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Poundland pre-tax profits up 23.5%

Poundland has reported a 23.5% increase in underlying pre-tax profits in its maiden results following its stock market flotation in March.

In the year to 30 March 2014, underlying pre-tax profit was £36.8 million compared to £29.8 million in the previous year. Poundland’s like-for-like sales rose by 1.9% with total sales climbing 13.3% to £997.8 million.

However, statutory profit before tax fell by 18.9% to £21.5 million due to an increase in net non-underlying charges, which were mainly costs associated with Poundland's stock market flotation.

Andrew Higginson, chairman of Poundland, said: "These results show that we are continuing to build on our strong growth record, as set out at the time of the IPO. I expect that Poundland will continue to benefit from its strong trading platform, its universal appeal and the structural change in consumers' shopping behaviour."

The retailer opened 70 net new stores in the year to grow its estate by 15.3% to 528 stores. It is also planning to open 60 further stores in the current financial year as well as a 350,000 square foot warehouse.

Poundland chief executive Jim McCarthy said: "This was a transformational year for Poundland culminating in our successful IPO in March. I am pleased to report that in our maiden set of results we have delivered excellent growth in sales, as well as in underlying EBITDA and EPS, whilst generating strong cash flow.”

The retailer also reported that sales increased by 18% to £262.6 million in the first quarter ending 29 June 2014 as trade was boosted by this year’s late Easter, stronger like-for-like sales growth and the ongoing new store opening programme.

Poundland launched nine new stores in the quarter and yesterday opened its first Dealz store in Spain as part of plans to open an initial 10 stores in the country over a two year period.

McCarthy said: "Trading in the first three months of the new fiscal year has been strong with total sales up 18% as our retail proposition continues to gain traction through offering amazing value to savvy consumers. After a pleasing start to 2014/15 we are confident of further progress through the year whilst recognising our critical third quarter lies ahead of us."

Source : The Retail Bulletin

04 July 2014

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