Poundworld profits climb by 130%
Poundworld has seen its full year operating profit rise by 130% to £14.6 million following a record year of trading.
In the year ended 31 March 2015, average like-for-like sales growth was 5.6% while turnover rose by 22% to £422.3 million.
The company opened 38 new stores in the period and ended the financial year with 280 stores across the UK.
After successful trialling during the first quarter, the conversion of the multi-price Discount UK stores to the new Bargain Buys fascia was completed and resulted in a like-for-like sales growth of 8%.
Meanwhile, Poundworld’s EBITDA was 75% higher at £20.8 million and net debt was reduced by 31% to £10.6 million.
Chris Edwards, chief executive at Poundworld Retail, said: “We have seen a record financial year and one of landmark progress for the company.
“We expect the year ahead to be one of development and consolidation that includes investment into a new 500,000 square foot warehousing facility adjacent to our current head office and the replacement of our existing ERP system. We’re confident that these changes will provide a strong platform for rapid growth over the next three years bringing our proposition of convenience and value to even more customers across the UK.”
In May 2015, a majority stake in the business was sold to funds controlled by private equity company, TPG Capital. TPG has since injected new funding to accelerate the store expansion programme to more than 60 stores each year from 2016 onwards.
Established in 1974 on a Wakefield market stall, the Poundworld estate now totals 295 stores with the Bargain Buys fascia now trading from over 50 locations UK wide.
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