14th Apr 2015 11:27
LONDON (Alliance News) - Poundland Group PLC Tuesday reported an increase in revenue for the fourth quarter of its financial year and said results for its full year are in line with market expectations.
The retailer said total revenue, excluding operations in Spain, increased by 6.5% in the 13 weeks to March 29 to GBP255 million, from GBP239.5 million in the same period a year earlier.
However, it said that the contribution from new store trading weeks in the fourth quarter has been lower than last year due to the timing of store openings. Ten fewer stores were opened in the year as a whole than in the previous year which was a factor in a lower contribution to sales growth, it said.
15 stores were opened in the fourth quarter, taking the total number of openings to 60 for the full year. The group now operates 547 stores in the UK and 41 stores in Ireland.
The company said it has continued to develop its trial in Spain and is "pleased with the initial progress". There are five stores in the country at the end of the quarter, and a third store in Madrid has since opened.
It also said that it continues to carefully consider the Competition and Markets Authority's announcement in relation to its Phase 1 review of the group's proposed acquisition of 99p Stores Ltd.
Poundland agreed a GBP55 million cash and shares deal in February to buy its small - and slightly keener pricing - rival, paying GBP47.5 million in cash and a further GBP7.5 million in shares.
Last Thursday, the competition regulator said the merger will be referred for an in-depth investigation unless acceptable concessions are offered by the two groups, after its initial probe found the merger "gives rise to a realistic prospect of a substantial lessening of competition" in 80 local areas in which the companies both have existing operations, plus a further 12 areas in which they will be competitors in the near future based on current store opening plans.
Poundland said it will make a further announcement regarding this "in due course".
"After a solid quarter of sales growth, Poundland's revenue for the 2015 financial year was over GBP1 billion for the first time. Despite tough trading conditions, Poundland continues to perform well and we served an average of 5.3 million shoppers a week during the quarter," Chief Executive Jim McCarthy said in a statement.
"We expect to continue to deliver our growth strategy in the new financial year, notwithstanding some headwinds from a weaker euro and a tough comparable in the first half," he added.
Poundland will report its full year results on June 18.
Shares in Poundland were trading up 3.4% at 343.32 pence midday Tuesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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