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B&M ups earning expectations after strong lockdown trading

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Seven new B&M stores were opened in the UK though four were also closed.
Seven new B&M stores were opened in the UK though four were also closed.

Discount retailer B&M this morning upped its earnings expectations following a strong performance during the latest coronavirus lockdown.

The chain said earnings before interest, tax, depreciation and amortisation (EBITDA) for this financial year will be between £590m to £620m.

The latest forecast accounts for the voluntary payment of business rates, amounting to around £80m.

It previously expected to post EBITDA of £540m to £570m.

B&M said revenues and margins have remained strong, particularly in its UK business.

However it warned that group sales will shortly annualise against the elevated sales seen at this time last year, which were driven by stockpiling in March 2020.

“This, together with the unknown impact of changes to restrictions in 2021, creates significant forecasting challenges which will persist well into the new financial year,” B&M said in a statement.