Poundland owner’s first-half performance hit by pandemic

Poundland's trading was hit by coronavirus

Value group Pepco, owner of the Poundland and Dealz chains, has posted a fall in first-half profits but said that sales are returning to pre-pandemic levels.

Pepco’s sales climbed 14% in the five months to February, helped by expansion in Europe, and like-for-likes rose at all its brands, including a 2.2% advance at Poundland and Dealz.

However, as Covid-19 hit, pre-tax profit in the six months to March fell 16% to €89m (£80m) on sales of €1.9bn (£1.7bn).

The retailer said revenue is ”returning to pre-Covid levels”. Almost all of its stores are now trading, but like-for-like sales are down. Pepco reported that its  financial position ”remains strong” and that it has cash resources of about €400m (£361m).

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