Poundworld reports record year as profits rise 130%

As more and more shoppers are opting for bargains, Poundworld has seen huge success this financial year with operating profit increasing by 130% to £14.6m.

For the year ending 31 March 2015, which saw the retailer have 12 months of record trading, Poundworld’s like-for-like sales growth averaged at 5.6%, with turnover reaching £422.3m.

Poundworld, which was taken over by US-based private equity group TPG Capital in May for £150m in cash, also opened a further 38 stores this past year which brings its total number of sites nationwide to 280.

TPG is planning to heavily invest into a store expansion programme that will secure plans to develop 60 Poundworld stores each year from 2016 onwards.

Chris Edwards, chief executive of Poundworld Retail, said: “We have seen a record financial year and one of landmark progress for the company.

“We expect the year ahead to be one of development and consolidation that includes investment into a new 500,000 square foot warehousing facility next to our current head office and the replacement of our existing retail data system.

“We’re confident that these changes will provide a strong platform for rapid growth over the next three years bringing our proposition of convenience and value to even more customers across the UK.”

Founded in a market stall in Wakefield in 1974, Poundworld caters for 2 million customers every week and is the UK’s second biggest single-price discount retailer.

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