B&M European Value Retail S.A. (B&M) is a general merchandise discount retailer in the United Kingdom, Scotland, Wales and Northern Ireland.B&M also has 49 stores in Germany, after having recently acquired an 80 per cent stake in Jawoll, a variety goods retailer based in the country's north west.
. B&M stores offer a broad range of grocery and non-grocery products across a wide range of price points. B&M stores product offering consists of Grocery products and Non-grocery products. The Company’s grocery products are branded fast moving consumer goods (FMCG) products, which include household consumables, such as cleaning supplies, health and beauty products, confectionery, drinks and ambient food products. Non-grocery products include household textiles, homewares, furniture, toys, seasonal goods, electrical goods and clothing. This includes seasonal merchandise for Christmas, Halloween, Easter, Valentine’s Day and the back to school period, along with seasonal winter and summer products.B&M European Value Retail SA trades from 400 stores with stores located across the UK with a range of High Street and Out of Town Locations. It enjoys some 150 million shopper visits per year and introduce some 50 new lines every week. Employs over 19,000 staff.


http://www.bmstores.co.uk/about-bandm-stores

(ShareCast News) - B&M European Value Retail's shares received a boost on Wednesday after Canaccord Genuity raised its rating on the stock to 'buy' from 'hold' and lifted the target price to 295p from 265p.
Canaccord said it remains positive on the variety retailer's UK prospects and is "sanguine" on concerns about the retail market following Brexit's impact on the sterling.

The broker believes B&M is well-equipped to negate market worries.

"Its growing international buying scale should mitigate the impact of weaker sterling on input prices and gross margins," Canaccord said.

"With all retailers exposed to foreign exchange weakness, an inflationary environment actually serves to increase B&M's price differential and so enhance its value credentials."

B&M has grown its business internationally with the expansion of its German retailer Jawoll, purchased in 2014.

Canaccord expects Jawoll will open about 400 stores in Germany, generating more than €1.1bn in turnover and €120m in earnings before interest, tax, depreciation and amortisation (EBITDA) at maturity based on an average sales performance and EBITDA margin.

Canaccord also sees B&M continuing to grow market share in the Value sector in the UK on the back of plans to open about 50 stores per year. The broker pointed to Verdict forecasts for growth in spending at discounters and budget retailers of 35% to £25.6bn between 2015 and 2020.

3 Jan
Deutsche Bank
300.00
Buy

Trading statement

Highlights
 
● Group revenue growth in the quarter of 20.5% at constant currency, including a 7.2% rise in UK like-for-like revenues
● Strong operational and financial performance through the peak trading period, including good Christmas seasonal sell-through
● Management is confident that the Group will meet market expectations for Adjusted EBITDA in the financial year to March 2017
 

4 Jan
Investec
355.00
Buy
4 Jan
Numis
350.00
Buy
4 Jan
Peel Hunt
440.00
Buy
4 Jan
Liberum Capital
330.00
Buy

5 Jan
Deutsche Bank
330.00
Buy
5 Jan
HSBC
350.00
Buy
5 Jan
Citigroup
N/A
Buy
5 Jan
Jefferies...
335.00
Buy
5 Jan
Peel Hunt
440.00
Buy
5 Jan
Haitong...
190.00
Sell

B&M European: Deutsche Bank reiterates buy with a 330p target.

09:20 10/05/2017
Broker Forecast - Citigroup issues a broker note on B&M European Value Retail
Citigroup today reaffirms its buy investment rating on B&M European Value Retail (LON:BME) and set its price target at 390p. Story provided by StockMarketWire.com
11:10 09/05/2017
Broker Forecast - HSBC issues a broker note on B&M European Value Retail
HSBC today reaffirms its buy investment rating on B&M European Value Retail (LON:BME) and raised its price target to 400p (from 350p). Story provided by StockMarketWire.com

12 May
Peel Hunt
440.00
Buy

Market buzz - Thursday - Discount retailer B&M European Value will roll up the shutters on its full year results, with the fourth quarter being the least weighty historically. Barclays expects a healthy set of results from B&M, projecting full year sales growth of 18.4%, 17.3% growth in underlying EBITDA and looking out for 2018 guidance, both financial and in terms of store expansion as B&M grapples with its attempts to get into the more affluent South-East.

Preliminary results

HIGHLIGHTS
 
Business highlights
● 53 new stores opened in the UK, including 9 relocations to large, modern Homestores, and 19 new stores in Germany
● Strong pipeline of 40-50 new stores planned in the UK and a further 15 in Germany this financial year
● Revised UK store target from 850 to at least 950 stores
● New warehouse capacity in both the UK and Germany now working efficiently
● Delivery of consistent in-store retail standards, strong product offering and great value for money supporting trading momentum
 
Financial overview
● Group revenues increased by +19.4% to £2,430.7m (2016: £2,035.3m)
● UK full year like-for-like sales¹ +3.1% (2016: + 0.9%), including Q4 like-for-like sales +2.9% and an excellent start to 2018
● Group Adjusted EBITDA³ increased by 22.0% to £234.9m (2016: £192.5m)
● Group EBITDA² increased by 18.1% to £231.5m (2016: £196.1m)
● Adjusted profit before tax increased by 25.6% to £190.1m (2016: £151.4m)
● Profit before tax increased by 18.4% to £182.9m (2016: £154.5m)
● Adjusted diluted earnings per share 14.9p (2016: 12.2p)
● Diluted earnings per share 14.3p (2016: 12.4p)
 
Strong cash generation
● Operating cash flow £210.9m (2016: £170.9m)
● Year-end net debt £401.9m and net debt to Adjusted EBITDA³ 1.71x (2016: 1.84x) after payment of the £100m special dividend in July 2016
● Recommended final dividend of 3.9p per share to be paid on 4 August 2017, bringing the full year ordinary dividend increase to 20.8%

25 May
Peel Hunt
440.00
Buy
25 May
Liberum Capital
380.00
Buy
23 May
HSBC
400.00
Buy
22 May
Jefferies...
400.00
Buy

A mention in the Daily Mail Midas column today - B&M shares have done well over the past year and now trade at 357p, but if consumers decide to tighten their belts, the company should benefit and the shares should rise. Brokers expect the price to top 400p in the next 12 months.

Trading statement

Highlights
● Further strong growth during the quarter despite challenging trading conditions and economic uncertainty generally
● Group revenue growth in the quarter of 18.3%, including excellent UK like-for-like growth of 7.3%, buoyed by strong grocery sales
● 9 new UK stores opened in the quarter and 4 in Germany from the strong pipeline of new stores planned for the current year
● The second quarter has started well and while it's still early in the financial year, we are on course to achieve market consensus profit expectations for the full year

12 Jul
Numis
400.00
Add
12 Jul
Peel Hunt
440.00
Buy
12 Jul
Liberum Capital
380.00
Buy
10 Jul
Deutsche Bank
400.00
Buy
6 Jul
Jefferies...
415.00
Buy
5 Jul
Peel Hunt
440.00
Buy

09:20 14/07/2017
Broker Forecast - Goldman Sachs issues a broker note on B&M European Value Retail
Goldman Sachs today upgrades its investment rating on B&M European Value Retail (LON:BME) to buy (from neutral) and raised its price target to 400p (from 380p). Story provided by

Talk of Asda in the Daily Mail of bidding for B&M

If true early stages, apparently no comment from Asda.

Acquisition of Heron Food Group Limited
RNS
RNS Number : 8566M
B&M European Value Retail S.A.
02 August 2017
 
 
2 August 2017
B&M European Value Retail S.A.
 
Acquisition of Heron Food Group Limited
B&M European Value Retail S.A. ("B&M"), the UK's leading multi-price value retailer, today announces the acquisition by its subsidiary, EV Retail Limited, of the entire issued share capital of Heron Food Group Limited ("Heron") a discount convenience retailer operating predominantly in the North of England with 251 stores.
 
For the year ended 31 December 2016 Heron delivered Revenues of £274.4m, EBITDA of £19.1m, Profit before tax of £8.6m and had Gross Assets of £93.5m as at 31 December 2016. Like-for-like revenue growth in the year was 3.0%. The business currently employs c.3,800 people and has c.1,200 SKUs, including ambient, frozen and chilled foods. Heron's stores average c.2,500 sq ft of retail space compared to B&M's UK average of c.19,000 sq ft.
 
The total enterprise value of the transaction is £152m including the debt assumed of the Heron group. An initial cash consideration of £112.1m was paid by B&M on exchange and completion of the acquisition today. Up to £12.8m of deferred cash consideration may become payable based on the EBITDA performance of the Heron group up to 31 March 2019; this is included in the £152m enterprise value figure. The initial cash consideration was satisfied from B&M's existing cash resources and facilities.
 
The acquisition of Heron will enable B&M to develop and roll out a complementary, proven and profitable discount convenience grocery brand. The customer profiles of Heron and B&M are similar and both formats are expanding successfully. Convenience is one of the areas of growth in grocery retailing today, although much of this growth to date has been based on premium pricing. The Board of B&M believes that Heron's expertise and attractive existing store portfolio, when supported by B&M's proven sourcing, retailing and store roll-out capabilities, can bring an attractive new customer value proposition in an expanding sector of the grocery market.
 
Heron is currently managed and owned by Andrew, David and Michael Heuck. Michael Heuck is retiring from the business as planned, whilst Andrew and David Heuck remain in their existing trading and finance roles with Heron. B&M, alongside the existing Heron management team, will continue to expand and develop the Heron business, initially through the addition of between 10 and 20 new stores per annum.
 
The Board expects the acquisition to be immediately earnings enhancing.
 
Simon Arora, CEO of B&M commented:
"B&M is already the UK's leading general merchandise discount retailer, serving 4 million shoppers per week. The addition of a complementary, proven discount convenience grocery brand to our own structural growth story gives the combined business an even longer, exciting growth runway. I look forward to working with David and Andrew Heuck and the Heron team to drive forward our shared ambition to deliver exceptional value for money to shoppers across the UK."
 
David and Andrew Heuck commented:
"We are delighted to be joining forces and working with B&M. Both companies share a vision to bring great value to customers and the combination of Heron's skills with the expertise and resources of B&M will mean the creation of a potent new force in the structurally growing convenience sector. Today's transaction secures for Heron's loyal and hardworking workforce a perfect long term home within the B&M Group and provides an exciting platform for the roll-out of more Heron stores nationally."
 
The acquisiton constitutes a Class 2 transaction for the purposes of the UK Financial Authority's Listing Rules, and, as such does not require B&M shareholders' approval. 
 
B&M was advised by BofA Merrill Lynch, PwC, Addleshaw Goddard and Gordons.
 
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.
 
 
 
An analyst conference call in relation to the transaction will take place on Wednesday 2 August 2017 at 11.00am (UK). Please contact Maitland on 0207 379 5151 for further details.
 

12:00 08/09/2017
Broker Forecast - Deutsche Bank issues a broker note on B&M European Value Retail
Deutsche Bank today reaffirms its buy investment rating on B&M European Value Retail (LON:BME) and raised its price target to 425p (from 400p). Story provided by StockMarketWire.com

22 Sep
Goldman Sachs
400.00
Buy