Discount retailer, Poundland has reported a surge in annual pre-tax profits, but remains cautious of a “relatively subdued” first half of the financial year.
For the first time in its history, the retailer has broken the £1 billion barrier as its total sales climbed by 11.8 per cent.
In the year to March 29, Poundland has seen pre-tax profits increase by 18.6 per cent to £47 million.
During the same period, the company has opened 60 new store, bringing its total number of stores in the UK and Ireland to 588. The firm has also seen international expansion as it opened its first Dealz store in Spain on a trial basis and five opened at the end of the financial year.
While pleased with the results, however, Poundland chief executive, Jim McCarthy has expressed warning over the challenging start to the year, in which he expects to see ‘relatively subdued’ results.
“I am pleased to report a record year of sales and profit growth for Poundland,” he said. “We saw strong trading in the UK and Ireland and our international expansion plans in Spain are proceeding well.
“Notwithstanding a challenging start to the year, I expect to see a year of growth for Poundland as we have a very strong opening programme and we will continue to be the standard bearer for genuine and amazing value on the UK’s high streets and retail parks.”