B&M: FTSE 250 shares plunge as profit and job cuts revealed
Shares in B&M have plunged by more than ten per cent after the retailer revealed a lower profit, rising debt and job cuts.
The Liverpool-headquartered company, which is a member of the FTSE 250 index, reported a pre-tax profit of £431m for the 12 months to 29 March, 2025, down from the £498m it achieved in the prior year.
Figures filed with the London Stock Exchange also show the chain’s net debt increased in the year by almost six per cent to £781m while the average number of people B&M employed in the 12 months fell from 41,115 to 40,641.
However, B&M’s group revenue did rise in the year from £5.3bn to £5.5bn.
Off the back of the results being revealed, shares in B&M have fallen by more than ten per cent to under 300p each.
A year ago, shares in the chain were changing hands for more than 500p.
Chain warns of rising costs
Addressing its financial performance, B&M said: “Despite operational and market challenges in FY25 the group remains well-positioned for the future by continuing to offer customers great value on best-selling products.
“The business model, focused on a disciplined approach to limited-assortment value retailing and cost control, remains robust.
“The underlying market trend towards discount retail continues, and the group’s value proposition will continue to resonate with consumers navigating ongoing economic pressures.
“Initiatives are in place to address the underperformance in FMCG [fast-moving consumer goods] categories and drive average selling prices in general merchandise.
“Continued store expansion in the UK and France, supported by investments in distribution infrastructure, provides a clear path for growth.
“The group recognises that FY26 will bring retail sector-wide challenges of increased minimum wage costs, higher employee National Insurance and other taxes, and inflation on input costs.
“Work continues to reduce the impact of these pressures, through driving productivity improvements and sales volume growth.
“he impact of these additional costs and mitigations are reflected in the current range and median of analyst consensus operating profit forecasts for FY26.
“With a robust model, clear growth pathways, and targeted strategic initiatives, the Group is strongly positioned to capitalise on market opportunities and generate significant long-term value for shareholders through disciplined growth and continued cash generation.”
A ‘poor year’ for B&M
Reacting to B&M’s results Russ Mould, investment director at AJ Bell, said the retailer had suffered a “poor year” in which it should have “thrived in a period where consumers were watching their pennies”.
He added that B&M should have “mopped up extra business from people trading down from more expensive options, while also being a shop of choice for cash-strapped individuals wanting bargains” and that the arrival of a new chief executive “cannot come soon enough”.
Mould said: “Investors will be looking for the new boss to do a thorough review of the business, work out what’s gone wrong, do a ‘kitchen sink’ job and outline a plan to get back on top.
“B&M is quite a big beast in the world of retail, so this might not be a quick fix.
“The lack of commentary on current trading is unhelpful, leaving investors guessing as to whether the recent sunny weather has driven an improvement in footfall and sales.
“However, it does allude to ongoing cost pressures, meaning the company needs to make hay while the sun shines.
“For now, it’s a waiting game until the new CEO has time to look under the bonnet and fine-tune the strategy.”