Budget retailer B&M saw its annual profits rise by 25.4 per cent to £229.3million, as cash-strapped consumers turned to the chain for everyday essentials.
In the year ending 31 March, the group’s revenues increased by 22.4 per cent to £3billion.
The company’s billionaire boss, Simon Arora, said the group was performing well because it is ‘highly relevant for the current difficult economic environment.’
Growing fast: Budget retailer B&M saw its annual profits rise by 25.4 per cent to £229.3million
He added: ‘The business is well placed for continued profitable, long-term growth. In a retail sector beset by structural challenges B&M’s unique, disruptive model stands out as a success story.’
B&M, which is listed on the FTSE 250 index, has seen its share price rise 1.23 per cent or 4.60p to 377.60p.
In the first quarter of its current financial year, B&M said its like-for-like sales had risen by 3.1 per cent.
During the last year, B&M opened 48 stores across the UK and closed eight. It plans to open a further 45 over the next year.
In total, B&M now boasts 576 stores and is growing rapidly in the home counties and further afield in Europe.
In its latest results, B&M posted a chart purporting to show its revenue growth against its competitors
Openings: During the last year, B&M opened 48 stores across the UK and closed eight
Last year, B&M, which is chaired by former Tesco boss Sir Terry Leahy, spent £152million to acquire Heron Food Group, which B&M claimed had boosted its annual figures.
B&M said shoppers spend an average of £13.85 at its stores and live around a 10 minute drive away from their shop.
The group said: ‘We can have multiple stores only 10 minutes apart, and still generate healthy returns.
‘Clustering stores has benefits for logistics, area management and brand recognition.’
The group has ploughed £44million into developing a new 1million sq ft warehouse in Bedford.
Amisha Chohan, an equity analyst at Quilter Cheviot, said: ‘Today’s prelims are in line with expectations and the confident outlook should reassure the market.
‘The strategy remains intact – a structurally well positioned discounter, with a strong UK and international store roll-out story – and the valuation remains attractive, with a 2.2% dividend yield.
‘B&M is structurally well-positioned, as real disposable income in the UK continues to decline. With a best in class management team, we believe B&M is an impressive business, as one of the market leaders in a structurally growing market. It has a strong track record with precedents for future growth potential.’