Discount retailer B&M European Value Retail (LON: BME) has lowered its guidance on profit and chief executive Alex Russo is leaving at the end of April. The retailer is the worst performer in the TSE 250 index today. The share price slipped 8.53% to 266.1p and has fallen 27% this year. B&M was in the FTSE 100 index until December 2024.
The company expects 2024-25 underlying EBITDA to be in the range of £605m to £625m. As well as general economic uncertainty, there is exchange rate volatility, although tis is a non-cash item. Previously the EBITDA range was £620m to £650m. The post-year trading update will be published in April.
Alex Russo has been chief executive since September 2022, having previously been finance director under Simon Arora. Severance terms will be in line with his service agreement. He will be eligible for a bonus for the current year and will retain his share options. A replacement is being sought with the help of an executive search firm.
The share price has not been this low since March 2020 and before than the end of 2016. B&M has been paying special dividends on a regular basis, though. The latest special dividend of 15p/share was paid earlier in February and there was a special dividend of 20p/share in 2023 and 2024. All dividends since 2020 when Alex Russo joined the board are worth £2bn.