Discount retailer B&M issued its second profit warning in three months after revealing price cuts on remaining products. The company, whose stock price dropped by half since May last year, initiated a “Back to Basics” strategy in October to enhance pricing competitiveness. Additionally, B&M streamlined its product range across various categories to simplify operations and reduce expenses.
In a recent trading update, B&M reported a 0.6% decline in sales for UK stores during the crucial three-month period ending December 27, inclusive of the Christmas season. The company adjusted its full-year profit forecast to a range of £440 million to £475 million, down from the previous estimate of £470 million to £520 million. This represents a substantial decrease compared to the £620 million profit generated in the prior year ending March 29. The company attributed the profit revision to trading challenges and a £7 million oversight in accounting for overseas freight costs last October.
Tjeerd Jegen, the CEO appointed last year, emphasized the importance of investments in clearing discontinued product lines and pricing adjustments for long-term growth, despite their short-term impact on financial performance.
In other news, HMRC will implement a new points system to replace automatic fines in the self-assessment tax regime. Late tax filers will now incur a £200 penalty after accumulating a specific number of points, with the system set to expand under Making Tax Digital from April 2026.
Waterstones reported a slight rise in annual profits, offsetting increased labor costs by implementing margin improvement strategies and effective cost management. The retailer opened seven new stores in the previous fiscal year, contributing to a rise in turnover.
Furthermore, experts predict HMRC’s annual revenue could surpass £1 trillion soon, fueled by increased tax receipts from factors such as rising national living wage and employers’ national insurance contributions. This surge in tax revenue is expected to reach unprecedented levels in the near future.
Fans of McDonald’s expressed outrage over the rising price of hash browns, with some restaurants charging nearly £2 for a single serving. The fast-food chain clarified that franchisees set prices independently, aiming to deliver value and quality to customers.
A new UK bank, rebranded as This Bank, launched today with competitive savings products, including an easy-access account offering a 3.82% interest rate. The bank also provides fixed-term savings options, with rates comparable to leading offerings in the market.
In the hospitality sector, Wetherspoons’ founder highlighted the ongoing challenge of competitive pricing from supermarkets, as the Chancellor prepares to unveil relief measures worth around £300 million for pubs. The measures are expected to alleviate business rate burdens on pubs facing stiff competition from grocery stores.
The Black Sheep Brewery, maker of Black Sheep beer, was acquired in a £4.5 million deal, preserving 145 jobs. The brewery will merge with Saltaire Brewery to form the Great British Drinks Company under new ownership committed to further investment.
Lastly, the Warm Home Discount scheme offers a £150 electricity bill rebate to eligible households, with automatic application in England and Wales for qualifying individuals. Those in Scotland must receive Guarantee Credit to automatically receive the benefit, while manual applications are required for other qualifying benefits.