B&M Lowers FY Guidance Amid Accounting Error as CFO Resigns
B&M has reduced its profit guidance for the 2026 financial year after uncovering an accounting error related to freight costs, as it confirmed the planned departure of its chief financial officer Mike Schmidt.
The value retailer said a review of its half-year consolidation process found around £7m of overseas freight costs that had not been correctly recognised in the cost of goods sold.
This issue arose following an operating system update earlier in the year, though the company maintains that the problem has since been resolved.
As a result, the retailer now expects adjusted EBITDA – excluding lease accounting under IFRS 16 – to be between £470m and £520m for the year to March 2026.
This compares with a previous forecast range of £510m to £560m issued on 7 October.
Author's summary: B&M lowers profit guidance due to accounting error.