Value retailer Poundworld’s pre-tax profit slumped 28% to £2.8m last year as as it invested in new stores and distribution.
In the year to March 31, turnover rocketed 55% to £206m and EBITDA surged 38% to £8.6m.
In documents filed at Companies House, the company said it had “grown significantly” as it invested heavily in new stores, distribution infrastructure and back-of-house facilities. Poundworld opened 52 stores across the year. In August the retailer opened its 200th shop.
Poundworld said: “Management is confident that the ongoing store expansion programme will deliver significant cash and profit benefits to the business, but in the short term, performance has been adversely affected as stores have opened outside of the peak trading period. The benefit of these stores should be seen in next year’s results.”
Poundworld has been rolling out its multiprice value fascia Discount UK and it is continuing to trial its smaller Poundworld Express stores. The retailer said it will continue to invest in the two “successful” formats in the coming year.
Poundworld added it was taking advantage of the large number of stores coming to market through administrations, as it “presents the opportunity to acquire individual sites or bundles of stores on favourable terms”.