B&M European Value Retail SA (LON:BME) announced it will pay a further special dividend of 20p per share though it cuts earnings guidance.


This will be on top of the special payout of 25p per share and 4.3p ordinary payout, which the discounter said it would dish out at its half-year results in November.


READ: B&M could pay out more special dividends in the future, says Liberum as it resumes stock coverage at buy


Full-year adjusted underlying earnings (EBITDA) are now expected to be GBP540-570mln, down from the GBP600-650mln target given last month, after the company volunteered to pay GBP80mln in business rates in line with many other retailers given essential status by the government.


In the 13 weeks to December 26, the newly FTSE 100-listed group’s third quarter, revenue surged 22.5% to GBP1.4bn, with UK stores up 21%.


However, Babou and B&M France revenues dipped 1% reflecting lockdown restrictions across the Channel.


B&M UK now has 673 stores and remains on track to open a further 18 in the fourth quarter, while Heron Foods, which specialises in frozen produce, now has 298 stores with eight additions expected in the fourth quarter, and the French business has a total portfolio of 104 shops.


“The momentum again reflects the strength of B&M’s discount, general merchandise offer and retail park sites, which leave it primed to benefit during further lockdowns, as well as being a long-term structural winner,” analysts at Liberum commented.


Shares dipped 1% to 527p on Thursday morning.


–Adds analyst comment, shares–

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News

Latest News

The oil market remains in positive territory with sentiment and stronger fundamentals driving the trend. ...