Profits drop sharply at Poundstretcher
Profits at Leicestershire value retailer Poundstretcher have fallen sharply for the 12 months after it exited its CVA.
For the 12 months to 31 March 2022, the firm’s surplus before tax dropped to just £11.7m – down from £88m a year earlier. This included a charity payment of £10m.
Turnover at Poundstretcher also fell from £66.9m in 2021 to £58.2m a year later. The company puts this down to further restructuring of its store portfolio post-CVA.
Poundstretcher, which is headquartered in Kirby Muxloe, also trades under the name Bargain Buys. It had 354 stores across the UK at the end of March 2022 and an 800,000 distribution centre in Leicester. In total, the firm employs around 4,000 people.
A statement signed off by Poundstretcher boss Aziz Tayub said: “The UK economy continues to be challenged with high inflation, higher interest rates, fuel costs and continued uncertainty in the financial markets. Given this backdrop and the squeeze on household incomes, Poundstretcher is well situated as a discount retailer who will deliver everyday value to customers who continue to migrate to the variety discount sector.”