B&M Bargains considering flotation

Date : 28 October 2013

High street discounter B&M Bargains is contemplating floating on the stock market next year as it targets further growth.

Business valued at over £1bn

It has been reported on Sky News that Clayton Dublier & Rice (CD&R), the investment firm that owns 60% of B&M Bargains, is considering a move that would see the discounter listed publically in 2014. It is expected that flotation would see the business valued at £1bn. No decision has been made, and this is just one plan being considered to support growth.

Driving expansion

B&M Bargains saw sales increase by 31% to £935.2m in the 12 months to 31 December 2012 as the popularity of the high street discounter continued to rise. B&M Bargains also recorded impressive growth in profits, with operating profits growing 73% from £49.2m to £85m, while pre-tax levels showed similar growth, jumping 76%, from £47.5m to £83.8m. The discounter also added 54 stores in the period, taking its total to 324, as it expanded into new regions in the UK. It is looking to continue this rapid growth and continue to push forwards its store expansion programme. A public listing would be able to support this aim.

Poundland already pursuing public listing

Fellow high street discounter, Poundland, interviewed eight investment banks last week as part of its plans to pursue a public listing. This is expected to value the business at £700m. Flotation could help the fixed price retailer fulfil its aim to expand into mainland Europe, as well as rapidly expand its store estate in the UK, where it sees the potential for 1,000 stores.

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