Pepco Group has reported a 17.7 per cent increase in annual revenue to £ 4.8 billion (€ 5.6 billion) after downgrading its expectations last month.

Revenue increased 12.5 per cent year on year to £ 1.2 billion (€ 1.4 billion) in Q4, with Pepco increasing 12.6 per cent and Poundland increasing 12.4 per cent. In the fourth quarter, however, like-for-like revenue remained flat. The result was “challenging trading, with like-for-like revenue turning negative in August and worsening in September”.

Andy Bond, Executive Chair of Pepco Group, said, “Group performance over the past year has been mixed against a challenging market backdrop.”

The group’s financial performance was aided by a record 343 new store openings in the fourth quarter, with a total of 668 openings for the year.

Poundland agreed to take over up to 71 Wilko shop leases in the UK last month. Following the collapse of the high street company Wilko in August, it has already reopened 20 Wilko locations as Poundland locations.

Due to “weaker than expected fourth quarter sales and the impact of higher costs, partly reflecting the recent investment in its new store openings,” Pepco Group forecasts underlying FY ’23 EBITDA of £ 647 million (€ 750 million).