
Poundland owner Pepco Group has posted a record full-year revenue of £ 4.8 million in the year to 30th September despite mounting profit problems.
The total represents a 17.7 per cent rise in constant currency over the prior year, fueled by growth of 24.8 per cent and 8.4 per cent at Pepco and Poundland, respectively, as demand for low-priced goods increased due to the crisis in the cost of living.
The discount firm reported that underlying EBITDA grew by just 3.1 per cent to £ 645 million for the entire year, essentially staying unchanged.
At constant currency, underlying pre-tax profit decreased by 33.7 per cent year over year to £ 174 million as a result of investments made in the group’s retail estate, expansion, and associated supply chain expenses.
Executive chair Andy Bond said “Our overall performance was mixed with a disappointing profit outturn.” But the company said it sees strong growth in the UK discount space in the year to come.
Pepco Group established 668 net new stores in the course of the year, 53 of which were for Poundland in the UK. As part of the retailer’s long-term estate management plan, 51 underperforming Poundland stores were shuttered.
In September 2023, Poundland had already consented to assume management of up to 71 Wilko shop leases in the event that the retailer went into administration.
The company anticipates opening at least 400 net new stores in its upcoming fiscal year, the most of which will be under the Pepco brand.
Pepco stated that it is “cautiously optimistic” about the upcoming year despite the varied outcomes. “We are cautiously optimistic as we enter 2024, even though we expect the challenging trading conditions outlined above to continue in the near term,” the board stated.