Rapid expansion continues at Poundland

Willenhall-headquartered Poundland has reported record results with turnover up 21.6 per cent to £780m as it opened 62 new stores, taking its portfolio to 389 at the year end.

Underlying EBITDA (earning before interest, tax, depreciation and amortisation) at the discount retailer was £40.1m – up 26.5 per cent.

The company said it served more than four-million customers a week in the 53 weeks ended 1 April 2012, compared with about 3.5 million in the previous year.

Poundland expanded in Europe during the period with nine new stores in the Republic of Ireland trading under the “Dealz” fascia.

Chief executive Jim McCarthy said: “Poundland continues to offer amazing value to more than four million customers every week. Our strong sales and volume increases demonstrate that customers recognise 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.”

Poundland is on track with its growth strategy to open at least 60 new stores in the current financial year, together with a new south eastern distribution centre. In the process, the company said it will create up to 2,000 jobs.

Since the year end the retailer has opened 22 new stores, including four in Ireland. In April, it opened its 400th store in Haringey in London.

The new 200,000 sq ft south eastern distribution centre will open in August at Hoddesdon in Hertfordshire. The warehouse will support Poundland’s growth strategy and will be used as a regional facility to service its stores throughout southern England, the discount chain said.

“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,” the company said.

“Notwithstanding the challenges of the economy and the competitive environment, Poundland is expected to perform robustly in the coming year.”

In the 2011/12 year net borrowings at Poundland reduced from £34m to £26.1m.

Taken from Edward Devlin of Insider News Midlands on 2nd July 2012