Poundland, the UK-based single price value retailer, has booked an increase in full-year profits as value-conscious shoppers continued to visit its stores.
In the 53 weeks ended 1 April, EBTIDA climbed 26.5% to GBP40.1m (US$62.9m), while like-for-like sales grew 2.3%, the retailer reported today (2 July).
Turnover in the period amounted to GBP780m, a 21.6% increase on the prior-year.
The retailer, which opened 62 new stores during the year, said it expects to perform "robustly" in the coming year.
For an update from Poundland retail operations director Tim McConnell on how the group hopes to continue to drive the pace of growth click here.
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Poundland reports another year of record results
Willenhall, West Midlands: Poundland, Europe's largest single price discount retailer, today announced results for the 53 weeks ending 1 April 2012.
The trading figures demonstrate another successful year for Poundland as it continues to expand across the UK and Republic of Ireland.
Financial and Operational Highlights[1]
• Turnover of £780 million - up 21.6% (52 weeks +19.3%)
• Underlying EBITDA of £40.1 million - up 26.5% (52 weeks +24.1%)
• Gross margin of £287.7 million - up 22.2% (52 weeks: +19.9%)
• Strong LFL growth of +2.3% (all volume growth), outperforming the market
• Net borrowings reduced from £34.0 million to £26.1 million
• 62 new stores opened. Total year end store numbers 389 (+19%)
• Over 4 million customers served each week up from 3.5 million in 2010/11
• Continued focus on strong product offering with over 3,000 product lines including over 1,000 well known branded products sourced directly from major manufacturers
• European expansion with successful opening of 9 stores in the Republic of Ireland trading under the "Dealz" fascia
• c1,500 new jobs created
• Winner of 2011 Discount Retailer of the Year award
Post Year End and Outlook
Poundland is on track with its growth strategy to open at least 60 new stores together with a new south eastern distribution centre in the current financial year. In the process, the company will create up to 2,000 new jobs. So far this year 22 new stores have already opened including four in the Republic of Ireland. In April, Poundland achieved another milestone by opening its 400th store in Haringey, London.
The new 200,000 square foot south eastern distribution centre will open in August at Hoddesdon, Hertfordshire. The warehouse supports Poundland's growth strategy and will be used as a regional facility to service its stores throughout southern England.
The UK consumer remains under pressure as a result of the ongoing difficult economic conditions that prevail in the UK and Ireland. Our products are of increasing importance to challenged customers from all socioeconomic groups. Notwithstanding the challenges of the economy and the competitive environment, Poundland is expected to perform robustly in the coming year.
Jim McCarthy, Poundland's Chief Executive, commented: "Poundland continues to offer amazing value to over 4 million customers every week. Our strong sales and volume increases demonstrate that customers recognize the exceptional value for money that Poundland offers.
"Our fixed price makes it easy for families to budget as they can see how much they've spent, before they get to the checkout. We are excited about the year ahead as we continue our rapid expansion and hope even more customers, across the UK will be saying ‘I can't believe it's £1!'"
Original source: Poundland
