B&M profits tumble amid turnaround efforts

B&M has revealed sliding profits as it pushes forward with turnaround efforts under its new boss.

The company also announced a shake-up to its leadership team amid efforts to improve performance following recent weaker trading.

On Thursday, B&M European Value Retail reported that group pre-tax profits slid by 55.6% to £75 million for the six months to September 27, compared with a year earlier.

Group revenues increased by 4% to £2.75 billion over the half-year.

In the UK, total sales rose by 3.5% as further store openings helped boost performance, with like-for-like sales edging 0.1% higher.

Bosses said the group’s “back to basics” plan launched last month has been progressing, with changes to prices already taking place.

The company said it has “sharpened” its price offer, including a raft of price reductions.

B&M has also significantly reduced its product range in numerous categories amid efforts to simplify its operations and reduce costs.

Tjeerd Jegen, who was appointed chief executive earlier this year, said: “Our back to B&M basics plan is progressing and we are taking decisive actions to improve our retail execution and restore our financial performance.

“While the full financial benefits will build over time, I am confident our actions can restore sustainable like-for-like sales growth at B&M UK, which is our number one priority and, in the medium term, low double-digit UK adjusted earnings margins as an outcome.

“In the meantime, our store presence in the UK and France continues to expand, supporting group revenue growth as we reach new customers and support them in these uncertain economic times.”

It came as the group also announced the appointment of Simon Hathway as its new group trading director and Helen Cowling as its interim finance chief.