Seeks Flexibility and Simplified Structure
- B&M abandons Luxembourg tax haven
- Shifts to Jersey for corporate setup
- Offers shareholders greater flexibility in returning capital
- Comes under UK takeover code
- No more withholding tax on future dividends
- Stays listed on London Stock Exchange
- Part of FTSE UK Index
- Consistent decline in pre-tax profits
- Increase in net debt
- Revenues up to £5.5bn
- Shares fell but rebounded
- New CEO Tjeerd Jegen from Tesco
Discounter B&M is leaving its Luxembourg tax haven base after over a decade, moving to Jersey to streamline operations and provide shareholders with more flexibility in capital return. The company will now operate under the UK takeover code and avoid withholding tax on dividends. Despite the relocation, it remains listed on the London Stock Exchange and part of the FTSE UK Index. B&M has faced declining pre-tax profits and increased net debt but recently appointed former Tesco executive Tjeerd Jegen as CEO.
Factuality Level: 8
Factuality Justification: The article provides accurate information about B&M’s decision to relocate from Luxembourg to Jersey, the reasons behind it, and its impact on shareholders and taxation. It also mentions the company’s financial performance and recent CEO change. However, there is a minor issue with the year mentioned for pre-tax profits (2025 instead of 2021). Overall, the article is informative and objective.
Noise Level: 3
Noise Justification: The article provides relevant information about B&M’s decision to relocate its base from Luxembourg to Jersey and the reasons behind it, as well as mentioning some financial results and a recent CEO change. It also briefly touches on the impact of Oxford Street’s pedestrianisation plans. However, it lacks in-depth analysis or exploration of the consequences of these decisions and does not offer significant actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses B&M’s decision to relocate from Luxembourg to Jersey, which impacts the company’s corporate setup and shareholders’ ability to hold shares directly through the UK’s CREST system. It also mentions a decline in pre-tax profits and an increase in net debt. However, there is no direct mention of financial markets or specific companies being impacted by this decision.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text and it does not meet the criteria for being considered an extreme event as it discusses a company’s relocation and changes to its corporate structure.
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