THE City should have cheered B&M Bargains ’ rise in sales and profits yesterday, but the firm’s decision to keep the media and investors in the dark bit it on the behind. Shares in B&M fell by up to 7 per cent as it spent much of the day as the biggest loser on the FTSE 100 . B&M European Value Retail’s group sales rose by 10.
1 per cent to £5.5billion for the year to March 30 while its pre-tax profits rose by 14 per cent from £436million to £498million. Adjusted earnings — its preferred measure that strips out interest, tax , depreciation and amortisation — rose by 9.
7 per cent to £629million. Boss Alex Russo said it had been “another good year” and the firm was “confident in our outlook”. Unusually for a FTSE 100 company, Mr Russo refused to speak to the financial media alongside the annual results.
Investec analyst Ben Hunt issued a note on the results saying “more questions than answers” while Shore Capital analyst Clive Black said it was “a curious statement”. Companies typically give an update on trading but B&M has decided to stop giving guidance about how it is faring. As a result, Mr Black said it was “a very backward-looking update that we sense could spook the market”.
Mr Russo is understood to have told analysts that “the weather hasn’t been good”, suggesting that its usual sales of garden and patio furniture had been weaker than normal. But the company did not give any clarification. Mr Hunt told The Sun: “The lack of comm.
