Member Article

Wakefield’s Poundworld posts improved results and promises 150 stores and 4,000 jobs

Wakefield-based Poundworld Retail, the family-run retail chain retailers has posted much improved financial results which provide further evidence that more and more UK shoppers are switching to the value retailing sector.

Founded on a Wakefield market stall in 1974 by current owner Chris Edwards, the retail chain has announced operating profits (before exceptional items) of £6.2 million for the year ended March 2014, an increase of £1.6 million (31%) over the previous year. EBITDA has increased by 16% to £11.9 million.

The company ended the year with 242 stores and has plans to open a further 150 stores in the next three years, creating over 4,000 jobs for the UK economy.

Turnover for the year was £345.3 million, an increase of £51.5 million (18%) against 2013, as like-for-like sales rose 2.6%. Since the year end the improvement in like-for-likes has accelerated with sales during the three months to June 30 2014 up more than 10%.

Significant progress was made by the company on a number of fronts, including the opening of 32 new stores and the rebranding of its multi-price chain, as Bargain Buys.

The company continued to invest heavily in personnel and systems to ensure the store expansion programme has solid foundations, whilst maintaining a clear focus on driving down store costs to ensure that it remains one of the most cost-effective operators in the sector.

This announcement follows the news earlier this week that Poundworld is to substantially increase its UK stores, warehouse and distribution capability and overseas supply chain, following £26 million in funding from Santander Corporate & Commercial.

Chris Edwards, founder and CEO, Poundworld Retail, said: “Approaching our 40th anniversary, we’re extremely pleased with the positive progress that Poundworld has made in the past financial year.

“It’s been a year of significant developments for the company that will help us to meet the strong consumer appetite for our value goods and attractive single-priced proposition.

“As a result we are in a strong position to build on the growth achieved and fully expect profits for the coming year to comfortably exceed those announced today.”

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This was posted in Bdaily's Members' News section by Clare Burnett .