B&M interim profits slump, reshuffles leadership team

(Sharecast News) - Troubled UK discount retailer B&M on Thursday reported a slump in half-year profits and leadership team reshuffle under new chief executive Tjeerd Jegen. Pre-tax profit for the six months to September 27 fell 55.6% to £75m despite a 4% rise in revenue to £2.74bn. The dividend was slashed by 34% to 3.5p a share.

"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 ... and, in the medium term, low double-digit UK adjusted EBITDA margins as an outcome," Jegen said.

He added that Simon Hathway had been appointed as group trading director having worked as buying and merchandising director at Dutch retailer Action Holding, with Helen Cowing also joining as interim chief financial officer having worked at Selecta Group, FatFace and Mobico.

Supply chain and retail operations were brought together under Jon Parry "in order to create a simpler and more cohesive structure", Jegen said.

UK total sales rose by 3.5%, boosted by store openings, with like-for-like sales edging 0.1% higher. A "back to basics" plan launched last month was progressing, with changes to prices already taking place as the company "sharpened" its price offer, including reductions.

It also significantly reduced its product range to simplify its operations and cut costs.

Reporting by Frank Prenesti for Sharecast.com