Premium content from Motley Fool Share Advisor UK
Our monthly Ice Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of income-focused Ice recommendations, to help Fools build out their portfolios.
“Best Buys Now” Pick #1:
B&M European Value Retail (LSE: BME)
- Once again B&M performed well over the Golden Quarter and closed out another great year. Total FY24 revenue grew 10.1% to £5.5bn thanks to like-for-like growth from all its brands and the addition of new stores.
- Adjusted EBITDA of £629m represents a nearly 10% uplift against the prior year and demonstrates the operational strength of this discounter that has reliably generated profits and cash flow while many competitors have struggled in the face of subdued consumer confidence and high inflation.
- Net debt reduced to 1.2 times adjusted EBITDA at year end thanks to that cash flow, which means further special payouts are in the offing even after paying out another £201m to shareholders in February.
- B&M’s trailing yield isn’t the largest on the market at 2.9%. But add in special dividends and we think the company’s combination of present day income and growth potential make it an ideal Ice share to consider in April.
