Poundworld plans to create 4,000 jobs in response to soaring demand

Yesterday Poundworld published “much improved” financial results as low cost retailers continue to attract consumers who are keeping a tight rein on spending. Founded on a Wakefield market stall in 1974 by current owner Chris Edwards, the retail chain has announced operating profits before exceptional items of £6.2m for the year ended March 2014, an increase of £1.6m over the previous year. EBITDA has increased by 16 per cent to £11.9m. Turnover for the year was £345.3m, an increase of £51.5m against 2013, as like-for-like sales rose 2.6 per cent. Since the year-end the improvement has accelerated with like-for-like sales during the three months to June 30 2014 up more than 10 per cent.

Poundworld said “significant progress” has been made by the company on a number of fronts, including the opening of 32 new stores and the rebranding of its multi-price chain, as Bargain Buys.

The company ended the year with 242 stores. Poundworld plans to substantially increase its UK stores, warehouse and distribution capability and overseas supply chain, after attracting £26m in funding from Santander Corporate & Commercial.

Mr Edwards said: “Approaching our 40th anniversary, we’re extremely pleased with the positive progress that Poundworld has made in the past financial year. It’s been a year of significant developments for the company, that will help us to meet the strong consumer appetite for our value goods and attractive single-priced proposition.

“As a result, we are in a strong position to build on the growth achieved, and fully expect profits for the coming year to comfortably exceed those announced today.”