March of the discounters continues as Poundland’s sales surge

DISCOUNT retailer Poundland has seen its sales leap by 15% in six months as shoppers continue to hunt for a bargain.

It now serves more than five million customers a week.

The Willenhall-based chain’s interim results for the 26 weeks to September 28 reveal total sales of £528.2m, 15% higher than the corresponding period in 2013 (£459.2m),

Its underlying pre-tax profits were up 34.2% to £12.6m (2013: £9.4 m) while its net cash from operating activities, before tax and IPO costs was up 31.4% to £20.8m  (2013: £15.8m).

Poundland’s debt now stands at  £4.4m (2013: £26.8m).

Operational highlights during the period include opening 28 net new stores in UK and Ireland, growing the estate to 556 stores (2013: 490).

Poundland says it is on track to open 60 new stores in the UK and Ireland in its FY2015

Meanwhile, its first first three Dealz store opened in Spain and it says it is on track to open ten stores in Spain by the end of FY2016

Jim McCarthy, chief executive of Poundland, said: “I am pleased to report further growth in both sales and profits in the first half of the year.

“In addition to strong trading in the UK, our international expansion plans are well underway with three multi-price Dealz stores now open and trading well in Spain.

“As the structural changes in UK retail continue to redraw the landscape, we are building our reputation for offering amazing value every day to our customers and substantially broadening our appeal.” 

“While our full year outcome, as always, is dependent on delivering a good Christmas for our customers, I remain confident of further progress throughout the year.”