Discount retailer B&M faced its second profit warning in three months due to cutting prices to clear excess inventory. The company’s shares dropped by half since May last year, prompting the implementation of a cost-cutting plan called “Back to Basics” in October. This plan included reducing product ranges to simplify operations and lower expenses.
B&M reported a 0.6% decrease in UK store sales for the crucial three-month period until December 27, encompassing the Christmas season. The company revised its full-year profit forecast to £440-475 million, a significant decline from the previous guidance of £470-520 million. This adjustment was attributed to trading challenges and an accounting oversight related to overseas freight costs.
CEO Tjeerd Jegen emphasized the long-term benefits of the pricing and clearance strategies under the “Back to B&M Basics” initiative, despite short-term financial impacts. Meanwhile, Waterstones managed to boost annual profits slightly by implementing margin improvements and effective cost controls amidst rising wage-related expenses.
HMRC is set to introduce a new points-based system to replace automatic fines for late tax returns, aiming to modernize the self-assessment tax process. Additionally, a new UK bank, This Bank, was launched with competitive savings products, offering higher interest rates than the average market rates.
Wetherspoons’ founder highlighted the ongoing challenge of a tax disparity with supermarkets for pubs, as the government prepares to unveil relief measures for the sector. In another development, the Black Sheep Brewery was acquired in a £4.5 million deal, securing jobs and promising further investments in the beer business.
McDonald’s faced backlash over a viral post revealing nearly £2 pricing for a hash brown in some outlets, sparking customer discontent. Lastly, experts predicted that HMRC’s annual tax revenue could surpass £1 trillion soon, driven by increased National Insurance Contributions and tax policy adjustments.