Key facts
- B&M has appointed Atheeq Akbar, formerly of Asda, as its new Chief Financial Officer.
- Akbar's appointment follows a £7 million accounting blunder that led to profit warnings and the resignation of the previous CFO.
- The retailer's annual profits fell to £227 million in the year to March.
- B&M has initiated a "back to basics" turnaround plan.
- Akbar will join B&M in February next year.
B&M has appointed Atheeq Akbar, currently vice president of commercial finance at Asda, as its new Chief Financial Officer. Akbar is set to join the FTSE 250 firm next year, tasked with leading a turnaround following a significant accounting error and a series of profit warnings.
The previous finance chief, Mike Schmidt, resigned after an accounting mistake led to £7 million in overseas freight costs being misclassified, forcing B&M to downgrade its profit guidance. Analysts at the time suggested the error indicated poor financial controls within the company.
B&M's annual profits fell by nearly half to £227 million for the year ending March, with like-for-like sales remaining flat across its 800 UK stores. Chief Executive Tjeerd Jegen acknowledged a "difficult year" due to market challenges and execution issues, but stated that the company's "back to basics" turnaround plan is already showing results in pricing and product availability.
Akbar's arrival is expected to bring stability to B&M's financial leadership, which has seen considerable turnover in the role. He previously held senior finance positions at Morrisons and Tesco, and began his career as a chartered accountant at Deloitte. Jegen expressed confidence in Akbar's commercial background to strengthen the company's financial foundations.
B&M's shares rose two percent on Wednesday to 190p following the announcement.