Poundland profits posts 34% rise in profits
Budget supermarket chain, Poundland has reported a 34% rise in profit before tax at £12.6m for the six month period to 28 September, following a 15% jump in sales.
Sales for the firm’s 550 stores totalled £528.2m for the period, as the group began its expansion into continental Europe opening three new stores in Spain, along with 28 new stores in the UK and Ireland.
Moreover, Poundland’s like-for-like sales, excluding new store openings, were up 4.7% on a constant currency basis driven by favourable weather conditions in the first quarter.
The budget retailer floated in February with shares debuting at 300p each, valuing the company at £750m.
As of 9:13 on Thursday, Poundland’s shares were trading up 1.94% at 316.00p per share.
Following the encouraging results, Poundland announced its intentions to pay shareholders a maiden dividend of 1.5p per share.
The group said on Thursday that while its full-year outcome will depend on its Christmas performance, it was confident of further progress for the remainder of the year.
Chief executive Jim McCarthy said: "We know that Poundland is a good business in a recession and we believe it is an even better business in improving economic conditions."