Poundland’s owner insisted it was ‘cautiously optimistic’ about the year ahead after annual profits crashed by more than a third.
Pepco Group, which owns the Pepco and Dealz brands in Europe as well as Poundland in the UK, revealed profits fell 35.8 per cent to £126million for the 12 months to the end of September.
Chief executive Andy Bond said the result was ‘disappointing’ as the cost of opening another 668 stores across the group, as well as inflation and interest rate pressures, offset a 17.7 per cent rise in sales to a record £4.8billion.
Pepco said trading since the start of the financial year has been ‘mixed’ with group sales down 3.1 per cent in the eight weeks to November 26.
Profits down: Pepco Group, which owns Poundland in the UK, revealed profits fell 35.8% to £126m for the 12 months to the end of September
Poundland sales were ‘slightly above’ last year’s levels so far, according to the group. A spokesman said they were ‘cautiously optimistic as we enter 2024’.
Bond said the group was taking action to slow store openings and address higher costs to boost its bottom line.
The firm also said that it has opened 64 former Wilko stores under the Poundland brand.
It struck a deal in September to buy up to 71 Wilko stores from administrator PwC after the collapse of the High Street chain.
