UK variety goods value retailer, B&M, has announced its preliminary results for the 52 weeks to 30 March 2019. The results show group revenues increased by 17.1% to £3,486.3m, compared to 2018 which was £2,976.3m. B&M has seen revenue growth of 8.7%, including Like-for-Like revenue growth of 0.7% for the year, including 5.8% in the fourth quarter, unadjusted for Easter timing. Group profit before tax increased by 8.7% to £249.4m for the 52 week period, an upward figure from last year's £229.3m, however results showed diluted earnings per share 20.5p compared to 2018's 18.6p.

The figures showed an adjusted EBITDA growth of 13.5% to £297.0m (2018: £261.7m), with a 45bps increase in margin to 10.6% of revenue. B&M have said to be making Important progress clearing out slow-moving inventory in both Germany and France with "more work to be done" to implement the direct sourcing model in those markets.

Cash generated from operations of £259.4m for the 52 week period (2018: £242.0m), year-end net debt of £621.6m and net debt to EBITDA of 1.99x, which equates to 1.75x excluding the capital expenditure incurred to date on the Bedford distribution centre (2018: 1.72x)

Recommended final dividend increased to 4.9p per share (FY18: 4.8p) to be paid on 2 August 2019, bringing full year ordinary dividend to 7.6p per share, an increase of 5.7% 

Although high street spending is seeing a decline, discount and value stores like B&M are seeing an increase in revenue and the opportunity for further growth. 44 new B&M stores have opened in the period and at least a further 50 new stores are planned for this financial year, benefiting from plentiful availability of attractive new store opportunities.

B&M have also announced a new 1m sq ft distribution centre is under construction in Bedford, "this is to support UK store expansion needs for foreseeable future", which the company has said will be on schedule for January 2020 commissioning, with rental and commissioning costs of £12m being incurred in FY20 before operational efficiencies are realised in FY21.

Chief executive of B&M, Simon Arora, said: "B&M has again delivered strong results against the challenging backdrop of continued structural change in our industry, rising costs and uncertain times for consumers, demonstrating that its value credentials remain as resonant as ever with customers, whether they need a bargain or just enjoy one.

"We have made important progress in establishing platforms for further long term expansion in both Germany and France although there is much work to be done to implement the disruptive, value-led B&M model in these large new markets.

We enter the new financial year with renewed trading momentum particularly in the UK, a high quality new store expansion programme in place, and investing in our new infrastructure to support future growth. I'm confident B&M is well-positioned to deliver further strong progress in the current year and beyond."