LONDON (ShareCast) - (ShareCast News) - General merchandise discount retailer B&M European Value Retail announced its preliminary results for the 52 weeks to 25 March on Thursday, with group revenues increasing 19.4% to £2.43bn.
The FTSE 250 company said UK full year like-for-like sales were up 3.1% - faster than the 0.9% growth seen in the 2016 results - which included fourth quarter like-for-like sales growth of 2.9% and an "excellent start" to 2018.

Group Adjusted EBITDA increased 22.0% to £234.9m, while group EBITDA improved 18.1% to £231.5m.

Adjusted profit before tax was up 25.6% at £190.1m, and profit before tax increased 18.4% to £182.9m.

Adjusted diluted earnings per share stood at 14.9p, rising from 12.2p, while diluted earnings per share were 14.3p, up from 12.4p.

On the operational front, B&M said 53 new stores were opened in the UK, including nine relocations to "large, modern" 'Homestores', and 19 in Germany during the year.

It reported a "strongS pipeline of between 40 and 50 new stores planned in the UK and a further 15 in Germany in the current financial year.

The board revised its UK store target upwards to at least 950 stores, from 850 , and said the new warehouse capacity in both the UK and Germany was now working "efficiently".

It said the delivery of "consistent" in-store retail standards, a "strong" product offering and "great value for money" was supporting its trading momentum.

Operating cash flow for the year was £210.9m, improving from £170.9m year-on-year, and the company had year-end net debt £401.9m with a net-debt-to-adjusted-EBITDA ratio of 1.71x, compared to 1.84x a year earlier, after payment of the £100m special dividend in July 2016.

The board recommended final dividend of 3.9p per share to be paid on 4 August, bringing the full year ordinary dividend increase to 20.8%.

"B&M has delivered further strong increases in sales, profits and cash generation whilst pushing on with rapid store expansion in line with our strategy for growth," said chairman Sir Terry Leahy.

"There was a robust return of trading momentum during the second half which has continued into the early weeks of the new financial year, affirming that B&M's offer resonates well with customers during a period of economic uncertainty and profound structural change in retailing."

Chief executive Simon Arora said B&M had "never" been in better shape.

"The skill, hard work and commitment of our people have driven our powerful return to trading form; building greater stability and consistency into our operations, keeping our costs down, delivering an even more competitive, compelling offering across our ranges week-in, week-out, especially in our seasonal peak periods and importantly, helping our customers spend less at a time when general retail prices have started to rise.

"On behalf of the board, I would like to thank them all for their efforts."

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