Profits soar at Poundstretcher as benefits of CVA kick in

Profits at Leicestershire discount retailer Poundstretcher have soared after it reaped the benefits of entering a Company Voluntary Arrangement (CVA).

Although turnover at Poundstretcher fell by a fifth to £325.3m for the year ending March 31 2021, the firm turned a loss of £43.5m into a profit before tax of £88m over the period.

The company entered the CVA in July 2020 and says the process gave it the opportunity to close a number of loss-making stores which had been a drag of profits. It will exit the CVA by the end of July this year and says it is now debt-free.

Poundstretcher employs around 5,000 people across 371 stores in the UK, and has a major distribution centre in Leicester.