B&M European Value Retail S.A (LON:BME) reported growth in first half revenues and profits but shares dropped as it announced the departure of chairman Terry Leahy.
Leahy will step down on 1 March and will be replaced by Peter Bamford, the current chairman of SuperGroup PLC (LON:SGP) and deputy chairman of Spire Healthcare Group PLC (LON:SPI).
READ: B&M buys discount retailer Heron Food Group for £152mln
Bamford previously held senior executive roles at Vodafone Group PLC (LON:VOD), including chief marketing officer, chief executive of Northern Europe, Middle East and Africa and chief executive of Vodafone UK.
“It has been a great privilege to have been part of one of the most exciting emerging retail growth stories of the past decade in an industry undergoing profound structural change,” said Leahy.
“The business is very well-positioned for continued growth and success in the future."
Alongside the announcement, the owner of B&M variety retail stores posted a 21.7% increase in revenue to £1.3bn in the 26 weeks to 23 September. UK like-for-like revenue grew 7.5%, as the company opened a net 15 new B&M stores.
Interim divi lifted
Adjusted earnings (EBITDA) edged up 19.8% to £116.1mln, as growth in B&M offset a decline in its German discount retailer Jawoll.
Earnings were also boosted by the acquisition of Heron Foods in August of this year. However, debt grew following the deal and there will be an annualised non-cash charge of £1.2mln for the deferred consideration of Heron Foods.
The interim dividend was lifted 26.3% to 2.4p each.
"B&M continues to prosper in a challenging retail environment and our teams remain wholly focused on helping our customers spend less during uncertain times,” said chief executive Simon Arora.
“Our UK business continues to go from strength to strength, with new and like-for-like stores performing exceptionally well and the acquisition of Heron has added another leg of growth to the Group. We have also taken steps to enable us to push on with expanding our Jawoll business."