Poundland cashes in as earnings rise 27pc

Consumers are holding back spending in the face of inflation, meagre wage increases and austerity measures designed to cut record national debt.

But private equity-owned Poundland, which trades from 400 stores in the UK and Ireland, said its turnover rose 22 per cent to £780m in the year to April 1, as its offer of more than 3,000 products and 1,000 branded goods, all at a single price point of £1, chimed with cash-strapped consumers.

Underlying earnings before interest, tax, depreciation and amortisation rose 27 per cent to £40.1m.

“Notwithstanding the challenges of the economy and the competitive environment, Poundland is expected to perform robustly in the coming year,” the firm said, adding it plans to open at least 60 new stores and a new distribution centre in 2012-13, creating up to 2,000 new jobs.

Poundland launched in 1990 with a pilot store in Burton-Upon-Trent.

This was followed soon after by a store at Meadowhall in Shef- field.

The company, owned by Warburg Pincus, attributes its success to major investment in stock control, distribution, financial and staff management systems.