Q3 Trading Statement

21st January 2015

POUNDLAND GROUP PLC

THIRD QUARTER TRADING STATEMENT

Good third quarter trading and positive Christmas

Poundland Group plc ("Poundland" or "the Group"), Europe's leading single price retailer, today announces its third quarter trading statement for the 13 week period to 28th December 2014.

Revenue

During the third quarter, total revenue, excluding Spain, in the 13 weeks to 28th December increased by 10.2% on a constant currency basis. On an actual currency basis, total revenue, excluding Spain, was £328.4 million (2013: £299.1 million), which represented total growth of 9.8%. There was a good contribution to growth from both like-for-like store sales and continuing good performance from new stores during the third quarter. As expected though, due to the timing of our openings, the contribution from new store trading weeks was lower than the corresponding period last year, a continuation of the trend seen in the first half. We remain on track to open 60 net new stores in the UK and Ireland in the financial year.

Strategy Progress

We opened a net 17 stores in the UK and in Ireland during the period, taking the total to a net 45 during this financial year to date. The Group ended the third quarter with 534 stores in the UK and 39 stores in Ireland (2013: 486 and 31 respectively) and have a strong pipeline of stores for our next financial year.

We have continued to develop our trial in Spain and are pleased with the initial progress we have made. We opened four stores during the period, taking the total to five at the end of the quarter. As previously announced, we will update the market further on the trial's progress at the time of the preliminary results.

Financial Position

The Group generated strong cash flow during the period and ended the quarter with net cash of £33.9 million (2013: £10.9 million).

Commenting on Poundland's performance, Chief Executive Jim McCarthy, said:

"I am pleased to report another good quarter of sales growth and a record Christmas trading period. Despite the tough trading conditions, Poundland continued to perform well and we served more than 7 million shoppers in the peak Christmas trading week alone.

"We have managed our costs and cash well, and we are in line with our financial expectations for the year as a whole. We are on track to open 60 net new stores in the UK and Ireland and we have a very strong pipeline for our 2016 financial year."

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About Poundland

Poundland plc joined the premium segment of the London Stock Market in March 2014. 

Poundland is Europe's largest single price value general merchandise retailer and winner of the 2014 Grocer Awards for Variety Discount Retailer of the Year. Nearly 600 stores have been opened in the UK, the Republic of Ireland and Spain since 1990. In the Republic of Ireland and Spain, Poundland trades under the Dealz brand. Poundland sells quality top brands and own brand products all for the single price point of £1, providing customers with amazing value every day.

Serving over 5 million customers every week, Poundland offers an irresistible shopping experience where shoppers are guaranteed to find approximately 3,500 quality products per store, including over 1,000 well-known brands and around 2,500 own label products. Our offer includes 17 different shopping categories including food and drink, health and beauty, household, gardening, DIY, Pet, Stationery, Books, DVDs and Toys. Poundland stocks over 50 own label families, with recent launches including Jane Asher's Kitchen range; Purple Ivy Jewellery and Make Up Gallery.

For more information about Poundland, please visit:

www.poundland.co.uk

www.Facebook.com/Poundland

www.twitter.com/poundland