REG - B&M European - FY26 Interim Results
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RNS Number : 3309H B&M European Value Retail S.A. 13 November 2025
13 November 2025
FY26 Interim Results (Unaudited)
Getting Back to B&M Basics
B&M European Value Retail S.A. ("the Group"), the UK's leading variety
goods value retailer, today announces its interim results for the 26 weeks to
27 September 2025.
Tjeerd Jegen, Chief Executive Officer, said:
"Our Back to B&M Basics plan is progressing and we are taking decisive
actions to improve our retail execution and restore our financial performance.
While the full financial benefits will build over time, I am confident our
actions can restore sustainable like-for-like (LFL)(1) sales growth at B&M
UK, which is our number one priority and, in the medium term, low double-digit
UK adjusted EBITDA(2) margins as an outcome. In the meantime, our store
presence in the UK and France continues to expand, supporting Group revenue
growth as we reach new customers and support them in these uncertain economic
times.
We continue to strengthen our capabilities and I am pleased to announce the
appointment of Simon Hathway as our new Group Trading Director. Simon brings
significant retail experience, including as Buying and Merchandising Director
at Action Holding B.V., and I look forward to his start at B&M. I am also
pleased to welcome Helen Cowing as our Interim Chief Financial Officer, who
brings a wealth of CFO experience from a variety of corporate backgrounds,
including Selecta Group, FatFace and Mobico Group plc(8).
Lastly, I am pleased to confirm I am bringing responsibility for our Supply
Chain and Retail operations under Jon Parry, one of our most experienced
retail leaders, in order to create a simpler and more cohesive structure that
brings our Store and Supply Chain teams even closer together. I would like to
thank Gareth Bilton, Mike Schmidt and James Kew for their commitment to
B&M and wish them well for the future."
Headline measures H1 FY26 H1 FY25 Change
Group revenue £2,749m £2,644m 4.0%
Group adjusted EBITDA (pre-IFRS 16)(2) £191m £274m (30.2)%
Group adjusted EBITDA (pre-IFRS 16)(2) margin % 7.0% 10.4% (341)bps
Group adjusted operating profit(2) £177m £258m (31.5)%
Group adjusted operating profit(2) margin % 6.4% 9.8% (334)bps
Adjusted diluted EPS(2) 7.2p 13.7p (47.9)%
Group post-tax free cash flow(3) £51m £73m (29.5)%
Net debt(4) £859m £788m 9.1%
Ordinary dividend(5) 3.5p 5.3p (34.0)%
Statutory measures H1 FY26 H1 FY25 Change
Group operating profit £149m £235m (36.8)%
Group operating profit margin % 5.4% 8.9% (349)bps
Group profit before tax £75m £169m (55.6)%
Statutory diluted EPS 5.2p 12.3p (57.4)%
Group cash generated from operations £293m £303m (3.0)%
Highlights
· Group revenues increased by 4.0% to £2,749m (+3.9% constant currency(6))
driven by total value and volume growth in both B&M businesses
· B&M UK(7) total sales growth in the first half of 3.5% with LFL(1) sales
up 0.1%, with positive volume and value LFL sales in General Merchandise
offset by a decline in FMCG LFL sales
· 31 gross and 15 net new stores opened across the Group in H1 (23 gross, 9 net
in B&M UK; 5 gross, 5 net in B&M France; 3 gross, 1 net in Heron)
· Group adjusted EBITDA (pre-IFRS 16)(2) of £191m down 30.2% (H1 FY25: £274m),
with a margin of 7.0% (H1 FY25: 10.4%)
· Group adjusted operating profit(2) of £177m (H1 FY25: £258m), with statutory
operating profit of £149m (H1 FY25: £235m) and statutory profit before tax
of £75m (H1 FY25: £169m)
· Post-tax free cash flow(3) of £51m (H1 FY25: £73m), reflecting working
capital outflows as inventory builds ahead of the Golden Quarter and continued
investment in our new stores and infrastructure
· Redomicile process is expected to complete in the new calendar year and will
enable share buybacks, which the Board has confirmed as its preferred option
for returning excess capital, once shareholder approvals are in place
· Interim dividend of 3.5p(5) per Ordinary Share will be paid on 12 December
2025 to shareholders who are on the register at close of business on 21
November 2025 (H1 FY25: 5.3p)
· Net debt(4) to last-twelve-months adjusted EBITDA (pre-IFRS 16)(2) leverage
ratio of 1.6x (H1 FY25: 1.2x). Incorporating IFRS 16, net debt to last
twelve-months adjusted EBITDA(2) was 2.9x (H1 FY25: 2.5x)
· B&M UK LFL(1) trading in early Q3 has been at the lower end of the 'low
single-digit positive to low single-digit negative' percentage assumption
range we outlined on 7 October 2025. However, with the majority of the key
Golden Quarter trading period still ahead, we reiterate our guidance range for
FY26 Group adjusted EBITDA (pre-IFRS 16) (2) of £470m-£520m
Fascia performance Revenue £'m Revenue growth % Adjusted EBITDA
(pre-IFRS 16) (2) margin %
H1 FY26 H1 FY25 H1 FY26 H1 FY25 H1 FY26 H1 FY25
B&M UK
2,196 2,121 3.5% 3.7% 7.7% 11.3%
B&M France
280 247 13.4% 6.8% 6.6% 6.9%
Heron Foods
273 276 (0.9)% 1.1% 3.9% 6.7%
Results Presentation
An in-person presentation and Q&A for analysts in relation to these
results will be held today at 9.00am (UK) at Bank of America, 2 King Edward
St, London, EC1A 1HQ. 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/tvkwg3op
(https://edge.media-server.com/mmc/p/tvkwg3op)
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 S.A.
For further information please contact: +44 (0) 151 728 5400
Tjeerd Jegen, Chief Executive Officer
Mike Schmidt, 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.bennettt@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 S.A.
B&M European Value Retail S.A. is a variety retailer with 786 stores in
the UK operating under the "B&M" brand, 344 stores under the "Heron Foods"
and "B&M Express" brands, and 140 stores in France also operating under
the "B&M" brand as at 27 September 2025. 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 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 (excluding
wholesale revenues). 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 information for further
details.
3. Please see note 3 of the financial information for more details and
reconciliation to the Consolidated statement of cash flows. Statutory Group
cash generated from operations was £293m (H1 FY25: £303m). 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 £859m at the half year end (H1
FY25: £788m), reflecting £1,027m (H1 FY25: £973m) as the carrying value of
gross debt netted against £168m of cash (H1 FY25: £185m). See note 8 of the
financial information for more details.
5. Dividends are stated as gross amounts before deduction of Luxembourg
withholding tax which is currently 15%.
6. 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.
7. 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.
8. In accordance with Listing Rule 6.4.8R, the Company discloses that
Helen Cowing was Interim Group CFO at Mobico Group plc until June 2025. There
is no other information to be disclosed Under Listing Rule 6.4.8R.
Chief Executive's Review
This is my first presentation of Interim Results for the Group in my role as
Chief Executive. The period coincides with a comprehensive review of operating
performance, which I led shortly after being appointed as CEO in June 2025. It
was clear to me that B&M's business fundamentals were solid, but I saw
immediate opportunities to improve our retail execution and strengthen our
customer proposition. We have since devised clear actions to seize these
opportunities in a growth plan we call Back to B&M Basics, the details of
which I set out below.
We announced on 20 October that following a system integration change, freight
costs had not been correctly recognised. While the error did not impact any
audited historical financial information, it did impact assumptions that
determined our 7 October Trading Update and outlook. The Board commissioned a
review of the matter, which is being conducted by EY. We expect the review to
be completed in the coming weeks and we will update further at our Q3 Trading
Update in January 2026.
The Board has decided that, while the Company's redomicile from Luxembourg to
Jersey remains a priority to provide increased flexibility in returning excess
capital to shareholders, it should be completed once the review has concluded
and any appropriate actions have been taken. The Board is confident that the
redomicile will complete in the new calendar year and will enable excess
capital to be returned by way of share buybacks, subject to shareholder
approvals.
As we set out in our Trading Update on 7 October, new store openings and good
trading momentum in B&M France enabled the Group to grow revenue by 4.0%
during the first half of FY26. B&M UK(1) revenue grew by 3.5% as we opened
9 net new stores, which contributed to total value and volume sales growth.
B&M UK LFL(2) sales meanwhile were broadly flat (+0.1%), with volume and
value growth in General Merchandise offset by a decline in FMCG LFL sales.
We are taking decisive actions to correct the weakness in LFL sales with our
Back to B&M Basics plan. We believe the full impact of these actions will
take 12-18 months to take effect, but we are confident they will restore
B&M's value proposition and support a return to sustainable LFL sales
growth for B&M UK.
The UK consumer remains under pressure from cost-of-living concerns and fiscal
uncertainty, the impact of which is reflected in our recent trading. For
B&M UK, this has been at the lower end of the low single-digit positive to
low single-digit negative percentage assumption range we outlined on 7
October. Our Back to B&M Basics initiatives are also in their early
stages. However, with the main portion of the important Golden Quarter still
ahead of us, we maintain our guidance of a second-half UK LFL percentage
growth rate of between low single-digit negative and low single-digit positive
levels. We expect B&M UK's LFL(2) sales will be the principal driver of
the outcome of FY26 Group adjusted EBITDA (pre-IFRS 16)(3) within our guidance
range of £470m-£520m.
We expect that our actions under Back to B&M Basics will support a return
to LFL growth over the next 12-18 months, enabling future adjusted EBITDA
margins for B&M UK to stabilise at low double-digit percentage levels over
the medium term as an outcome.
Back to B&M Basics
B&M's original customer proposition remains strong, but our execution has
drifted. This has impacted our trading performance, which our first half
results reflect. Outlined alongside our 7 October Trading Update, our Back to
B&M Basics plan is a set of immediate actions to bring about improvements
in four key areas of our retail execution: Price, Promotions, Ranges, and
on-shelf Availability. Our number one priority is to return B&M UK to
sustainable LFL growth.
We have moved at pace to implement this plan, with actions ongoing or planned
in these four key areas, including:
· Adjusting prices on FMCG Key Value Items ('KVIs') to sharpen our customer
value proposition. While our blended FMCG basket has remained around 15%
cheaper than mainline grocers (including loyalty) and we have been price
competitive versus the discount retailers, we need to be consistently more
competitive on price on individual lines. We have therefore cut prices on 35%
of our KVIs, lowering the average KVI line price by 1.8%. This move will help
drive our price perception with customers over time.
With this new line-based benchmarking in place, we are now expanding the
number of peers we compare our prices against and, over time, will extend this
methodology to our General Merchandise ranges.
· Rebooting our 'Managers Specials' promotions, which became too static and
duplicative, to bring excitement and outstanding value back to our
front-of-store bays. Store managers are now free to select the best lines
within a broad framework in response to their local markets, starting with our
Back-to-School ranges in September and Halloween in September/October, both of
which have traded well.
We are now implementing this refreshed approach across our UK estate and plan
to develop and apply customer analytics capabilities to help configure and
direct our wider promotional activities in support of driving average
transaction volumes higher.
· Refocusing our ranges to reduce line count and accelerate the clearance of
discontinued ranges, particularly in FMCG, home accessories and toys ranges,
following a material increase in SKUs in recent years that has introduced
complexity for our customers and our operations.
The first three FMCG category pilots are now underway in 22 stores, the
results of which will inform the rollout across all FMCG categories in the
entire UK estate during Q4 FY26 and Q1 FY27, with the same approach planned
for our General Merchandise categories thereafter.
· Restoring product on-shelf availability, which is below industry FMCG
benchmarks, resulting in an estimated 86% FMCG best seller availability across
key stores versus best practice standards of 98%. We found that our emphasis
on store presentation prioritised the look of a full shelf over actual stock
availability of products customers want. Supported by better replenishment
processes and simpler ranges, our stores will now be focused on ensuring our
most popular products are always available to our customers, in order to drive
sales performance.
A 'best sellers' pilot capturing approximately 240 of our most popular FMCG
SKUs is now underway in 11 stores ahead of a full store rollout scheduled for
Q3 FY26. An adapted replenishment process is under development, with a pilot
implementation scheduled for Q4 FY26. Longer term, we are evaluating
AI-enabled transaction monitoring to deepen our capabilities in maximising
on-shelf availability.
Strengthening our Foundations
Back to B&M Basics is Phase One of a longer-term strategy to first restore
- and then accelerate - growth across our business. A similar set of actions
are ongoing at Heron to strengthen LFL growth.
Beyond B&M Basics, we have valuable opportunities to deepen B&M's
foundations in order to support future growth. This is Phase Two, which will
include smarter use of data and customer insights and simplifying many of our
in-store processes, which are overly complex. It will also see us flex 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 deepens their loyalty to the B&M brand.
With these foundations in place, we also see a Phase Three opportunity to
accelerate growth by investing in the success of B&M France. This business
has been executing well in a competitive market and enjoyed double-digit
growth in Q2. In addition, we will be investigating longer-term opportunities,
including private label and potentially ecommerce and loyalty programs. We
will provide an update on these opportunities as we evaluate and reach
decisions on each.
Capital Allocation
B&M is a cash-generative business, which we use to reinvest for future
growth and provide attractive returns for shareholders. Our updated Capital
Allocation Policy governs how we use our cash and ensures capital is deployed
in the most value-accretive manner in the context of our leverage tolerance,
which remains in the range of 1.0x to 1.5x over time on a pre-IFRS 16 basis,
subject to normal seasonality.
Our first capital allocation priority is reinvesting in the existing business
at attractive returns to drive organic growth and maintain our competitive
position. This includes maintaining and expanding our B&M UK estate, where
space growth remains highly profitable, with attractive contribution margins
that are accretive to company margins and with an average payback period of
approximately 12 months. We are strengthening our white space analytical
capabilities to identify the best sites and ensure we protect the performance
of our existing estate as we expand our network of stores. We continue to see
a considerable white space opportunity in the UK and remain confident in our
long-term target of approximately 1,200 stores under the B&M UK banner.
We recognise the importance of cash returns to shareholders through our
ordinary dividend and the special dividends we have declared in the past. The
redomicile of the Group from Luxembourg to Jersey will enable us to undertake
share buybacks and the Board has confirmed this as its current preferred
option in returning excess capital, subject to shareholder approvals.
We remain committed to returning excess capital to shareholders after
considering any strategically relevant M&A opportunities. Currently, we
are not considering any M&A acquisitions, nor do we expect these to be a
near-term growth focus for the Group.
People
We continue to strengthen our capabilities and I am pleased to announce the
appointment of Simon Hathway as our new Group Trading Director. Simon brings
significant retail experience, including as Buying and Merchandising Director
at Action Holding B.V. He has also held senior leadership positions at
Sainsbury's, AS Watson and Wilko. I look forward to his start at B&M. I am
also pleased to welcome Helen Cowing as our Interim Chief Financial Officer,
with effect from 1 December 2025 at which point she will join the Board. Helen
is a highly experienced CFO who brings a wealth of Finance leadership
experience from a variety of corporate backgrounds, including Selecta Group,
FatFace and Mobico Group plc.
Lastly, I am pleased to confirm I am bringing responsibility for our Supply
Chain and Retail Operations under Jon Parry, one of our most experienced
retail leaders, in order to create a simpler and more cohesive structure that
brings our Store and Supply Chain teams even closer together. I would like to
thank Gareth Bilton, Mike Schmidt and James Kew for their commitment to
B&M and wish them well for the future.
Priorities and Opportunities
B&M's fundamentals remain strong, but our execution needs improvement. We
have completed a full diagnosis of where we drifted from our core value
proposition and have a plan underway to return B&M UK to sustainable LFL
growth. This is the first phase of a longer-term plan that is about fixing the
basics before deepening our foundations and, finally, accelerating our growth.
Our number one priority is returning B&M UK to LFL growth, which we
believe will enable our UK EBITDA margin to stabilise at low-double-digit
percentage levels in the medium term as an outcome. In the meantime, we
continue to apply the same financial discipline to growth opportunities to
drive the strong returns on investment and cash generation that are hallmarks
of our earnings model.
Tjeerd Jegen
Chief Executive Officer
12 November 2025
Financial review
Group
£'m H1 FY26 H1 FY25 YoY Change
Revenue 2,749 2,644 4.0%
Gross profit 1,004 996 0.8%
% 36.5% 37.7% (114) bps
Adjusted operating costs(3) (813) (722) 12.6%
Adjusted EBITDA (pre-IFRS 16)(3) 191 274 (30.2)%
% 7.0% 10.4% (341) bps
Depreciation and amortisation (pre-IFRS 16) (48) (44) 8.9%
Operating impact of IFRS 16* 34 28 19.3%
Adjusted operating profit(3) 177 258 (31.5)%
Adjusting items(3) (28) (23) 21.8%
Statutory operating profit 149 235 (36.8)%
Finance costs relating to right-of-use assets (42) (38) 10.5%
Other net finance costs (32) (28) 13.2%
Statutory profit before tax 75 169 (55.6)%
*includes depreciation on right-of-use assets of £99m (H1 FY25: £90m). H1
total depreciation & amortisation was £146m (H1 FY25: £134m)
Group revenues increased by 4.0%, (+3.9% on a constant currency basis(4)),
with growth primarily driven by B&M UK total value and volume sales
growth, good trading momentum in B&M France, and the addition of 31 gross
and 15 net new stores across the Group.
Group gross profit margin decreased by 114 bps to 36.5% primarily driven by a
reduction in B&M UK's trading gross margin in General Merchandise,
partially offset by sales mix. Price investment in FMCG categories and a
greater focus on exiting ranges to reduce SKU count in late H2 were also
contributing factors.
Group adjusted operating costs on an underlying basis(5) grew by 13.8% to
£808m (H1 FY25: £711m). This is reflective of the larger store estate,
upgrades in our supply chain infrastructure and operating cost increases that
in particular reflect increases in National Minimum Wage levels, National
Insurance taxation increases and the new Extended Producer Responsibility levy
(the full annual amount of which is required to be recognised in the first
half of the financial year).
Group adjusted EBITDA (pre-IFRS 16)(3) decreased by 30.2% to £191m,
representing a margin of 7.0%, reflecting the margin and operating cost trends
above. Group adjusted operating profit(3) decreased by a similar 31.5%. Total
depreciation and amortisation grew by 9.8% to £146m, reflecting the continued
growth of the store estate and investment into our supply chain.
Adjusting items(3) were a net charge of £28m (H1 FY25: net charge of £23m).
The primary driver of this was the £13m store leases and fixed asset
impairment in the Heron Foods business (H1 FY25: £nil), £10m loss on fair
value of our unmatured foreign exchange derivatives (H1 FY25: £19m loss),
£2m in relation to pre-opening costs for our Ellesmere Port import centre and
£3m costs for the parent company's migration from Luxembourg to Jersey. For
further details, please see note 3 of the financial information.
Statutory operating profit decreased by 36.8% to £149m (H1 FY25: £235m),
reflecting the margin reductions coupled with an increase in adjusting
items(3) both mentioned above.
Net finance costs, excluding IFRS 16, increased by £4m to £32m. This was
primarily driven by the Group's refinancing: a larger £250m bond issued in
November 2024 at higher interest rates, which replaced the £156m bond stub
redeemed in July 2025. Separately, finance charges relating to right-of-use
assets (IFRS 16) rose by £4m to £42m. This increase reflects new leases from
the store opening programme and the impact of higher discount rates applied in
recent years.
Adjusted diluted EPS(3) was 7.2p, 47.9% lower year-on-year, driven by lower
adjusted operating profit and the increase in net finance costs. Statutory
diluted EPS was 5.2p caused by the increase in adjusting items(3).
B&M UK
In B&M UK(1), total revenues increased by 3.5% to £2,196m (H1 FY25:
£2,121m), like-for-like (LFL)(2) sales grew by +0.1%, with positive volume
and value growth in General Merchandise offset by an overall decline in FMCG
LFL(2) sales. The timing of Easter and the early onset of good weather pulled
forward demand for our General Merchandise outdoor ranges in early H1, driving
double-digit LFL sales in April. Sales were weak in May as this trend
reversed, following which we saw a progressive moderation in LFL sales
declines in June and each period during Q2, helped by a return towards higher
average value products in General Merchandise and some average selling price
(ASP) inflation in FMCG.
Our trading gross margin decreased 131 bps year-on-year to 35.4% from 36.7%.
This reflected lower bought-in product margins seen overall in General
Merchandise spring/summer ranges, a mix shift towards some comparatively lower
margin categories within General Merchandise and in Q2 we also reduced prices
in FMCG on some key value items (KVI) lines. Statutory gross margin decreased
145 bps to 36.2% from 37.6%, with the difference to trading gross margin
reflecting principally foreign exchange derivative accounting.
There were 23 gross (9 net) new stores openings in H1, representing
significant progress to the full financial year target of between 40-45 new
stores. These new stores are trading well across a diverse range of locations.
B&M UK revenues also included £15m of wholesale revenues (H1 FY25:
£14m), the majority of which represented sales made to our associate Centz
Retail Holdings Limited, a chain of 56 variety goods stores in the Republic of
Ireland.
Adjusted operating costs on an underlying basis(5) increased by 13.4% to
£620m (28.2% of revenue), from £547m (25.8% of revenue) in the prior year.
This increase was impacted by the introduction of a new £14m Extended
Producer Responsibility (EPR) tax, which is fully recognised in the first
half. Excluding this new tax, the underlying cost increase was 11.0%. This
underlying rise is due to our 3% growth in the store estate count which
together with the timing of pre-opening costs added £21m of year-on-year
incremental costs to the half, together with c. £26m of increased costs from
the statutory 6.7% NMW rise and also higher employer National Insurance
charges. These factors, along with investment in warehouse and IT
infrastructure and general operating inflation, were then partially offset by
productivity mitigations.
Adjusted EBITDA (pre-IFRS 16)(3) decreased by 29.2% to £170m (H1 FY25:
£240m), with adjusted margin decreasing by 358 bps to 7.7% (H1 FY25: 11.3%),
due to the limited LFL(2) sales growth, the trading margin rate reduction
described above and with an increased underlying operating cost base. Adjusted
operating profit(3) was £160m (H1 FY25: £228m) with a margin of 7.3% (H1
FY25: 10.8%).
Statutory profit before interest and tax for the period was £160m (H1 FY25:
£228m) due to the reasons outlined above.
B&M France
B&M France has continued to trade strongly, total revenues increased by
13.4% to £280m (H1 FY25: £247m). The performance was underpinned by new
store growth and good LFL(2) growth of 5.2% in the half. The second quarter
LFL of 9.4% reflected both good trading and a somewhat disrupted prior year
comparative during warehouse management system implementation (FY25-Q2:
+0.8%). The business continues to demonstrate the attractiveness of the
B&M value retail offer in a competitive marketplace.
The business is on track to open 12 new stores by the end of the financial
year, with 5 opened in H1 FY26.
Adjusted operating costs on an underlying basis(5) increased by 12.0% or £11m
to £104m (37.1% of revenue), compared to £93m (37.6% of revenue) in the
prior year. This increase primarily reflects volume growth associated with the
store rollout programme.
Adjusted EBITDA (pre-IFRS 16)(3) increased to £18m (H1 FY25: £17m)
representing an adjusted EBITDA margin of 6.6% (H1 FY25: 6.9%) reflecting the
infrastructure investment made over recent years. We continue to expect
B&M France to grow its EBITDA margins over time reducing the differential
with B&M UK. Adjusted operating profit(3) was £20m (H1 FY25: £18m) with
a margin of 6.9% (H1 FY25: 7.1%).
Statutory profit before interest and tax for the period was £20m (H1 FY25:
£18m) due to the reasons outlined above.
Heron Foods
Our discount convenience offering, Heron Foods generated revenues of £273m
down 0.9% year-on-year. The performance was driven by lower LFL(2) transaction
numbers and limited new store openings, with trading weakness experienced
across all grocery categories. Heron is pursuing a similar 'back to basics'
strategy to B&M UK in order to strengthen its LFL(2) revenue performance
and ultimately to stabilise and begin to restore its profitability in a highly
competitive discount grocery retail environment.
Adjusted operating costs on an underlying basis(5) were £77m (H1 FY25: £70m)
due to increases in store wages from the rise in the National Minimum Wage and
employer's National Insurance contributions. These cost increases and lower
revenues in the half resulted in an increase in adjusted operating costs as a
percentage to revenue to 28.3% (H1 FY25: 25.4%).
Heron opened 3 gross (1 net) new stores in the period given the focus on
delivering sustainable LFL(4) growth.
Adjusted EBITDA (pre-IFRS 16)(3) decreased by 42.1% to £11m (H1 FY25: £18m)
as a result of expected inflationary pressures from the same statutory
pressures as B&M UK and the negative operating leverage from lower LFL
sales. Adjusted operating profit(3) was £5m (H1 FY25: £13m) with a margin of
1.9% (H1 FY25: 4.8%).
Statutory profit before interest and tax for the period was £5m (H1 FY25:
£13m) due to the reasons outlined above.
Post-tax free cash flow(6), capital expenditure and leverage
Post-tax free cash flow(6) generated in the first half of £51m (H1 FY25:
£73m), includes a £28m working capital outflow due to higher inventory
levels caused by the larger number of stores and a £15m increase in capital
expenditure year-on-year.
Group net capital expenditure, excluding IFRS 16 right-of-use asset additions,
was £74m (H1 FY25: £59m). This included £32m spent on 31 gross new stores
opened in the first half across the Group (H1 FY25: £28m on 39 stores), £22m
on maintenance works (<1% of H1 revenues) to ensure that our existing store
estate and warehouses are appropriately invested (H1 FY25: £20m), and a total
of £13m on infrastructure projects and opportunistic freehold acquisitions or
disposals (H1 FY25: £11m). We also invested in our supply chain
infrastructure in the first half with £7m one-off expenditure on the fit out
of our Ellesmere Port import centre (H1 FY25: £nil).
Net debt(7) to last-twelve-months adjusted EBITDA(3) (pre-IFRS 16) is at 1.6x
at the end of H1 FY26 (H1 FY25: 1.2x) given lower profits, the increased level
of borrowings in the business and normal seasonal working capital flows. This
is slightly above our target range of 1.0-1.5x. Incorporating IFRS 16, net
debt to last twelve-months adjusted EBITDA was 2.9x (H1 FY25: 2.5x).
Dividend
We target to pay ordinary dividends at 40-50% of after-tax adjusted earnings
(post-IFRS 16)(3), with the long-term outlook paying out at the mid-point of
the range (approximately one-third as an interim dividend and two-thirds as
the final dividend).
An interim dividend of 3.5p(8) per Ordinary Share will therefore be paid on 12
December 2025 to shareholders on the register at 21 November 2025. The
ex-dividend date will be 20 November 2025. The dividend payment will be
subject to a deduction of Luxembourg withholding tax of 15%.
Principal risks and uncertainties
The principal risks and uncertainties faced by the Group remain those as set
out on page 23 to 29 of our Annual Report and Financial Statements 2025:
supply chain; competition; economic environment; regulation and compliance;
international expansion; political uncertainty; IT systems, cyber security and
business continuity; key management reliance and store expansion. During the
period the Group's Directors considered whether the risk exposure had changed
in any of the identified areas, and whether the Group was exposed to new
risks. The Directors noted an increase in risks across competition within
the retail markets in UK and France, the wider economic environment including
the potential impact of lower consumer spending, and a continued increase in
regulation and compliance scope. Despite these increased risks the Board
confirms the Group's risk exposure remains within tolerance, reflecting the
effectiveness of mitigations already in place. The independent review of the
overseas freight costs systems issue remains ongoing and has yet to fully
conclude. An update will be provided at our Q3 Trading Update in January 2026.
Mike Schmidt
Chief Financial Officer
12 November 2025
Notes:
1. 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.
2. One-year like-for-like revenues 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 (excluding
wholesale revenues). This 14-month approach has been adopted as it excludes
the 2-month halo period which new stores experience following opening.
3. 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 information for further
details.
4. 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.
5. Adjusted operating expenses on an underlying basis excludes foreign
exchange, one-off income, depreciation and amortisation. This adjusted measure
is considered a more meaningful metric to the users of the accounts as this is
the cost base used by management to commercially monitor performance. Group
non-underlying items include B&M UK's foreign exchange retranslation
losses in relation to derivative adjustments of £5m (H1 FY25: £11m loss).
Group adjusted operating costs, excluding depreciation and amortisation, as a
% of revenues increased to 29.6% from 27.3%.
6. Please see note 3 of the financial information for more details and
reconciliation to the Consolidated statement of cash flows. Statutory Group
cash generated from operations was £293m (H1 FY25: £303m). This statutory
definition excludes payments for leased assets including the leasehold
property estate.
7. Net debt comprises interest bearing loans and borrowings, overdrafts
and cash and cash equivalents. Net debt was £859m at the half year end (H1
FY25: £788m), reflecting £1,027m (H1 FY25: £973m) as the carrying value of
gross debt netted against £168m of cash (H1 FY25: £185m). See note 8 of the
financial information for more details.
8. Dividends are stated as gross amounts before deduction of Luxembourg
withholding tax which is currently 15%.
Condensed Consolidated Statement of Comprehensive Income
26 weeks ended 26 weeks ended 52 weeks ended 29 March
27 September 2025 28 September 2024 2025
Note £'m £'m £'m
Revenue 2 2,749 2,644 5,571
Cost of sales (1,745) (1,648) (3,479)
Gross profit 1,004 996 2,092
Administrative expenses (855) (761) (1,526)
Operating profit 3 149 235 566
Share of profits in associates - - 1
Profit on ordinary activities before interest and tax 149 235 567
Finance costs on lease liabilities (42) (38) (77)
Other finance costs (36) (30) (66)
Finance income 4 2 7
Profit on ordinary activities before tax 75 169 431
Income tax expense 6 (22) (46) (112)
Profit for the period 53 123 319
Other comprehensive income for the period
Items that may be subsequently reclassified to profit or loss:
Exchange differences on retranslation of subsidiaries and associates 4 (2) (2)
Fair value movements recorded in the hedging reserve (15) (28) (10)
Tax effect of other comprehensive income 1 6 (1)
Total other comprehensive income (10) (24) (13)
Total comprehensive income for the period 43 99 306
Earnings per share
Basic earnings attributable to ordinary equity holders (pence) 4 5.2 12.3 31.8
Diluted earnings attributable to ordinary equity holders (pence) 4 5.2 12.3 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
condensed consolidated financial statements.
Condensed Consolidated Statement of Financial Position
Note 27 September 2025 28 September 2024
£'m £'m 29 March
Assets 2025
£'m
Non-current
Goodwill 921 920 920
Intangible assets 119 121 120
Property, plant and equipment 468 439 448
Right-of-use assets 1,162 1,103 1,159
Investments in associates 6 5 6
Other receivables 9 8 6
Other financial assets 1 - -
Deferred tax asset 6 5 5
2,692 2,601 2,664
Current
Cash and cash equivalents 168 185 217
Inventories 1,035 1,007 883
Trade and other receivables 83 79 79
Other financial assets 4 - 153
Income tax receivable 28 14 11
1,318 1,285 1,343
Total assets 4,010 3,886 4,007
Equity
Share capital 7 (101) (100) (100)
Share premium (2,487) (2,484) (2,484)
Retained earnings (97) (151) (143)
Hedging reserve 14 29 11
Legal reserve (10) (10) (10)
Merger reserve 1,979 1,979 1,979
Foreign exchange reserve (9) (5) (5)
(711) (742) (752)
Non-current liabilities
Interest-bearing loans and borrowings 8 (981) (728) (977)
Lease liabilities (1,245) (1,184) (1,242)
Deferred tax liabilities (25) (12) (35)
Other financial liabilities (0) (3) (0)
Provisions (4) (4) (4)
(2,255) (1,931) (2,258)
Current liabilities
Interest-bearing loans and borrowings 8 (36) (236) (160)
Trade and other payables (747) (724) (618)
Lease liabilities (216) (195) (188)
Other financial liabilities (27) (46) (13)
Income tax payable (6) (6) (6)
Provisions (12) (6) (12)
(1,044) (1,213) (997)
Total liabilities (3,299) (3,144) (3,255)
Total equity and liabilities (4,010) (3,886) (4,007)
The accompanying accounting policies and notes form an integral part of this
financial information. The condensed financial statements were approved by the
Board of Directors on 12 November 2025 and signed on their behalf by:
T. Jegen, Chief Executive Officer.
Condensed Consolidated Statement of Changes in Shareholders' Equity
Share capital Share Retained Hedging Legal Merger Foreign Total
premium earnings reserve reserve reserve exchange equity
reserve
£'m £'m £'m £'m £'m £'m £'m £'m
Balance at 30 March 2024 100 2,481 125 (10) 10 (1,979) 7 734
Ordinary dividends declared - - (96) - - - - (96)
Effect of share options 0 3 (1) - - - - 2
Total for transactions with owners 0 3 (97) - - - - (94)
Profit for the period - - 123 - - - - 123
Other comprehensive income - - - (22) - - (2) (24)
Total comprehensive income for the period - - 123 (22) - - (2) 99
Hedging gains & losses reclassified as inventory - - - 3 - - - 3
Hedging gains & losses reclassified as finance costs - - - 0 - - - 0
Balance at 28 September 2024 100 2,484 151 (29) 10 (1,979) 5 742
Ordinary dividends declared - - (53) - - - - (53)
Special dividends declared - - (151) - - - - (151)
Effect of share options 0 - 1 - - - - 1
Total for transactions with owners 0 - (203) - - - - (203)
Profit for the period - - 196 - - - - 196
Other comprehensive income - - (1) 12 - - - 11
Total comprehensive income for the period - - 195 12 - - - 207
Hedging gains & losses reclassified as inventory - - - 5 - - - 5
Hedging gains & losses reclassified as finance costs - - - 1 - - - 1
Balance at 29 March 2025 100 2,484 143 (11) 10 (1,979) 5 752
Ordinary dividends declared - - (97) - - - - (97)
Effect of share options 1 3 (2) - - - - 2
Total for transactions with owners 1 3 (99) - - - - (95)
Profit for the period - - 53 - - - - 53
Other comprehensive income - - - (14) - - 4 (10)
Total comprehensive income for the period - - 53 (14) - - 4 43
Hedging gains & losses reclassified as inventory - - - 10 - - - 10
Hedging gains & losses reclassified as finance costs
- - - 1 - - - 1
Balance at 27 September 2025 101 2,487 97 (14) 10 (1,979) 9 711
The accompanying accounting policies and notes form an integral part of
these consolidated financial statements.
Condensed Consolidated Statement of Cash Flows
52 weeks ended
26 weeks ended 26 weeks ended 29 March
27 September 2025 28 September 2025
2024
Note £'m £'m £'m
Cash flows from operating activities
Cash generated from operations 9 293 303 784
Income tax paid (47) (61) (109)
Net cash flows from operating activities 246 242 675
Cash flows from investing activities
Purchase of property, plant and equipment (76) (74) (131)
Purchase of intangible assets 0 (1) (2)
Proceeds from the sale of property, plant and equipment 2 16 22
Receipts/(deposits) in relation to short-term money market investments 150 - (150)
Finance income received 4 2 7
Net cash flows from investing activities 80 (57) (254)
Cash flows from financing activities
Net receipt/(repayment) of Group revolving credit facilities 8 30 45 (25)
Repayment of old corporate bonds 8 (156) - -
Receipt due to newly issued corporate bonds 8 - - 250
Receipt of loan facilities held in France 7 11 9
Repayment of loan facilities held in France (3) (2) (5)
Repayment of the principal in relation to right-of-use assets (79) (72) (176)
Payment of interest in relation to right-of-use assets (42) (38) (77)
Fees on refinancing 8 - - (4)
Other finance costs paid (37) (28) (56)
Dividends paid to owners of the parent (97) (96) (300)
Net cash flows from financing activities (377) (180) (384)
Effects of exchange rate changes on cash and cash equivalents 2 (2) (2)
Net (decrease)/ increase in cash and cash equivalents (49) 3 35
Cash and cash equivalents at the beginning of the period 217 182 182
Cash and cash equivalents at the end of the period 168 185 217
Cash and cash equivalents comprise:
Cash at bank and in hand 168 185 217
Overdrafts - - -
168 185 217
The accompanying accounting policies and notes form an integral part of
these consolidated financial statements.
Notes to the financial information
1 General information and basis of preparation
The results for the first half of the financial year have not been audited and
are prepared on the basis of the accounting policies set out in the Group's
last set of consolidated accounts released by the ultimate controlling party,
B&M European Value Retail S.A. (the "company"), a company listed on the
London Stock Exchange and incorporated in Luxembourg.
The financial information has been prepared in accordance with the Disclosure
and Transparency Rules of the Financial Conduct Authority (DTR) and with
International Accounting Standard (IAS) 34 'Interim Financial Reporting' as
endorsed by the European Union.
The Group's trade is general retail, with trading taking place in the UK and
France.
The principal accounting policies have remained unchanged from the prior
financial information for the Group for the period to 29 March 2025.
The financial statements for B&M European Value Retail S.A. for the 52
weeks to 29 March 2025 have been reported on by the Group auditor and filed
with the Luxembourg Registrar of Companies. The audit report was unqualified.
The consolidated interim financial statements are presented in pounds sterling
and all values are rounded to the nearest million (£'m), except when
otherwise indicated.
This consolidated financial information does not constitute statutory
financial statements.
Basis of consolidation
This Group financial information consolidates the financial information 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 27 September 2025. 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 arrangement with the other vote holders of the
investee
· Rights arising from other contractual arrangements
· 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.
Going concern
As a value retailer, the Group is well placed to withstand volatility within
the economic environment. The Group's forecasts and projections, taking into
account reasonably plausible changes in trading performance, show that the
Group will trade within its current banking facilities.
In assessing the Group's going concern at the half year, the Directors have
considered the business activities including the Group's principal risks and
uncertainties. The Directors have 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 forecast to a series of severe
but plausible downside scenarios. Having considered these factors, the Board
is satisfied the Group has adequate resources to continue in operational
existence for the foreseeable future.
Consequently, the Directors are confident that the Group and Company will have
sufficient funds to continue to meet its liabilities as they fall due for at
least 12 months from the date of approval of the condensed consolidated
interim financial statements and therefore have prepared the financial
statements on a going concern basis.
Critical judgments and key sources of estimation uncertainty
Impairment
The Heron impairment calculation reflects assumptions that are based upon
management's judgment.
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 5 for
further details.
With the exception of the addition of the Heron impairment, there are no other
significant changes to the items listed in the 2025 Annual Report.
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 retail segments for the
purpose of making decisions about resource allocation and performance
assessment.
For management purposes, the Group is organised into three operating segments,
UK B&M, UK Heron and France B&M 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 Luxembourg 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 €1.1659/£ during the
period, with the period end rate being €1.1463 /£ (September 2024:
€1.1778/£ and €1.1994/£ and March 2025: €1.1885/£ and €1.1955
respectively).
26 week period to 27 September 2025
UK UK France Corporate
B&M Heron B&M Total
£'m £'m £'m £'m £'m
Revenue 2,196 273 280 - 2,749
EBITDA (note 3) 271 17 43 (36) 295
Depreciation and amortisation (111) (12) (23) - (146)
Profit/(loss) before interest and tax 160 5 20 (36) 149
Net finance expense (27) (1) (10) (36) (74)
Income tax (charge)/credit (35) (1) (2) 16 (22)
Segment profit/(loss) 98 3 8 (56) 53
Total assets 3,230 272 462 46 4,010
Total liabilities (1,743) (124) (335) (1,097) (3,299)
Capital expenditure* (59) (8) (9) - (76)
26 week period to 28 September 2024
UK UK France Corporate
B&M Heron B&M Total
£'m £'m £'m £'m £'m
Revenue 2,121 276 247 - 2,644
EBITDA (note 3) 330 24 39 (24) 369
Depreciation and amortisation (102) (11) (21) - (134)
Profit/(loss) before interest and tax 228 13 18 (24) 235
Net finance expense (26) (1) (8) (31) (66)
Income tax (charge)/credit (53) (3) (3) 13 (46)
Segment profit/(loss) 149 9 7 (42) 123
Total assets 3,158 293 410 25 3,886
Total liabilities (1,673) (118) (306) (1,047) (3,144)
Capital expenditure* (62) (6) (7) - (75)
52 week period to 29 March 2025
UK UK France Corporate Total
B&M Heron B&M
£'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)
Profit/(loss) before interest and tax 530 16 48 (27) 567
Net finance expense (51) (2) (16) (67) (136)
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 26 weeks ended 26 weeks ended 52 weeks ended
27 September 2025 28 September 29 March
2024 2025
£'m £'m £'m
Revenue due to UK operations 2,469 2,397 5,029
Revenue due to French operations 280 247 542
Overall revenue 2,749 2,644 5,571
Non-current assets (excluding deferred tax) are disaggregated geographically
as follows:
As at 27 September 28 September 29 March
2025 2024 2025
£'m £'m £'m
UK operations 2,398 2,341 2,381
French operations 280 250 271
Luxembourg operations 8 5 7
Overall 2,686 2,596 2,659
The Group operates small wholesale operations, with the relevant
disaggregation of revenue as follows:
Period to 26 weeks ended 26 weeks ended 52 weeks ended
27 September 2025 28 September 29 March
2024 2025
£'m £'m £'m
Revenue due to sales made in stores 2,734 2,630 5,541
Revenue due to wholesale activities 15 14 30
Overall revenue 2,749 2,644 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 and adjusted profit are
non-IFRS measures and therefore we provide a reconciliation of these amounts
to the statement of comprehensive income below.
Period to 26 weeks ended 26 weeks ended 52 weeks ended
27 September 2025 28 September 29 March
2024 2025
£'m £'m £'m
Profit on ordinary activities before interest and tax 149 235 567
Add back depreciation and amortisation 146 134 273
EBITDA 295 369 840
Store impairment in relation to Heron (see note 5) 13 - -
Costs in relation to significant infrastructure projects 2 - 4
Costs in relation to the significant property transactions - 2 5
Costs in relation to the redomicile 3 - -
Group trading director settlement - 2 12
Non-underlying impact of foreign exchange 10 19 3
Adjusted EBITDA 323 392 864
Depreciation and amortisation (146) (134) (273)
Adjusted operating profit 177 258 591
Interest costs related to lease liabilities (42) (38) (77)
Net other finance costs (32) (28) (59)
Adjusted profit before tax 103 192 455
Adjusted tax (31) (54) (118)
Adjusted profit for the period 72 138 337
On a pre-IFRS 16 basis, the costs in relation to significant infrastructure
projects adjusting item was £3m and the total of the pre-IFRS 16 adjusting
items was £29m compared to the £28m above on a post-IFRS 16 basis (September
2024: £nil, £23m, £23m and March 2025: £5m, £25m, £24m, respectively).
Adjusted EBITDA (pre-IFRS 16), adjusted operating profit (pre-IFRS 16) and
adjusted profit (pre-IFRS 16) are calculated as follows. These are the
statements of adjusted profit that excludes the effects of IFRS 16.
Period to 26 weeks ended 26 weeks ended 52 weeks ended
27 September 2025 28 September 2024 29 March
2025
£'m £'m £'m
EBITDA (above) 295 369 840
Remove effects of IFRS 16 on EBITDA (133) (118) (245)
EBITDA (pre-IFRS 16) 162 251 595
Adjusting items (above) 29 23 25
Adjusted EBITDA (pre-IFRS 16) 191 274 620
Pre-IFRS 16 depreciation and amortisation (48) (44) (92)
Adjusted operating profit (pre-IFRS 16) 143 230 528
Net other finance costs (32) (28) (59)
Adjusted profit before tax (pre-IFRS 16) 111 202 469
Adjusted tax (31) (54) (122)
Adjusted profit for the period (pre-IFRS 16) 80 148 347
The effects of IFRS 16 on 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.
In reference to the captions in the tables above;
Store impairment in relation to Heron represents the impairment of Heron
Foods' store assets. This follows a review of the segment's recent trading
performance, and forward projection thereof. This has been considered
adjusting as it has had a meaningful and non-continuing impact on the
presented period. See note 5 for more details.
Costs in relation to significant infrastructure projects includes the
pre-operational costs of the Ellesmere Port site, disruption costs around
building and implementing the technical infrastructure to enable our DC
expansion project to proceed in France.
Each of these projects are significant in nature, with Ellesmere Port
representing the largest infrastructure project within the Group since Bedford
opened in 2020 and the French project representing a step change in the
capacity of that segment.
In France, the disruption costs experienced have been calculated by reference
to increased cost to serve per volume unit, which was driven by increased
headcount required over a specific time period. These costs have normalised
prior to the 29 March 2025 year-end, with no costs in relation to this item
expensed in the current period to date.
The overall French expansion project is scheduled to complete in early FY27
and our Ellesmere Port site is expected to be fully operational in late FY26,
further costs are expected to accrue over those time periods.
Costs in relation to significant property transactions 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.
Costs in relation to the corporate redomicile includes any fees related to the
relocation of the Group's Luxembourg entities to Jersey.
This project is significant in nature and the costs in the current financial
year are expected to be meaningful and non-recurring, and as such they have
been included in our adjusting items for this period.
The project timing will be announced in due course with further costs expected
to accrue until the end of the financial year. Whilst this project had
commenced in the prior period, the cost incurred in that period of £1m were
considered to be insubstantial and were therefore not included as an adjusting
item for that 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 have been or are expected to be accrued in relation to
this item in FY26.
Non-underlying impact of foreign exchange includes the fair value of
derivatives which have yet to mature, any gains or losses in relation to
rolled derivative contracts to future periods and any gains or losses in
relation to foreign exchange on intercompany balances only.
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:
26-week period to 27 September 2025 Statutory figures Adjusting Adjusted Impact of Adjusted
items Figures IFRS 16 (pre-IFRS 16)
£'m £'m £'m £'m £'m
Revenue 2,749 - 2,749 - 2,749
Cost of sales (1,745) - (1,745) - (1,745)
Gross profit 1,004 - 1,004 - 1,004
Depreciation and amortisation (146) - (146) 98 (48)
Administrative expenses - other (709) 28 (681) (132) (813)
Operating profit/(loss) 149 28 177 (34) 143
Share of profits in associates - - - - -
Profit/(loss) before interest and tax 149 28 177 (34) 143
Finance costs relating to right-of-use assets (42) - (42) 42 -
Other finance costs (36) - (36) - (36)
Finance income 4 - 4 - 4
Profit before tax 75 28 103 8 111
Income tax expense (22) (9) (31) 0 (31)
Profit for the period 53 19 72 8 80
26-week period to 28 September 2024 Statutory figures Adjusting items Adjusted figures Impact of Adjusted
IFRS 16 (pre-IFRS 16)
£'m £'m £'m £'m £'m
Revenue 2,644 - 2,644 - 2,644
Cost of sales (1,648) - (1,648) - (1,648)
Gross profit 996 - 996 - 996
Depreciation and amortisation (134) - (134) 90 (44)
Administrative expenses - other (627) 23 (604) (118) (722)
Operating profit/(loss) 235 23 258 (28) 230
Share of profits in associates - - - - -
Profit/(loss) before interest and tax 235 23 258 (28) 230
Finance costs relating to right-of-use assets (38) - (38) 38 -
Other finance costs (30) - (30) (0) (30)
Finance income 2 - 2 - 2
Profit before tax 169 23 192 10 202
Income tax expense (46) (8) (54) 0 (54)
Profit for the period 123 15 138 10 148
52-week period to 29 March 2025 Statutory figures Adjusting Adjusted Impact of Adjusted
items figures 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)
Administrative expenses - other (1,253) 24 (1,229) (244) (1,473)
Operating profit/(loss) 566 24 590 (63) 527
Share of profits in associates 1 - 1 - 1
Profit/(loss) 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 profit/(loss) before
interest and tax and adjusted EBITDA (pre-IFRS 16) by segment:
26-week period to 27 September 2025 UK UK France Corporate Total
B&M Heron B&M
£'m £'m £'m £'m £'m
Profit/(loss) before interest and tax 160 5 20 (36) 149
Adjusting items (above) - - - 28 28
Adjusted operating profit/(loss) 160 5 20 (8) 177
Depreciation and amortisation (pre-IFRS 16) 35 7 6 - 48
Impact of IFRS 16 (25) (1) (8) - (34)
Adjusted EBITDA (pre-IFRS 16) 170 11 18 (8) 191
26-week period to 28 September 2024 UK UK France Corporate Total
B&M Heron B&M
£'m £'m £'m £'m £'m
Profit/(loss) before interest and tax 228 13 18 (24) 235
Adjusting items (above) - - - 23 23
Adjusted operating profit/(loss) 228 13 18 (1) 258
Depreciation and amortisation (pre-IFRS 16) 33 6 5 - 44
Impact of IFRS 16 (21) (1) (6) - (28)
Adjusted EBITDA (pre-IFRS 16) 240 18 17 (1) 274
52-week period to 29 March 2025 UK UK France Corporate Total
B&M Heron B&M
£'m £'m £'m £'m £'m
Profit/(loss) before interest and tax 530 16 48 (27) 567
Adjusting items (above) - - - 24 24
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
Post-tax free cash flow is reconciled to the consolidated statement of cash
flows as follows:
Period ended 26 weeks ended 26 weeks ended 52 weeks ended
27 September 28 September 29 March
2025 2024 2025
£'m £'m £'m
Cash flows from operating activities 293 303 784
Income tax paid (47) (61) (109)
Purchase of property, plant and equipment (76) (74) (131)
Purchase of intangible assets (0) (1) (2)
Proceeds from sale of property, plant and equipment 2 16 22
Repayment of the principal in relation to lease liabilities (79) (72) (176)
Payment of interest in relation to right-of-use assets (42) (38) (77)
Post-tax free cash flow 51 73 311
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 Earnings per share
Basic earnings per share amounts are calculated by dividing the net profit for
the financial period attributable to ordinary equity holders of the parent by
the weighted average number of ordinary shares outstanding at each period end.
Diluted earnings per share 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 earnings per share 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 which have a dilutive effect on all
periods presented. The increase in the number of shares used in the
calculation of the basic earnings per share is due to the exercise of some of
these options.
The following reflects the income and share data used in the earnings per
share computations:
Period to 27 September 2025 28 September 2024 29 March
2025
£'m £'m £'m
Profit for the period attributable to owners of the parent 53 123 319
Adjusted profit for the period attributable to owners of the parent 72 138 337
Adjusted (pre-IFRS 16) profit for the period attributable to owners of the 80 148 347
parent
Thousands Thousands Thousands
Weighted average number of ordinary shares for basic earnings per share 1,004,363 1,002,956 1,003,386
Dilutive effect of employee share options 1,567 2,104 1,869
Weighted average number of ordinary shares adjusted for the effect of dilution 1,005,930 1,005,060 1,005,255
27 September 2025 28 September 2024 29 March
2025
Pence Pence Pence
Basic earnings per share 5.2 12.3 31.8
Diluted earnings per share 5.2 12.3 31.8
Adjusted basic earnings per share 7.2 13.8 33.6
Adjusted diluted earnings per share 7.2 13.7 33.5
Adjusted (pre-IFRS 16) basic earnings per share 8.0 14.7 34.6
Adjusted (pre-IFRS 16) diluted earnings per share 7.9 14.7 34.5
5 Impairment review
Heron have a goodwill balance of £88m which was recognised when the Group
acquired the business in August 2017. The carrying value of the assets and
liabilities in respect of Heron are disclosed in note 2.
Our convenience retail brand, Heron, has underperformed against management
expectations, specifically in relation to their sales performance in the half,
representing an indicator of impairment. As such management conducted an
impairment review as at the half year date, on a value-in-use basis, in
advance of our annual goodwill impairment review which we will perform for the
purposes of the year end financial statements.
The annual goodwill impairment review will follow a full board review of
performance, and creation of operational and financial plans in the usual
annual cycle of the business, incorporating a measurable period of performance
against the previous approved plan, and management actions currently in
progress to address the H1 underperformance.
The review we have carried out used the past 12 months performance data as a
baseline, and projected forwards based upon a range of inputs, the key
assumptions amongst which were as follows:
Period ended 27 September 29 March
2025 2025
Discount rate (pre-tax) 13.1% 13.1%
Inflation rate for expenses* 3.0% / 2.0% 2.8% / 2.0%
Like-for-like sales* 1.0% / 2.25% / 2.5% 3.0% / 2.0%
Change in gross margin* (56) / (28) / 0 bps 0 bps
Terminal growth rate 1.7% 1.7%
* The first figure represents the impact in year one of the calculation, for
gross margin and like-for-like sales figures the second represents the figure
for year two of the calculation, and for all the final figure represents the
assumption beyond those time periods.
These assumptions are reflected for five years in the forecasts and beyond
this a perpetuity calculation is performed using the assumption made regarding
terminal growth rates.
The figures used for the assumptions were determined as follows;
Discount rate: This is calculated using a CAPM model which includes external
estimates for the risk-free rate, cost of debt, equity beta and market risk
premium. It has been adjusted in relation to the size of the entity to which
it relates.
Inflation rate for expenses: This is based upon UK CPI as projected in
official reports from the Bank of England.
Like-for-like sales growth: This is an estimate made by management which
encompasses the historical sales trends of Heron and management's assessment
of how the entity will perform in the context of the current economic
environment. Management have revised downwards the projected like-for-like
sales growth based upon a slower than previously anticipated return to
profitable growth for the entity.
Change in gross margin: The assumption reflects that management has made a
price investment as part of the initial recovery plan for the entity, and this
is reflected from the start of the projected period. After this point it is
anticipated that management will recover gross margin to the initial level
after a period of two years.
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 the UK.
As the goodwill impairment review takes place over the asset base on the Heron
segment, before we carry it out, we first perform a test over the store estate
of the business specifically, using the same assumptions as above. This
resulted in an impairment of £6m to the right-of-use assets and £7m to
property, plant and equipment.
The goodwill review indicated that no goodwill impairment was required, but
that a lower level of headroom existed compared to the last year end date
(£32m, FY25: £99m).
To quantify the sensitivity, the below tables demonstrate the point at which
the model used in the review would suggest an impairment would become
necessary, where that input was changed as suggested and with all other inputs
held level.
Period ended 27 September 29 March
2025 2025
Discount rate (pre-tax) 15.2% 19.5%
Inflation rate for expenses (year one) 5.5% 14.8%
Like-for-like sales (year one) (1.0)% (3.5)%
Change in gross margin (permanent) (68)bps (197)bps
Terminal growth rate (0.4)% (6.4)%
Whilst the above numbers should be taken in the context that they do not fully
reflect management actions to accelerate the recovery of the business,
continued and sustained underperformance on a like-for-like sales or gross
margin basis, or significant disruption or uncertainty in the UK macro
environment could create a position in which a goodwill impairment becomes
necessary.
In summary the review indicated the following impairments be made and due to
the meaningful, non-continuing, impact of the result, this has been treated as
adjusting (see note 3),and recorded in administration costs.
Impairment recorded £'m
Goodwill -
Right-of-use assets 6
Property, plant and equipment 7
Total 13
Other Entities
In respect of B&M UK and B&M France, whilst performance has been below
expectation and the Group's share price has reduced, an indicator based review
indicates that both are operating well within the headroom reported at the end
of financial year 2025 and the sensitivities reported at that point, which are
included below for reference, showing the point at which the calculation would
first require an impairment.
B&M UK B&M France
Headroom on impairment review (£'m, €'m) 3,804 937
Discount rate (pre-tax) 30.8% 47.0%
Inflation rate for expenses (year one) 60.6% 88.9%
Like-for-like sales (year one) (19.8)% (23.8)%
Change in gross margin (permanent) (793)bps (1,190)bps
Terminal growth rate (35.3)% (40.8)%
B&M UK and B&M France will both be tested for impairment as part of
our annual goodwill impairment exercise which we will perform for the purposes
of the year end financial statements.
6 Taxation
The continuing tax charge for the interim period has been calculated on the
basis of the corporation tax rate for the full period of 25% in the UK and
France, and then adjusted for allowances and non-deductibles in line with the
prior periods (September 2024 and March 2025: same).
7 Share capital
Nominal value Number of shares
Allotted, called up and fully paid £'m
B&M European Value Retail S.A. Ordinary shares of 10p each;
At 30 March 2024 100 1,002,790,896
Shares issued due to exercise of employee share options 0 993,033
At 28 September 2024 100 1,003,783,929
Shares issued due to exercise of employee share options 0 37,942
At 29 March 2025 100 1,003,821,871
Shares issued due to exercise of employee share options 1 1,216,385
At 27 September 2025 101 1,005,038,256
Ordinary Shares
Each ordinary share ranks pari passu with each other ordinary share and each
share carries one vote.
In addition to the issued share capital, the company has an authorised but
unissued share capital of 2,968,400,351 ordinary shares.
The outstanding share options can be summarised as follows:
27 September 2025 28 September 2024 29 March
2025
Vested, available to exercise 7,425 5,569 5,569
Not vested, not subject to conditions (in holding) 979,026 1,457,454 1,511,312
Not vested, subject to conditions 4,106,101 3,197,435 2,773,722
Total outstanding share options 5,092,552 4,660,458 4,290,603
For the dilutive effect of these see note 4.
8 Financial liabilities - borrowings
27 September 2025 28 September 2024 29 March
2025
£'m £'m £'m
Current
High yield bond notes - 155 155
Revolving facility bank loan 30 70 -
B&M France loan facilities 6 11 5
36 236 160
Non-current
High yield bond notes 743 495 742
Term facility bank loan 222 222 222
B&M France loan facilities 16 11 13
981 728 977
Increase of revolving credit facility
On 3 July 2025, the Group and the banking syndicate confirmed the increase of
the revolving credit facility by £25m, to £250m. There were <£1m of fees
associated with the increase which have been expensed through other finance
costs in the consolidated statement of comprehensive income.
Bond refinancing
In the prior year, 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 were placed on money market
deposit and ring-fenced for the purpose of repaying the remaining £156m of
high yield bond notes (2020), which was completed in July 2025. Transaction
fees of £3m were capitalised and are included in the carrying value of these
bonds.
Extension of term bank facilities
In the prior period, 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.
Loan details
The French loan facilities are held in Euros. All other borrowings are held in
sterling.
The term facility bank loan and high yield bonds have a book value lower than
the cash amount that is outstanding due to the allocation of fees to these
facilities on their inception.
The current applicable interest rates, gross cash debt and maturities on the
Group's loans are as follows:
Interest rate Maturity 27 September 28 September
2025 2024 29 March
2025
% £'m £'m £'m
Revolving credit facility 1.75% + SONIA Oct-25 30 70 -
Term facility bank loan A 2.00% + SONIA Mar-30 225 225 225
High yield bond notes (2020) 3.625% N/A - 156 156
High yield bond notes (2021) 4.000% Nov-28 250 250 250
High yield bond notes (2023) 8.125% Nov-30 250 250 250
High yield bond notes (2024) 6.500% Nov-31 250 - 250
B&M France - BNP Paribas 3.30 - 3.97% Feb 28 - Aug-29 7 9 8
B&M France - Caisse d'Épargne 2.60% Nov-29 1 5 1
B&M France - CIC 0.71 - 2.75% Jan 27 - Dec 29 4 1 4
B&M France - Crédit Agricole 0.39 - 0.81% Oct 25 - Jan 28 0 3 0
B&M France - Crédit Lyonnais 0.69 - 3.65% Mar 27 - Jul 29 8 4 4
B&M France - Societe Generale 2.70% May-30 2 - -
1,027 973 1,148
The increased revolving facility of £250m is committed until March 2030.
All B&M France facilities have gross values in Euros, and the values above
have been translated at the period-end rates of €1.1463/£ (September 2024:
€1.1994/£ and March 2025: €1.1955/£).
The Group uses the following definition of net debt:
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.
27 September 2025 28 September 2024 29 March
2025
£'m £'m £'m
Interest bearing loans and borrowings 1,027 973 1,148
Less: cash (168) (185) (217)
Less: short-term deposits - - (150)
Net debt (pre-IFRS 16) 859 788 781
Total lease liabilities 1,461 1,379 1,430
Net debt (post-IFRS 16) 2,320 2,167 2,211
The Group's leverage ratio is defined as net debt divided by
last-twelve-months adjusted EBITDA (note 3) and calculates to be 1.60 on a
pre-IFRS 16 basis and 2.91 on a post-IFRS 16 basis (September 2024: 1.24 and
2.47; March 2025: 1.26 and 2.55, respectively).
9 Reconciliation of profit before tax to cash generated from
operations
26 weeks ended 26 weeks ended 52 weeks ended
27 September 28 September 29 March
2025 2024 2025
£'m £'m £'m
Profit before tax 75 169 431
Adjustments for:
Net interest expense 74 66 136
Depreciation of property, plant and equipment 46 43 88
Depreciation of right-of-use assets 99 90 183
Impairment of right-of-use assets 6 0 3
Impairment of property, plant and equipment 7 - -
Amortisation of intangible assets 1 1 2
Profit on sale and leasebacks - (1) (0)
Loss/(profit) on disposal of property, plant and equipment 1 (0) (0)
Charge on share options 2 2 3
Change in inventories (148) (234) (109)
Change in trade and other receivables (6) (9) (3)
Change in trade and other payables 126 157 41
Change in provisions (0) 0 7
Share of profits from associates - - (1)
Loss resulting from fair value of financial derivatives 10 19 3
Cash generated from operations 293 303 784
10 Financial instruments
Fair value
The fair value of our corporate bonds, which are 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 27 September 2025 28 September 2024 29 March 27 September 2025 28 September 2024 29 March
£'m £'m 2025 £'m £'m 2025
£'m £'m
High yield bond notes (2020) - 152 154 - 155 155
High yield bond notes (2021) 241 233 231 249 248 249
High yield bond notes (2023) 264 267 260 247 247 247
High yield bond notes (2024) 253 - 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 27 September 28 September 29 March
2025 2024 2025
Financial assets: £'m £'m £'m
Fair value through profit and loss
Forward foreign exchange contracts 2 - 2
Fair value through other comprehensive income
Forward foreign exchange contracts 3 - 1
Loans and receivables
Cash and cash equivalents 168 185 217
Money market deposit - - 150
Trade receivables 9 12 15
Other receivables 31 21 18
As at 27 September 2025 28 September 29 March
2024 2025
Financial liabilities: £'m £'m £'m
Fair value through profit and loss
Forward foreign exchange contracts 13 21 7
Fair value through other comprehensive income
Forward foreign exchange contracts 14 28 6
Amortised cost
Lease liabilities 1,461 1,379 1,430
Interest-bearing loans and borrowings (excluding corporate bonds) 274 314 239
Trade payables 490 505 402
Other payables 19 19 30
Financial instruments at fair value through profit and loss
The financial assets and liabilities through profit or loss reflect the fair
value of those foreign exchange forward contracts that are intended to reduce
the level of risk for expected sales and purchases.
The forward foreign exchange contracts have been valued by the issuing bank,
using a mark to market method. The bank has used various inputs to compute the
valuations, and these include inter alia the relevant maturity date strike
rates and the current exchange rate.
11 Provisions
The Group is subject to an ongoing investigation by the UK Environment Agency
in relation to our historical compliance with UK Waste Electrical and
Electronic Equipment Regulations and Batteries and Accumulators Regulations.
The investigation 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 27 September 2025.
12 Related party transactions
The Group has transacted with the following related parties over the presented
periods:
Multi-lines International Company Limited, a supplier, and Centz Retail
Holdings, 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.
Purchases have been made in prior periods and the overall position is
summarised in the table below with all related party bondholders being Arora
related parties.
26 weeks ended 26 weeks ended 52 weeks ended
27 September 28 September 29 March
2025 2024 2025
£'m £'m £'m
SSA Investments (4.000%, 2028 Bonds) - 99 99
Total - 99 99
The related party interest expense recorded on these bonds was £nil in the
period (September 2024: £2m expensed in the period, £1m accrued at the end
of the period and March 2025: £4m, £2m respectively).
The following tables set out the total amount of trading transactions with
related parties included in the statement of comprehensive income:
26 weeks ended 26 weeks ended 52 weeks ended
27 September 28 September 29 March
2025 2024 2025
£'m £'m £'m
Sales to associates of the Group
Centz Retail Holdings Limited 15 13 29
Total sales to related parties 15 13 29
26 weeks ended 26 weeks ended 52 weeks ended
27 September 28 September 29 March
2025 2024 2025
£'m £'m £'m
Purchases from associates of the Group
Multi-lines International Company Ltd 138.2 158.1 234.3
Purchases from parties related to key management personnel
Fulland Investments Limited - 0.1 0.3
Golden Honest International Investments Limited - 0.1 0.2
Hammond Investments Limited - 0.1 0.3
Joint Sino Investments Limited - 0.1 0.2
Ocean Sense Investments Limited - 0.1 0.3
Total purchases from related parties 138.2 158.6 235.6
There are no leases held with related parties at the end of this period. At
the end of prior periods, 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 Right-of-use Lease Net
charge charge charge asset liability liability
£'m £'m £'m £'m £'m £'m
Period ended 28 September 2024
Rani Investments 0 0 0 0 (1) (1)
Ropley Properties 1 0 1 7 (10) (3)
TJL UK Limited 1 0 1 9 (11) (2)
Triple Jersey Limited 4 2 6 58 (70) (12)
6 2 8 74 (92) (18)
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)
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.
Trade receivables 27 September 28 September 29 March
2025 2024 2025
£'m £'m £'m
With associates of the Group:
Centz Retail Holdings Limited 4 2 2
Multi-lines International Company Ltd - - 1
Total related party trade receivables 4 2 3
Trade payables 27 September 28 September 29 March
2025 2024 2025
£'m £'m £'m
With associates of the Group:
Multi-lines International Company Ltd 51 56 5
With parties related to key management personnel:
Rani Investments - 0 -
Ropley Properties Ltd - 1 0
TJL UK Limited - 0 0
Triple Jersey Ltd - 2 2
Total related party trade payables 51 59 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 £18m
(September 2024: £13m; March 2025: £3m) held within a supply chain facility.
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.
The future lease commitments on the related party properties were:
26 weeks ended 26 weeks ended 52 weeks ended
27 September 28 September 29 March
2025 2024 2025
£'m £'m £'m
Not later than one year - 18 17
Later than one year and not later than two years - 16 17
Later than two years and not later than five years - 43 40
Later than five years - 32 31
- 109 105
Further details regarding the Group's associates and transactions with key
management personnel are disclosed in the annual report.
13 Commitments
At the period end, there were £4m of contractual capital commitments not
provided within the Group financial statements (September 2024: £27m, £20m
of which related to the development of the Ellesmere Port imports centre; and
March 2025: £14m).
14 Post balance sheet events
On 20 October 2025, the Group announced that Mike Schmidt intended to step
down from his role as Chief Financial Officer. On 12 November, Helen Cowing
was appointed as Interim Chief Financial Officer and will be appointed to the
Board on 1 December. Mike Schmidt will now complete an orderly handover of
responsibilities before leaving the company shortly.
15 Directors
The directors that served during the period were:
Tiffany Hall (Chair)
Tjeerd Jegen (CEO) (appointed 16 June 2025)
Mike Schmidt (CFO)
Paula MacKenzie
Oliver Tant
Hounaїda Lasry
Nadia Shouraboura
Euan Sutherland
Alex Russo (retired 30 April 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.
All directors served for the whole period except where indicated above.
DIRECTORS' RESPONSIBILITIES STATEMENT
We confirm that to the best of our knowledge:
· The condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted for use in the
EU;
· The Interim Management Report includes a fair review of the information
required by:
a. DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first 26 weeks of
the financial period and their impact on the condensed set of interim
financial statements; and a description of the principal risks and
uncertainties for the remaining 26 weeks of the reporting period; and
b. DTR 4.2.8R of the Disclosure and Transparency Rules, being related
party transactions that have taken place in the first 26 weeks of the current
financial period and that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last annual report that could do so.
By order of the Board
Tjeerd Jegen
Chief Executive Officer
12 November 2025
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