£7m Freight Cost Mishap Resolved, Independent Review Commissioned
- B&M lowers FY guidance due to accounting error
- CFO Mike Schmidt resigns
- £7m of overseas freight costs not recognized in cost of goods sold
- Issue arose from operating system update, now resolved
- Adjusted EBITDA forecast: £470m-£520m for FY 2026 (down from £510m-£560m)
- H1 adjusted EBITDA expected at £191m (down from £198m)
- Like-for-like sales growth: low single-digit negative to positive in H2
- UK operations’ adjusted EBITDA to stabilize in medium term
- Independent review of freight cost issue commissioned
- Schmidt to remain until successor appointed
Value retailer B&M has lowered its profit guidance for the financial year following an accounting error related to overseas freight costs. The issue arose from an operating system update earlier in the year but was resolved. Adjusted EBITDA is now expected to be between £470m and £520m, down from previous forecast of £510m-£560m. A search for Mike Schmidt’s successor as CFO is underway.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the accounting error, the impact on profit guidance, and the company’s plans for addressing the issue. It also includes relevant details about the CFO’s departure and the search for a successor.
Noise Level: 4
Noise Justification: The article provides relevant information about the accounting error and its impact on the company’s financial guidance but lacks in-depth analysis or actionable insights. It also contains some filler content such as the mention of an email newsletter registration and sign-in instructions.
Financial Relevance: Yes
Financial Markets Impacted: B&M’s stock price and other value retailers in the market
Financial Rating Justification: The article discusses an accounting error affecting B&M’s profit guidance, which can impact its financial performance and potentially affect the stock price. It also mentions changes in EBITDA expectations, which can influence investor decisions and overall market sentiment for value retailers.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
www.retailsector.co.uk