18th Jun 2015 06:29
LONDON (Alliance News) - Poundland Group PLC Thursday reported a rise in profit in its recently-ended financial year as sales broke through the GBP1 billion mark for the first time and it continues expanding its store estate in the UK, Ireland and Spain.
The discount retailer reported a pretax profit in the year to March 29 of GBP36.2 million, a rise of more than half the GBP21.5 million made the year before. Revenue was GBP1.1 billion, up 12% on the GBP997.8 million reported the prior year, which it said was driven by contributions from both its store-opening programme and like-for-like sales growth.
Poundland opened 60 new stores in the UK and Ireland in the year, growing the estate to 588 stores. It plans to open at least a further 60 stores in the region in the current financial year. In Spain it opened five stores and said it expects to meet its 10-store target by the end of the first half of the current financial year.
Earlier in the year, Poundland agreed a GBP55 million cash and shares deal to buy its smaller - and slightly keener priced - rival 99p Stores Ltd, paying GBP47.5 million in cash and a further GBP7.5 million in shares. The deal is now undergoing a phase two review by the UK's Competition and Markets Authority, with a decision expected in October, Poundland said on Thursday.
Poundland added that sales in the 11 weeks to June 14 increased 3.5% to GBP228.9 million from GBP221.3 million in the same period the prior year.
"I am pleased to report a record year of sales and profit growth for Poundland. We saw strong trading in the UK and Ireland and our international expansion plans in Spain are proceeding well with seven multi-price Dealz stores now open. Notwithstanding a challenging start to the year, I expect to see a year of growth for Poundland as we have a very strong opening programme and we will continue to be the standard bearer for genuine and amazing value on the UK's high streets and retail parks," Chief Executive Jim McCarthy said in a statement.
Poundland will pay a final dividend of 3 pence for a total dividend of 4.5p. It did not pay a dividend the year before, having listed in March 2014.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
PLND.L