Discounter delight as Poundland’s annual sales top £1bn

WILLENHALL-based discount retailer Poundland has confirmed that its annual sales have topped £1bn for the first time.

In its first full year results as a plc (for the year ended March 29) it revealed its sales were up by 11.8% on a constant currency basis to £1.115bn (2014: £997.8m).

Pre-tax profits were up by 68.3% to £36.2m (2014: £21.5m).

The firm, which serves 5.3m customers a week, has also reported that it is now sitting on net cash of £13.9m, whereas last year it had net debt of £4.7m.

During the period in question Poundland opened 60 new stores (net), growing the estate in UK & Ireland to 588 stores (2014: 528).

It is planning another 60 net new stores in Ireland in the next financial year.

Its first Dealz store opened in Spain on a trial basis. Five were opened by the end of the financial year and the retailer is  on track to open ten more stores.

And Poundland’s proposed acquisition of rival 99p Stores has moved to Phase 2 of the CMA review with a decision expected in October.
 
Jim McCarthy, chief executive of Poundland, said: “I am pleased to report a record year of sales and profit growth for Poundland.

“We saw strong trading in the UK and Ireland and our international expansion plans in Spain are proceeding well with seven multi-price Dealz stores now open.

“Notwithstanding a challenging start to the year, I expect to see a year of growth for Poundland as we have a very strong opening programme and we will continue to be the standard bearer for genuine and amazing value on the UK’s high streets and retail parks.”

Poundland has also reported changes at the director level.

Paul Best and Richard Lawrence have resigned as non-executive director and executive director respectively.

Best has represented Warburg Pincus, the company’s principal shareholder, on Poundland’s board since its investment in the company in June 2010. His resignation 15 months post the IPO follows the decision of Warburg Pincus to reduce its shareholding in the company to 16.4% earlier this year.
  
Lancaster joined Poundland in July of 2012 and was appointed to the executive board in February 2014.  He leaves the business to join the Co-operative Group, as managing director of its Funeralcare business.