B&M's Strategic Shift: From Luxembourg to Jersey
June 25, 2025, 4:39 pm
Location: United Kingdom, England, City of London
Employees: 1001-5000
Founded date: 1801
B&M, the discount retail giant, is making waves. The company is shifting its corporate domicile from Luxembourg to Jersey. This move, announced on June 19, 2025, is more than just a change of address. It’s a strategic pivot aimed at simplifying operations and enhancing shareholder returns.
For over a decade, B&M has called Luxembourg home. The decision to relocate is driven by a desire for clarity and efficiency. The company aims to streamline its corporate structure. This will allow for greater flexibility in returning capital to shareholders. Share buybacks are on the horizon. Shareholders will also benefit from holding shares directly through CREST, rather than through CDIs. This is a significant shift in how investors engage with the company.
The migration to Jersey also means B&M will fully comply with the UK takeover code. This is a crucial aspect for investors. It adds a layer of security and transparency in potential takeover scenarios. Moreover, dividends paid post-migration will escape the clutches of dividend withholding tax. This is a win for shareholders, who will see more of their returns.
B&M’s journey to Luxembourg began in 2014. At that time, the move was part of a broader strategy to attract investment, particularly from US private equity firms. However, the company has stated that it does not benefit from its Luxembourg domicile. It pays UK taxes at the full rate. This realization has likely spurred the current shift.
Despite the corporate maneuvering, B&M's financial performance has been mixed. The company reported a pre-tax profit of £431 million for the year ending March 29, 2025. This is a decline from the previous year’s £498 million. However, group revenue rose from £5.3 billion to £5.5 billion. This indicates that while profits dipped, sales are still growing.
The company’s net debt has also increased, rising nearly six percent to £781 million. The average number of employees has decreased slightly, from 41,115 to 40,641. This reflects the ongoing challenges in the retail sector. The landscape is shifting, and B&M is adapting.
Shares in B&M have seen volatility. Following the announcement of its annual results, shares plummeted from 330p to a low of 255p. They have since recovered slightly. This fluctuation is a reflection of investor sentiment amidst mixed financial results.
B&M remains optimistic about its future. The company believes it is well-positioned to navigate the current economic landscape. The focus on value retailing resonates with consumers facing economic pressures. The market trend towards discount retail continues to grow. B&M’s business model, centered on limited-assortment value retailing, remains robust.
However, challenges loom on the horizon. The retail sector is grappling with increased minimum wage costs, higher National Insurance contributions, and inflation on input costs. B&M acknowledges these pressures and is actively working to mitigate their impact. Initiatives are in place to address underperformance in fast-moving consumer goods categories. The company is also focused on driving average selling prices in general merchandise.
Expansion is part of B&M’s growth strategy. The company plans to continue opening stores in the UK and France. Investments in distribution infrastructure will support this growth. B&M is laying the groundwork for a stronger future.
Leadership changes are also part of the narrative. B&M appointed Tjeerd Jegen as its new CEO. He takes over from Alex Russo, who departed amid disappointing trading performance. Jegen brings over 20 years of experience in retail leadership. His previous roles include CEO positions at Tesco Malaysia and Dutch value chain Hema. His appointment signals a new direction for B&M.
Russo’s exit was not accompanied by a golden goodbye. His remuneration package saw a significant drop, reflecting the company’s current challenges. This is a reminder that in business, performance dictates rewards.
As B&M transitions to Jersey, it is not just changing its corporate structure. It is signaling a commitment to its shareholders and the UK market. The move aims to enhance operational efficiency and shareholder value.
In conclusion, B&M’s shift from Luxembourg to Jersey is a strategic maneuver. It reflects a desire for simplicity and shareholder engagement. The company is navigating a complex retail landscape, marked by challenges and opportunities. With a focus on value and expansion, B&M is positioning itself for future growth. The journey ahead will be closely watched by investors and analysts alike.
For over a decade, B&M has called Luxembourg home. The decision to relocate is driven by a desire for clarity and efficiency. The company aims to streamline its corporate structure. This will allow for greater flexibility in returning capital to shareholders. Share buybacks are on the horizon. Shareholders will also benefit from holding shares directly through CREST, rather than through CDIs. This is a significant shift in how investors engage with the company.
The migration to Jersey also means B&M will fully comply with the UK takeover code. This is a crucial aspect for investors. It adds a layer of security and transparency in potential takeover scenarios. Moreover, dividends paid post-migration will escape the clutches of dividend withholding tax. This is a win for shareholders, who will see more of their returns.
B&M’s journey to Luxembourg began in 2014. At that time, the move was part of a broader strategy to attract investment, particularly from US private equity firms. However, the company has stated that it does not benefit from its Luxembourg domicile. It pays UK taxes at the full rate. This realization has likely spurred the current shift.
Despite the corporate maneuvering, B&M's financial performance has been mixed. The company reported a pre-tax profit of £431 million for the year ending March 29, 2025. This is a decline from the previous year’s £498 million. However, group revenue rose from £5.3 billion to £5.5 billion. This indicates that while profits dipped, sales are still growing.
The company’s net debt has also increased, rising nearly six percent to £781 million. The average number of employees has decreased slightly, from 41,115 to 40,641. This reflects the ongoing challenges in the retail sector. The landscape is shifting, and B&M is adapting.
Shares in B&M have seen volatility. Following the announcement of its annual results, shares plummeted from 330p to a low of 255p. They have since recovered slightly. This fluctuation is a reflection of investor sentiment amidst mixed financial results.
B&M remains optimistic about its future. The company believes it is well-positioned to navigate the current economic landscape. The focus on value retailing resonates with consumers facing economic pressures. The market trend towards discount retail continues to grow. B&M’s business model, centered on limited-assortment value retailing, remains robust.
However, challenges loom on the horizon. The retail sector is grappling with increased minimum wage costs, higher National Insurance contributions, and inflation on input costs. B&M acknowledges these pressures and is actively working to mitigate their impact. Initiatives are in place to address underperformance in fast-moving consumer goods categories. The company is also focused on driving average selling prices in general merchandise.
Expansion is part of B&M’s growth strategy. The company plans to continue opening stores in the UK and France. Investments in distribution infrastructure will support this growth. B&M is laying the groundwork for a stronger future.
Leadership changes are also part of the narrative. B&M appointed Tjeerd Jegen as its new CEO. He takes over from Alex Russo, who departed amid disappointing trading performance. Jegen brings over 20 years of experience in retail leadership. His previous roles include CEO positions at Tesco Malaysia and Dutch value chain Hema. His appointment signals a new direction for B&M.
Russo’s exit was not accompanied by a golden goodbye. His remuneration package saw a significant drop, reflecting the company’s current challenges. This is a reminder that in business, performance dictates rewards.
As B&M transitions to Jersey, it is not just changing its corporate structure. It is signaling a commitment to its shareholders and the UK market. The move aims to enhance operational efficiency and shareholder value.
In conclusion, B&M’s shift from Luxembourg to Jersey is a strategic maneuver. It reflects a desire for simplicity and shareholder engagement. The company is navigating a complex retail landscape, marked by challenges and opportunities. With a focus on value and expansion, B&M is positioning itself for future growth. The journey ahead will be closely watched by investors and analysts alike.