B&M has said that it is "well positioned for the golden quarter", with revenue increasing by 3.7% to £2.64bn in the first half of its financial year.

The supermarket firm said the result was "driven by volume growth", with UK sales increasing by 6% in the second quarter, from 1.5% in Q1.

B&M also recorded an EBITDA of £274m, an increase of 2% year-on-year, which it said was driven by the 2.7% sales growth.

However, the group’s operating profit dropped by 1.8%, to £258m.

In the six months to the end of September, B&M opened 39 new stores, comprising 30 in the UK and five in France. It also opened a further four across the Heron Foods brand.

Chief executive at B&M, Alex Russo, said: "We continue to execute with everyday low price integrity for all our customers, with industry leading availability and excellence in operational standards. Our model is underpinned by a disciplined and low-cost approach across all three of our businesses, focusing on simple, sustainable growth, delivered through the hard work of our teams.

"Our product ranges across both grocery and general merchandise resonate very well with customers at a time when disposable incomes remain under pressure and the tax burden continues to increase.

"Our new store opening programme is on track and performing exceptionally well."

In the group’s outlook, B&M said it is "well positioned for the golden quarter", with continued focus on price, product and standard.

It stated that "while the consumer environment remains uncertain, the group has demonstrated it executes well in all trading environments".

It now expects a full-year EBITDA of between £620m and £660m.

Investment director at AJ Bell, Russ Mould, concluded: "B&M has had a rough year and while these latest first-half results didn’t exactly knock it out of the park there was enough encouragement for investors to latch on to.

"Like-for-like sales still fell, albeit at a slower rate in the second quarter than the first, but the company is continuing to progress its roll-out of new stores and is seeing growth in the volume of sales. The long-term target of 1,200 stores compared with 764 today gives investors a clear view of the expansion potential.

"There may be a touch of disquiet at a lack of guidance on third-quarter trading and the ‘golden quarter’ could be a moment of truth for B&M. It faces a tough competitive environment, with pressure not only from direct rivals like Home Bargains but also the supermarkets."

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