B&M reported an 18% jump in profit and 20% increase in revenue to £2.4billion for the year ended March 25, when it opened 53 new sites in the UK.

Group pre-tax profits soared by 18.4% to £182.9m during the year, whilst UK sales rose by the same amount to £2.25billion, up 3.1% on a like-for-like basis.  

Confirming its commitment to investing in extending its portfolio, the discount retailer has also revised its store target in the UK from 850 to “at least 950” and confirmed plans to open between 40 and 50 in the next financial year. It also plans to further expand its international business, opening an additional 15 outlets in Germany.

The company said that extending its reach and making its retail offer more accessible to customers remains “a top priority”, adding that the new stores have performed well and that returns on investment remain attractive.

As part of its portfolio expansion during the year, B&M relocated nine UK stores, replacing smaller, older, “lower-contribution bargain format stores”, many of which were coming to the end of leases, with its larger, modern Homestore format, which offers “substantially higher revenue and profit potential”, said the company. Some of these new units were purpose built and, going forward, the company predicts that a larger proportion of its new UK stores are likely to be purpose-built Homestores, specifically targeting retail park locations.

Chairman Sir Terry Leahy said of the results: “B&M has delivered further strong increases in sales, profits and cash generation whilst pushing on with rapid store expansion in line with our strategy for growth.

There was a robust return of trading momentum during the second half, which has continued into the early weeks of the new financial year, affirming that B&M’s offer resonates well with customers during a period of economic uncertainty and profound structural change in retailing.”

The business is ploughing ahead with its expansion plans, shrugging off worries about consumer confidence and rising costs. B&M chief executive Simon Arora explained the business had worked hard to keep costs down but said: “B&M has never been in better shape.”

Inflation reached 2.7% in the year to April 2017 but Mr Arora said the business is confident of its proposition and the state of the business: “For many commentators, the current economic uncertainty is generating concern about UK consumers and the impact on the retail sector. At B&M we know we are at our best when household budgets are under pressure and consumers are looking even harder at making savings.

“In an environment of rising prices, we think that consumers become even more receptive to discount propositions, such as ours. We are therefore confident that the business is well-positioned to deliver further growth in the year ahead, even in an uncertain political environment or challenging economy.”