As retailers profit from evolving buying patterns, Simon and Bobby Arora pay almost 100 million pounds in dividends themselves.
After the fast-growing discount store posted booming sales in the run-up to Christmas, the billionaire brothers who own B&M paid themselves £ 30 million in dividends.
As part of a £ 200 million special dividend to shareholders, Simon Arora, B&M’s chief executive, and his brother Bobby will earn the sum. The pair all own shares in SSA Investments, which is B&M’s biggest single shareholder with a 15 percent stake, based in Luxembourg.
Two months earlier, it follows a £ 44 million payment to the brothers and suggests that over the past 12 months, their investment fund has earned dividends worth almost £ 100 million in total, rendering the Aroras among the UK’s highest-paid business managers. The Rich List of the Sunday Times placed their net worth at £2.1 billion last year.
One of the most influential winners of the coronavirus pandemic was B&M, which sells products ranging from frozen foods to plants and housewares, as shut-in clients diverted their spending to key stores that remained open.
The third dividend payout the retailer has made to shareholders in the past 12 months is the new distribution.
In April, after selling and renting back a Bedford warehouse, it paid a 150 million pound dividend, while in November it gave more than 290 million pounds to shareholders.
B&M said Thursday it would offer an additional week’s pay as a bonus to 30,000 employees.
A spokesperson refused to say the total salary amount for the employee.
The income of the company would have been higher, but it bowed to public pressure last month to refund 80 million pounds in tax cuts provided by the government to support corporations during the pandemic.
After it became apparent that profits at key stores had stayed high, the distributions were returned late by most major distributors.
U.S. investment houses Loyalty, Vanguard and Fiduciary Management have other top investors who earn the distributions.
The new delivery came as its fast growth continued with B&M.
B&M does not offer goods online, meaning the increasing need for home delivery of food and other retail products has been overlooked. However, as shoppers shun high streets in favor of out-of-town stores to escape the crowds, the retailer has benefited from a change in shopping habits.
B&M said like-for-like sales in its UK stores rose 21.1 percent in the three months to Boxing Day.
The chain, which had 21 shops when Aroras purchased it in 2004, has 673 stores in the United Kingdom. 104 and 104 in France, but this year he promised more.
For its most recent financial year, the company posted revenues of £ 11.4 billion, up 23 percent from a year ago.
Sales hit £ 3.6 billion for the first nine months of the fiscal year, up almost a quarter from a year ago.
Simon Arora said the recent closure meant potential confusion, but added that he believed in the low prices of the retailer and its emphasis on locations outside cities.