Poundland expansion continues as EBITDA jumps by 15.6%
Poundland saw its EBITDA jump by 15.6% to Â£45.4 million in the year to 31 March as the single price retailer continued to expand across the UK and Ireland.
Total sales increased by 15% to £880 million helping to boost the retailer’s gross profit to £323.4 million from £282.3 million in the previous year.
During the year, Poundland opened 51 net new stores to bring the total to 430 with an 18% increase in overall trading space.
In the Republic of Ireland, the retailer enjoyed the first full year of profitable trading for its Dealz fascia which now operates 26 stores after 17 new outlets were opened during the year.
The continued expansion of Poundland’s retail estate in the UK led to an investment in a temporary third distribution centre in Hertfordshire which has created 200 jobs. This will be replaced in 2014 by a new 350,000 sq ft custom built distribution centre in Harlow in Essex which will create 650 permanent jobs.
Jim McCarthy, chief executive of Poundland, said: “This has been a year of tremendous progress for Poundland. Sales and EBITDA hit new record levels and over four and a half million customers came into our stores each week. The discount sector is now a mainstream feature of the UK retail scene.
“In the UK, Poundland is powering ahead. Our single price point and our amazing value are appealing to an increasingly broad section of UK shoppers. We opened a net 51 new stores in the year and that rate of growth has continued into the current year. I’m confident that over time Poundland will have over 1,000 stores across the UK.”
Commenting on current trading McCarthy added: “The new financial year has started well and we are trading ahead of our expectations. There are some early but encouraging signs of improvement in the economy and in consumer confidence and Poundland is well placed to capitalise on any upturn.”
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