7th Jan 2016 07:42
LONDON (Alliance News) - Poundland Group PLC on Thursday said it expects its pretax profit for the year to March to be at the lower-end of market expectations, as some of the sluggish trading seen in the first half of its current financial year continued into the third quarter.
The FTSE 250-listed single-price retailer said total sales in the third quarter, covering the 13 weeks to December 27, rose 29%, with revenue growth coming from its current Poundland stores but with the majority of this attributable to the 99p Stores outlets added to its estate following the acquisition of its rival last year.
Total revenue was GBP424.9 million, up from GBP328.4 million a year before.
Of constant-currency sales growth of 30%, excluding Spain, 99p Stores contributed 21 points, while 99p Stores converted into Poundland stores added a further 3 points.
Total revenue from Spain was GBP4.5 million, up from GBP2.3 million a year before, up 122% at constant currency and 102% at actual currency rates.
But Poundland said trading in the third quarter was volatile, with a strong performance from its Halloween and Christmas offering but with high street footfall in the UK remaining sluggish, which has hit overall sales growth.
As a result of the tough trading conditions, the company said its pretax profit for the year to March 27 will be towards the lower end of market expectations.
By Sam Unsted; [email protected]; @SamUAtAlliance
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