99p Stores addition boosts Poundland

The Willenhall-based Poundland single price stores group says sales were up 17.9 per cent to £1.31 billion for the year to March 27.

So far 190 conversions of shops added by the acquisition of 99p Stores have been completed and the programme will finish at the end of this month, well ahead of plan

In the final quarter total sales increased by 29.8% to £330.8 million on a constant currency basis, benefiting from the addition of the 99p Stores' portfolio

Including new store openings, the acquired 99p Stores estate and Spain, 336 gross stores have been added to Poundland's portfolio in the last 12 months, increasing the estate by 57% to 906 including 843 in the UK

Poundland said that underlying pre-tax profits are expected to be broadly in line with current market expectations

It said it had been a tough quarter for the core business, which was impacted by difficult market conditions and disruption from the accelerated pace of delivery of the 99p Stores' conversion programme.

Chief executive Jim McCarthy, said: "Against a tough retail background, this has been a transformative year for Poundland, strengthening further our position as Europe's biggest single-price discounter. We have added over 300 shops to our portfolio in the UK & Ireland, in particular in the South of England, substantially increasing our geographical reach and scale.

"The 99p Stores' conversion programme will complete by the end of April, at which point we expect to see the significant benefits of over 900 stores trading as one cohesive retail operation begin to materialise."