Poundland has delivered pretax profit up 50% to £18.2m from last year’s £12.2m for the year to April 1 as the retailer continued to attract value-conscious shoppers in the downturn.
The single price point retailer’s underlying EBITDA was up 26.5% to £40.1m. It posted surging sales up 21.6% to £780m and “strong” like-for-likes up 2.3%, which Poundland said had outperformed the market.
Gross margin advanced 22.2% to £287.7m.
The retailer said it expects to “perform robustly in the coming year”.
Poundland opened 62 new stores across the period as the retailer hit its 400-store target. In the current financial year it aims to open 60 stores, having already opening 22 so far. It also opened nine stores under its Dealz fascia in the Republic of Ireland.
Poundland said it had continued its “focus on strong product offering”, selling more than 3,000 product lines including 1,000 branded products sourced directly.
Poundland chief executive Jim McCarthy said: “Our strong sales and volume increases demonstrate that customers recognize the exceptional value for money that Poundland offers.
“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!”
A new 200,000 sq ft south eastern distribution centre in Hoddesdon, Hertfordshire will open in August, helping to support Poundland’s expansion strategy and service stores in Southern England.