Like-for-like (LFL) UK sales at B&M have fallen by 3.1% in the year to 29 March, while its Q4 LFL sales dropped by 2.4% in the 13 weeks to the same date.

In its post-close trading statement, the budget supermarket recorded a group revenue of £5.6bn, which is a year-on-year increase of 3.7%.

However, it added that this revenue growth, which was a result of new store performance and positive LFL sales in France, was offset by negative LFL performances at both B&M UK and Heron Foods.

B&M said that for the full financial year, it expects its group EBITDA to be above the midpoint of its £605m to £625m guidance range, after it lowered its expectations earlier this year.

It added that its UK operating costs have been "managed with discipline", increasing by 6% annually.

Furthermore, it stated that it is making progress on its chief executive officer succession, after Alex Russo announced that he will step down from the role from 30 April, and B&M will make an announcement in the "coming weeks".

Shares at B&M have increased by almost 3% following the announcement, which investment director at AJ Bell, Russ Mould, said "helps extend" an increase in its price after its share value dropped significantly between January and March.

He added: "Value retail chain B&M has singularly failed to take advantage of what should have been supportive trading conditions in an environment where shoppers are still having to watch every penny. Today’s update helps extend a recent relief rally in the shares as the company narrows the guidance given in a recent profit warning.

"However, a new CEO and a clear direction for the business are needed before it can really get back on track, with current boss Alex Russo having fallen on his sword in the wake of the poor performance. Significantly the company needs to arrest the continuing decline in UK like-for-like sales if it is to rebuild confidence and credibility with the market.

"The business is performing quite well in France but remains a modest contributor to the group as a whole. B&M needs to get the basics of retail spot on, having the right products in the right place and at the right price point. One factor which plays in the favour of whoever takes charge is, thanks to its disappointing recent performance, upcoming trading may be flattered by comparison."

B&M will make its preliminary results announcement on 4 June.

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