Discount retailer B&M has revealed a 1.2 per cent year-on-year increase in first half revenues, but warns of a challenging second half as profits dipped.

For the 26 weeks to September 25, revenue reached £2.2 billion and rose by 26.8 per cent when compared to the same period in 2019.

Group adjusted EBITDA was £282.2 million compared to the £295.6 million the year before. But, when compared on a two year basis it was up 86.4 per cent, said to be down to higher sales densities and a favourable sales mix.

Meanwhile, group adjusted pre-tax profit dropped 6.2 per cent to £238 million in the period.

B&M chief executive, Simon Arora said: ""The group has performed strongly throughout the first half of our financial year, with customers continuing to be drawn to our value-for-money offer.

"We have responded decisively to supply chain challenges by leveraging our strong supplier relationships and we have improved in-store execution.

"As a consequence, we are fully stocked heading into the golden quarter, with stores already showcasing our excellent Christmas ranges.

"To colleagues across the group, I express my gratitude for their dedication, skill and commitment, which have made these results possible.

"Although the pathway to a 'new normal' remains uncertain and the industry faces a number of supply and inflationary pressures as we enter the second half of the financial year, we are very confident that the B&M Group is well positioned to navigate these and will continue to be successful both in the UK and in France."