THE City should have cheered B&M Bargains’ rise in sales and profits yesterday, but the firm’s decision to keep the media and investors in the dark bit it on the behind.
Shares in B&M fell by up to 7 per cent as it spent much of the day as the biggest loser on the FTSE 100.
B&M European Value Retail’s group sales rose by 10.1 per cent to £5.5billion for the year to March 30 while its pre-tax profits rose by 14 per cent from £436million to £498million.
Adjusted earnings — its preferred measure that strips out interest, tax, depreciation and amortisation — rose by 9.7 per cent to £629million.
Boss Alex Russo said it had been “another good year” and the firm was “confident in our outlook”.
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Unusually for a FTSE 100 company, Mr Russo refused to speak to the financial media alongside the annual results.
Investec analyst Ben Hunt issued a note on the results saying “more questions than answers” while Shore Capital analyst Clive Black said it was “a curious statement”.
Companies typically give an update on trading but B&M has decided to stop giving guidance about how it is faring.
As a result, Mr Black said it was “a very backward-looking update that we sense could spook the market”.
Mr Russo is understood to have told analysts that “the weather hasn’t been good”, suggesting that its usual sales of garden and patio furniture had been weaker than normal.
But the company did not give any clarification.
Mr Hunt told The Sun: “The lack of commentary on current trading provides bears with ammo — management commented that the weather has been less favourable so read into that what you will.
“The anaemic second half gross margin performance, coupled with fading volume growth, may reawaken prior suspicions that the gains made during the pandemic could be reverting.”
B&M is focused on growing its UK stores from the current 741 to at least 1,200 stores.
However, analysts are concerned that sales at stores open for more than a year are slowing down.
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Fair play employer
AN office party and plastic cups of cheap fizz used to count as staff entertainment.
But when bar chain Loungers held its annual “LoungeFest” on Monday the company closed all its 250 outlets across the country for the day.
It meant 4,000 workers could descend on Charlton Park Estate in Malmesbury, Wiltshire for fairground rides, DJ sets and workshops.
Boss Nick Collins said the event started in 2013 with just a couple of hundred people in a field.
He said: “It’s a significant investment closing the entire business for 24 hours but well worth it.
“LoungeFest is a great opportunity to say thank you to our teams.”
Sports Direct owner Frasers has started hosting “Frasers Festival” with fitness, music and talks after Michael Murray became boss.
Zara to sell live over app
ZARA is planning to launch live shopping shows on its UK app by August, the first retailer to do so in the West.
The fashion giant has already had success in China and reported its weekly five-hour shows on the Chinese version of TikTok resulted in a 50 per cent jump in sales.
It is the latest way of appealing to shoppers who prefer their smartphones than traipsing into shops.
Models and presenters will showcase new Zara outfits on the catwalk. Zara is known for responding quickly to fashion trends because it owns clothing factories in Spain.
Parent company Inditex ramped up its online investments after the pandemic, closing about 1,200 stores.
Inditex posted a 7.1 per cent rise in sales to €8.2billion (£6.9billion) over the past three months and 10.8 per cent jump in profits to €1.3billion (£1.1billion).
Gass boss set for £8.2million
THE boss of British Gas will bag £8.2million after investors agreed doubling his rewards yesterday.
Chris O’Shea said earlier this year that it was “impossible to justify” the £4.5million he was paid in 2023 but then accepted almost twice as much as many struggle to afford heating bills.
A shareholder rebellion had been expected but 90 per cent of investors approved.
Mr O’Shea’s pay swelled as parent company Centrica's share price rose on the back of higher energy prices.
