan facilities - Melton 2.25% + LIBOR Jul-22
Heron loan facilities - Term 2.50% + LIBOR Dec-21
France - Government Guaranteed 1.1-1.34% Apr-22
France - BNP Paribas 0.75-0.76% Jul 23-Sep 24
France - Caisse d'Épargne 0.75-1.51% Feb 22-Oct 24
France - CIC 0.71-1.20% Nov 22-Jun 25
France - Cr é dit Agricole 0.39-0.81% Aug 23-Jan 28
France - Crédit Lyonnais 0.68-0.74% Nov 24-Apr 25
France - Société Générale 0.63% Jun-23
The term loan A and the high yield bond notes have carrying
values which include transaction fees allocated on inception.
The Group is currently undergoing a process to transition from
LIBOR based floating rates to SONIA based floating rates. This is
not expected to have a material impact on the accounts.
11 Reconciliation of profit before tax to cash generated from operations
26 weeks ended 26 weeks ended 26 September 2020 52 weeks ended 27 March
25 September 2021 2021
GBP'000 GBP'000 GBP'000
Profit before tax 241,365 235,636 525,439
Adjustments for:
Net interest expense 41,965 46,958 89,770
Depreciation of property, plant and
equipment 29,929 27,417 57,157
Depreciation of right of use assets 81,010 76,370 155,519
Impairment of right of use assets - - 5,142
Amortisation of intangible assets 1,082 1,334 2,571
(Gain)/loss on sale and leaseback (100) 142 142
Loss on disposal of property, plant and
equipment 520 387 571
Charge on share options 1,161 879 1,937
Change in inventories (281,721) (106,445) (20,350)
Change in trade and other receivables (27,154) 3,519 8,985
Change in trade and other payables 120,424 111,143 105,898
Change in provisions 4,022 (371) 6,287
Share of profit from associates (600) - (1,795)
(Profit)/loss resulting from fair value
of financial derivatives (10,250) 6,242 6,775
------------------ -------------------------------- -----------------------
Cash generated from operations 201,653 403,211 944,048
------------------ -------------------------------- -----------------------
.
12 Financial instruments
The fair value of the financial assets and liabilities of the
Group are not materially different from their carrying value. Refer
to the table below.
25 September 26 September 27 March
As at 2021 2020 2021
Financial assets: GBP'000 GBP'000 GBP'000
Fair value through profit and loss
Forward foreign exchange contracts 6,917 1,015 2,416
Fair value through other comprehensive income
Forward foreign exchange contracts 9,125 3,447 1,351
Loans and receivables
Cash and cash equivalents 92,330 438,763 217,682
Trade receivables 22,377 17,073 13,298
Other receivables 15,149 15,667 6,376
------------ ------------ --------
25 September 26 September 27 March
As at 2021 2020 2021
Financial liabilities GBP'000 GBP'000 GBP'000
Fair value through profit and loss
Fuel price swap - 827 -
Forward foreign exchange contracts - 2,957 5,748
Fair value through other comprehensive income
Forward foreign exchange contracts - 2,331 10,393
Amortised cost
Lease liabilities 1,308,688 1,304,378 1,301,369
Interest-bearing loans and borrowings 740,827 760,189 730,611
Trade payables 477,741 400,226 352,707
Other payables 7,242 5,265 5,925
------------ ------------ ---------
Financial instruments at fair value through profit and loss
The financial assets and liabilities through profit or loss
reflect the fair value of those foreign exchange forward contracts
and fuel swaps that are intended to reduce the level of risk for
expected sales and purchases.
The forward foreign exchange and fuel derivative contracts have
been valued by the issuing bank, using a mark to market method. The
bank has used various inputs to compute the valuations and these
include inter alia the relevant maturity date and strike rates, the
current exchange rate, fuel prices and LIBOR levels.
The Group's financial instruments are either carried at fair
value or have a carrying value which is considered a reasonable
approximation of fair value.
13 Related party transactions
The Group has transacted with the following related parties over
the periods:
Multi-lines International Company Limited, a supplier, and Centz
Retail Holdings, a customer, are associates of the Group.
Ropley Properties Ltd, Triple Jersey Ltd, TJL UK Ltd, Rani
Investments, Fulland Investments Limited, Golden Honest
International Investments Limited, Hammond Investments Limited,
Joint Sino Investments Limited and Ocean Sense Investments Limited,
all landlords of properties occupied by the Group, and Rani 1
Holdings Limited, Rani 2 Holdings Limited and SSA Investments,
bondholders and beneficial owners of equipment hired to the Group,
are directly or indirectly owned by director Simon Arora, his
family, or his family trusts (together, the Arora related
parties).
There was a significant new related party transaction in the
prior period as SSA Investments participated in the Corporate Bonds
issued by the Group in July 2020 by purchasing GBP100m of these
3.625% bonds with a five year maturity. In December 2020 and
February 2021, the bonds were transferred to Rani 2 Holdings
Limited (GBP50m) and Rani 1 Holdings Limited (GBP50m), also related
parties, respectively.
The following tables set out the total amount of trading
transactions with related parties included in the statement of
comprehensive income;
26 weeks ended 26 weeks ended 52 weeks ended
25 September 26 September 27 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Sales to associates of the Group
Centz Retail Holdings Limited 23,597 18,924 44,938
Home Focus Group Limited - 962 1,050
-------------- -------------- --------------
Total sales to related parties 23,597 19,886 45,988
-------------- -------------- --------------
26 weeks ended 26 weeks ended 52 weeks ended
25 September 26 September 27 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Purchases from associates of the
Group
Multi-lines International Company
Ltd 137,812 98,267 230,472
Purchases from parties related to key management
personnel
Fulland Investments Limited 106 - 107
Golden Honest International Investments
Limited 101 - 44
Hammond Investments Limited 101 - 102
Joint Sino Investments Limited 101 - 102
Multi-Lines International (Properties)
Ltd - 242 364
Ocean Sense Investments Limited 106 - 107
SSA Investments - - 150
-------------- -------------- --------------
Total sales to related parties 138,327 98,509 231,448
-------------- -------------- --------------
The Group previously held 20% of the ordinary share capital of
Home Focus Group Ltd, a company incorporated in Republic of Ireland
and whose principal activity is retail sales. This holding was sold
in December 2020 for EUR350k, which was equal to the carrying value
at the time.
The IFRS 16 Lease figures in relation to the following related
parties, which are all related to key management personnel, are as
follows;
Right of
Depreciation Interest Total use Lease Net
charge charge charge asset liability liability
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Period ended 25 September
2021
Rani Investments 44 29 73 566 (735) (169)
Ropley Properties 780 416 1,196 8,961 (12,966) (4,005)
TJL UK Limited 500 273 773 11,744 (13,724) (1,980)
Triple Jersey Limited 4,466 1,851 6,317 60,840 (75,597) (14,757)
------------ -------- ------- -------- ---------- ----------
5,790 2,569 8,359 82,111 (103,022) (20,911)
------------ -------- ------- -------- ---------- ----------
Period ended 26 September
2020
Rani Investments 42 31 73 654 (820) (166)
Ropley Properties 830 464 1,294 11,464 (14,459) (2,995)
TJL UK Limited 371 207 578 8,864 (10,341) (1,477)
Triple Jersey Limited 4,407 2,073 6,480 69,910 (84,971) (15,061)
------------ -------- ------- -------- ---------- ----------
5,650 2,775 8,425 90,892 (110,591) (19,699)
------------ -------- ------- -------- ---------- ----------
Period ended 27 March
2021
Rani Investments 86 61 147 610 (742) (132)
Ropley Properties 1,635 903 2,538 9,714 (13,219) (3,505)
TJL UK Limited 870 485 1,355 12,243 (13,975) (1,732)
Triple Jersey Limited 8,823 4,026 12,849 63,909 (77,573) (13,664)
------------ -------- ------- -------- ---------- ----------
11,414 5,475 16,889 86,476 (105,509) (19,033)
------------ -------- ------- -------- ---------- ----------
The following tables set out the total amount of trading
balances with related parties outstanding at the period end.
25 September 26 September 27 March
2021 2020 2021
Trade receivables GBP'000 GBP'000 GBP'000
With associates of the Group
Centz Retail Holdings Limited 7,632 5,972 7,564
With parties related to key management personnel
Rani Investments - 13 -
Ropley Properties Ltd - 113 -
Triple Jersey Ltd - 400 -
-------------- ------------ --------
Total trade receivables 7,632 6,498 7,564
-------------- ------------ --------
26 weeks ended 26 weeks ended 52 weeks ended
25 September 26 September 27 March
2021 2020 2021
Trade payables GBP'000 GBP'000 GBP'000
With associates of the Group
Multi-lines International Company
Ltd 21,838 12,900 7,439
With parties related to key management personnel
Ropley Properties Ltd 11 - 371
Triple Jersey Ltd 94 - 1,066
--------------
Total sales to related parties 21,943 12,900 8,876
-------------- -------------- --------------
Outstanding trade balances at the balance sheet dates are
unsecured and interest free and settlement occurs in cash. There
have been no guarantees provided or received for any related party
trade receivables or payables.
The business has not recorded any impairment of trade
receivables relating to amounts owed by related parties in any of
the presented periods. This assessment is undertaken through
examining the financial position of the related party and the
market in which the related party operates.
The future lease commitments on the related party properties
are;
26 weeks ended 26 weeks ended 52 weeks ended
25 September 26 September 27 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Not later than one year 17,075 16,397 16,444
Later than one year and not later
than two years 15,485 16,713 15,796
Later than two years and not later
than five years 39,334 41,474 39,730
Later than five years 54,632 63,581 59,264
-------------- -------------- --------------
126,526 138,165 131,234
-------------- -------------- --------------
Further details regarding the Group's associates and
transactions with key management personnel are disclosed in the
annual report.
14 Commitments
There are no significant capital commitments as at the half year
end.
15 Post balance sheet events
An interim dividend of 5.0 pence per share (GBP50.1m), has been
proposed.
16 Directors
The directors that served during the period were:
Peter Bamford (Chairman)
S Arora (CEO)
A Russo (CFO)
R McMillan
T Hall
C Bradley
G Petit (Resigned 29 July 2021)
Paula MacKenzie was appointed as a Non-Executive Director on 9
November 2021.
Responsibility statement of the Directors in respect of the
half-yearly financial report
We confirm that to the best of our knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted by
the EU;
-- the interim management report includes a fair review of the
information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency
Rules, being an indication of important events that have occurred
during the first six months of the financial year and their impact
on the condensed set of financial statements; and a description of
the principal risks and uncertainties for the remaining six months
of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency
Rules, being related party transactions that have taken place in
the first six months of the current financial year and that have
materially affected the financial position or performance of the
entity during that period; and any changes in the related party
transactions described in the last annual report that could do
so.
By order of the Board
Simon Arora Alex Russo
Chief Executive Chief Financial Officer
11 November 2021
REPORT OF THE REVISEUR D'ENTREPRISES AGREE
ON THE REVIEW OF CONDENSED CONSOLIDATED INTERIM
FINANCIAL INFORMATION
Introduction
We have reviewed the accompanying condensed consolidated
statement of financial position of B&M European Value Retail
S.A. as at 25 September 2021, the related condensed consolidated
statements of comprehensive income, changes in equity and cash
flows for the 26 week period then ended, and notes to the interim
financial information ("the condensed consolidated interim
financial information"). The Board of Directors is responsible for
the preparation and presentation of these condensed consolidated
interim financial information in accordance with IAS 34 "Interim
Financial Reporting" as adopted by the European Union. Our
responsibility is to express a conclusion on this condensed
consolidated interim financial information based on our review.
Scope of Review
We conducted our review in accordance with the International
Standard on Review Engagements 2410, "Review of Interim Financial
Information Performed by the Independent Auditor of the Entity" as
adopted, for Luxembourg, by the Institut des Réviseurs
d'Entreprises. A review of interim financial information consists
of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
and consequently does not enable us to obtain assurance that we
would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the accompanying condensed consolidated
interim financial information as at 25 September 2021 is not
prepared, in all material respects, in accordance with IAS 34
"Interim Financial Reporting" as adopted by the European Union.
Luxembourg, 11 November 2021 KPMG Luxembourg
Société coopérative
Cabinet de révision agréé
Thierry Ravasio
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END
IR DKKBNOBDDDDD
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