Blackpool-based discounter B&M Retail has scaled back expansion plans after a ‘horribly brutal’ year.

The group posted a pre-tax loss of £250,000 for the year to February 28, compared with a profit of£1.2 million last year. Turnover was up to£69.7 million versus£64.6 million.

Finance director Paul McKoen said he did not think there were problems specific to B&M that caused profits to plunge.

‘We did achieve top-line sales growth of 8 per cent, but like-for-like sales were negative. The whole environment has been very tough, and we’re not the only ones to feel that,’ he said.

Several initiatives are being put in place to reverse the company’s fortunes, including rolling out a store design introduced in Hanley, Staffordshire, in March. All shops will be refurbished by the end of this financial year.

B&M intends to open only two more stores this financial year, having previously forecast that it would open ‘several more locations across the North of England’ in the next few months.

Both outlets, along with the revamps, will be funded by £6.5 million released by the sale and leaseback of B&M’s two freehold properties. McKoen said expansion plans have always been subject to change.

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