REG - B&M Euro.Value Ret. - FY26 Preliminary Results
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RNS Number : 7375G B&M European Value Retail PLC 03 June 2026
3 June 2026
FY26 Preliminary Results
Profits at the midpoint of current guidance. Back to B&M Basics execution
on track
B&M European Value Retail plc ("the Group"), the UK's leading variety
goods value retailer, today announces its preliminary results for the 52 weeks
to 28 March 2026.
Tjeerd Jegen, Chief Executive Officer, said:
"FY26 was a difficult year that saw profits fall due to a challenging market
and execution issues. We launched our Back to B&M Basics plan in October
to restore like-for-like sales growth at B&M UK, which was flat overall
versus FY25 while showing sequential improvement. The past six months has seen
us sharpen our pricing, improve on-shelf availability in best-selling brands
and revamp our in-store promotions. We cleared discontinued lines well in Q4
and are now embarking on SKU count reductions across all our FMCG categories.
Cash conversion remained strong in FY26 and net debt has fallen, returning
Group leverage back within our 1.0 to 1.5x target range, and I am pleased to
report adjusted EBITDA (pre-IFRS 16) at the midpoint of our current guidance.
FY27 remains a year of investment as we work hard to deliver growth under Back
to B&M Basics and balance new store growth with investing in our store
formats under Phase 2 of our strategic plan. We are confident we can offset
rising energy costs in the year ahead through cost mitigation, the benefits of
which will flow through to our bottom line once we have returned B&M UK
like-for-like sales to growth. In the medium term, we continue to see no
reason why B&M UK cannot return to double-digit EBITDA margins."
Headline measures FY26 FY25 Change
Group revenue £5,775m £5,571m 3.6%
Group adjusted EBITDA (pre-IFRS 16)(2) £459m £620m (25.9)%
Group adjusted EBITDA (pre-IFRS 16)(2) margin % 8.0% 11.1% (317) bps
Group adjusted profit before tax(2) £284m £455m (37.7)%
Adjusted diluted EPS(2) 21.3p 33.5p (36.4)%
Group post-tax free cash flow(3) £321m £311m 3.0%
Net debt(4) £656m £781m (15.9)%
Ordinary dividends 9.6p 15.0p (36.0)%
Statutory measures FY26 FY25 Change
Group operating profit £374m £566m (33.8)%
Group profit before tax £227m £431m (47.3)%
Statutory diluted EPS 16.3p 31.8p (48.8)%
Group cash generated from operations £801m £784m 2.2%
Highlights
· Group revenues increased by 3.6% to £5,775m (+3.4% constant currency(5)),
driven by total value and volume growth in both B&M businesses and
partially offset by a 0.3% revenue decline at Heron Foods
· B&M UK(6) total sales growth of 2.9%. Like-for-like ("LFL")(1) sales
broadly flat (-0.1%), with positive value and volume LFL performance in
General Merchandise offset by a narrowing decline in FMCG LFL sales. B&M
UK LFL sales growth in Q4 of 0.1% (H2: -0.4%), reflecting continued FMCG
improvement
· B&M France total sales growth of 13.4%, driven by 2.9% LFL sales, higher
transaction volumes and 12 new store openings. B&M France gained market
share, finishing FY26 with 8.4% share of the discount market versus 8.1% at
the end of FY25(7)
· 64 gross new stores opened across the Group (33 net), with 41 in B&M UK
(22 net), 12 in B&M France and 1 net closure in Heron (11 openings, 12
closures)
· Group adjusted EBITDA(2) (pre-IFRS 16) of £459m, down 25.9% (FY25: £620m),
driven by lower trading margins(8) and operating cost inflation in the UK.
Group adjusted profit before tax(2) of £284m (FY25: £455m)
· Statutory profit before tax of £227m (FY25: £431m), including an impairment
charge of £36m versus £3m in FY25
· Post-tax free cash flow(3) of £321m (FY25: £311m), reflecting working
capital inflows as inventory reduced through accelerated clearance activity
and range refocus, in line with our Back to B&M Basics plan
· Net debt(4) to adjusted EBITDA(2) (pre-IFRS 16) leverage ratio of 1.4x (FY25:
1.3x). Net debt including leases was 2.9x (FY25: 2.6x)
· The redomicile of our Group from Luxembourg to Jersey was completed on 27
February 2026, which simplifies our administrative processes and will enable
greater flexibility in returning capital to shareholders, including share
buybacks when excess cash is available
· Final dividend of 6.1p per Ordinary Share will be paid on 31 July 2026 to
shareholders who are on the register at close of business on 12 June 2026, in
line with our dividend payout ratio of 40% to 50%
· In B&M UK, we experienced a slower start to our garden season compared
with last year, when unusually early warm weather drove double-digit LFL sales
in April 2025. Better weather in late May this year has since driven a
recovery in sales of seasonal categories
· B&M France has made a good start to FY27, with higher footfall and market
share driving positive LFLs. Heron LFL sales have made a positive start to the
year and we continue to make improvements to in-store merchandising and
ranging to bring about a broader recovery in Heron's sales performance
Fascia performance Revenue £'m Revenue growth % Adjusted EBITDA (pre-IFRS 16)(2) £'m Adjusted EBITDA (pre-IFRS 16)(2) margin %
FY26 FY25 FY26 FY25 FY26 FY25 FY26 FY25
B&M UK
4,615 4,483 2.9% 3.8% 395 545 8.6% 12.2%
B&M France
616 542 13.4% 7.8% 53 48 8.7% 8.8%
Heron Foods
544 546 -0.3% -0.6% 16 30 2.9% 5.5%
Future change in financial guidance metric
From FY27, the Group intends to use adjusted profit before tax (PBT) for
financial guidance, rather than adjusted EBITDA (pre-IFRS 16). This change
will bring our guidance in line with our UK industry peers and will aid
comparison of financial performance across the sector. For FY26, we continue
to reference adjusted EBITDA (pre-IFRS 16) given it is the current guidance
metric and is the basis of targets in our FY26 management incentive programme.
The Group will provide adjusted PBT guidance with FY27 Interim results. For at
least the next financial year, we will continue to reference EBITDA (pre-IFRS
16) but will reduce its prominence in our disclosures. Further commentary on
adjusted items and reconciliation to statutory figures are provided below (see
note 1 of the financial statements, alternative performance measures).
Results Presentation
An in-person presentation and Q&A for analysts in relation to these
results will be held today at 09.30am (BST) at London Stock Exchange, 10
Paternoster Square, London, EC4M 7LS. Attendance is by invitation only and
attendees must be registered in advance.
A simultaneous live webcast and presentation will also be available. Please
use the following link:
https://edge.media-server.com/mmc/p/5bjfwinh
(https://edge.media-server.com/mmc/p/5bjfwinh)
Post-event, a replay will be available on demand via the Investors section of
our website at:
Reports & Presentations l B&M Stores (bandmretail.com)
(https://www.bandmretail.com/investors/reports-and-presentations#2025) for
analysts and investors only.
Enquiries
B&M European Value Retail plc
For further information please contact: +44 (0) 151 728 5400
Tjeerd Jegen, Chief Executive Officer
Peter Waterhouse, Interim Chief Financial Officer
Andrew Orchard, Head of Investor Relations
Investor.relations@bandmretail.com
Media
For media please contact:
Sam Cartwright, H-advisors, sam.cartwright@h-advisors.global +44 (0) 7827 254
561
Neil Bennett, H-advisors, neil.bennett@h-advisors.global +44 (0) 7900 000 777
Disclaimer
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.
About B&M European Value Retail plc
B&M European Value Retail plc is a variety retailer with 799 stores in the
UK operating under the 'B&M' brand, 342 stores under the 'Heron Foods' and
'B&M Express' brands, and 147 stores in France also operating under the
'B&M' brand as at 28 March 2026. It is a constituent of the FTSE 250
index.
The B&M Group was founded in 1978 and listed on the London Stock Exchange
in June 2014. For more information, please visit www.bandmretail.com
(http://www.bandmretail.com)
Notes:
1. 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 FY25. This 14-month approach
has been adopted as it excludes the 2-month halo period which new stores
experience following opening.
2. Adjusted values are considered to be appropriate to exclude unusual,
non-trading and/or non-recurring impacts on performance which therefore
provides the user of the accounts with additional metrics to compare periods
of account. See notes 3 and 4 of the financial statements for further details.
3. Please see note 3 of the financial statements for more details and
reconciliation to the Consolidated statement of cash flows. Statutory Group
cash generated from operations was £801m (FY25: £784m). This statutory
definition excludes payments for leased assets including the leasehold
property estate.
4. Net debt comprises interest bearing loans and borrowings, overdrafts and cash
and cash equivalents. Net debt was £656m at the year end (FY25: £781m),
reflecting £998m (FY25: £1,148m) as the carrying value of gross debt netted
against £342m of cash (FY25: £217m). See note 27 of the financial statements
for more details.
5. 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.
6. References in this announcement to the B&M UK business include 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 include both the
Heron Foods fascia and B&M Express fascia convenience stores in the UK.
7. Source: Circana Discount Destockage, Q1 2026.
8. Trading gross margin is considered to be a meaningful measure of profitability
as it refers to the measure of gross margin used by management to commercially
run the business. It differs to the statutory definition for B&M UK, which
decreased 146 bps from 36.7% to 35.9%, due to technical accounting adjustments
in relation to the allocation of gains and losses from derivative accounting,
storage costs and commercial income.
Chief Executive's review
I am delighted to have been appointed as CEO in June 2025 and to be leading
B&M at such an important time for our company. FY26 was a key transition
year for B&M as we started to implement a comprehensive plan to restore
our UK business to sustainable LFL sales growth following a prolonged period
of underperformance, which had seen our grocery price proposition drift, our
trading margins fall and on-shelf availability in key brands dip to
unacceptable levels. This is clear in our FY26 results, where despite
delivering Group revenue growth of 3.6% through new store openings and
positive like-for-like sales at B&M France, flat sales at B&M UK and
insufficient cost mitigation materially impacted Group profits.
Under our Back to B&M Basics plan, we have moved at pace to diagnose,
devise and implement a set of immediate actions to correct drift in key
elements of our UK retail execution relating to price, promotions, our ranges
and on-shelf availability. Early results from the changes we have implemented
have been encouraging:
· Price: we are now sharper on price following a realignment across our key FMCG
lines in Q2 and further adjustments across our FMCG ranges since to maintain
our price competitiveness.
· Promotions: Revamping our in-store promotions has helped us to deliver strong
seasonal sales and trade customer moments more effectively, especially
Christmas which resulted in 3% like-for-like sales growth in December 2025. We
have continued to trade this front-of-store space with clearance lines,
Valentine's Day, Easter and, more recently, elements of our Garden ranges.
· Ranges: results from our seven FMCG category trials to reduce SKU count have
equipped us successfully to begin the rollout of leaner, sharper ranges across
all FMCG categories, which we expect to complete in Q3 FY27. We cleared
discontinued lines well in Q4 FY26, providing us with cleaner stocks from
which to embark on this important adjustment that will remove complexity from
our business and for our customers.
· Availability: on-shelf availability in our key brands has risen from 86% at H1
FY26 to 93% at H2 FY26 following changes to our replenishment processes, which
are now fully implemented for these categories. Trials with store-specific
automated stock alerts are on the way to extend this process to our entire
FMCG ranges.
The year ahead will see further progress as we complete the full
implementation of all Back to B&M Basics initiatives. We remain confident
these actions can restore sustainable like-for-like sales growth at B&M UK
while we embark on a multi-year plan of innovation, reinvestment and growth
for our company.
Our business remains highly cash generative. We maintained our post-tax-free
cash flow at a slightly higher level than last year despite lower profits
(£321m in FY26 versus £311m in FY25). This reflects our ongoing working
capital discipline and the inventory reduction we achieved through stock
clearance in Q4, ahead of reducing our SKU count more broadly in the year
ahead. At 1.4x, I am pleased to see our leverage ratio back within our target
range of 1.0x to 1.5x at financial year end, despite our lower Group adjusted
EBITDA (pre-IFRS 16) outcome. This is a solid financial base from which to
move forward with our growth plan and enable future shareholder returns.
Building foundations for future growth
Back to B&M Basics is not the limit of our ambition. It is Phase 1 of a
multi-year plan to deepen B&M's growth foundations while ensuring we
evolve our offer as customer needs and preferences change.
Phase 2 includes smarter use of use of data and customer insights and
simplifying many of our in-store processes in order to mitigate cost
increases. It also involves flexing the format of our stores to best suit
their location, especially town centre sites where the customer shop can vary
and ensure our in-store experience for customers is one that drives footfall.
At the same time, we see opportunities to update and upgrade our store base as
part of a refresh cycle to ensure we offer our customers a great in store
experience.
We are already preparing for Phase 2 through trialling new store formats that
better reflect the customer base and shopping missions of our many different
store locations. Drawing on geospatial and customer data, six format clusters
have been identified that share similar characteristics, around which new
store formats are being tailored. Within these, we are drawing on new layout
and fit-out elements of our new Store 2.0 concept, for which we plan to open
the first store at the end of Q2 FY27. Results from this will help determine
investment options for our existing store estate in the year ahead based on
demonstrated sales outcomes.
With these foundations in place, we also see a third phase of opportunity to
accelerate growth by fully investigating longer-term opportunities in private
label, and potentially eCommerce and loyalty programs, as well as further
investing in the success of B&M France, which is performing well in a
competitive marketplace.
Investing in our store estate
B&M continues to expand its retail presence and deliver our value retail
proposition to a growing customer base. This year, we recommitted our
long-term ambition of growing the UK estate to around 1,200 stores. For
B&M UK, we expect an organic growth rate of circa 25-35 gross new stores
annually, topping this up from time to time with opportunistic acquisitions as
portfolios come to market. In the year ahead, we are as keen to invest in our
existing store estate as we test and deploy new design concepts while ensuring
we offer our customers a great in-store experience.
B&M France
We see an exciting growth runway for B&M France, which is performing well
in a highly competitive marketplace. LFL sales continued to grow in FY26
(+2.9%) as we expanded our store estate and saw a rise in customer footfall. I
was pleased to see B&M France gain market share during the year, ending
FY26 with an 8.4% share of the discount market, up from 8.1% the year before.
With 150 stores as of end-May, B&M France is less than a fifth the size of
B&M UK. France has an addressable market that shares many similarities
with the UK, both in size and cost-of-living challenges, and we see many years
of growth ahead. Our organic growth rate is to open at least 15 new stores per
year in France.
Investing in our people
Our people are our greatest asset. Without their hard work and dedication, we
would not be able to bring the B&M store experience to five million
customers each week in the UK alone. With close to 40,000 employees across our
Group businesses, B&M is often a key employer in the communities it
serves. In Bedford, UK, where our largest Distribution centre is located,
B&M is the town's largest single employer after the NHS. Wherever we
locate, we are committed to providing employment opportunities to all. B&M
is one of the UK's largest providers of retail work experience, extending this
opportunity to 3,172 individuals in FY26, more than 60% of which went on to
become B&M employees.
How we embody our culture and values as a company is vitally important.
Alongside B&M Back to Basics, we have recently restated our purpose,
ambition and values to provide greater clarity and alignment across the
business. These will begin rolling out across our stores, support centres and
distribution centres over the coming months.
Our ambition is simple: to be everyone's favourite place to shop. Our purpose
is the foundation of everything we do: we make everyday life more affordable,
with every visit full of surprises.
Our colleagues continue to bring our values to life every day by delighting
our customers, behaving like owners, working as one team, keeping things
simple and agile, and creating opportunity for all. These values will play an
important role in shaping our culture, supporting our strategy and helping us
deliver a better experience for customers and colleagues alike.
Current trading and outlook
In B&M UK, we experienced a slower start to our garden season compared
with last year, when unusually early warm weather drove double-digit LFL sales
in April 2025. Better weather in late May this year has since driven a
recovery in sales of seasonal categories. B&M France has made a good start
to FY27, with higher footfall and market share driving positive LFLs. Heron
LFL sales have made a positive start to the year and we continue to make
improvements to in-store merchandising and ranging to bring about a broader
recovery in Heron's sales performance.
FY26 underscored the importance of a cost-out mindset. One certainty of retail
is that costs will always rise. In the past year, it was statutory costs in
wages and environmental charges that challenged us. In the year ahead, the
Middle East conflict will place upward pressure on our international freight,
fuel and energy costs. We are confident we have sufficient levers to offset
this impact with cost mitigation. Over time, these benefits will flow through
to our bottom line once we have returned B&M UK LFL sales to growth. In
the medium term, we continue to see no reason why B&M UK cannot return to
double-digit EBITDA margins.
For our customers, value retailing has a vital role to play as cost-of-living
pressures intensify. B&M stands ready to serve our current loyal customers
alongside new ones as more people discover both the benefits and delights our
stores can offer. Longer term, I strongly believe that the discount segment
will continue to grow, both in the UK and in Continental Europe. B&M is
well positioned to be a leading beneficiary of this. Our focus right now is
ensuring we continue to prepare B&M for that growth opportunity and the
benefits it offers all our stakeholders.
Tjeerd Jegen
Chief Executive Officer
2 June 2026
Financial review
Group financial performance
The current accounting period represents the 52 weeks trading to 28 March 2026
('FY26') and the comparative period represents the 52 weeks to 29 March 2025
('FY25').
£'m FY26 FY25 YoY
change
Revenue 5,775 5,571 3.6%
Adjusted EBITDA (pre-IFRS 16)(1) 459 620 (25.9)%
Adjusted EBITDA (pre-IFRS 16)(1) margin 8.0% 11.1% (317) bps
Depreciation and amortisation (pre-IFRS 16) (99) (92) 8.4%
Operating impact of IFRS 16* 72 63 14.8%
Adjusted operating profit(1) 432 591 (27.0)%
Finance costs relating to right-of-use assets (84) (77) 9.5%
Other net finance costs (64) (59) 9.0%
Adjusted profit before tax(1) 284 455 (37.7)%
Adjusting items (57) (24) 129.0%
Statutory profit before tax 227 431 (47.3)%
*includes depreciation on right-of-use assets of £198m (FY25: £181m). FY26
total depreciation and amortisation was £297m (FY25: £273m)
Group revenue in FY26 increased by 3.6% year-on-year (3.4% on a constant
currency basis(2)), with growth driven by total value and volume growth in
B&M UK, continued strong trading momentum in B&M France, offset by a
weak performance in Heron Foods.
Group gross profit margin decreased by 110 bps to 36.5% primarily driven by a
reduction in B&M UK's trading gross margin in General Merchandise and
price investment in FMCG categories.
Group adjusted operating costs (1) increased by 11.7% to £1,646m (FY25:
£1,473m). The rise reflects primarily an increase in statutory costs, which
included increased National Minimum Wage (NMW) levels, higher National
Insurance contributions and the new Extended Producer Responsibility (EPR)
levy. Continued growth in our store estate also contributed to higher costs,
with 33 net new stores opened during the year (a 2.6% YoY increase in store
numbers).
While the significant statutory cost increases of FY26 are not expected to
recur in FY27, the conflict in the Middle East continues to impact our cost
base. These pressures - primarily across international freight, domestic
distribution, and energy - are deemed significant but not material. We remain
focused on offsetting these increases through internal cost-saving
initiatives.
Group adjusted EBITDA (pre-IFRS 16)¹ decreased by 25.9% to £459m,
representing a margin of 8.0%, driven by lower gross margins and increased
operating costs. Adjusted profit before tax¹ declined by 37.7% to £284m,
reflecting these operating impacts alongside an 8.4% increase in depreciation
and amortisation from capital investments in our store and warehouse estate.
This result was further impacted by higher financing costs, which include the
full-year effect of elevated borrowing rates on debt issued in November 2024
and increased right-of-use asset finance costs. Statutory profit before tax
reduced by 47.3% to £227m due to the underlying impacts and the impact of
adjusting items.
Net adjusting items amounted to £57m, compared with £24m in the prior year.
The primary driver of the increase was a £36m impairment of store leases and
fixed assets across our three fascias reflecting the lower profitability
across the estate. In the prior year, the value of impairments was not
significant and therefore not considered meaningful for adjustment.
Fascia overview
B&M UK
£'m FY26 FY25 YoY
change
Revenue 4,615 4,483 2.9%
Adjusted EBITDA (pre-IFRS 16)(1) 395 545 (27.6)%
Adjusted EBITDA (pre-IFRS 16)(1) margin 8.6% 12.2% (360) bps
Depreciation and amortisation (pre-IFRS 16) (73) (66) 9.9%
Operating impact of IFRS 16* 53 51 4.4%
Adjusted operating profit(1) 375 530 (29.2)%
Finance costs relating to right-of-use assets (61) (58) 6.6%
Other net finance costs 5 7 (15.6)%
Adjusted profit before tax(1) 319 479 (33.3)%
Adjusting items - - 0.0%
Statutory profit before tax 319 479 (33.3)%
*includes depreciation on right-of-use assets of £154m (FY25: £141m) - FY26
total depreciation & amortisation was £227m (FY25: 208m)
B&M UK(3) total revenue increased by 2.9% to £4,615m, driven by store
growth as like-for-like (LFL)(4) revenues declined 0.1% year-on-year. Our LFL
General Merchandise performance was positive on both value and volume, offset
against a decline in FMCG.
General Merchandise delivered robust LFL sales growth, underpinned by strong
performance across key seasonal ranges, specifically Gardening and Christmas.
Growth was further supported by favourable weather at the start of the year,
which accelerated demand for outdoor ranges during H1. Additionally, the Toy
category maintained strong momentum throughout the year.
FMCG's LFL performance, while still negative, has improved year-on-year. This
follows a downward price adjustment in our key value items (KVI) lines during
Q2 and continued price investment since to ensure we maintain the
attractiveness of our price position versus our competitors.
B&M UK revenues also included £30m of wholesale sales (FY25: £30m). The
majority of wholesale sales are to our associate Centz Retail Holdings
Limited, a chain of 55 variety goods stores in the Republic of Ireland.
B&M UK's trading gross margin(5) decreased by 150 bps year-on-year to
35.2% (FY25: 36.7%). As previously guided, this was driven by lower product
margins in General Merchandise seasonal ranges. While the year-on-year
decline in General Merchandise eased in Q1, despite our largest-ever Q4
clearance event, overall performance was impacted by price investment in FMCG
KVI lines which began in Q2 and impacted our H2 margin.
We opened 41 gross (22 net) new B&M UK stores in the year, in line with
our target of between 40 and 45. In FY27, we expect net new store openings
will be in line with our organic growth rate of between 25 and 35, as outlined
in our FY26 Interim Results presentation.
Adjusted operating costs(1) increased to 27.4% of revenues compared to 25.2%,
in FY25; and increased 11.7% on a year-on-year basis. This reflects a 2.8%
year-on-year increase in store numbers; excluding this, our underlying cost
base increased by 8.6%, which in turn reflects higher statutory costs due to
the new EPR levy, the rise in the statutory NMW levels and increased National
Insurance contributions.
Adjusted EBITDA (pre-IFRS 16)(1) decreased to £395m from £545m, with a
margin of 8.6% down 360 bps, reflecting the impacts of the lower trading
margin and cost increases, as described above. Adjusted operating profit(1)
was £375m (FY25: £530m).
Both adjusted and statutory profit before tax decreased 33.3% to £319m (FY25:
£479m), due to the aforementioned reduction in adjusted operating profit and
the increase in finance costs relating to the right-of-use asset from the
larger store estate.
B&M France
£'m FY26 FY25 YoY
change
Revenue 616 542 13.4%
Adjusted EBITDA (pre-IFRS 16)(1) 53 48 11.8%
Adjusted EBITDA (pre-IFRS 16)(1) margin 8.7% 8.8% (12) bps
Depreciation and amortisation (pre-IFRS 16) (13) (12) 17.3%
Operating impact of IFRS 16* 15 12 22.7%
Adjusted operating profit(1) 55 48 13.2%
Finance costs relating to right-of-use assets (19) (16) 16.7%
Other net finance costs 0 0 4,020.0%
Adjusted profit before tax(1) 36 32 10.3%
Adjusting items - - 0.0%
Statutory profit before tax 36 32 10.3%
*includes depreciation on right-of-use assets of £35m (FY25: £32m) - FY26
total depreciation & amortisation was £48m (FY25: £43m)
Revenues grew 13.4% to £616m, with LFL sales up 2.9%. Performance was
balanced across FMCG and General Merchandise, with customer transactions
continuing to drive year-on-year growth.
The business continued its store expansion programme with 12 new store
openings. The new stores are performing well and continue to demonstrate the
potential for the B&M brand to trade effectively in a wide range of
geographies and formats.
Adjusted operating expenses (1) increased by 13.7% or £27m to £222m which
reflects the volume growth of 9% more stores and the elevated logistics costs
arising from distribution centre upgrades made in the year.
Adjusted EBITDA (pre-IFRS 16)(1) increased 11.8% to £53m representing an
adjusted EBITDA(1) margin of 8.7% (FY25: 8.8%). Adjusted operating profit(1)
was £55m with a margin of 8.9% (FY25: 8.9%), reflecting the increased costs
pressures discussed above.
Both adjusted and statutory profit before tax(1) for the year increased by
10.3% to £36m due to higher operating profits offset by increased IFRS 16
interest charges from the larger store estate.
Heron Foods
£'m FY26 FY25 YoY
change
Revenue 544 546 (0.3)%
Adjusted EBITDA (pre-IFRS 16)(1) 16 30 (47.3)%
Adjusted EBITDA (pre-IFRS 16)(1) margin 2.9% 5.5% (257) bps
Depreciation and amortisation (pre-IFRS 16) (13) (14) (6.5)%
Operating impact of IFRS 16* 4 (0) 82,914.4%
Adjusted operating profit(1) 7 16 (60.5)%
Finance costs relating to right-of-use assets (4) (3) 14.8%
Other net finance costs 1 1 (31.1)%
Adjusted profit before tax(1) 4 14 (73.8)%
Adjusting items - - 0.0%
Statutory profit before tax 4 14 (73.8)%
*includes depreciation on right-of-use assets of £10m (FY25: £10m) - FY26
total depreciation & amortisation was £22m (FY25: £23m)
Total revenue decreased 0.3% to £544m in what has been a challenging year.
The LFL(4) declines were lower than those recorded in FY25. However, Heron
finished the year with 1 fewer store, with 11 new openings and 12 closures.
Gross margin fell slightly, as investment in price was made across key ambient
and chilled product ranges.
Adjusted operating expenses(1) as a % of revenue increased to 28.6% from 26.3%
due to cost inflation from the rise in NMW levels and National Insurance
contributions. Adjusted EBITDA (pre-IFRS 16)(1) decreased by 47.3% to £16m,
with an adjusted EBITDA (pre-IFRS 16)(1) margin of 2.9%, reflective of the
above.
The variance in the Heron IFRS 16 adjustments line is as a result of the 10
sale & leaseback transactions undertaken by the business in the prior year
(FY26: no sale and leaseback transactions).
Adjusted and statutory profit before tax(1) for the year was £4m, a decline
of 73.8% from the prior year, which reflects the scale effects from the
decline in revenue and due to the factors mentioned above.
Adjusting items
Adjusting items are excluded from our adjusted profit measures by virtue of
their size and nature to provide a helpful perspective of the year-on-year
performance of the Group. Total adjusting items in profit before tax result in
a charge of £57m.
£'m FY26 FY25
Profit before tax 227 431
Impairment charge 36 -
Significant infrastructure projects 7 4
Costs in relation to the redomicile project 7 -
External costs in relation to strategic business projects 4 -
Costs incurred in strategic leadership reset 4 -
Significant property transactions - 5
Group Trading Director settlement - 12
Non-underlying impact of foreign exchange (1) 3
Adjusted profit before tax(1) 284 455
In the current year, adjusting items include a £36m additional charge arising
as a result of an assessment of individual store profitability across the
three business segments. The impairments relate directly to the assets held by
stores, including their lease assets. These have been treated as an adjusting
item as they are one off in nature and are of meaningful magnitude. In the in
prior year the value of impairments was not significant and therefore not
considered meaningful for adjustment.
Significant infrastructure projects of £7m include pre-operational and ramp
up costs relating to the Ellesmere Port import centre and the dual running
costs associated with the replacement of our Middlewich DC with the
third-party operated site in Rugby. In the prior year, it also included the
disruption costs related to our DC expansion project in France.
Costs in relation to the redomicile project includes any fees related to the
relocation of the Group's Luxembourg entities to Jersey which completed in
February/March 2026. The project had commenced in the prior year, although the
costs incurred in that period were insubstantial and were therefore not
adjusted.
External costs in relation to strategic business projects relate to external
costs incurred in operating the Back to B&M Basics project, which is a
significant strategic undertaking that required external input in its
formative stages. We expect external costs relating to this project to be
lower in FY27.
The strategic leadership reset costs relate to the significant changes within
the senior leadership team during the current year.
Further detail on adjusting items can be found in note 3 of the financial
statements.
Group net finance costs
Adjusted net finance charges(1) (excluding IFRS 16) rose £5m year-on-year to
£64m. This was driven by the annualisation of the £250m bond issued in
November 2024, which carries a higher 6.5% interest rate than the previous
3.625% bond.
The interest charge relating to lease liabilities under IFRS 16 was £84m
(FY25: £77m) due to the additional leases associated with the store opening
programme and higher discount rates in recent years.
Group tax
The tax charge in FY26 was £63m reflecting lower profits year-on-year and is
an effective rate of 26%. This is also the effective rate we expect for FY27.
As a Group, we are committed to paying the appropriate tax in the territories
in which we operate. B&M UK paid UK taxes totalling £664m in FY26,
including £251m relating to those taxes borne directly by the company, such
as corporation tax, customs duties, business rates, Employer's National
Insurance contributions, and stamp duty and land taxes. The balance of £413m
reflects taxes we collect from customers and employees on behalf of the UK
Exchequer, which includes Value Added Tax, Pay As You Earn and Employee
National Insurance contributions.
Profit after tax and earnings per share
Statutory profit after tax was £164m, which was £155m lower year-on-year.
Statutory diluted earnings per share was 16.3p (FY25: 31.8p), 48.8% lower
year-on-year due to lower operating profits, increased adjusting items and
interest charges.
Adjusted diluted earnings per share(1) was 21.3p (FY25: 33.5p), 36.4% lower
due to the lower operating profits. Adjusted profit after tax (pre-IFRS
16)(1), which is also reported to allow investors to better understand the
operating performance of the business (see note 3 of the financial
statements), was £225m (FY25: £347m), and the adjusted (pre-IFRS 16) fully
diluted earnings per share(1) was 22.4p (FY25: 34.5p).
Capital expenditure
Group net capital expenditure(6) totalled £139m this year (FY25: £111m).
Investment included £59m spent on 64 gross new stores across the Group's
fascias (FY25: £53m on 70 stores) and a net £17m on infrastructure projects
to support the continued growth of the business (FY25: £25m), with a further
£14m one-off expenditure on the fit out of both our Ellesmere Port import
centre and third party operated site in Rugby. There was also investment of
£49m in maintenance works to ensure that our existing store estate and
distribution centres are appropriately invested (FY25: £33m).
Post-tax free cash flow(7) and net debt(8)
Post-tax-free cash flow(7) increased to £321m (FY25: £311m), despite lower
profits year-on-year. This improvement was driven by inventory management. Our
total working capital inflow improved by £90m year-on-year as inventory
levels decreased following accelerated clearance activity and line count
reductions. This reflects our goal to refocus our ranges under the Back to
B&M Basics strategy.
As a result, our net debt (pre-IFRS 16)(8), decreased to £656m (FY25:
£781m). The net debt (pre-IFRS 16)(8) to adjusted EBITDA (pre-IFRS 16)(1)
leverage ratio increased to 1.4x (FY25: 1.3x), but remains within our internal
target of 1.0x to 1.5x. Net debt (including IFRS 16 lease liabilities)(8) was
£2,113m (FY25: £2,211m) meaning our net debt to adjusted EBITDA (post-IFRS
16)(1) ratio was 2.9x, an increase on the previous year (FY25: 2.6x).
Dividends
During the year, the Company declared and paid an interim ordinary dividend of
3.5p and subject to approval by shareholders at the AGM on 21 July 2026, a
final ordinary dividend of 6.1p per share will be paid on 31 July 2026 to
shareholders on the register of the Company at the close of business on 12
June 2026. The ex-dividend date will be 11 June 2026.
The Board has in place an agreed a long-term capital allocation policy that
provides a framework to help investors understand how the Group will evaluate
opportunities to invest and support the growth of the business relative to
incremental return of capital to shareholders.
The dividend policy targets an ordinary dividend pay-out ratio of between 40%
to 50% of after-tax adjusted earnings (post-IFRS 16). The Group generally aims
to pay the interim and final dividends for each financial year in proportions
of approximately one-third and two-thirds of the total annual ordinary
dividend respectively.
Peter Waterhouse
Interim Chief Financial Officer
2 June 2026
Notes:
1. Adjusted values are considered to be appropriate to exclude unusual,
non-trading and/or non-recurring impacts on performance which therefore
provides the user of the accounts with additional metrics to compare periods
of account. See notes 2, 3 and 4 of the financial statements for further
details.
2. 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.
3. One-year like-for-like revenues relate to the B&M UK estate only
(excluding wholesale revenues) and are based on either 52 weeks vs. 52 weeks
or 13 weeks vs. 13 weeks comparison periods. They 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 FY25.
4. References in this announcement to the B&M UK business include 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 include both the
Heron Foods fascia and B&M Express fascia convenience stores in the UK.
5. Trading gross margin is considered to be a meaningful measure of profitability
as it refers to the measure of gross margin used by management to commercially
run the business. It differs to the statutory definition for B&M UK, which
decreased 146 bps from 37.4% to 35.9%, due to technical accounting adjustments
in relation to the allocation of gains and losses from derivative accounting,
storage costs and commercial income.
6. Net capital expenditure includes the purchase of property, plant and
equipment, intangible assets and proceeds from the sale of any of those items.
These exclude IFRS 16 lease liabilities.
7. Post-tax free cash flow is an Alternative Performance Measure. Please see note
3 of the financial statements for more details and reconciliation to the
consolidated statement of cash flows. Statutory Group cash generated from
operations was £801m (FY25: £784m). This statutory definition excludes
payments for leased assets including the leasehold property estate.
8. Leverage ratio (pre and post-IFRS 16) is calculated as net debt divided by
adjusted EBITDA. See note 27 of the financial statements for definition and
net debt (pre and post-IFRS 16) reconciliation. This is a measure of the
Group's ability to meet its payment obligations and is widely used by analyst
and credit rating agencies.
Consolidated Statement of Comprehensive Income
Period ended 52 weeks ended 52 weeks ended
28 March 29 March
2026 2025
Note £'m £'m
Revenue 2 5,775 5,571
Cost of sales (3,670) (3,479)
Gross profit 2,105 2,092
Administrative expenses (1,731) (1,526)
Operating profit 4 374 566
Share of profits in associates 11 1 1
Profit on ordinary activities before net finance costs and tax 375 567
Finance costs on lease liabilities 5 (84) (77)
Other finance costs 5 (70) (66)
Finance income 5 6 7
Profit on ordinary activities before tax 227 431
Income tax expense 9 (63) (112)
Profit for the period 2 164 319
Other comprehensive income for the period
Items which may be reclassified to profit and loss:
Exchange differences on retranslation of subsidiary and associates 4 (2)
Fair value movement as recorded in the hedging reserve (10) (10)
Tax effect of other comprehensive income 9 (3) (1)
Total other comprehensive income (9) (13)
Total comprehensive income for the period 155 306
Earnings per share
Basic earnings per share attributable to ordinary equity holders (pence) 10 16.3 31.8
Diluted earnings per share attributable to ordinary equity holders (pence) 10 16.3 31.8
All profit and other comprehensive income is attributable to the owners of
the parent.
The accompanying accounting policies and notes form an integral part of these
consolidated financial statements.
Consolidated Statement of Financial Position
Note 28 March *Restated
As at 2026 29 March
2025
£'m £'m
Non-current assets
Goodwill 12 921 920
Intangible assets 12 120 120
Property, plant and equipment 13 471 448
Right-of-use assets 14 1,153 1,159
Investments in associates 11 7 6
Other receivables 16 9 6
Deferred tax asset 9 6 5
2,687 2,664
Current assets
Cash at bank and in hand 17 342 217
Inventories 15 849 883
Trade and other receivables 16 59 79
Income tax receivable 23 11
Other financial assets 19 13 153
1,286 1,343
Total assets 3,973 4,007
Equity
Share capital 22 (101) (100)
Share premium* (2,474) (2,474)
Retained earnings* (184) (153)
Hedging reserve 1 11
Other reserve (10) (10)
Merger reserve 1,979 1,979
Foreign exchange reserve (9) (5)
(798) (752)
Non-current liabilities
Interest-bearing loans and borrowings 20 (982) (977)
Lease liabilities 14 (1,240) (1,242)
Deferred tax liabilities 9 (45) (35)
Other financial liabilities 19 - (0)
Provisions 21 (5) (4)
(2,272) (2,258)
Current liabilities
Interest-bearing loans and borrowings 20 (7) (160)
Trade and other payables 18 (661) (618)
Lease liabilities 14 (217) (188)
Other financial liabilities 19 (3) (13)
Income tax payable (9) (6)
Provisions 21 (6) (12)
(903) (997)
Total liabilities (3,175) (3,255)
Total equity and liabilities (3,973) (4,007)
*The restatement relates to a reclassification between share premium and
retained earnings. For more details, see note 1.
The accompanying accounting policies and notes form an integral part of these
consolidated financial statements.
This consolidated statement of financial position was approved by the Board of
Directors and authorised for issue on 2 June 2026 and signed on their behalf
by:
Tjeerd Jegen, Chief Executive Officer
Consolidated Statement of Changes in Shareholders' Equity
Share capital Share Retained Hedging Other Merger Foreign Total
premium earnings reserve reserve reserve exchange equity
reserve
£'m £'m £'m £'m £'m £'m £'m £'m
Balance at 30 March 2024 as previously reported 100 2,481 125 (10) 10 (1,979) 7 734
Restatement of share premium - (7) 7 - - - - -
Restated balance at 30 March 2024* 100 2,474 132 (10) 10 (1,979) 7 734
Ordinary dividends declared - - (149) - - - - (149)
Special dividends declared - - (151) - - - - (151)
Restated effect of share options* 0 - 3 - - - - 3
Total transactions with owners 0 - (297) - - - - (297)
Profit for the period - - 319 - - - - 319
Other comprehensive income - - (1) (10) - - (2) (13)
Total comprehensive income for the period - - 318 (10) - - (2) 306
Hedging gains & losses reclassified as inventory - - - 8 - - - 8
Hedging gains & losses reclassified as finance costs - - - 1 - - - 1
Restated balance at 29 March 2025* 100 2,474 153 (11) 10 (1,979) 5 752
Ordinary dividends declared - - (133) - - - - (133)
Effect of share options 1 - 3 - - - - 4
Total transactions with owners 1 - (130) - - - - (129)
Profit for the period - - 164 - - - - 164
Other comprehensive income - - (3) (10) - - 4 (9)
Total comprehensive income for the period - - 161 (10) - - 4 155
Hedging gains & losses reclassified as inventory - - - 19 - - - 19
Hedging gains & losses reclassified as finance costs - - - 1 - - - 1
Balance at 28 March 2026 101 2,474 184 (1) 10 (1,979) 9 798
*The restatement relates to a reclassification between share premium and
retained earnings. For more details, see note 1.
The accompanying accounting policies and notes form an integral part of these
consolidated financial statements.
Consolidated Statement of Cash Flows
Period ended 52 weeks ended 28 March 52 weeks ended 29 March
2026 2025
Note £'m £'m
Cash flows from operating activities
Cash generated from operations 23 801 784
Income tax paid (65) (109)
Net cash flows from operating activities 736 675
Cash flows from investing activities
Purchase of property, plant and equipment 13 (139) (131)
Purchase of intangible assets 12 (3) (2)
Proceeds from sale of property, plant and equipment 3 22
Receipts/(deposits) into short-term money market investments 19 150 (150)
Finance income received 5 6 7
Net cash flows from investing activities 17 (254)
Cash flows from financing activities
Repayment of Group revolving credit facilities 20 - (25)
Repayment of corporate bonds 20 (156) -
Receipt due to newly issued corporate bonds 20 - 250
Receipt of loan facilities held in France 20 12 9
Repayment of loan facilities held in France 20 (7) (5)
Repayment of the principal in relation to lease liabilities 14 (192) (176)
Payment of interest in relation to right-of-use assets 14 (84) (77)
Fees on refinancing 20 (0) (4)
Other finance costs paid 5 (69) (56)
Dividends paid to owners of the parent 29 (133) (300)
Net cash flows from financing activities (629) (384)
Effects of exchange rate changes on cash and cash equivalents 1 (2)
Net increase in cash and cash equivalents 125 35
Cash and cash equivalents at the beginning of the period 217 182
Cash and cash equivalents at the end of the period 342 217
Cash and cash equivalents comprise:
Cash at bank and in hand 17 342 217
342 217
The accompanying accounting policies and notes form an integral part of
these consolidated financial statements.
Notes to the Consolidated Financial Statements
1 General information and basis of preparation
The consolidated financial statements have been prepared in accordance with
UK-adopted IFRS and EU-adopted IFRS accounting standards. Dual adoption of
accounting standards is a result of three entities within the Group relocating
to Jersey from Luxembourg. B&M European Value Retail plc migrated on 27
February 2026 and both B&M European Value Retail 1 Ltd and B&M
European Value Retail 2 Ltd migrated on 18 March 2026.
The Group's trade is general retail, with continuing trading taking place in
the UK and France. The Group has been listed on the London Stock Exchange
since June 2014.
The consolidated financial statements have been prepared under the historical
cost convention as modified by the revaluation of financial assets and
financial liabilities at fair value through profit or loss. The measurement
basis and principal accounting policies of the Group are set out below and
have been applied consistently throughout the consolidated financial
statements.
The consolidated financial statements are presented in pounds sterling and all
values are rounded to the nearest million (£'m), except when otherwise
indicated.
The consolidated financial statements cover the 52-week period from 30 March
2025 to 28 March 2026 which is a different period to the parent company
standalone accounts (from 1 April 2025 to 31 March 2026).
The year end for the Group, in any year, will not be more than six days prior
to the parent company year end. The next accounting period for the Group will
be a 52-week period, from 29 March 2026 to 27 March 2027.
B&M European Value Retail plc (the "Company") is at the head of the Group
and there is no consolidation that takes place above the level of this
company.
The principal accounting policies of the Group are set out below.
Basis of consolidation
The Group financial statements consolidate the financial statements 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 30
March 2025 to 28 March 2026. 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 arrangements with the other vote holders of the investee;
· rights arising from other contractual arrangements; and
· 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.
Restatement
We have voluntarily restated the prior year reserves balances to reflect
alignment between the share premium balance between the parent company and the
Group. This difference arose as previously in the Group financial statements
the credit previously recognised in retained earnings for share options
accounting was reclassified to share premium when employee share options were
exercised. This was not reflected in the parent company. The reclassification
aligns the presentation in the Group accounts with that of the parent company.
The impact of the restatement is to increase retained earnings and decrease
share premium by £7 million at 30 March 2024 and by £10 million at 29 March
2025. There was no impact on the profit for the period ended 29 March 2025 or
on the net assets at 30 March 2024 or 29 March 2025.
Going concern
In adopting the going concern basis for preparing the financial statements,
the Directors have considered the business activities including the Group's
principal risks and uncertainties. The Board also considered the Group's
current cash position, the repayment profile of its obligations, its financial
covenants and the resilience of its 12-month cash flow forecasts to a series
of severe but plausible downside scenarios. The scenarios considered as part
of the going concern assessment are consistent with those used in the
longer-term viability statement in the 'Principal risks and uncertainties'
section of this Annual Report, such as a material deterioration in trading
performance or a cyber attack. Having considered these factors the Board is
satisfied the Group has adequate resources to continue in operational
existence for at least 12 months from the date of approval of these financial
statements, meet its financial covenants and therefore it is appropriate to
adopt the going concern basis in preparing the consolidated financial
statements for the 52 weeks to 28 March 2026. There have been no significant
post balance sheet changes to liquidity.
Revenue
Under IFRS 15 Revenue is recognised when all the following criteria are met:
· the parties to the contract have approved the contract;
· the Group can identify each party's rights regarding the goods to be
transferred;
· the Group can identify the payment terms;
· the contract has commercial substance; and
· it is probable that the Group will collect the consideration we are entitled
to in respect to the goods to be transferred.
In the vast majority of cases the Group's sales are made through stores and
the control of goods is immediately transferred at the same time as the
consideration is received via our tills. Therefore, revenue is recognised at
this point.
The Group sells a small quantity of gift vouchers for use in the future and,
as such, a small amount of deferred revenue is recognised. At the period end,
the value held on the balance sheet was £1m (2025: <£1m).
The Group operates a small wholesale function which recognises revenue on
despatch of the goods, which is when the performance obligation is satisfied
and the invoice is raised. The invoice is raised at the same time the goods
are despatched which satisfies the performance obligation. The revenue is
considered collectable as the Group's wholesale customers are usually related
parties to the Group (such as our associates) or are subject to credit checks
before trade takes place. See note 2 for the split of wholesale sales to store
sales.
Revenue is the total amount receivable by the Group for goods supplied, in the
ordinary course of business, excluding VAT and trade discounts, and after
deducting returns and relevant vouchers and offers.
Administrative expenses
Administrative expenses include all running costs of the business, except
those relating to inventory (which are expensed through cost of sales), tax,
interest and other comprehensive income. Transport and warehouse costs are
included in this caption.
Elements which are unusual and significant may be separated as a line item.
Goodwill
Goodwill is initially measured at cost, being the excess of the fair value of
consideration transferred over the fair value of the net identifiable assets
acquired and liabilities assumed at the date of acquisition.
After initial recognition, goodwill is measured at cost less any accumulated
impairment losses. For the purpose of impairment testing, goodwill acquired in
a business combination is, from the acquisition date, allocated to the
relevant cash-generating units (CGUs) that are expected to benefit from the
combination.
The CGUs are individual stores and the groups of CGUs are the store portfolios
in each operational segment.
Goodwill is tested for impairment at least once per year and specifically at
any time where there is any indication that it may be impaired. Internally
generated goodwill is not recognised as an asset.
Segment reporting
Operating segments are reported in a manner consistent with internal reporting
provided to the chief operating decision maker. The chief operating decision
maker has been identified as the Executive Directors of the Group. The
Executive Directors are responsible for assessing the performance of the
business for the purpose of making decisions about resources to be allocated.
Alternative performance measures
The Group reports a selection of alternative performance measures (APMs) as
detailed below and in note 3, as the Directors believe that these measures
provide additional information that is useful to the users of our accounts.
The APMs we report in these accounts are:
· Like-for-like sales (LFL)
· Earnings before interest, tax, depreciation and amortisation (EBITDA)
· Adjusted EBITDA
· Adjusted operating profit
· Adjusted profit before tax
· Adjusted profit after tax
· Adjusted earnings per share (EPS)
· Post-tax free cash flow
To aide comparability with the figures presented in previous periods, and as
they are the measures used in respect of internal reporting, pre-IFRS 16
versions of these APMs have also been calculated, where appropriate.
Like-for-like sales 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 the prior period.
Interest, tax, depreciation and amortisation are as defined statutorily whilst
the items we adjust for are those we consider not to be reflective of the
underlying performance of the business as detailed in note 3. These
adjustments include the non-underlying impact of foreign exchange (which
chiefly comprises the fair value and foreign exchange impact of derivatives
that have not been designated as part of a hedge accounting relationship and
which are yet to mature), any significant impairment charge of assets as a
result of an assessment of individual store profitability, and costs incurred
in relation to significant projects, where such costs are considered to have
had a meaningful impact in the presented period, which are non-recurring and
do not relate to underlying trading.
Underlying performance has been determined so as to align with how the Group
financial performance is monitored on an ongoing basis by management. In
particular, this reflects certain adjustments being made to consider an
adjusted operating profit measure of performance.
Adjusted finance costs reflect the ongoing charges associated with our debt
structure and exclude one-off effects of refinancing.
The Directors believe that our adjusted APMs provide users of the account with
measures of performance which are appropriate to the retail industry and
presented by peers and competitors. Adjusted values are considered to be
appropriate to exclude unusual, non-trading and/or non-recurring impacts on
performance which therefore provides the user of the accounts with an
additional metric to compare periods of account.
The APMs used 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.
Brands
Brands acquired by the business are amortised if the corresponding agreement
is specifically time limited, or if the fair valuation exercise (carried out
for brands acquired via business combinations) identifies a fair lifespan for
the brand. This amortisation is charged to administrative expenses.
Otherwise, brands are considered to have an indefinite life on the basis that
they form part of the CGUs within the Group which will continue in operation
indefinitely, with no foreseeable limit to the period over which they are
expected to generate net cash inflows.
Where brands are considered to have an indefinite life they are reviewed at
least annually for impairment or whenever events or changes in circumstances
indicate that their carrying amount may not be recoverable.
Where the carrying value of an asset exceeds its recoverable amount (i.e. the
higher of value-in-use and fair value less costs to sell), the asset is
impaired accordingly with the impairment charged to administration expenses.
Intangible assets
Intangible assets acquired separately, including computer software, are
measured on initial recognition at cost comprising the purchase price and any
directly attributable costs of preparing the asset for use.
Following initial recognition, assets are carried at cost less accumulated
amortisation and accumulated impairment losses. Amortisation begins when an
asset is available for use and is calculated on a straight-line basis to
allocate the cost of the asset over its estimated useful life as follows:
Computer software acquired - 3 or 4 years
Amortisation method, useful lives and residual values are reviewed at each
reporting date and adjusted if appropriate.
Property, plant and equipment
Property, plant and equipment is carried at cost less accumulated depreciation
and accumulated impairment losses.
Cost comprises purchase price and directly attributable costs. Unless
significant or incurred as part of a refit programme, subsequent expenditure
will usually be treated as repairs or maintenance and expensed to the
statement of comprehensive income.
Subsequent costs are included in the asset's carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. The carrying amount of the replaced part
is derecognised.
Depreciation
Freehold land is not depreciated. For all other property, plant and equipment,
depreciation is calculated on a straight-line basis to allocate cost, less
residual value of the assets, over their estimated useful lives as follows:
Leasehold buildings - Life of lease (max 50 years)
Freehold buildings - 2% - 4% straight line
Plant, fixtures and equipment - 10% - 33% straight line
Motor vehicles - 12.5% - 33% straight line
Residual values and useful lives are reviewed annually and adjusted
prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when
no future economic benefits are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is
included in the statement of comprehensive income when the asset is
derecognised.
Leases
The Group applies the leasing standard, IFRS 16, to all contracts identified
as leases at their inception, unless they are considered a short-term lease
(with a term less than a year) or where the asset is of a low underlying
value. Assets which may fall into these categorisations include printers,
vending machines and security cameras, and the lease expense is within
administrative expenses.
The Group has lease contracts in relation to property, equipment, fixtures
& fittings and vehicles. A contract is classified as a lease if it conveys
the right to control the use of an identified asset for a period of time in
exchange for consideration.
When a lease contract is recognised, the business assesses the term for which
we are reasonably certain to hold that lease, and the minimum lease payments
over that term are discounted to give the initial lease liability. The initial
right-of-use asset is then recognised at the same value, adjusted for
incentives or payments made on the day that the lease was acquired. Under IFRS
16, variable payments that depend on index or rate are included in the
measurement of the lease assets and liabilities. Other variable payments are
recognised in profit or loss in the period in which the performance or use
occurs.
The date that the lease is brought into the accounts is the date from which
the lease has been effectively agreed by both parties as evidenced by the
Group's ability to use that property.
The right-of-use asset is subsequently depreciated on a straight-line basis
over the term of that lease, or useful life (whichever is shorter) with the
charge being made to administrative costs. The lease liability attracts
interest which is charged to finance costs, and is measured at amortised cost
using the effective interest method.
Right-of-use assets may be impaired if, for instance, a lease becomes onerous.
Impairment costs are charged to administrative costs.
Lease modifications are recorded where there is a change in the expected
cashflows associated with a lease, such as through a rent review. When a lease
modification occurs the lease liability is recalculated and an equivalent
adjustment is made to the right-of-use asset, unless that asset would be
reduced below zero, in which case the excess is expensed in administrative
costs. The recalculation is carried out with an unchanged discount unless the
change has affected management's assessment of the term of the lease.
If there is a significant event, such as the lease reaching its expiry date,
the likely exercise of a previously unrecognised break clause, or the signing
of an extension lease, the lease term is re-assessed by management as to how
long we can reasonably stay in that property, and a new lease agreement or
modification (if the change is made before the expiry date) is recognised for
the re-assessed term, with a recalculated discount rate.
Lease modifications are also recorded where there is a change in the expected
cashflows associated with the lease, such as through a rent review. Unless the
change affects the term, the discount rate is not recalculated. A lease
modification results in a recalculation of the lease liability with a
corresponding adjustment made to the right-of-use asset.
The discount rate used is individual to each lease. Where a lease contract
includes an implicit interest rate, that rate is used. In the majority of
leases this is not the case and the discount rate is taken to be the
incremental borrowing rate as related to that specific asset. This is a
calculation based upon the external market rate of borrowing for the Group, as
well as several factors specific to the asset to be discounted.
The Group separates lease payments between lease and non-lease components
(such as service charges on property) at the point at which the lease is
recognised. Non-lease components are charged through administrative expenses.
Sale and leaseback transactions
The Group recognises a sale and leaseback transaction when the Group sells an
asset that has been previously recognised in property, plant and equipment,
and subsequently leases it back as part of the same or a linked transaction.
Management use the provisions of IFRS 15 to assess if a sale has taken place,
and the provisions of IFRS 16 to recognise the resulting lease, with the
liability and discount rate calculated in line with our lease policy and the
asset subject to an adjustment based upon the net book value of the disposed
asset, the opening lease liability, the consideration received and the fair
value of the asset on the date it was sold.
Resulting gains or losses are recognised in administrative expenses.
Investments in associates
Associates are those entities over which the Group has significant influence,
but which are neither subsidiaries nor interests in joint ventures.
Investments in associates are recognised initially at cost and subsequently
accounted for using the equity method. However, any goodwill or fair value
adjustment attributable to the Group's share of associates is included in the
amount recognised as investment in associates.
All subsequent changes to the share of interest in the equity of the associate
are recognised in the Group's carrying amount of the investment, including a
reduction in the carrying amount equal to any dividend received. Changes
resulting from the profit or loss generated by the associate are reported in
the 'Share of profits/(losses) of associates' caption in the consolidated
statement of comprehensive income and therefore affect net results of the
Group. These changes include subsequent depreciation, amortisation and
impairment of the fair value adjustments of assets and liabilities.
Items that have been recognised directly in the associate's other
comprehensive income are recognised in the consolidated other comprehensive
income of the Group. However, when the Group's share of losses in an associate
equals or exceeds its interest in the associate, the Group does not recognise
further losses, unless it has incurred obligations or made payments on behalf
of the associate. If the associate subsequently reports profits, the investor
resumes recognising its share of those profits only after its share of the
profits equals the share of losses not recognised.
Unrealised gains on transactions between the Group and its associates are
eliminated to the extent of the Group's interest in the associates. Unrealised
losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Amounts reported in the consolidated
financial statements of associates have been adjusted where necessary to
ensure consistency with the accounting policies adopted by the Group.
Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that
an asset may be impaired. If any indication exists, or when annual impairment
testing for an asset is required (for goodwill or indefinite life assets), the
Group estimates the asset's recoverable amount.
The Group bases its impairment calculation on detailed budgets and forecasts
which are prepared separately for each of the Group's cash-generating units
(CGUs) to which the individual assets are allocated. These budgets and
forecast calculations are usually prepared in January and cover a period of
five years. For longer periods, a long-term growth rate is calculated and
applied to the projected future cash flows after the fifth year. The Group's
three-year plan is usually approved in March. If due to the passage of time
there are significant differences in the key assumptions between the forecast
and plan, or if management consider that the forecast has a more sensitive
level of headroom, then the impairment test will be additionally sensitised to
the plan assumptions.
Indications of impairment might include (for goodwill and the brand assets,
for instance) a significant decrease in the like-for-like sales of established
stores or sustained negative publicity.
An asset's recoverable amount is the higher of an asset's or CGU's fair value
less costs to sell and its value-in-use. It is determined for an individual
asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. Where the carrying
amount of an asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount.
In assessing value-in-use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset or
CGU.
Impairment losses of continuing operations are recognised in the statement of
comprehensive income in those expense categories consistent with the function
of the impaired asset.
For assets excluding goodwill, an assessment is made at each reporting date as
to whether there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. If such indication exists,
the Group estimates the asset's or CGU's recoverable amount.
A previously recognised impairment loss is reversed only if there has been a
change in the assumptions used to determine the asset's recoverable amount
since the last impairment loss was recognised. The reversal is limited so that
the carrying amount of the asset does not exceed its recoverable amount, nor
exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior
years. Such reversal is recognised in the statement of comprehensive income,
except for impairment of goodwill which is not reversed.
Inventories
Inventories are stated at the lower of cost and net realisable value, after
making due allowance for obsolete and slow moving items, using the weighted
average method.
Stock purchased in foreign currency is booked in at the hedge rate applicable
to that stock (if effectively hedged) or the underlying foreign currency rate
on the date that the item is brought into stock.
Net realisable value is the estimated selling price in the ordinary course of
business, less estimated costs to sell. The consolidated financial statements
for the current year include an allocation of transport costs. Warehouse and
distribution costs are not included in inventory.
The Group receives supplier rebates which are included in the cost of
inventory balance (and which therefore ultimately flow through to cost of
sales). These rebates are recognised on an accruals basis according to
purchase levels achieved at the end of each period.
Share options
The Group operates several equity-settled share option schemes.
The schemes have been accounted for under the provisions of IFRS 2 and,
accordingly, have been fair valued on their inception date using appropriate
methodology (the Black Scholes and Monte Carlo models).
A cost is recorded through the statement of comprehensive income in respect of
the number of options outstanding and the fair value of those options. A
corresponding credit is made to the retained earnings reserve and the effect
of this can be seen in the statement of changes in equity. See note 8 for more
details.
Taxation
Current income tax
Current income tax assets and liabilities for the current period are measured
at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted, at the reporting date, in the
countries where the Group operates and generates taxable income. Tax is
recognised in the statement of comprehensive income, except to the extent that
it relates to items recognised in other comprehensive income or directly in
equity. In this case, the tax is also recognised in other comprehensive income
or directly in equity.
Deferred tax
Deferred tax is provided using the liability method on temporary differences
between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date. Deferred tax liabilities
are recognised for all taxable temporary differences, except:
· when the deferred tax liability arises from the initial recognition of
goodwill or an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
· in respect of taxable temporary differences associated with investments in
subsidiaries, associates and interests in joint ventures, when the timing of
the reversal of the temporary differences can be controlled and it is probable
that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences,
carry forward of unused tax credits and unused tax losses, to the extent that
it is highly probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits
and unused tax losses can be utilised, except:
· when the deferred tax asset relating to the deductible temporary difference
arises from the initial recognition of an asset or liability in a transaction
that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and
· in respect of deductible temporary differences associated with investments in
subsidiaries, associates and interests in joint ventures, deferred tax assets
are recognised only to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be
available against which the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date
and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the deferred tax
asset to be utilised. Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has become probable
that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply in the year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Financial instruments
The Group uses derivative financial instruments such as forward currency
contracts to reduce its foreign currency risk, commodity price risk and
interest rate risk. Derivative financial instruments are recognised at fair
value. The fair value is derived using an internal model and supported by
valuation reports from the issuing banks.
Where a derivative financial instrument is designated as a hedge of the
variability in cash flows of a recognised asset or liability, or a highly
probable forecast transaction, the effective part of any gain or loss on the
derivative financial instrument is recognised directly in other comprehensive
income and accumulated in the hedging reserve. Any ineffective portion of the
hedge is recognised immediately in the statement of comprehensive
income. Effectiveness of the derivatives subject to hedge accounting is
assessed prospectively at inception of the derivative, and at each reporting
period end date prior to maturity.
Where a hedge of a forecast transaction subsequently results in the
recognition of a non-financial asset, such as an item of inventory, the
associated gains and losses are recognised in the initial cost of that asset.
When a hedging instrument expires or is sold, terminated or exercised, or the
entity revokes designation of the hedge relationship but the hedged forecast
transaction is still expected to occur, the cumulative gain or loss at that
point remains in equity and is recognised in accordance with the above policy
when the transaction occurs. If the hedged transaction is no longer expected
to take place, the cumulative unrealised gain or loss recognised in equity is
reclassified in the statement of other comprehensive income immediately.
Financial assets
Under IFRS 9, on initial recognition, a financial asset is classified as
measured at amortised cost, fair value through profit or loss, or fair value
though other comprehensive income.
A financial asset is measured at amortised cost using the effective interest
rate if it meets both of the following conditions: it is held within a
business model whose objective is to hold assets to collect contractual cash
flows; and its contractual terms give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount
outstanding. Under IFRS 9 trade receivables, without a significant financing
component, are classified and held at amortised cost, being initially measured
at the transaction price and subsequently measured at amortised cost less any
impairment loss.
IFRS 9 includes an 'expected loss' model ('ECL') for recognising impairment of
financial assets held at amortised cost. The Group has elected to measure loss
allowances for trade receivables at an amount equal to lifetime ECL's. Credit
losses are measured as the present value of all cash shortfalls (i.e. the
difference between the cash flows due to the entity in accordance with the
contract and the cash flows that the Group expects to receive).
When determining whether the credit risk of a financial asset has increased
significantly since initial recognition and when estimating expected credit
losses, the Group considers reasonable and supportable information that is
relevant and available without undue cost or effort. This includes both
quantitative and qualitative information and analysis based on the Group's
historical experience and informed credit assessment and including
forward-looking information. The Group performs the calculation of expected
credit losses separately for each customer group. The balances involved are
immaterial for further disclosure.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income comprise
derivative financial instruments entered into by the Group that are designated
as hedging instruments in hedge relationships as defined by IFRS 9. Financial
assets at fair value through other comprehensive income are carried in the
statement of financial position at fair value with changes in fair value
recognised in other comprehensive income.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include derivative
financial instruments entered into by the Group that are not designated as
hedging instruments in hedge relationships as defined by IFRS 9. Financial
assets at fair value through profit or loss are carried in the statement of
financial position at fair value with changes in fair value recognised in
profit and loss.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part
of a group of similar financial assets) is derecognised when the rights to
receive cash flows from the asset have expired and the entity has transferred
its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full and either (a) the entity has
transferred substantially all the risks and rewards of the asset, or (b) the
entity has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset.
Impairment of financial assets
The Group assesses at each reporting date, on a forward-looking basis the
ECL's associated with our financial assets carried at amortised cost.
Financial liabilities
Initial recognition and measurement
Financial liabilities within the scope of IFRS 9 are classified as financial
liabilities at fair value through profit or loss or other financial
liabilities. The entity determines the classification of its financial
liabilities at initial recognition. All financial liabilities are recognised
initially at fair value.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial
derivatives held for trading. Financial liabilities are classified as
held-for-trading if they are acquired for the purpose of selling in the near
term. This category includes derivative financial instruments entered into by
the Group. Gains or losses on liabilities held-for-trading are recognised in
profit and loss.
Other financial liabilities
After initial recognition, interest-bearing loans and borrowings, trade and
other payables and other liabilities are subsequently measured at amortised
cost using the effective interest rate method. Gains and losses are recognised
in the statement of comprehensive income when the liabilities are derecognised
as well as through the effective interest rate method (EIR) amortisation
process.
Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included in finance costs.
Derecognition
A financial liability is derecognised when the obligation under the liability
is discharged or cancelled or expires.
Fair value of financial instruments
The fair value of financial instruments that are traded in active markets at
each reporting date is determined by reference to mark-to-market valuations
obtained from the relevant bank (bid price for long positions and ask price
for short positions), without any deduction for transaction costs.
Refinancing
Where bank borrowings are refinanced, the Group assesses whether the
transaction results in new facilities or a modification of the previous
facilities.
Where the transaction results in a modification of the facilities, the Group
assesses whether that modification is substantial by reference both to whether
the present value of the cash flows of the new facilities is more than 10%
different to the present value of the cash flows of the previous facilities
and by reference to any qualitative differences between the old and new
agreements.
Where a modification is substantial, the Group derecognises the original
liability and recognises a new liability for the modified facilities with any
transaction costs expensed to the income statement. Where the modification is
non-substantial, the Group amends the carrying amount of the liability to
reflect the updated cash flows and amends the EIR from the modification date.
Cash and cash equivalents
Cash and cash equivalents comprise of cash at bank and in hand, less bank
overdrafts to the extent the Group have the right to offset and settle these
balances net.
The Group's cash and cash equivalents balance includes £38m (2025: £38m) of
credit card receivables due to be received within three working days of the
year-end date.
Equity
Equity comprises the following:
· Share capital represents the nominal value of equity shares;
· Share premium represents the excess of the consideration made for the shares,
over and above the nominal valuation of those shares;
· Retained earnings reserve represents retained profits;
· Hedging reserve representing the movement in derivatives held by the Group at
the period end that are accounted for under hedge accounting and that
represent effective hedges;
· Other reserve representing the statutory reserve brought forward from the
apportionment of profit within each Luxembourg company. This was previously
represented as the 'legal reserve' until the redomicile to Jersey completed
early in 2026. Following the redomicile, the Board intends to recycle this
reserve balance to the retained earnings reserve in FY27;
· Merger reserve representing the reserve created during the reorganisation of
the Group in 2014; and
· Foreign exchange reserve represents the cumulative differences arising in
retranslation of the subsidiary's and associate's results.
Foreign currency translation
These consolidated financial statements are presented in pounds sterling.
The following Group companies have a functional currency of pounds sterling:
· B&M European Value Retail plc (formerly B&M European Value Retail
S.A.)
· B&M European Value Retail 1 Ltd (formerly B&M European Value Retail 1
S.à r.l.) (Jersey Holdco 1)
· B&M European Value Retail 2 Ltd (formerly B&M European Value Retail 2
S.à r.l.) (Jersey Holdco 2)
· B&M European Value Retail Holdco 1 Ltd (UK Holdco 1)
· B&M European Value Retail Holdco 2 Ltd (UK Holdco 2)
· B&M European Value Retail Holdco 3 Ltd (UK Holdco 3)
· B&M European Value Retail Holdco 4 Ltd (UK Holdco 4)
· EV Retail Ltd
· B&M Retail Ltd
· Opus Homewares Ltd
· Heron Food Group Ltd
· Heron Foods Ltd
· Cooltrader Ltd
· Heron Properties (Hull) Ltd
· Centz N.I. Limited
The following Group companies have a functional currency of the Euro:
· B&M France SAS
Previously, B&M European Value Retail 2 S.à r.l. had a functional
currency of the Euro but upon redomiciliation on 18 March 2026, the functional
currency became pounds sterling.
The Group company whose functional currency is the Euro has been consolidated
into the Group via retranslation of their results in line with IAS 21 'Effects
of Changes in Foreign Exchange Rates'. The assets and liabilities are
translated into pounds sterling at the period end exchange rate. The revenues
and expenses are translated into pounds sterling at the average exchange rate
during the period. Any resulting foreign exchange difference is cumulatively
recorded in the foreign exchange reserve with the annual effect being charged
or credited to other comprehensive income.
Transactions entered into by the company in a currency other than the currency
of the primary economic environment in which it operates (the "functional
currency") are recorded at the rates ruling when the transactions occur.
Foreign currency monetary assets and liabilities are translated at the rates
ruling at the balance sheet date. Exchange differences arising on the
retranslation of unsettled monetary assets and liabilities are recognised
immediately in profit or loss.
Pension costs
The Group operates a defined contribution scheme and contributions are charged
to profit or loss in the period in which they are incurred.
Provisions
Provisions are recognised when a present obligation (legal or constructive)
exists as a result of a past event and where it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation and the amount can be reliably estimated. Provisions are discounted
where the time value of money is considered to be material.
The property provision contains expected dilapidation costs, which covers
expected dilapidation costs for any lease considered onerous, any related to
stores recently closed, any stores which are planned or at risk of closure and
those stores occupied but not under contract. At the period end, 148 stores
were provided against (2025: 146). This year-on-year increase is reflective of
the rolling number of out of contract leases which increases as the store
estate increases, and against each of which we hold a small dilapidations
provision.
We do not provide against stores which are under contract and not considered
at risk of closure (comprising the majority of the estate) as management
consider that such a provision would be minimal as a result of regular store
maintenance and limited fixed fit out costs.
We also provide against the terminal dilapidation expense on our major
distribution centres, which is built up over the term of the leases held over
those distribution centres.
Climate change considerations
In preparing the financial statements, the Group has considered the impact of
climate change, particularly in the context of the TCFD disclosures and the
Group's ESG strategy included in the Annual Report.
The Group's existing fixed asset replacement programme is phased over several
years and therefore any changes in the requirements associated with climate
change would not have a material impact in any given year. The costs expected
to be incurred in connection with the Group's commitments are included within
the Group's budget used to support the going concern and viability assessments
and the impairment reviews of non-current assets.
Given the identified risks are expected to be present in the medium to
long-term, the impact of climate change on the going concern and viability of
the Group over the next three years is not expected to be material and is
therefore not currently classified as a key source of estimation of
uncertainty.
Critical judgements and key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are described below. The Group based its assumptions
and estimates on parameters available when the financial information was
prepared. However, existing circumstances and assumptions about future
developments may change due to market changes or circumstances arising beyond
the control of the Group. Such changes are reflected in the assumptions when
they occur.
Critical judgements
Investments in associates
Multi-lines International Company Ltd (Multi-lines), which is 50% owned by the
Group, has been judged by management to be an associate rather than a
subsidiary or a joint venture.
Under IFRS 10 control is determined by:
· Power over the investee
· Exposure, or rights, to variable returns from its involvement with the
investee
· The ability to use its power over the investee to affect the amount of the
investor's returns
Although 50% owned, B&M Group does not have majority, or casting, voting
rights or other substantive rights. Therefore, the level of power over the
business is considered to be more in keeping with that of an associate than a
joint-venture and, therefore, it has been treated as such within these
consolidated financial statements.
Hedge accounting
The Group hedge accounts for stock purchases made in US Dollars.
There is significant management judgement involved in forecasting the level of
dollar purchases to be made within the period that the forward hedge has been
bought for.
Management takes a cautious view that no more than 80% of the operational
hedging in place can be subject to hedge accounting, due to forecast
uncertainties, and assesses every forward hedge taken out, on inception, if
that figure should be reduced further by considering general purchasing
trends, and discussion of specific purchasing decisions.
Impairment
The Group's impairment calculation reflects assumptions that are based upon
management's judgement.
The key assumptions include, the anticipated like-for-like sales performance
and gross margin rates which are based upon the historical performance of the
entity and strategic decisions in relation to this entity. See note 12 for
further details.
Estimation uncertainty
There are no areas of estimation uncertainty where management consider that
there is a significant risk of a material adjustment to the carrying amounts
of assets and liabilities within the next financial year.
Standards and interpretations not yet applied by the Group
For the current financial year, the Group accounts are prepared under both
EU-adopted IFRS and UK-adopted IFRS to comply with Disclosure and Transparency
Rules. This is as a result of our Parent Company, B&M European Value
Retail plc, redomiciling to Jersey from Luxembourg. This involved relocating
the company's corporate structure from one jurisdiction to another while
retaining its legal personality. Due to changes in Jersey law, for annual
periods beginning on or after 1 April 2025, EU-IFRS will no longer need to be
applied and UK-IFRS adoption only will apply.
The following amendments to accounting standards and interpretations, issued
by the International Accounting Standards Board (IASB), have not yet been
applied by the Group in the period. The impact of these amendments on the
Group's consolidated results or financial position is expected to be
significant.
IASB effective for annual periods beginning on or after 1 January 2026
Standard Summary of changes EU endorsement status
Amendments to IFRS 9 The amendments provide an exception for the derecognition of financial Not yet endorsed.
liabilities, allowing companies to derecognise its trade payable before the
Recognition of a Financial Asset or Financial Liability settlement date, when it uses an electronic payment system that meets all of
the exception criteria. This is expected to be effective for B&M for the
year ended 27 March 2027.
IASB effective for annual periods beginning on or after 1 January 2027
Standard Summary of changes EU endorsement status
IFRS 18 Presentation and Disclosure in Financial Statements IFRS 18 replaces IAS 1 and introduces new presentation and disclosure Not yet endorsed.
requirements. It requires entities to categorise income and expenses into five
defined groups and present a new operating profit subtotal, without affecting
overall net profit. It also mandates disclosure of MPMs in a single note that
are not subtotalled in the financial statements.
Additionally, operating profit must be used as the starting point for cash
flows under the indirect method. The Group is still in the process of
assessing the impact of the new accounting standard, particularly with respect
to the structure of the Group's statement of profit or loss, the statement of
cash flows and the additional disclosures required for MPMs. The Group is also
assessing the impact on how information is grouped in the financial
statements, including for items currently labelled as 'other'. This is
expected to be effective for B&M for the year ended 1 April 2028.
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 operating segments for the
purpose of making decisions about resource allocation and performance
assessment.
For management purposes, the Group is organised into three operating segments,
B&M UK, Heron UK
and B&M France 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 Jersey 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 €1.1564/£ during the
year, with the period-end rate being €1.1538/£ (2025: €1.1885/£ and
€1.1955/£ respectively).
52 week period to 28 March 2026
B&M UK Heron Foods B&M France Corporate Total
£'m £'m £'m £'m £'m
Revenue 4,615 544 616 - 5,775
EBITDA (note 3) 602 29 103 (62) 672
Depreciation and amortisation (227) (22) (48) - (297)
Net finance expense (56) (3) (19) (70) (148)
Profit/(loss) before tax 319 4 36 (132) 227
Income tax (charge)/credit (83) (0) (9) 29 (63)
Segment profit/(loss) 236 4 27 (103) 164
Total assets 3,185 264 474 50 3,973
Total liabilities (1,656) (120) (331) (1,068) (3,175)
Capital expenditure* (110) (15) (17) - (142)
52 week period to 29 March 2025
B&M UK Heron Foods B&M France Corporate Total
£'m £'m £'m £'m £'m
Revenue 4,483 546 542 - 5,571
EBITDA (note 3) 737 39 91 (27) 840
Depreciation and amortisation (207) (23) (43) - (273)
Net finance expense (51) (2) (16) (67) (136)
Profit/(loss) before tax 479 14 32 (94) 431
Income tax (charge)/credit (123) (3) (8) 22 (112)
Segment profit/(loss) 356 11 24 (72) 319
Total assets 3,265 280 436 26 4,007
Total liabilities (1,601) (120) (321) (1,213) (3,255)
Capital expenditure* (103) (14) (16) - (133)
* Capital expenditure includes both tangible and intangible capital.
Revenue is disaggregated geographically as follows:
Period to 52 weeks ended 28 March 52 weeks ended
2026 29 March
2025
£'m £'m
Revenue due from UK operations 5,159 5,029
Revenue due from French operations 616 542
Overall revenue 5,775 5,571
Non-current assets (excluding deferred tax and financial instruments) are
disaggregated geographically as follows:
As at 52 weeks ended 28 March 52 weeks ended
2026 29 March
2025
£'m £'m
UK operations 2,392 2,381
French operations 282 271
Jersey operations* 7 7
Overall non-current assets 2,681 2,659
*Prior year was Luxembourg.
The Group operates a small wholesale operation, with the relevant
disaggregation of revenue as follows:
Period to 52 weeks ended 28 March 52 weeks ended
2026 29 March
2025
£'m £'m
Revenue due to sales made in stores 5,745 5,541
Revenue due to wholesale activities 30 30
Overall revenue 5,775 5,571
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, adjusted operating profit before tax and adjusted
profit after tax are all non-IFRS measures and therefore a reconciliation from
the statement of comprehensive income is set out below.
Period to 52 weeks ended 28 March 52 weeks ended
2026 29 March
2025
£'m £'m
Profit on ordinary activities before interest and tax 375 567
Add back depreciation and amortisation 297 273
EBITDA 672 840
Impairment charge 36 -
Costs in relation to significant infrastructure projects 7 4
Costs in relation to the redomicile project 7 -
External costs in relation to strategic business projects 4 -
Costs incurred in strategic leadership reset 4 -
Costs in relation to significant property transactions - 5
Group trading director settlement - 12
Non-underlying impact of foreign exchange (1) 3
Adjusted EBITDA 729 864
Depreciation and amortisation (297) (273)
Adjusted operating profit 432 591
Interest costs related to lease liabilities (note 5) (84) (77)
Net other finance costs (note 5) (64) (59)
Adjusted profit before tax 284 455
Adjusted tax (70) (118)
Adjusted profit for the period 214 337
On a pre-IFRS 16 basis, the costs in relation to significant infrastructure
projects adjusting item was £10m and the total of the pre-IFRS 16 adjusting
items was £60m compared to the £57m above on a post-IFRS 16 basis (2025:
£25m / £24m).
Adjusted EBITDA (pre-IFRS 16), adjusted operating profit (pre-IFRS 16) and
adjusted profit (pre-IFRS 16) are also non-IFRS measures and are reconciled as
follows:
Period to 52 weeks ended 28 March 52 weeks ended
2026 29 March
2025
£'m £'m
EBITDA (above) 672 840
Remove effects of IFRS 16 on EBITDA (273) (245)
EBITDA (pre-IFRS 16) 399 595
Adjusting items (above) 60 25
Adjusted EBITDA (pre-IFRS 16) 459 620
Pre-IFRS 16 depreciation and amortisation (99) (92)
Adjusted operating profit (pre-IFRS 16) 360 528
Net other finance costs (64) (59)
Adjusted profit before tax (pre-IFRS 16) 296 469
Adjusted tax (71) (122)
Adjusted profit (pre-IFRS 16) for the period 225 347
The effects of IFRS 16 on the EBITDA caption reflects the difference between
IAS 17 and IFRS 16 accounting and largely consists of the additional rent
expense the Group would have incurred under the IAS 17 standard.
Adjusting items include gains and losses associated with any significant
projects and the non-underlying impact of foreign exchange.
In reference to the captions in the tables above;
Impairment charge relates to the impairments of assets across the three
segments as a result of an assessment of individual store profitability within
those segments. These have been treated as an adjusting item as they are
one-off in nature and of meaningful magnitude whilst not relating to
underlying performance in the period.
The impairments relate directly to the assets held by the stores, including
their lease asset, and an apportionment of assets held centrally.
The figure adjusted for includes both the gross impairment made (£42m) and
the release against that impairment which represents a lower depreciation
charge in the year (£6m), giving a net value of £36m. In the prior year, the
value of impairments was gross £3m and therefore not considered meaningful
for adjustment.
Costs in relation to significant infrastructure projects includes the
pre-operational and ramp up costs of our Ellesmere Port Import Centre and the
dual-running costs associated with the replacement of our Middlewich DC with a
third-party operated site in Rugby. In the prior year, it also included the
disruption costs related to our DC expansion project in France.
All projects are significant in nature, with Ellesmere Port representing the
largest infrastructure project within the Group since Bedford opened in 2020,
the Rugby site representing a significant project of relocating warehouse
operations whilst incurring dual-running costs of running both sites during
the crossover period and the French project representing a step change in the
capacity of that segment.
In the prior period in France, the disruption costs experienced were
calculated by reference to increased cost to serve per volume unit, which were
driven by increased headcount required over a specific time period within the
prior year. These costs were normalised prior to the prior year-end date.
The Ellesmere Port Import Centre is due to be fully operational early in FY27.
The Rugby DC is scheduled to be fully operational and the Middlewich DC is
scheduled to fully close early in FY27.
Costs in relation to the redomicile project includes any fees related to the
redomicile of the Group's Luxembourg entities to Jersey.
This project is significant in nature and the costs in the current year were
meaningful and non-recurring, and as such they have been included in our
adjusting items for this period.
Whilst this project had commenced in the prior year, the cost incurred in that
year of £1m were considered to be insubstantial and were therefore not
included as an adjusting item for that period.
The project has now completed, with remaining costs relating only to the wind
down costs of our Luxembourg operations which are not expected to be
significant.
External costs in relation to strategic business projects relates to external
costs incurred in operating the Back to B&M Basics project which is a
significant strategic project that required external input into the formative
stages of the project. External costs in relation to this project are expected
to be lower in FY27.
Costs incurred in strategic leadership reset. The senior leadership team of
the business has undergone significant changes during the year under review,
and the costs associated with those changes have been meaningful. We do not
expect meaningful costs in relation to leadership change in FY27. Further
details around specifically the changes in our directors is also included in
note 31.
Costs in relation to significant property projects includes the expenses
associated with the acquisition of options in relation to several ex-Wilko and
ex-Homebase stores. These deals completed in the year ended 29 March 2025 and
no further expense has occurred in relation to these transactions in the
current period.
Group trading director settlement represents the sum payable to the former
Group trading director in respect of the revised agreements made with this
director in June and December 2024. These agreements included specifying his
retirement as director of Group subsidiaries in March 2025, and his
entitlement to £5m termination and £6m consultancy payments in relation to
the periods in FY25 (after June 2024) and FY26 respectively, with the
remainder of the presented adjusting item consisting of employer payroll
taxes. No further costs were incurred in relation to this item in FY26.
Non-underlying impact of foreign exchange includes the fair value of
derivatives which have yet to mature and any gains or losses in relation to
foreign exchange on intercompany balances. In addition, this year also
includes any foreign exchange that arises as a point-in-time adjustment on our
stock, creditor or cash balances in relation to any stock which has not yet
been sold, which arises as a timing difference, since we aim to fully
operationally hedge for our stock purchased in dollars, and whilst our
achieved rate is directly reflected in our cost price and margins in internal
reporting, we cannot account for it in this way on a statutory basis.
The actual achieved rate is reflected in the reports reviewed by the
management which are used in making pricing decisions and, as such, management
consider that the timing difference adjusted for is not reflective of our
underlying trading performance.
Any foreign exchange arising outside of our operational hedging programme has
been included in the underlying figures presented.
Adjusted tax represents the tax charge per the statement of comprehensive
income as adjusted only for the effects of the adjusting items detailed above.
The following table reconciles the statutory figures to the adjusted and
adjusted (pre-IFRS 16) figures in the statutory profit and loss format on a
line-by-line basis:
52-week period to 28 March 2026
Statutory figures Adjusting Adjusted Impact of Adjusted
items figures IFRS 16 (pre-IFRS 16)
£'m £'m £'m £'m £'m
Revenue 5,775 - 5,775 - 5,775
Cost of sales (3,670) - (3,670) - (3,670)
Gross profit 2,105 - 2,105 - 2,105
Depreciation and amortisation (297) - (297) 198 (99)
Other administrative expenses (1,434) 57 (1,377) (270) (1,647)
Operating profit 374 57 431 (72) 359
Share of profits in associates 1 - 1 - 1
Profit before interest and tax 375 57 432 (72) 360
Finance costs relating to right-of-use assets (84) - (84) 84 -
Other finance costs (70) - (70) - (70)
Finance income 6 - 6 - 6
Profit before tax 227 57 284 12 296
Income tax expense (63) (7) (70) (1) (71)
Profit for the period 164 50 214 11 225
52-week period to 29 March 2025
Statutory figures Adjusting items Adjusted figures Impact of Adjusted
IFRS 16 (pre-IFRS 16)
£'m £'m £'m £'m £'m
Revenue 5,571 - 5,571 - 5,571
Cost of sales (3,479) - (3,479) - (3,479)
Gross profit 2,092 - 2,092 - 2,092
Depreciation and amortisation (273) - (273) 181 (92)
Other administrative expenses (1,253) 24 (1,229) (244) (1,473)
Operating profit 566 24 590 (63) 527
Share of losses in associates 1 - 1 - 1
Profit before interest and tax 567 24 591 (63) 528
Finance costs relating to right-of-use assets (77) - (77) 77 -
Other finance costs (66) - (66) (0) (66)
Finance income 7 - 7 - 7
Profit before tax 431 24 455 14 469
Income tax expense (112) (6) (118) (4) (122)
Profit for the period 319 18 337 10 347
The tables below give the reconciliation between the operating profit and
adjusted EBITDA (pre-IFRS 16) by segment:
52-week period to 28 March 2026
B&M Heron Foods B&M France Corporate Total
UK
£'m £'m £'m £'m £'m
Profit/(loss) before interest and tax 375 7 55 (62) 375
Net finance charges (56) (3) (19) (70) (148)
Profit/(loss) before tax 319 4 36 (132) 227
Adjusting items (above) - - - 57 57
Adjusted profit/(loss) before tax 319 4 36 (75) 284
Net finance charges added back 56 3 19 70 148
Adjusted operating profit/(loss) 375 7 55 (5) 432
Depreciation and amortisation (pre-IFRS 16) 73 13 13 - 99
Impact of IFRS 16 (53) (4) (15) - (72)
Adjusted EBITDA (pre-IFRS 16) 395 16 53 (5) 459
52-week period to 29 March 2025
B&M Heron B&M France Corporate Total
UK Foods
£'m £'m £'m £'m £'m
Profit/(loss) before interest and tax 530 16 48 (27) 567
Net finance charges (51) (2) (16) (67) (136)
Profit/(loss) before tax 479 14 32 (94) 431
Adjusting items (above) - - - 24 24
Adjusted profit/(loss) before tax 479 14 32 (70) 455
Net finance charges added back 51 2 16 67 136
Adjusted operating profit/(loss) 530 16 48 (3) 591
Depreciation and amortisation (pre-IFRS 16) 66 14 12 - 92
Impact of IFRS 16 (51) (0) (12) 0 (63)
Adjusted EBITDA (pre-IFRS 16) 545 30 48 (3) 620
The segmental split in EBITDA and adjusted EBITDA reconciles as follows:
52-week period to 28 March 2026
B&M UK Heron Foods B&M France Corporate Total
£'m £'m £'m £'m £'m
Profit/(loss) before tax 319 4 36 (132) 227
Add back depreciation and amortisation 227 22 48 - 297
Add back net finance charges 56 3 19 70 148
EBITDA 602 29 103 (62) 672
Adjusting items (above) - - - 57 57
Adjusted EBITDA 602 29 103 (5) 729
52-week period to 29 March 2025
B&M UK Heron Foods B&M France Corporate Total
£'m £'m £'m £'m £'m
Profit/(loss) before tax 479 14 32 (93) 432
Add back depreciation and amortisation 207 23 43 - 273
Add back net finance charges 51 2 16 66 135
EBITDA 737 39 91 (27) 840
Adjusting items (above) - - - 24 24
Adjusted EBITDA 737 39 91 (3) 864
Adjusted EPS and diluted EPS measures are reconciled in note 10.
Post-tax free cash flow is reconciled to the consolidated statement of cash
flows as follows:
Period ended 52 weeks ended 52 weeks ended
28 March 29 March
2026 2025
£'m £'m
Cash flows from operating activities 801 784
Income tax paid (65) (109)
Purchase of property, plant and equipment (139) (131)
Purchase of intangible assets (3) (2)
Proceeds from sale of property, plant and equipment 3 22
Repayment of the principal in relation to lease liabilities (192) (176)
Payment of interest in relation to right-of-use assets (84) (77)
Post-tax free cash flow 321 311
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 Operating profit
The following items have been charged in arriving at operating profit:
Period ended 52 weeks ended 52 weeks ended
28 March 29 March
2026 2025
£'m £'m
Auditor's remuneration 2 1
Payments to auditors in respect of non-audit services:
Other assurance services 0 0
Cost of inventories recognised as an expense (included in cost of sales) 3,670 3,479
Depreciation of owned property, plant and equipment 95 88
Amortisation (included within administration costs) 2 2
Impairment of owned property, plant and equipment 17 -
Depreciation of right-of-use assets 200 183
Impairment of right-of-use assets 25 3
Operating lease rentals 7 4
Sublet income (2) (2)
Other operational income (8) (9)
Loss/(profit) on sale of property, plant and equipment 1 (0)
Profit on sale and leasebacks - (0)
Loss on foreign exchange 2 1
5 Finance costs and finance income
Finance costs include all interest-related income and expenses. The following
amounts have been included in the continuing profit line for each reporting
period presented:
52 weeks ended 52 weeks ended
Period ended 28 March 29 March
2026 2025
£'m £'m
Interest on debt and borrowings (67) (63)
Ongoing amortisation of finance fees (2) (2)
Interest rate swap derivative (1) (1)
Total adjusted finance expense (70) (66)
Finance costs on lease liabilities (84) (77)
Total finance expense (154) (143)
The finance expense reconciles to the statement of cash flows as follows:
Period ended 52 weeks ended 52 weeks ended
28 March 29 March
2026 2025
£'m £'m
Cash
Finance costs paid in relation to debt and borrowings 70 56
Finance costs paid in relation to lease liabilities 84 77
Fees paid in relation to refinancing 0 4
Finance costs paid 154 137
Non-cash
Movement of accruals in relation to debt and borrowings (3) 7
Capitalisation of paid fees in relation to new facilities - (4)
Ongoing amortisation of finance fees 2 2
Interest rate swap derivative 1 1
Total finance expense 154 143
Period ended 52 weeks ended 52 weeks ended
28 March 29 March
2026 2025
£'m £'m
Interest income on loans and bank accounts 6 7
Total finance income 6 7
Total net adjusted finance costs are therefore:
Period ended 52 weeks ended 52 weeks ended
28 March 29 March
2026 2025
£'m £'m
Total adjusted finance expense (70) (66)
Total finance income 6 7
Total net adjusted finance costs (64) (59)
6 Employee remuneration
Expense recognised for employee benefits is analysed below:
Period ended 52 weeks ended 52 weeks ended
28 March 29 March
2026 2025
£'m £'m
Wages and salaries 744 719
Social security costs 84 56
Share-based payment expense 3 3
Pensions - defined contribution plans 13 12
Total remuneration 844 790
There are £2m of defined contribution pension liabilities owed by the Group
at the period end (2025: £2m).
B&M France operates a scheme where they must provide a certain amount per
employee to pay upon their retirement date. The accrual on this scheme at the
period end was <£1m (2025: <£1m).
The average monthly number of persons employed by the Group during the period
was:
Period ended 52 weeks ended 52 weeks ended
28 March 29 March
2026 2025
Sales staff 39,748 39,347
Administration 1,239 1,294
Total staff 40,987 40,641
7 Key management remuneration
Key management personnel and Directors' remuneration includes the following:
Period ended 52 weeks ended 52 weeks ended
28 March 29 March
2026 2025
£'m £'m
Directors' remuneration:
Short-term employee benefits 4 4
Termination payments 1 1
Benefits accrued under the share option scheme 0 0
Total 5 5
Key management expense (includes Directors' remuneration):
Short-term employee benefits 10 13
Termination payments 2 7
Benefits accrued under the share option scheme 1 1
Pension 0 0
Other long-term benefits 0 1
Total 13 22
Amounts in respect of the highest paid director emoluments:
Short-term employee benefits 2 2
Termination payments - 1
Benefits accrued under the share option scheme - 0
Total 2 3
The emoluments disclosed above are of the Directors and key management
personnel who have served as a Director within any of the continuing Group
companies.
8 Share options
The Group operates three equity-settled share option schemes which split down
to various tranches. Details of these schemes follow.
1) Long-Term Incentive Plan (LTIP) awards
The LTIP was re-adopted by the Board on 23 July 2024. No grant under this
scheme can be made more than 10 years after this date.
Eligibility
Employees and Executive Directors of the Group are eligible for the LTIP and
the awards are made at the discretion of the remuneration committee.
Limits & pricing
A fixed number of options are offered to each participant, with the pricing
set at £nil. The options offered to each individual cannot exceed a total
value of 250% of the participants base salary where the value is measured as
the market value of the shares on grant multiplied by the number of options
awarded, with the whole scheme limited to 10% of the share capital in issue.
Dividend credits
All participants in LTIP awards are entitled to dividend credits, where the
notional dividend they would have received on the maximum number of shares
available under their award is converted into new share options and added to
the award based upon the share price on the date of the dividend. These
additional awards have been reflected in the tables below.
Vesting & exercise
The share options are subject to a set of conditions measured over a
three-year performance period as follows:
LTIP Executive ("A") awards
· 50% of the awards are subject to a TSR performance condition, where the
Group's TSR over the performance period is compared with a comparator group.
The awards vest on a sliding scale where the full 50% is awarded if the Group
falls in the upper quartile, 12.5% vests if the Group falls exactly at the
median, and 0% below that.
· 50% of the awards are subject to a diluted EPS performance target. The awards
vest on sliding scales based upon the EPS as follows:
Award EPS as at 50% paid at 42.5% paid at 12.5% paid at
LTIP 2019A March-22 33.0p N/A 27.0p
LTIP 2020A March-23 30.0p N/A 25.0p
LTIP 2021A March-24 45.0p N/A 37.0p
LTIP 2022A March-25 50.0p N/A 42.0p
LTIP 2023A March-26 43.9p N/A 37.9p
LTIP 2024A March-27 47.4p 42.3p 38.3p
LTIP 2025A March-28 41.9p N/A 34.9p
Below the 12.5% boundary, no options vest. Diluted EPS is defined as adjusted
(pre-IFRS 16) diluted EPS on all schemes until LTIP 2024A where it is adjusted
diluted EPS, see note 10.
· The performance period is the three years ending the period end specified in
the EPS table above.
· Once the performance period concludes, the calculated number of share options
remaining are then subject to a two-year holding period.
· The share options vest at the conclusion of the holding period.
LTIP Restricted ("B") awards
· Group EBITDA must be positive in each year of the LTIP.
· The awards also have an employee performance condition attached.
Vested awards can be exercised up to the tenth anniversary of grant.
Tranches
There have been several awards of the LTIP, with the details as follows.
Note that the LTIP Executive awards have been split into the element subject
to the TSR (50%) and the element subject to the EPS (50%) since these were
valued separately.
The TSR awards market condition has been included in the fair value
calculation for those awards while all non-market conditions have not been
included. Expected volatility has been calculated based upon the historic
share price volatility of the Group and those of comparable companies.
The key information used in the valuation of these tranches is as follows:
Scheme Date of grant Original options granted Fair value of each option Risk free rate Expected life (years) Volatility
2019A-TSR 22 Aug 19 275,640.5 251p 0.37% 5 31%
2019A-EPS 22 Aug 19 275,640.5 361p 0.37% 5 31%
2020A-TSR 30 Jul 20 141,718 409p -0.11% 5 48%
2020A-EPS 30 Jul 20 141,718 464p -0.11% 5 48%
2021A-TSR 3 Aug 21 218,861 354p 0.23% 5 37%
2021A-EPS 3 Aug 21 218,861 560p 0.23% 5 37%
2022A-TSR 17 Nov 22 309,342 124p 3.16% 5 31%
2022A-EPS 17 Nov 22 309,342 386p 3.16% 5 31%
2023A-TSR 1 Aug 23 224,422 409p 4.75% 5 32%
2023A-EPS 1 Aug 23 224,422 548p 4.75% 5 32%
2024A-TSR 1 Aug 24 342,624 174p 4.04% 5 31%
2024A-EPS 1 Aug 24 342,625 456p 4.04% 5 31%
2025A-TSR 28 Jul 25 695,541 113p 4.03% 5 33%
2025A-EPS 28 Jul 25 695,542 227p 4.03% 5 33%
2021/B1 3 Aug 21 281,950 560p 0.12% 3 42%
2022/B1 3 Aug 22 396,877 437p 1.75% 3 32%
2022/B2 15 Dec 22 3,641 412p 1.75% 3 32%
2023/B1 1 Aug 23 414,833 548p 4.77% 3 31%
2024/B1 1 Aug 24 554,001 445p 3.77% 3 31%
2025/B1 28 Jul 25 1,024,887 227p 3.91% 3 31%
Scheme Options at Granted Dividend credit Forfeited Exercised Options at 28 Mar 26
29 Mar 25
2020A-TSR 214,392* - 8,637 - (223,029) -
2020A-EPS 214,392* - 8,637 - (223,029) -
2021A-TSR 183,080* - 11,416 - - 194,496*
2021A-EPS 100,916* - 6,293 - - 107,209*
2022A-TSR 379,685 - - (379,685) - -
2022A-EPS 379,685 - - (379,685) - -
2023A-TSR 198,417 - 12,166 (9,741) - 200,842
2023A-EPS 198,418 - 12,166 (9,741) - 200,843
2024A-TSR 187,297 - 10,712 (45,602) - 152,407
2024A-EPS 187,298 - 10,712 (45,603) - 152,407
2025A-TSR - 695,541 11,543 (151,332) - 555,752
2025A-EPS - 695,542 11,543 (151,332) - 555,753
2021/B1 5,569 - - - (5,569) -
2022/B1 385,746 - 15,533 (391) (393,463) 7,425
2022/B2 4,411 - 178 - (4,589) -
2023/B1 360,108 - 22,070 (11,250) - 370,928
2024/B1 492,657 15,391 31,701 (40,694) - 499,055
2025/B1 - 1,024,887 19,886 (103,847) - 940,926
Scheme Options at Granted Dividend credit Forfeited Exercised Options at
30 Mar 24 29 Mar 25
2019A-TSR 312,583* - 6,467 - (319,050) -
2019A-EPS 312,583* - 6,467 - (319,050) -
2020A-TSR 197,369* - 17,023 - - 214,392*
2020A-EPS 197,369* - 17,023 - - 214,392*
2021A-TSR 191,790 - 14,537 (23,247) - 183,080*
2021A-EPS 191,790 - 8,013 (98,887) - 100,916*
2022A-TSR 349,537 - 30,148 - - 379,685
2022A-EPS 349,537 - 30,148 - - 379,685
2023A-TSR 235,204 - 20,286 (57,073) - 198,417
2023A-EPS 235,204 - 20,286 (57,072) - 198,418
2024A-TSR - 342,624 22,005 (177,332) - 187,297
2024A-EPS - 342,625 22,005 (177,332) - 187,298
2021/B1 251,134 - 5,031 (2,182) (248,414) 5,569
2022/B1 380,862 - 32,183 (27,299) - 385,746
2022/B2 4,061 - 350 - - 4,411
2023/B1 387,478 - 32,344 (59,714) - 360,108
2024/B1 - 554,001 35,053 (96,397) - 492,657
*These share options are in a two-year holding period.
2) Deferred Bonus Share Plan (DBSP) awards
The DBSP was adopted by the Board on 30 July 2018. No grant under this scheme
can be made more than 10 years after this date.
The DBSP differs from the LTIP awards in that there are no vesting conditions.
The scheme has been set up in order to allocate a specified proportion of the
Executive Director's annual bonus into £nil price share options which are
then placed in holding for three years.
As there are no vesting conditions, these awards have been valued at the
amount of the bonus to be converted into share options under the scheme.
There are annual awards of the scheme. The 2026 award will be made after this
set of statutory accounts have been published and will therefore be reported
in the next Annual Report.
Scheme Options at 29 Mar 25 Granted Dividend credit Forfeited Exercised Options at 28 Mar 26
2022 Bonus allocation 352,507 - 14,199 - (366,706) -
2023 Bonus allocation 179,929 - 11,219 - - 191,148
2024 Bonus allocation 266,096 - 16,593 - - 282,689
2025 Bonus allocation - 211,093 13,161 - - 224,254
Scheme Options at 30 Mar 24 Granted Dividend credit Forfeited Exercised Options at 29 Mar 25
2021 Bonus allocation 104,359 - 2,160 - (106,519) -
2022 Bonus allocation 324,517 - 27,990 - - 352,507
2023 Bonus allocation 165,640 - 14,289 - - 179,929
2024 Bonus allocation - 244,969 21,127 - - 266,096
The fair values of the presented schemes on inception were £0.6m (2025)
£1.2m (2024), £0.8m (2023), £1.1m (2022) and £0.5m (2021).
3) Specific LTIP awards
The remuneration committee are able to award specific share schemes under the
LTIP framework, where considered appropriate. In the prior year, there was one
such scheme which was fully exercised in that period. There were no such
schemes in the current year. Details given below.
Options at 30 Mar 24 Granted Dividend credit Forfeited Exercised Options at 29 Mar 25
Scheme
Buy-out Nov-24 36,601 - 1,341 - (37,942) -
The fair value of the presented scheme on inception was £0.1m.
The summary period-end position is as follows:
Period ended 28 March 29 March
2026 2025
Share options outstanding at the start of the year 4,290,603 4,227,618
Share options granted during the year (including via dividend credit) 2,890,819 1,870,495
Share options forfeited or lapsed during the year (1,328,903) (776,535)
Share options exercised in the year (1,216,385) (1,030,975)
Share options outstanding at the end of the year 4,636,134 4,290,603
Of which;
Share options that are not vested 3,628,913 2,773,722
Share options that are in holding 999,796 1,511,312
Share options that are vested and eligible for exercise 7,425 5,569
All exercised options are satisfied by the issue of new share capital. The
weighted average share price on exercise was £2.25 (2025: £4.26). All
outstanding options have a £nil (2025: £nil) exercise price and the weighted
average remaining contractual life is 2.3 years (2025: 1.9 years).
In the year, £3m has been charged to the consolidated statement of
comprehensive income in respect to the share option schemes (2025: £3m). At
the end of the year the outstanding share options had a carrying value of £7m
(2025: £8m).
9 Taxation
The relationship between the expected tax expense based on the standard rate
of corporation tax in the UK of 25% in both periods and the tax expense
actually recognised in the consolidated statement of comprehensive income can
be reconciled as follows:
Period ended 52 weeks ended 52 weeks ended
28 March 29 March
2026 2025
£'m £'m
Current tax expense 57 105
Deferred tax charge 6 7
Total tax expense recorded in profit and loss 63 112
Current tax charge/(credit) in other comprehensive income 0 (0)
Deferred tax charge in other comprehensive income 3 1
Total tax charge recorded in other comprehensive income 3 1
Result for the year before tax 227 431
Expected tax charge at the standard tax rate 57 108
Effect of:
Expenses not deductible for tax purposes 10 5
Income not taxable (2) (0)
Lease accounting (2) (1)
Foreign operations taxed at local rates 0 1
Current tax prior period adjustment (2) (1)
Deferred tax prior period adjustment 1 -
Hold over gains on fixed assets (0) 1
Relating to share options 1 0
Other 0 (1)
Actual tax expense 63 112
Deferred taxation
Statement of financial position 28 March 29 March
2026 2025
£'m £'m
Accelerated tax depreciation (30) (24)
Relating to intangible brand assets (28) (27)
Fair valuing of assets and liabilities (asset) 4 3
Fair valuing of assets and liabilities (liability) (4) (2)
Temporary differences relating to the tax accounting for leases (asset) 90 92
Temporary differences relating to the tax accounting for leases (liability) (68) (70)
Movement in provision 0 0
Relating to share options 1 2
Held over gains on fixed assets (4) (4)
Other temporary differences 0 0
Net deferred tax liability (39) (30)
Analysed as;
Deferred tax asset 6 5
Deferred tax liability (45) (35)
Statement of comprehensive income
52 weeks ended 52 weeks ended
28 March 29 March
2026 2025
£'m £'m
Accelerated tax depreciation (6) (7)
Relating to intangible brand assets (1) -
Fair valuing of assets and liabilities (2) 1
Temporary differences relating to the tax accounting for leases 1 0
Movement in provision (0) (0)
Relating to share options (1) (2)
Held over gains on fixed assets - (0)
Other temporary differences 0 0
Net deferred tax charge (9) (8)
Analysed as;
Total deferred tax charge in profit or loss (6) (7)
Total deferred tax charge in other comprehensive income (3) (1)
At the period end there are £1m of unrecognised deferred tax assets within
the Group in relation to a corporate interest restriction (2025: £1m) and
there were no unrecognised deferred tax assets in respect of carried forward
losses in our Jersey entities from before the redomicile from Luxembourg,
since they cannot be utilised in the future due to the redomicile to Jersey
(2025: £20m).
The deferred tax liability relating to the intangible brand has been
recognised in respect of the temporary difference created by the recognition
of the B&M brand at fair value on the business combination when the Group
was formed.
The Group offsets tax assets and liabilities if and only if it has a legally
enforceable right to set off current tax assets and current tax liabilities
and the deferred tax assets and deferred tax liabilities relate to income
taxes levied by the same tax authority.
The Group has performed an assessment of the potential exposure to Pillar Two
income taxes under Jersey legislation with its external tax specialists. This
assessment was based upon our most recent country-by-country reporting and the
methodology we intend to use in our future country-by-country and Pillar Two
reporting and the most recent financial statements for the constituents of the
Group. Based on the assessment, the Pillar Two effective tax rates in all the
jurisdictions in which the Group have trading operations are above 15%, which
is expected to continue in future years and other jurisdictions have been
analysed to meet other safe harbour tests or are not expected to have
significant impact. We therefore intend to apply the transitional safe harbour
rules which will exempt the Group from applying the full Pillar Two rules from
the first year of their application.
10 Earnings per share
Basic earnings per share (EPS) amounts are calculated by dividing the net
profit or loss for the financial period attributable to ordinary equity
holders of the parent by the weighted average number of ordinary shares
outstanding during the period.
Diluted EPS 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 (pre-IFRS 16)) basic and diluted EPS 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 (see note 8) which have a dilutive
effect on both periods presented.
The following reflects the income and share data used in the EPS computations:
Period ended 28 March 29 March
2026 2025
£'m £'m
Profit for the period attributable to owners of the parent 164 319
Adjusted profit for the period attributable to owners of the parent 214 337
Adjusted (pre-IFRS 16) profit for the period attributable to owners of the 225 347
parent
Thousands Thousands
Weighted average number of ordinary shares for basic earnings per share 1,004,701 1,003,386
Dilutive effect of employee share options 1,219 1,869
Weighted average number of ordinary shares adjusted for the effect of dilution 1,005,920 1,005,255
Pence Pence
Basic earnings per share 16.3 31.8
Diluted earnings per share 16.3 31.8
Adjusted basic earnings per share 21.3 33.6
Adjusted diluted earnings per share 21.3 33.5
Adjusted (pre-IFRS 16) basic earnings per share 22.4 34.6
Adjusted (pre-IFRS 16) diluted earnings per share 22.4 34.5
11 Investments in associates
Period ended 28 March 29 March
2026 2025
£'m £'m
Net book value
Carrying value at the start of the period 6 5
Share of profits in associates since the prior year valuation exercise 1 1
Effect of foreign exchange on translation (0) (0)
Carrying value at the end of the period 7 6
The Group has a 50% interest in Multi-lines International Company Ltd
(Multi-lines), a company incorporated in Hong Kong. The principal activity of
the company is the purchase and sale of goods and their registered address is
29/F, Tower B, Capital Tower, 38 Wai Yip Street, Kowloon Bay, Hong Kong.
The Group has a 22.5% holding in Centz Retail Holdings Limited (Centz), a
company incorporated in Ireland. The principal activity of the company is
retail sales and their registered address is 5 Old Dublin Road, Stillorgan,
Co. Dublin.
None of the entities have discontinued operations or other comprehensive
income, except that on consolidation both entities have a foreign exchange
translation difference.
Period ended 28 March 29 March
2026 2025
£'m £'m
Multi-lines
Non-current assets 16 19
Current assets 60 56
Current liabilities (72) (71)
Net assets 4 4
Revenue 229 301
(Loss)/profit (0) 1
Period ended 28 March 29 March
2026 2025
£'m £'m
Centz
Non-current assets 8 9
Current assets 33 28
Non-current liabilities (6) (6)
Current liabilities (11) (11)
Net assets 24 20
Revenue 68 65
Profit 4 3
The figures for both associates show 12 months to December 2025 (prior year:
12 months to December 2024), being the period used in the valuation of the
associate.
12 Intangible assets
Goodwill Software Brands Other Total
£'m £'m £'m £'m £'m
Cost or valuation
At 30 March 2024 921 13 114 1 1,049
Additions - 2 - - 2
Disposals - (0) - - (0)
Effect of retranslation (1) (0) - (0) (1)
At 29 March 2025 920 15 114 1 1,050
Additions - 3 - - 3
Disposals - (0) - - (0)
Effect of retranslation 1 (1) - 0 0
At 28 March 2026 921 17 114 1 1,053
Accumulated amortisation/impairment
At 30 March 2024 - 7 0 - 7
Charge for the year - 2 0 - 2
Disposals - (0) - - (0)
Effect of retranslation - 1 - - 1
At 29 March 2025 - 10 0 - 10
Charge for the year - 2 0 - 2
Disposals - (0) - - (0)
Effect of retranslation - 0 (0) - 0
At 28 March 2026 - 12 0 - 12
Net book value at 28 March 2026 921 5 114 1 1,041
Net book value at 29 March 2025 920 5 114 1 1,040
At both period ends, no software was being developed that is not yet in use,
and the Group was not committed to the purchase of any intangible assets.
Impairment review of intangible assets held with indefinite life
The Group holds the following assets with indefinite life:
28 March 2026 28 March 2026 29 March 2025 29 March 2025
Goodwill Brand Goodwill Brand
£'m £'m £'m £'m
B&M UK 807 99 807 99
Heron UK 88 14 88 14
B&M France 26 - 25 -
Not all items in the brand classification have an indefinite life as some are
time limited. The brand intangible assets that have been identified as having
an indefinite life are designated as such as management believe that these
assets will hold their value for an indefinite period of time. Specifically,
the B&M and Heron brands represent leading brands in their sectors with
significant histories and growth prospects.
The B&M France goodwill is held in Euros, with an underlying balance of
€30m (2025: €30m).
In each case the goodwill and brand assets have been allocated to one group of
CGUs, being the store estate within the specific segment to which those assets
relate.
The Group performs impairment tests at each period end. The impairment test
involves assessing the net present value of the expected cash flows in
relation to the stores within each CGU according to a number of assumptions to
calculate the value-in-use for the group of CGUs.
The key assumptions in assessing the value-in-use as at 28 March 2026 were;
The Group's pre-tax discount rate
This was calculated using an internal CAPM model which includes external
estimates of the risk-free rate, cost of debt, equity beta and market risk
premium. It is adjusted for which country the segment is in and how large the
segment is. The pre-tax discount rates have decreased in both the UK and
France during the year, which is reflective of changes in the risk-free rate.
The inflation rate for expenses
This is based upon the consumer price index for the relevant country, official
reports from the relevant central bank, agreed legislation and management's
assessment of the cost inflation related to ongoing initiatives within that
segment.
Like-for-like sales growth
This is an estimate made by management which encompasses the historical sales
trends of the entity and management's assessment of how each segment will
perform in the context of the current economic environment.
Change in gross margin
The standing assumption made by management is that forecast gross margin is
the change in gross margin relative to the prior year, and the result is
subsequently sensitised to the gross margin input to demonstrate the
robustness of the projection against this assumption.
Terminal growth rate
An estimate made by management based upon the expected position of the
business at the end of the five-year forecast period in the context of the
macro growth level of the economic environment in which that segment operates.
The assumptions were as follows:
As at 28 March 29 March
2026 2025
Pre-tax discount rate (B&M UK) 10.6% 11.3%
Pre-tax discount rate (Heron) 11.7% 13.1%
Pre-tax discount rate (B&M France) 10.3% 10.9%
Inflation rate for costs (B&M UK) 5.0%/ 2.0%* 2.8%/2.0%*
Inflation rate for costs (Heron) 1.0%/2.0% 2.8%/2.0%
Inflation rate for costs (B&M France) 1.0% 1.5%
Like-for-like sales growth (B&M UK) 2.8%/ 3.0%* 2.0%
Like-for-like sales growth (Heron) 1.6%/ 2.0%* 3.0%/2.0%*
Like-for-like sales growth (B&M France) 2.0% 3.5%
Change in gross margin (B&M UK) 75bps/125bps/170bps* ±0bps
Change in gross margin (Heron) 23bps ±0bps
Change in gross margin (B&M France) (25)bps ±0bps
Terminal growth rate (B&M UK) 1.7% 1.0%
Terminal growth rate (Heron) 1.7% 1.7%
Terminal growth rate (B&M France) 1.4% 1.4%
* The first figure reflects the assumption in year one, the second figure
reflects the assumption in year two for B&M UK's gross margin, with the
final figure representing the long-term rate.
These assumptions are reflected for five years in the CGU forecasts and beyond
this a perpetuity calculation is performed using the assumptions made
regarding terminal growth rates.
In each case, the results of the impairment tests on the continuing operations
identified that the value-in-use was in excess of the carrying value of assets
within each group of CGUs at the period-end dates. The headroom with the base
case assumptions in B&M UK was £3,500m, Heron £16m and B&M France
€938m (2025: £3,804m, £99m and €937m respectively).
Heron's value-in-use calculation identified a low level of headroom. The
Directors consider that the forecast used in calculating Heron's value-in-use
contained the most appropriate assumptions, and they are the assumptions
reflected in the Group's internal approved plan for the entity, with
additional risk factors applied to forecast costs and no allowance for any
store growth resulting from capital investment (as this is not permitted in an
impairment review).
Any further under-performance in relation to the entity will, however,
indicate that an impairment will be required. Such scenarios include
like-for-like sales of +0.6%, a margin reduction of 5bps, or cost inflation of
2.2%. Nil like-for-like would imply an impairment to Goodwill of £12m, whilst
no margin growth leaves headroom of only £3m with all other inputs held.
Professional experts have also created a report to measure the entities fair
value less costs to sell, with an indication that this valuation would require
an immaterial impairment to Goodwill. Given that we are required to measure
recoverable amount at the higher of the value-in-use and fair value less costs
to sell, management's judgement is that it is appropriate that no goodwill
impairment is currently required, although this will be monitored before or at
the half year date and reported as part of those accounts.
No indicators of impairment were noted in the other segments and the
impairment tests were sensitised with reference to the key assumptions for
reasonable possible scenarios.
To further quantify the sensitivity, the below tables demonstrate the point at
which each impairment test would first fail for changes in each of the key
assumptions in year one (except terminal growth rate from the end of year 5
and the discount rate which applies throughout), whilst assuming each other
key assumption is held level (e.g. for inflation sensitivity, the
like-for-like was not adjusted):
28 March 29 March
2026 2025
B&M UK
Pre-tax discount rate 23.4% 30.8%
Inflation rate for expenses 33.0% 60.6%
Like-for-like sales (13.6)% (19.8)%
Change in gross margin (516)bps (793)bps
Terminal growth rate (30.9)% (35.3)%
B&M France
Pre-tax discount rate 37.6% 47.0%
Inflation rate for expenses 43.6% 88.9%
Like-for-like sales (21.7)% (23.8)%
Change in gross margin <(1,000)bps <(1,190)bps
Terminal growth rate <(100)% (40.8)%
Heron UK
Pre-tax discount rate 12.7% 19.5%
Inflation rate for expenses 2.2% 14.8%
Like-for-like sales 0.6% (3.5)%
Change in gross margin (5)bps (197)bps
Terminal growth rate 0.4% (6.4)%
13 Property, plant and equipment
Land and buildings Motor vehicles Plant, fixtures and equipment Total
£'m £'m £'m £'m
Cost or valuation
At 30 March 2024 107 36 637 780
Additions 6 20 105 131
Disposals (7) (14) (3) (24)
Effect of retranslation (0) (0) (2) (2)
At 29 March 2025 106 42 737 885
Additions 6 17 116 139
Disposals (1) (6) (9) (16)
Effect of retranslation 0 0 3 3
At 28 March 2026 111 53 847 1,011
Accumulated depreciation and impairment charges
At 30 March 2024 22 18 319 359
Charge for the period 5 6 77 88
Disposals (1) (5) (3) (9)
Effect of retranslation - (0) (1) (1)
At 29 March 2025 26 19 392 437
Charge for the period 5 8 82 95
Impairment 1 - 16 17
Disposals 0 (4) (8) (12)
Effect of retranslation 0 0 3 3
At 28 March 2026 32 23 485 540
Net book value at 28 March 2026 79 30 362 471
Net book value at 29 March 2025 80 23 345 448
Under the terms of the loan and notes facilities in place at 28 March 2026,
fixed and floating charges were held over £78m of the net book value of land
and buildings, £30m of the net book value of motor vehicles and £323m of the
net book value of the plant, fixtures and equipment (2025: £80m, £23m and
£309m respectively).
At the period end, £4m of assets were under construction (2025: £7m).
Included within land and buildings is land with a cost of £5m (2025: £5m)
which is not depreciated.
The gross carrying amount of fully depreciated property, plant and equipment
that is still in use as at the period end was £232m (FY25: £165m).
Capital commitments
At the period end, there were £16m of contractual capital commitments not
provided within the Group financial statements (2025: £14m).
Impairment
During the year, we have impaired a total of £17m of fixed assets in relation
to property, plant and equipment held in the Group. This breaks down by
segment to B&M UK £6m, Heron £11m, B&M France <£1m (2025:
B&M UK £nil, Heron £nil, B&M France £nil).
The circumstances that have led to the impairment is poorer than expected
store performance.
The total asset value tested for impairment was £27m (2025: £4m), this
breaks down at a segment level to B&M UK £11m, Heron £10m, B&M
France £3m (2025: B&M UK <£1m, Heron £2m, B&M France £2m).
The key assumptions used were those used in our goodwill impairment test, see
note 12, and the impairment would not be materially impacted by any reasonably
possible changes to these assumptions.
14 Right-of-use assets
Land and buildings Motor vehicles Plant, fixtures and equipment Total
£'m £'m £'m £'m
Net book value
As at 30 March 2024 1,088 4 9 1,101
Additions 228 14 9 251
Modifications 24 - - 24
Disposals (26) (0) (0) (26)
Impairment (3) - - (3)
Depreciation (176) (4) (3) (183)
Foreign exchange (5) (0) 0 (5)
As at 29 March 2025 1,130 14 15 1,159
Additions 212 6 20 238
Modifications 11 - - 11
Disposals (36) (0) (0) (36)
Impairment (25) - - (25)
Depreciation (189) (5) (6) (200)
Foreign exchange 6 0 0 6
As at 28 March 2026 1,109 15 29 1,153
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
sub-group 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.
At the period end, there was one property with a significant unrecognised
extension clause for which the Group has full autonomy over exercising in
2040. On the date of recognition of the relevant right-of-use asset, in March
2020, the extension period liability had a net present value of £30m.
There are no material covenants imposed by our right-of-use leases.
In the year the Group expensed £3m (2025: £5m) in relation to low value
leases and <£1m (2025: <£1m) in relation to short-term leases for
which the Group applied the practical expedient under IFRS 16.
The Group expensed <£1m (2025: <£1m) in relation to variable lease
payments. The agreements are ongoing and future payments are expected to be
in-line with those expensed recently.
The Group received £2m (2025: £2m) in relation to subletting right-of-use
assets.
Impairment
The impairments noted in the table above are recorded when the carrying value
of a right-of-use asset exceeds the value-in-use of that asset. These arise
when we exit a store before the related lease has come to an end, or as the
outcome of our annual store impairment review. All impairments are in relation
to store and central property leases. No impairments have been reversed in the
presented periods.
The segmental splits of the impairments were B&M UK £15m, Heron £9m,
B&M France £1m (2025: B&M UK £1m, Heron £2m, B&M France
<£1m).
The total asset value tested for impairment was £56m (2025: £13m), this
breaks down at a segment level to B&M UK £31m, Heron £13m, B&M
France £12m (2025: B&M UK £4m, Heron £3m, B&M France £6m).
The key assumptions used were those used in our goodwill impairment test, see
note 12, and the impairment would not be materially impacted by any reasonably
possible changes to these assumptions.
The change in lease liability reconciles to the figures presented in the
consolidated statement of cashflows as follows:
28 March 29 March
2026 2025
£'m £'m
Lease liabilities brought forward 1,430 1,357
Cash
Repayment of the principal in relation to right-of-use assets (192) (176)
Payment of interest in relation to right-of-use assets (84) (77)
Non-cash
Interest charge 84 77
Effects on lease liability relating to lease additions, modifications and 211 254
disposals
Effects of foreign exchange 8 (5)
Total cash movement in the year (276) (253)
Total non-cash movement in the year 303 326
Movement in the year 27 73
Lease liabilities carried forward 1,457 1,430
Of which current 217 188
Of which non-current 1,240 1,242
Discount rates
Where, as in most cases, a discount rate implicit to the lease is not
available, discount rates are calculated for each lease with reference to the
underlying cost of borrowing available to the business and several other
factors specific to the asset.
We have calculated the weighted average discount rates and sensitivity to a
50bps change in the discount rate to the interest charge as follows:
28 March 29 March
2026 2025
Weighted average discount rate
Property 5.8% 5.5%
Equipment 5.8% 5.5%
All right-of-use assets 5.8% 5.5%
Effect on finance costs with a change of 50bps to the discount rate £'m £'m
Property 7 7
Equipment 0 0
All right-of-use assets 7 7
Sale and leasebacks
During the year, the business did not undertake any sale and leasebacks (2025:
11 properties and one tranche of trailers).
The details of the prior period transactions were as follows:
29 March
2025
£'m
Consideration received 11
Net book value of the assets disposed (6)
Costs of sale when specifically recognised -
Profit per pre-IFRS 16 accounting standards 5
Opening adjustment to the right-of-use asset (5)
Profit recognised in the statement of comprehensive income 0
Initial right-of-use asset recognised 6
Initial lease liability recognised (11)
The pre-IFRS 16 profit is higher because the provisions of IFRS 16 require
that a portion of the profit relating to the sale and leaseback is instead
recognised as a reduction in the opening right-of-use asset, and therefore the
benefit is released over the term of the contract.
15 Inventories
As at 28 March 29 March
2026 2025
£'m £'m
Goods for resale 849 883
Included in the amount above was a net charge of £4m related to inventory
provisions (2025: £<1m net charge). In the period to 28 March 2026,
£3,670m (2025: £3,479m) was recognised as an expense for inventories and
£33m of supplier rebates were received (2025: £33m).
16 Trade and other receivables
28 March 29 March
2026 2025
£'m £'m
Non-current
Other receivables 9 6
Total non-current receivables 9 6
Current
Trade receivables 6 7
Deposits on account 1 5
Provision for impairment (0) (0)
Net trade receivables to non-related parties 7 12
Prepayments 32 37
Related party receivables 4 3
Other tax 2 9
Other receivables 14 18
Total current receivables 59 79
Trade receivables are stated initially at their fair value and then at
amortised cost as reduced by appropriate allowances for estimated
irrecoverable amounts. The carrying amount is determined by the Directors to
be a reasonable approximation of fair value.
The following table sets out an analysis of provisions for impairment of trade
receivables:
Period ended 28 March 29 March
2026 2025
£'m £'m
Provision for impairment at the start of the period (0) (2)
Impairment during the period (0) (0)
Utilised/released during the period 0 2
Balance at the period end (0) (0)
Trade receivables are non-interest-bearing and are generally on terms of 30
days or less.
The following table sets out a maturity analysis of trade receivables,
including those which are current:
As at 28 March 29 March
2026 2025
£'m £'m
Current 5 5
1-30 days past due 0 1
31-90 days past due 0 1
Over 90 days past due 1 0
Balance at the period end 6 7
17 Cash and cash equivalents
As at 28 March 29 March
2026 2025
£'m £'m
Cash and cash equivalents 342 217
The cash and cash equivalents balance includes £38m (2025: £38m) in respect
of credit card receivables.
In the prior year, the Group also held £150m held in a short-term money
market deposit which matured in July 2025 and was included in the current
other financial assets caption, see note 19.
As at the period end the Group had available £265m of undrawn committed
borrowing facilities (2025: £240m).
18 Trade and other payables
As at 28 March 29 March
2026 2025
£'m £'m
Current
Trade payables 410 395
Other tax and social security payments 106 81
Accruals and deferred income 99 105
Related party trade payables 19 7
Other payables 27 30
Total current payables 661 618
Trade payables are generally on 30-day terms and are not interest-bearing. The
carrying value of trade payables approximates to their fair value. For further
details on the related party trade payables, see note 26.
The Group had supply chain financing facilities in place during the year. The
facilities are operated by major banking partners with high credit ratings and
are limited to £70m (2025: £70m) total exposure at any one time.
The exposure at the period end was £17m, out of our total trade payable
balance of £410m (2025: £12m, out of £395m) and at the period end date
£10m of this balance had been drawn down by our suppliers (2025: £2m). The
average balance over the year was £26m (2025: £24m).
The payment due dates on all the supplier finance arrangements are 60 days
after the invoice date, which is the same as comparable trade payables for
suppliers not on the supplier finance arrangements (2025: same).
There were no significant non-cash changes in the carrying amount of financial
liabilities subject to supplier finance arrangements.
The purpose of the arrangement is to enable our participating suppliers, at
their discretion, to draw down against their receivables from the Group prior
to their usual due date.
From the Group's perspective, the invoices subject to these schemes are
treated in the same way as those not subject to these schemes. That is that
they are approved under our usual processes (and cannot be drawn down against
until they have been approved) and paid on the usual due date, which is in
line with the payment terms of our other international suppliers. We do not
benefit from the margin charged by the banks for any early draw down, and the
banks do not benefit from additional security when compared to the security
originally enjoyed by the supplier. There is no impact on potential liquidity
risk as the cash flow timings and amounts are unchanged for those invoices in
the schemes against those not in these schemes.
There would be no impact on the Group if the facilities became unavailable and
there are no fees or charges payable by the Group in regard to these
arrangements.
As these invoices continue to be part of the normal operating cycle of the
Group, the schemes do not change the recognition of the invoices subject to
them, so they continue to be recognised as trade payables, with the associated
cash flows presented within operating cash flows and without affecting the
calculation of Group net debt.
19 Other financial assets and liabilities
Other financial assets
As at 28 March 29 March
2026 2025
£'m £'m
Current financial assets at fair value through profit and loss:
Foreign exchange forward contracts 7 2
Current financial assets held at amortised cost:
Money market deposit - 150
Current financial assets at fair value through other comprehensive income:
Foreign exchange forward contracts 6 1
Total current other financial assets 13 153
Total other financial assets 13 153
Financial assets through profit or loss reflect the fair value of those
derivatives that are not designated as hedge relationships but are
nevertheless intended to reduce the level of risk for expected sales and
purchases.
In the prior year, the money market deposit reflects £150m placed on a
7-month term with a fixed interest rate applied. The funds were returned in
July 2025 as intended and were used to repay our £156m high yield bond notes
at that time, see note 20.
Other financial liabilities
As at 28 March 29 March
2026 2025
£'m £'m
Current financial liabilities at fair value through profit and loss:
Foreign exchange forward contracts 1 7
Current financial liabilities at fair value through other comprehensive
income:
Foreign exchange forward contracts 2 6
Total current other financial liabilities 3 13
Non-current financial liabilities at fair value through profit and loss:
Foreign exchange forward contracts - 0
Non-current financial liabilities at fair value through profit and loss:
Foreign exchange forward contracts - 0
Total non-current other financial liabilities 0 0
Total other financial liabilities 3 13
The other financial liabilities through profit or loss reflect the fair value
of those foreign exchange forward contracts that are not designated as hedge
relationships but are nevertheless intended to reduce the level of risk for
expected sales and purchases.
Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair
value of financial instruments by valuation technique:
· Level 1: quoted (unadjusted) prices in active markets for identical assets or
liabilities.
· Level 2: other techniques for which all inputs which have a significant effect
on the recorded fair value are observable, either directly or indirectly.
· Level 3: techniques which use inputs that have a significant effect on the
recorded fair value that are not based on observable market data.
As at the reporting dates, the Group held the following financial instruments
carried at fair value on the balance sheet:
Total Level 1 Level 2 Level 3
£'m £'m £'m £'m
28 March 2026
Foreign exchange contracts 10 - 10 -
29 March 2025
Foreign exchange contracts (10) - (10) -
The financial instruments have been valued by an internal model which is based
upon a report from the issuing bank, using a mark to market method. The bank
has used various inputs to compute the valuations, which include inter alia
the relevant maturity date and strike rates, the current exchange rate, fuel
prices and relevant interbank floating interest rate levels.
20 Financial liabilities - borrowings
The table below relates to the net cash amounts of the borrowing facilities,
with the figures inclusive of amortised fees.
As at 28 March 29 March
2026 2025
£'m £'m
Current
High yield bond notes - 155
B&M France loan facilities 7 5
Total 7 160
Non-current
High yield bond notes 744 742
Term facility bank loan 222 222
B&M France loan facilities 16 13
Total 982 977
Bond repayment
On 13 July 2025, the Group drew the £150m of cash placed on money market
deposit in the prior period and repaid the remaining £156m of high yield bond
notes (2020) on their maturity date.
Increasing the revolving credit facility limit
On 3 July 2025, the Group increased its revolving credit facility by £25m to
£250m. Transactions fees of <£1m were incurred and were expensed directly
to the statement of comprehensive income within finance costs.
Bond refinancing
In the prior period, on 19 November 2024, the Group issued £250m of high
yield bond notes, maturing in November 2031 with an interest rate of 6.5%.
£150m of cash received from these high yield bond notes was placed on money
market deposit and was ring-fenced for the purpose of repaying the remaining
£156m of high yield bond notes (2020), as mentioned above.
Extension of senior loan facilities
In the prior period, in March 2025, the Group and the banking syndicate
confirmed the activation of the second and final 1-year extension, extending
the maturity date of the banking facilities to March 2030.
Other borrowings
The carrying values given above include fees incurred on refinancing which are
to be amortised over the terms of those facilities. More details of these are
given below.
The Group holds three tranches of high yield bond notes which are each held at
amortised cost. The three tranches of bonds were issued in November 2021,
November 2023 and November 2024, with £3m, £4m and £3m, respectively, of
fees capitalised at inception.
The maturities, which only relate to the position as at 28 March 2026, and
gross cash amounts of these facilities are included in the table below.
Interest rate Maturity 28 March 2026 29 March 2025
% £'m £'m
Revolving facility loan 2.00% + SONIA N/A - -
Term facility bank loan A 2.25% + SONIA Mar-30 225 225
High yield bond notes (2020) 3.625% N/A - 156
High yield bond notes (2021) 4.000% Nov-28 250 250
High yield bond notes (2023) 8.125% Nov-30 250 250
High yield bond notes (2024) 6.500% Nov-31 250 250
B&M France - BNP Paribas 3.30-3.97% Feb-28 to Aug-29 6 8
B&M France - Caisse d'Épargne 2.60% Nov-29 1 1
B&M France - CIC 0.71-2.75% Jan-27 to Dec-29 4 4
B&M France - Crédit Agricole 0.81-3.18% Jan-28 to Mar-31 5 0
B&M France - Crédit Lyonnais 0.69-3.65% Mar-27 to Jul-29 5 4
B&M France - Societe Generale 2.70% May-30 2 -
Total 998 1,148
The revolving facility of £250m is committed until March 2030.
The term facility bank loans and the high yield bond notes have carrying
values which include transaction fees allocated on inception.
All B&M France facilities have gross values in Euros, and the values above
have been translated at the period-end rates of €1.1538/£ (2025:
€1.1955/£).
The movement in the loan liabilities during the year breaks down as follows:
As at 28 March 29 March
2026 2025
£'m £'m
Borrowings brought forward 1,137 910
Cash
Net repayment of Group revolving credit facilities - (25)
Repayment of corporate bonds (156) -
Receipt due to newly issued corporate bonds - 250
Receipt of loan facilities held in France 12 9
Repayment of loan facilities held in France (7) (5)
Capitalised fees on refinancing - (4)
Non-cash
Foreign exchange on loan balances 1 (0)
Ongoing amortisation of finance fees 2 2
Total cash movement in the year (151) 225
Total non-cash movement in the year 3 2
Movement in the year (148) 227
Borrowings carried forward 989 1,137
Of which current 7 160
Of which non-current 982 977
21 Provisions
Property provisions Other Total
£'m
£'m
£'m
At 30 March 2024 6 4 10
Provided in the period 2 9 11
Utilised during the period (0) (3) (3)
Released during the period (1) (1) (2)
At 29 March 2025 7 9 16
Provided in the period 2 3 5
Utilised during the period (0) (8) (8)
Released during the period (2) - (2)
At 28 March 2026 7 4 11
At 28 March 2026
Current liabilities 2 4 6
Non-current liabilities 5 - 5
At 29 March 2025
Current liabilities 3 9 12
Non-current liabilities 4 - 4
The property provision relates to the expected future costs on specific
leasehold properties. This is inclusive of dilapidations on these properties.
The timing in relation to utilisation is dependent upon the individual lease
terms.
The other provisions caption includes the portion of the Group Trading
Director settlement which was provided against in the prior period and fully
released in the current period, and disputes in relation to our insured
liability claims in both years. A prudent amount has been set aside for each
insurance claim as per legal advice received by the Group with the claims
individually non-significant and averaging £10k per claim (2025: £10k per
claim).
The Group is subject to an ongoing investigation by the UK Environment Agency
in relation to its historical compliance with the UK Waste Electrical and
Electronic Equipment Regulations and Batteries and Accumulators Regulations.
The investigation primarily relates to the period 2014-2022 and, whilst the
Group expects an outflow in respect of this period, the amount is not expected
to be material and no provision has been made as at 28 March 2026.
22 Share capital
Allotted, called up and fully paid Shares £'m
B&M European Value Retail plc ordinary shares of 10p each
As at 30 March 2024 1,002,790,896 100
Release of shares related to employee share options 1,030,975 0
As at 29 March 2025 1,003,821,871 100
Release of shares related to employee share options 1,216,385 1
As at 28 March 2026 1,005,038,256 101
Ordinary shares
Each ordinary share ranks pari passu with each other ordinary share and each
share carries one vote. The Group parent is authorised to issue up to an
additional 2,968,400,351 ordinary shares.
23 Cash generated from operations
Period ended 52 weeks ended 52 weeks ended
28 March 29 March
2026 2025
£'m £'m
Profit before tax 227 431
Adjustments for:
Net interest expense 148 136
Depreciation on property, plant and equipment 95 88
Impairment of property, plant and equipment 17 3
Depreciation on right-of-use assets 200 183
Impairment of right-of-use assets 25 3
Amortisation of intangible assets 2 2
Profit on sale and leasebacks - (0)
Loss/(profit) on disposal of property, plant and equipment 1 (0)
Share option expense 3 3
Change in inventories 38 (109)
Change in trade and other receivables 18 (3)
Change in trade and other payables 40 41
Change in provisions (6) 7
Share of profits from associates (1) (1)
(Profit)/loss resulting from fair value of financial derivatives (6) 3
Cash generated from operations 801 784
24 Group information and ultimate parent undertaking
The financial results of the Group include the following entities.
Company name Country Date of incorporation Percent held within the Group Principal activity
B&M European Value Retail plc Jersey May 2014 Parent Holding company
B&M European Value Retail 1 Ltd Jersey November 2012 100% Holding company
B&M European Value Retail Holdco 1 Ltd UK December 2012 100% Holding company
B&M European Value Retail Holdco 2 Ltd UK December 2012 100% Holding company
B&M European Value Retail Holdco 3 Ltd UK November 2012 100% Holding company
B&M European Value Retail Holdco 4 Ltd UK November 2012 100% Holding company
B&M European Value Retail 2 Ltd Jersey September 2012 100% Holding company
EV Retail Limited UK September 1996 100% Holding company
B&M Retail Limited UK March 1978 100% General retail
Opus Homewares Limited UK April 2003 100% Property management
Heron Food Group Ltd UK August 2002 100% Holding company
Heron Foods Ltd UK October 1978 100% Convenience retail
Cooltrader Ltd UK September 2012 100% Dormant
Heron Properties (Hull) Ltd UK February 2003 100% Dormant
B&M France SAS France November 1977 100% General retail
Centz N.I. Limited UK January 2021 100% Property management
Registered offices
· The Jersey entities are all registered at 26 New Street, St Helier, Jersey,
JE2 3RA.
· Centz N.I. Limited is registered at Murray House, 4 Murray Street, Belfast,
United Kingdom, BT1 6DN.
· The other UK entities are all registered at The Vault, Dakota Drive, Estuary
Commerce Park, Speke, Liverpool, L24 8RJ.
· B&M France is registered at 8 rue du Bois Joli, 63800 Cournon d'Auvergne.
Redomicile
As part of the redomicile project detailed in note 1, the three Luxembourg
entities within the Group redomiciled to Jersey in the current year; B&M
European Value Retail plc on 27 February 2026 and both B&M European Value
Retail 1 Ltd and B&M European Value Retail 2 Ltd on 18 March 2026. B&M
European Value Retail plc, B&M European Value Retail 1 Ltd, B&M
European Value Retail 2 Ltd in prior year were registered as B&M European
Value Retail S.A., B&M European Value Retail 1 S.à r.l., B&M European
Value Retail 2 S.à r.l., respectively.
Associates
The Group has a 50% interest in Multi-lines International Company Limited, a
company incorporated in Hong Kong, and a 22.5% interest in Centz Retail
Holdings Limited, a company incorporated in the Republic of Ireland. The share
of profit or loss from the associates is included in the consolidated
statement of comprehensive income, see note 11.
Ultimate parent undertaking
The Directors of the Group consider the parent and the ultimate controlling
related party of this Group to be B&M European Value Retail plc,
registered in Jersey following completion of the redomicile project this year,
detailed in note 3.
25 Financial risk management
The Group uses various financial instruments, including bank loans, related
party loans, finance company loans, cash, equity investment, derivatives and
various items, such as trade receivables and trade payables that arise
directly from its operations.
The main risks arising from the Group's financial instruments are market risk,
currency risk, cash flow interest rate risk, credit risk and liquidity risk.
The Directors review and agree policies for managing each of these risks and
they are summarised below.
The existence of these financial instruments exposes the Group to a number of
financial risks, which are described in more detail below. In order to manage
the Group's exposure to those risks, in particular the Group's exposure to
currency risk, the Group enters into forward foreign currency contracts. No
transactions in derivatives are undertaken of a speculative nature.
Market risk
Market risk encompasses three types of risk, being currency risk, fair value
interest rate risk and commodity price risk. Commodity price risk is not
considered material to the business as the Group is able to pass on pricing
changes to its customers.
The Group's policies for managing fair value interest rate risk are considered
along with those for managing cash flow interest rate risk and are set out in
the subsection entitled 'interest rate risk' below.
Currency risk
The Group is exposed to translation and transaction foreign exchange risk
arising from exchange rate fluctuations on its purchases from overseas
suppliers.
In relation to translation risk, this is not considered material to the
business as amounts owed in foreign currency are short term of up to 30 days
and are of a relatively modest nature. Transaction exposures, including those
associated with forecast transactions, are hedged when known, principally
using forward currency contracts.
The majority of the Group's sales are to customers in the UK and France and
there is no material currency exposure in this respect. A proportion of the
Group's purchases are priced in US Dollars and the Group generally uses
forward currency contracts to minimise the risk associated with that exposure.
Approach to hedge accounting
As part of the Group's response to currency risk the currency forwards taken
out are intended to prudently cover the majority of our stock purchases
forecast for that period. However, the Group only hedge accounts for that part
of the forward contract that we are reasonably certain will be spent in the
forecast period, allowing for potential volatility. Therefore, management
always consider the likely volatility for a period and assign a percentage to
each tranche of forwards purchased, usually in the range 50-80%, and never
more than 80%.
Effectiveness of the hedged forward is then assessed against the Group hedge
ratio, which has been set by management at 80% as a reasonable guide to the
certainty level we expect the hedged portions of our forwards to at least
achieve. If they fail, or are expected to fail, to meet this ratio of
effectiveness then they are treated as non-hedged items, and immediately
expensed through administrative expenses in profit and loss.
Ineffectiveness can be caused by exceptional volatility in the market, by the
timing of product availability, or the desire to manage short-term company
cash flows, for instance, when a large amount of cash is required at
relatively short notice.
Where a hedged derivative matures efficiently, the fair value is transferred
to inventory and subsequently to cost of sales when that item is sold. If the
Group did not hedge account, then the difference is that the gain or loss in
other comprehensive income would be presented in profit or loss and the assets
and liabilities presented under the classification fair value through other
comprehensive income would be at fair value through profit or loss.
In the period, the Group has had $661m of hedged derivatives mature (2025:
$648m). The difference to profit before tax if none of our forwards had been
hedge accounted during the year would have been a loss of £17m (2025: £2m
profit) and a pre-tax gain in other comprehensive income of £9m (2025: £2m
profit).
The net effective hedging loss transferred to the cost of inventories in the
year was £19m (2025: net loss of £8m). At the period end, the amount of
outstanding US Dollar contracts covered by hedge accounting was $590m (2025:
$698m), which mature over the next 12 months (2025: 15 months). The change in
fair value of the hedging instruments used as the basis for recognising hedge
ineffectiveness was £nil (2025: £nil), achieved effectiveness was 100%
(2025: 100%).
Foreign currency sensitivity
The following table demonstrates the sensitivity to a reasonably possible
change in US Dollar period-end exchange rates with all other variables held
constant. The impact on the Group's profit before tax and other comprehensive
income (net of tax) is largely due to changes in the fair value of our foreign
exchange derivatives and revaluation of creditors and deposits held on account
with our US Dollar suppliers.
As at Change in USD rate 28 March 29 March
2026 2025
£'m £'m
Effect on profit before tax +2.5% (10) (10)
-2.5% 10 10
Effect on other comprehensive income +2.5% (11) (13)
-2.5% 11 14
Profit before tax and other comprehensive income are not sensitive to the
effects of a reasonably possible change in the Euro period-end exchange rates.
These calculations have been performed by taking the period-end translation
rate used in the accounts and applying the changes noted above. The balance
sheet valuations are then directly calculated. The valuation of the foreign
exchange derivatives were projected based upon the spot rate changing and all
other variables being held equal.
Interest rate risk
Interest rate risk is the risk of variability of the Group cash flows due to
changes in the interest rate. The Group is exposed to changes in interest
rates as a portion of the Group's bank borrowings are subject to a floating
rate based on SONIA.
The Group's interest rate risk arises mainly from long-term borrowings.
Borrowings issued at variable rates expose the Group to cash flow interest
rate risk.
If floating interest rates had been 50 basis points higher or lower throughout
the year with all other variables held constant, the effect upon pre-tax
profit for the year would have been:
As at Basis point increase / decrease 28 March 29 March
2026 2025
£'m £'m
Effect on profit before tax +50 (1) (1)
-50 1 1
This sensitivity has been calculated by changing the interest rate for each
interest receipt, payment and accrual made by the Group over the period, by
the amount specified in the table above, and then calculating the difference
that would have resulted.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations
under a financial instrument or customer contract, leading to a financial
loss.
The Group's principal financial assets are cash, derivatives and trade
receivables. The prior year also included money market deposits. The credit
risks associated with cash, money market deposits and derivatives are limited
as the main counterparties are banks with high credit ratings (A long term and
A-1 short term (Standard & Poor) or better, (2025: A, A-1 (or better)
respectively). The principal credit risk arises therefore from the Group's
trade receivables.
Credit risk is further limited by the fact that the vast majority of sales
transactions are made through the store registers, direct from the customer at
the point of purchase, leading to a low trade receivables balance.
In order to manage credit risk, the Directors set limits for customers based
on a combination of payment history and third-party credit references. Credit
limits are reviewed by the credit controller on a regular basis in conjunction
with debt ageing and collection history. Provisions against bad debts are
made where appropriate.
Liquidity risk
Any impact on available cash and therefore the liquidity of the Group could
have a material effect on the business as a result.
The Group's borrowings are subject to semi-annual banking covenants against
which the Group has had significant headroom to date with no anticipated
issues based upon forecasts made. Short-term flexibility is achieved via the
Group's revolving credit facility. The following table shows the liquidity
risk maturity of financial liabilities grouping based on their remaining
period at the balance sheet date. The amounts disclosed are the contractual
undiscounted cash flows:
Within 1 year Between 1 and 2 years Between 2 and 5 years More than 5 years Total
£'m £'m £'m £'m £'m
28 March 2026
Interest-bearing loans 66 65 870 262 1,263
Lease liabilities 283 273 660 602 1,818
Trade payables 429 - - - 429
29 March 2025
Interest-bearing loans 222 64 425 769 1,480
Lease liabilities 265 258 653 627 1,803
Trade payables 402 - - - 402
Fair value
The fair value of our corporate bonds, which are all financial liabilities
held at amortised cost, has been determined by using the relevant quoted bid
price for those bonds. These differ to the carrying values as shown below.
Fair Value (Level 1) Carrying Value
As at 28 March 29 March 28 March 29 March
2026 2025 2026 2025
£'m £'m £'m £'m
High yield bond notes (2020) - 154 - 155
High yield bond notes (2021) 235 231 249 249
High yield bond notes (2023) 254 260 247 247
High yield bond notes (2024) 237 244 247 247
The fair value of the other financial assets and liabilities of the Group are
not materially different from their carrying value. Refer to the table below.
These all represent financial assets and liabilities measured at amortised
cost except where stated as measured at fair value through profit and loss or
fair value through other comprehensive income.
As at 28 March 29 March
Financial assets 2026 2025
£'m £'m
Fair value through profit and loss
Forward foreign exchange contracts 7 2
Fair value through other comprehensive income
Forward foreign exchange contracts 6 1
Loans and receivables
Cash and cash equivalents 342 217
Money market deposit - 150
Trade receivables 11 15
Other receivables 14 18
As at 28 March 29 March
Financial liabilities 2026 2025
£'m £'m
Fair value through profit and loss
Forward foreign exchange contracts 1 7
Fair value through other comprehensive income
Forward foreign exchange contracts 2 6
Amortised cost
Lease liabilities 1,457 1,430
Interest-bearing loans and borrowings (excluding corporate bonds) 245 239
Trade payables 429 402
Other payables 27 30
26 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 Limited, 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 Bobby Arora, formerly a key member of the
management team, his family, or his family trusts (together, the Arora related
parties). These entities have ceased to be related parties as at 30 March
2025, on Bobby Arora's exit from the business. Transactions have continued
with these entities but are excluded in the current period from the related
party tables below since they are no longer related parties two days into the
current period and the transactions during that period were immaterial.
The overall position at the prior year end is summarised in the table below:
52 weeks ended
29 March
2025
£'m
SSA Investments (4.000%, 2021 bonds) 99
Total 99
The expense incurred during the prior year, and the accrual at the end of the
prior year are shown in the table below:
Expense to Accrual on
29 March 29 March
2025 2025
£'m £'m
SSA Investments 4.0 1.5
Total 4.0 1.5
The following table sets out the total amount of trading transactions with
related parties included in the statement of comprehensive income:
Period ended 28 March 29 March
2026 2025
£'m £'m
Sales to associates of the Group
Centz Retail Holdings Limited 30 29
Total sales to related parties 30 29
Period ended 28 March 29 March
2026 2025
£'m £'m
Purchases from associates of the Group
Multi-lines International Company Ltd 250.1 234.3
Purchases from parties related to key management personnel
Fulland Investments Limited - 0.3
Golden Honest International Investments Limited - 0.2
Hammond Investments Limited - 0.3
Joint Sino Investments Limited - 0.2
Ocean Sense Investments Limited - 0.3
Total purchases from related parties 250.1 235.6
There are no leases held with related parties at the end of this period. At
the end of prior period, the IFRS 16 lease figures in relation to the
following related parties, which were all related to key management personnel,
were as follows:
Depreciation Interest Total charge Right-of-use Lease liability Net
charge charge asset liability
£'m £'m £'m £'m £'m £'m
Period ended 29 March 2025
Rani Investments 0 0 0 0 (0) (0)
Ropley Properties 2 1 3 6 (8) (2)
TJL UK Limited 1 0 1 9 (11) (2)
Triple Jersey Limited 9 4 13 57 (68) (11)
Total 12 5 17 72 (87) (15)
The following tables set out the total amount of trading balances with related
parties outstanding at the period end.
As at 28 March 29 March
2026 2025
£'m £'m
Trade receivables from associates of the Group
Centz Retail Holdings Ltd 4 2
Multi-lines International Company Ltd - 1
Total related party trade receivables 4 3
As at 28 March 29 March
2026 2025
£'m £'m
Trade payables to associates of the Group
Multi-lines International Company Ltd 19 5
Trade payables to companies owned by key management personnel
Ropley Properties Ltd - 0
TJL UK Limited - 0
Triple Jersey Ltd - 2
Total related party trade payables 19 7
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 balance with Multi-lines International Company Ltd includes £11m (2025:
£14m) held within a supply chain facility. See note 18 for more details. The
facility is operated by major banking partners with high credit ratings and is
limited to £70m total exposure at any one time.
The purpose of the arrangement is to enable our participating suppliers, at
their discretion, to draw down against their receivables from the Group prior
to their usual due date.
There would be no impact on the Group if the facility became unavailable and
there are no fees or charges payable by the Group in regards to this
arrangement.
As these invoices continue to be part of the normal operating cycle of the
Group, the scheme does not change the recognition of the invoices subject to
the scheme, so they continue to be recognised as trade payables, with the
associated cash flows presented within operating cash flows and without
affecting the calculation of Group net debt.
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 through examining the financial position of the related party
and the market in which the related party operates.
As at the prior year end, the future lease commitments on the Arora related
party properties were:
As at 29 March
2025
£'m
Not later than one year 17
Later than one year and not later than two years 17
Later than two years and not later than five years 40
Later than five years 31
Total 105
See note 11 for further information on the Group's associates.
For further details on the transactions with key management personnel, see
note 7 and the Directors' remuneration report.
27 Capital management
For the purpose of the Group's capital management, capital includes issued
capital and all other equity reserves attributable to the equity holders of
the parent. The primary objective of the Group's capital management is to
maximise the shareholder value.
In order to achieve this overall objective, the Group's capital management,
amongst other things, aims to ensure that it meets financial covenants
attached to the interest-bearing loans and borrowings that define capital
structure requirements. Breaches in meeting the financial covenants would
permit the bank to immediately call loans and borrowings. There have been no
breaches in the financial covenants of any interest-bearing loans and
borrowing in the current or prior period.
The Group manages its capital structure and makes adjustments in light of
changes in economic conditions and the requirements of the financial
covenants.
To maintain or adjust the capital structure, the Group may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares.
The Group defines net debt as: external interest-bearing loans and borrowings
less cash and short-term deposits.
The interest-bearing loans figure used is the gross amount of cash borrowed at
that time, as opposed to the carrying value under the amortised cost method.
The difference between pre and post IFRS 16 net debt is the inclusion of our
full lease liability in the latter.
Short-term deposits includes any term deposits held with a maturity of less
than one year.
As at 28 March 29 March
2026 2025
£'m £'m
Interest-bearing loans and borrowings (note 20) 998 1,148
Less: cash (note 17) (342) (217)
Less: short-term deposits (note 19) - (150)
Net debt (pre-IFRS 16) 656 781
Total lease liabilities (note 14) 1,457 1,430
Net debt (post-IFRS 16) 2,113 2,211
The Group's leverage ratio is defined as net debt divided by EBITDA (note 3)
and calculates to be 2.9 on a post-IFRS 16 basis and 1.4 on a pre-IFRS 16
basis (2025: 2.6 and 1.3, respectively).
28 Post balance sheet events
On 10 April 2026, the Group announced that Helen Cowing had stepped down from
her role as interim Chief Financial Officer and that Peter Waterhouse,
previously B&M Finance Director, will be her successor as interim Chief
Financial Officer, with effect immediately.
Also on 10 April 2026, the Group announced that Peter Pritchard has been
appointed to the Board as a Non-Executive Director, with effect immediately.
29 Dividends
An interim dividend of 3.5 pence per share (£35.2m) was declared in November
2025 and has been paid.
A final dividend of 6.1 pence per share (£61.3m), giving a full year dividend
of 9.6 pence per share (£96.5m), is proposed.
Relating to the prior year;
An interim dividend of 5.3 pence per share (£53.2m) was declared in November
2024 and has been paid.
A special dividend of 15.0 pence per share (£150.6m), was declared in January
2025 and has been paid.
A final dividend of 9.7 pence per share (£97.4m), giving a full year dividend
of 15.0 pence per share (£150.6m), was declared in July 2025 and has been
paid.
30 Contingent liabilities and guarantees
As at 28 March 2026, B&M European Value Retail plc, B&M European
Value Retail 1 Ltd, B&M European Value Retail 2 Ltd, B&M European
Value Retail Holdco 1 Ltd, B&M European Value Retail Holdco 2 Ltd, B&M
European Value Retail Holdco 3 Ltd, B&M European Value Retail Holdco 4
Ltd, EV Retail Ltd, B&M Retail Ltd, Heron Food Group Ltd and Heron Foods
Ltd are all guarantors to both the loan and notes agreements which are
formally held within B&M European Value Retail plc. The amounts
outstanding as at the period end were £225m for the loans, with the balance
held in B&M European Value Retail Holdco 4 Ltd, and £750m for the notes,
with the balance held in B&M European Value Retail plc.
As at 29 March 2025, B&M European Value Retail S.A., B&M European
Value Retail 1 S.à r.l., B&M European Value Retail 2 S.à r.l., B&M
European Value Retail Holdco 1 Ltd, B&M European Value Retail Holdco 2
Ltd, B&M European Value Retail Holdco 3 Ltd, B&M European Value Retail
Holdco 4 Ltd, EV Retail Ltd, B&M Retail Ltd, Heron Food Group Ltd and
Heron Foods Ltd were all guarantors to both the loan and notes agreements
which were formally held within B&M European Value Retail S.A. The amounts
outstanding as at the period end were £225m for the loans, with the balance
held in B&M European Value Retail Holdco 4 Ltd, and £906m for the notes,
with the balance held in B&M European Value Retail S.A.
For details relating to the UK Waste Electrical and Electronic Equipment
Regulations and Batteries and Accumulators Regulations provision, please see
note 21.
31 Directors
The Directors that served during the period were:
T Hall (Chair)
T Jegen (CEO) (appointed 16 June 2025)
A Russo (CEO) (retired 30 April 2025)
H Cowing (Interim CFO) (appointed 1 December 2025, resigned 10 April 2026)
M Schmidt (CFO) (resigned 1 December 2025)
P MacKenzie
H Lasry
O Tant
N Shouraboura
E Sutherland (appointed 20 January 2025)
Tjeerd Jegen was appointed as Chief Executive Officer with effect from 16 June
2025.
Alex Russo served as Chief Executive Officer of the B&M Group from
September 2022 until his retirement from the Board on 30 April 2025.
As previously announced by the Group on 20 October 2025, Mike Schmidt stepped
down from his role as Chief Financial Officer.
On 12 November 2025, Helen Cowing was appointed as interim Chief Financial
Officer and was appointed to the Board on 1 December.
On 10 April 2026, the Group announced that Helen Cowing had stepped down from
her role as interim Chief Financial Officer and that Peter Waterhouse,
previously B&M Finance Director, will be her successor as interim Chief
Financial Officer, with effect immediately.
Also on 10 April 2026, the Group announced that Peter Pritchard has been
appointed to the Board as a Non-Executive Director, with effect immediately.
All directors served for the whole period except where indicated above.
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