Poundland reports 12 rise in half year profits

Poundland has seen half-year profits grow to £9.3 million.

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By :  ,  Financial Analyst

Poundland has enjoyed a successful past six months after reporting increases in half-year profits.

The discount store, which famously sells every item for £1, recorded a 12 per cent rise to £9.3 million during the first six months of the year. First-half like-for-like sales grew by 4.7 per cent, not taking into account the opening of new stores. The positive performance has been achieved despite the company being hit with significant one-off charges across the period.

Poundland paid out £1.2 million to create a new distribution centre while also supporting its launch of pilot stores in Spain. While the company already has a strong base in the UK, it has identified Europe as a key expansion market. Spain has become the first port of call with Poundland launching its subsidiary First Dealz in Madrid.

This is the first store to be opened on Spanish soil but Poundland has bold plans. At the moment there are three First Dealz stores in Spain but the company wants to take this figure to ten by the end of the 2016 financial year.

In the UK, Poundland has been expanding at a rapid pace with 28 net new stores opened across the nation, as well as Ireland, in the first half of year, taking its estate to 556 outlets. It boasts 72 retail park stores and combined with the high street shops, it will serve over five million customers.

Poundland has unveiled plans to expand its portfolio in the UK and Ireland with 60 stores penned for launch by the end of the 2015 financial year.

Darren Shapland, chairman of Poundland, said: “The strong momentum we reported in July has continued through the first half and we have made a good start to the year. Our future store opening programme is robust and I am confident in our plans for taking the Poundland and Dealz offer to even more customers in the UK and abroad.”

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