Discount retailer B&M faced its second profit warning within three months due to the need to reduce prices on remaining stock. The company, which has seen its share price drop by half since last May, introduced a “Back to Basics” strategy in October to enhance pricing competitiveness and streamline its product offerings across various categories.
In a recent trading update, B&M reported a 0.6% decline in same-store sales in the UK for the crucial three-month period ending on December 27, inclusive of the Christmas season. The company lowered its full-year profit forecast to £440-475 million, down from the previous guidance of £470-520 million, signaling a substantial decrease from the £620 million profit recorded the previous year. Aside from market pressures, an accounting error in October, omitting £7 million in overseas freight costs, further impacted the company’s financial performance.
Tjeerd Jegen, the CEO appointed last year, emphasized the company’s commitment to investing in clearing discontinued product lines and implementing pricing strategies to strengthen B&M’s long-term position, despite the short-term financial implications.
In other news, HMRC is set to introduce a new points-based system to replace automatic fines within the self-assessment tax regime, aiming to revamp the tax system. The current penalty system for late tax returns will be replaced by a point-based scheme, where repeat offenses incur escalating fines. Additionally, the Making Tax Digital initiative will require more frequent earnings reporting, with penalties for missed deadlines.
Waterstones, the book retailer, reported a modest rise in annual profits, attributing the increase to effective cost control measures amid rising worker-related expenses. The company’s profitability improved despite challenges such as increased national living wage and employer national insurance contributions.
The UK welcomed a new bank, This Bank, offering competitive savings products with a focus on customer value. Meanwhile, Wetherspoons’ founder highlighted ongoing challenges faced by pubs, including pricing competition from supermarkets, as the government prepares to unveil relief measures for the struggling sector.
Lastly, the Black Sheep Brewery has been saved through a £4.5 million acquisition, securing 145 jobs. The brewery will merge with Saltaire Brewery to form the Great British Drinks Company under new ownership, pledging further investments in the business.
The Warm Home Discount scheme, offering rebates on electricity bills, continues to support eligible households in managing energy costs. The initiative provides financial relief during the colder months, highlighting the importance of energy assistance programs for vulnerable individuals and families.