B&M: Profits at discount retail chain set to be lower than expected

The company announced that it now expects its profits to land between £605m and £625m, down from a previous estimate of around £650m.

It said the new figure “reflects the current trading performance of the business, an uncertain economic outlook and the potential impact of exchange rate volatility on the valuation of our stock and creditor balances.”

B&M said its board is in the “advanced stages” of a recruitment process to appoint a new CEO, and that it would provide an update in due course.

Mr Russo joined B&M in 2020, before taking the role as CEO role in September of 2022.

He said: "I have thoroughly enjoyed my time at B&M since joining in 2020.

“The business has been successfully steered through the pandemic years and is now larger and stronger with group revenues increasing by almost 50 per cent and cash distributions to shareholders in excess of £2.0bn during my tenure.

“It has been professionally rewarding to assemble and work with a high quality leadership team and to retire leaving growing businesses with great potential in both UK and France. I wish the Board and the leadership team every success in the years ahead."

The company said its remuneration committee had “exercised its discretion” to allow Mr Russo to be eligible for an annual bonus for the current financial year and to retain his awards under the company's share plans.

B&M has said it will release a post close trading update at the end of April.

Tiffany Hall, chair of the board at B&M, added: "I would like to thank Alex for his commitment, energy, dedication and hard work since joining the business in 2020 and, in particular, since becoming CEO in September 2022.

“Alex has increased our store footprint in both UK and France and driven a relentless focus on high operational standards and low costs, enabling the Company to provide great products and everyday low prices to our customers whilst generating continued strong cash returns for our shareholders.

“We wish him well for the future."

In recent months, a number of retailers have warned of worsening conditions in the UK after October’s Budget saw the Government raise taxes for companies.

As part of the Budget, Chancellor Rachel Reeves announced a rise in employer’s National Insurance contributions, as well as a lowering of the threshold at which businesses begin paying the contributions.

Though many businesses have since responded negatively to the rises, the Government has said the changes will help “fix the foundations of the public finances and invest in public services”, arguing that the move will raise revenue for the NHS and help to fund state pensions.

Many retail businesses also faced further challenges over last year’s crucial Christmas period when sales fell compared to the same time in 2023.

Although recent surveys have pointed to improved footfall at the start of 2024, a number of the UK’s biggest supermarket chains, including Sainsbury’s and Tesco, have recently announced that they will be cutting jobs.