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Discount retailer B&M European Value Retail raised its dividend, but warned the strong start to its new fiscal year was unlikely to continue.
Like-for-like customer count fell 28.9% whilst LFL average transaction value was up 72.5% over the initial 8 weeks, driven by gardening and DIY categories.
The company said the outperformance was unlikely to continue as much of it was a pull-forward of sales, which would ordinarily be achieved later in the first half of the financial year.
The somewhat sombre update arrived as the company reported a rise in profit on higher revenue as higher demand during the pandemic boost sales.
For the 52 weeks to 28 March 2020, pre-tax increased by 3.2% to £252.0m on-year as revenues increased by 16.5% to £3,813.4m.
UK B&M store fascia generated revenue growth of 12.6%, including like-for-like revenue growth of 3.3% for the year, including 6.6% in the fourth quarter
The company recommended a final dividend increased to 5.4p per share (FY19: 4.9p), bringing the full-year ordinary dividend to 8.1p per share, an increase of 6.6%.
'The benefit of the business rates holiday for B&M will fall in our financial year ending March 2021 and is likely to be fully offset by Covid-19 related costs, dependent on the progression of the virus and, in particular, the nature and duration of social distancing requirements,' the company said.
At 8:31am: (LON:BME) BM European Value Retail S.A. share price was -22.1p at 357.8p