// B&M looks set to enter FTSE 100 after tonight’s quarterly reshuffle
// It has emerged as one of the winners in retail during the pandemic
// B&M’s closing market value yesterday was £4.75bn
Speculation is rife that discount retailer B&M is likely to be promoted into the coveted FTSE 100 index after a quarterly reshuffle takes place later today.
The blue-chip index for the London Stock Exchange is updated every quarter, with the new rankings revealed tonight to be based on Tuesday’s stock market data.
Analysts have said that B&M’s closing market value of £4.75 billion means it is above the 90th place required to secure a spot on the FTSE 100.
- B&M on “steady recovery” as it smashes £1bn in revenue
- B&M posts “strong” full-year revenues despite Covid-19
The discount retailer, which has never advertised on TV, is set to replace commercial broadcaster ITV which is dropping out of the blue-chip index.
B&M has been among the retail winners during the Covid-19 crisis, boosted by its low prices and the fact its were stores allowed to remain open during lockdown.
B&M trades from 656 stores across the UK, sell food, toys, stationery, toiletries and household goods, hence why it was classified as an essential retailer during the lockdown.
This year alone, shares in the retailer have increased by 17 per cent. It made its debut on the stock market in 2014.
In July, B&M posted a “strong” first quarter, with its UK business trading ahead of expectations despite the period covering the height of lockdown.
In the period from March 29 to June 27, the discount retailer saw group revenue rise by 27.7 per cent to £1.15 billion.
Revenue at the UK business was 33.7 per cent higher, with a like-for-like growth of 26.9 per cent, up from 3.9 per cent in the corresponding period a year ago.
This came after it recorded a 3.2 per cent rise in full-year pre-tax profit to £252 million for the 52-week period ending March 28, driven by a 16.5 per cent rise in revenue to £3.8 billion.
Full-year llke-for-Like revenue grew by 3.3 per cent, including a 6.6 per cent boost in the fourth quarter.
Meanwhile, B&M’s full-year adjusted EBITDA grew by 8.7 per cent to £319.8 million.