Wakefield Discounter Breaks Record
15 September 2015
Wakefield headquartered Poundworld has seen unprecedented success this year as operating profits rose 130%.
For the year ended 31 March 2015, Poundworld's operating profit increased to £14.6m
The founder-led company saw the sale of a majority stake in the firm to TPG Capital in May this year. Two months later the firm announced the creation of 4,400 jobs with a Wakefield warehousing development, which will create a distribution hub capable of supplying 200 new stores.
Turnover for the year reached £422.3m, £77m ahead of 2014, and the firm has also benefitted from 38 new store openings during the year. The company ended the financial year with 280 stores nationwide and TPG has since injected funding into a store expansion programme which plans to develop 60 stores each year from 2016 onwards.
After successful trialling during the first quarter, the conversion of the multi-price Discount UK stores to the new Bargain Buys fascia was completed and resulted in a healthy LFL performance of 8%.
Poundworld's EBITDA was 75% higher at £20.8m and net debt was reduced by 31% to £10.6m.
Chris Edwards, chief executive at Poundworld Retail Ltd 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 adjacent to our current head office and the replacement of our existing ERP 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."
Established in 1974 on a Wakefield market stall, Poundworld is the UK's second biggest single-price discount retailer in the UK and serves over 2 million customers every week.