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B&M Lowers Profit Guidance After £7m Accounting Error as CFO Announces Departure

Shares sank to multi‑year lows following a board‑ordered external review with a 13 November update planned.

Overview

  • About £7m of overseas freight costs were not recognized in cost of goods sold after an operating system update, which the company says has been fixed.
  • B&M now guides full‑year adjusted profit to £470m–£520m and expects first‑half adjusted EBITDA of roughly £191m, down from prior indications of about £198m.
  • Chief financial officer Mike Schmidt will step down once a successor is appointed to ensure an orderly transition.
  • The board has commissioned a comprehensive third‑party review, as analysts weigh governance concerns against views that the issue is a one‑off technical error.
  • Shares dropped roughly 15%–18% to multi‑year lows; B&M maintained second‑half like‑for‑like guidance around flat and plans further detail with interim results on 13 November.