- Poundland’s full-year like-for-likes down 3.9%
- EBITDA down 4.1% to £56.9m
- Comparable pre-tax profits excluding converted 99p Stores down 13.5% to £37.8m
- Conversion of 99p Stores now complete taking Poundland estate to 896 stores
Poundland has posted a fall in profits and like-for-likes during what the outgoing boss describes as a “period of significant change”.
The value retailer has reported a 4.1% decline in EBITDA to £56.9m for the 12 months ended March 27, and said its comparable pre-tax profit, excluding converted 99p Stores, fell 13.5% to £37.9m.
The discounter concluded its 99p Store conversion programme and opened 60 new stores during the period, taking the number of Poundland stores in the UK and Republic of Ireland from 588 in 2015 to 896 today.
Poundland’s pre-tax profits, including 99p Stores, fell 83.7% to £5.9m despite sales growth of 18.7% to £1.3bn.
Poundland’s outgoing chief executive Jim McCarthy said the last 12 months were a period of “significant change, including an unprecedented integration programme at pace”.
He said: “The retail environment remains challenging, but with our significantly enlarged store portfolio, greater scale and ability to focus fully on trading our stores, I believe we are well placed to make progress in the year ahead.”
He added: I believe that under the leadership of my successor, Kevin O’Byrne, Poundland will return to growth.”
Poundland’s chief executive designate Kevin O’Byrne, who is due to take over from McCarthy in two weeks, said he has confidence that Poundland has “a bright future at the heart of the discount sector”.
He said: “It is very clear to me that Poundland’s brand, position and focused model are real strengths and resonate strongly with our millions of customers.
The board of Steinhoff confirmed yesterday that it is considering an offer for the entire issued share capital of Poundland, and just hours later, acquired nearly a quarter of Poundland’s shares.
The discounter currently has 139 Poundland sites on retail parks, as well as 10 Dealz stores in Spain, having opened five during the period.
During the next financial year, Poundland plans to open between 20 and 30 new stores, “predominately in the Republic of Ireland and in retail parks”, it said.