Liverpool-based FTSE 100 firm B&M European Value Retail S.A. said it will pay a special dividend of 20p per ordinary share as it published a “strong” trading update for the third quarter (Q3) of its current financial year relating to the 13 week period to December 23, 2023.

B&M reported group revenue growth in the quarter of 5.0% year-on-year to £1.645 billion and Q3 year-to-date growth of 8.1% YoY to £4.194 billion on a constant currency basis.

“In the 14 week period to 30 December 2023, B&M UK like-for-like revenue growth was 1.2%, a strong quarter given prior year comparatives, performance was driven by positive transaction numbers,” said B&M.

“Excellent general merchandise volume performance delivered strong sales participation and high sell-through, exiting the quarter with a clean group inventory position flat YoY.”

B&M said it is on track to open 76 gross new stores across the group in FY24 — 45 in B&M UK, 11 in B&M France and 20 in Heron Foods.

B&M CEO Alex Russo said: “The performance across the Golden Quarter has been pleasing, with strong operational execution across the three businesses.

“Our strategy remains unchanged – we are an everyday low-price discounter with a laser-focus in keeping excellence in retail standards and our costs the lowest.

“This allows us to provide our products at the best price to all customers – many of whom continue to face significant cost-of-living pressures.

“We are well-positioned for the year ahead and we reiterate our guidance for Group adjusted EBITDA (pre-IFRS 16) within our target range of £620m – £630m for FY24 (FY23: £573m). Our store pipeline is strong and we will open not less than 45 B&M UK stores in each of the next two financial years, driving disciplined cash generating growth.”