A stronger-than-expected end to the Christmas run-up saw value chain B&M European Value Retail SA (LSE:BME) marginally exceed expectations with its latest trading statement sending the stock 2% higher in early trade.
“Gross margin - the main risk over Christmas - has improved with ‘excellent’ sell-through in general merchandise – a key positive,” said broker Liberum, which also lauded the group’s cash generation.
A 20p a share special dividend will return £200mln to investors – this is on top of the £850mln already handed over to shareholders.
Liberum is a buyer of the stock up to 685p a share. Shore Capital repeated its ‘hold’ advice and said the company’s updated earnings guidance could represent a modest (2.3%) upgrade.
The stock was changing hands for 455p early on.