Discounter B&M Bargains' profits rocket 43% after strong year
By Alex Lawson2013-03-19T08:05:00+00:00
B&M Bargains recorded a 43% surge in profits last year as pressure on disposable income drew more shoppers to the value chain.
The discounter posted pre-tax profits of £90.6m while sales rose 31.5% to £937.2m in the year to December 31.
The figures reflect a strong year for the discounter, in which private equity firm Clayton, Dubilier & Rice bought what the retailer described as a "significant stake" in a deal thought to have valued the business at about £965m. Former Tesco chief executive Sir Terry Leahy was named chairman on completion of the deal.
The Liverpool-based retailer opened 53 stores last year to bring its estate to 324.
Co-managing director Simon Arora said: "The company's growth is testament to the fact that everyone loves a bargain. Our colleagues have delivered another successful year through hard work and great teamwork."
B&M Bargains, alongside discounters including Poundland, Aldi and Lidl, has enjoyed strong growth and store expansion during the recession as cash-strapped consumers search out cut-price goods.
Its expansion is set to be supported by a £20m, 500,000 sq ft distribution centre which is scheduled to open next year. It is in addition to the existing 620,00 sq ft warehouse. The two warehouses will eventually be integrated with one servicing food and the other non-food.
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