Poundland has smashed through the £1 billion barrier in terms of annual sales.
The budget retailer announced total sales of £1.1 billion from its stores across the UK and Republic of Ireland, representing an 11.8 per cent increase on the same period 12 months earlier. Like-for-like revenues grew by 2.4 per cent in the year to March 29th, discounting the impact of new stores.
Poundland has been rapidly expanding over the past year, opening 60 new stores across its UK and Irish operation. It is now looking to purchase rival discount chain 99p Stores which will create a much larger discount chain.
Jim McCarthy, chief executive of Poundland, said: "Despite tough trading conditions, Poundland continues to perform well and we served an average of 5.3 million shoppers a week during the fourth quarter.
"We have managed our costs and cash well, and we expect underlying pre-tax profits to be in line with market expectations for the year as a whole."
Poundland has made a huge amount of progress from the previous year's total of £997.8 million and pushing past the £1 billion mark represents a significant milestone for the company's operations. Following the announcement, Poundland's share price grew by 1.67 per cent and stood at 337.56 as of 10:26 BST on Tuesday (April 14th).
99p Stores takeover
Poundland is looking to purchase rival 99p Stores in a deal worth around £55 million but the deal has come under scrutiny. The Competition and Markets Authority (CMA) is set to launch an investigation into the proposed transaction after initial probe found that it could worsen the position for shopper in local areas.
The CMA believes that if it is rubber stamped then it could affect around 80 areas adding that there was "a realistic prospect of substantial lessening of competition" if the deal was agreed.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.