B&M shares plunge as accounting blunder dents profits

The discount retailer B&M has seen its marketplace worth plunge by astir a 5th aft a downgrade of up to £40m successful yearly nett expectations owed to an accounting blunder.

The institution said its main fiscal serviceman was leaving the concern portion updating the marketplace connected its outlook, which had already been chopped earlier this period connected the backmost of pugnacious trading and rising costs, including from fund measures.

Mike Schmidt had decided to measurement down, B&M said.

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Its connection explained: "The Group's fiscal half-year extremity results consolidation process has identified, aft the announcement of 7 October 2025, astir £7m of overseas freight costs not correctly recognised successful outgo of goods sold, pursuing an operating strategy update earlier this year.

"The underlying strategy contented has since been resolved but its fiscal interaction is worldly to our outlook for FY26."

It said that arsenic a result, its full-year profits outlook had been revised to a scope of £470m-£520m from £510m-£560m.

"The Board intends to committee a broad third-party reappraisal of this matter", the institution said portion adding that Mr Schmidt would stay successful his relation until a replacement had been identified.

B&M said It inactive expected like-for-like income maturation to beryllium "between low-single-digit antagonistic and low-single-digit affirmative levels" implicit the 2nd fractional of the fiscal year.

Shares fell by much than 18% initially erstwhile the markets opened and were aboriginal trading 14% lower.

The banal was already down by 37% successful the twelvemonth to day up of that absorption - with overmuch of the diminution booked aft its nett informing of 7 October.

Shares are trading astatine levels seen earlier the COVID pandemic.

B&M says it has been battling weaker request from customers and beardown contention crossed its halfway UK cognition astatine a clip of higher costs from authorities policy, including April's emergence successful leader nationalist security contributions.

A turnaround program by caller main enforcement Tjeerd Jegen aims to little prices, tackle inconsistent pricing, amended availability of fashionable user products and simplify ranges.

Analysts astatine Jefferies said successful a enactment to clients: "Very mediocre optics for B&M, and an update that erodes spot further, highlighting imaginable issues successful accounting controls and higher-level analytical review/oversight.

"And that is earlier we unpick however a £7m Q2 miss translates into a £40m FY downgrade."