Record sales for Poundworld

UK-based discount chain Poundworld posted record annual sales today.

The company said that it plans to continue its rapid expansion by opening 60 new stores a year from next year.

The UK’s second-largest single price discount retailer, behind Poundland, said sales jumped 22% to £422.3m in the 12 months to the end of March in a period when it opened 38 stores, with like-for-like sales up 5.6%.

The group added that operating profits also hit a record, more than doubling by 130% to £14.6m.

US buyout group TPG took a majority stake in the business for £150m in May, in a deal which saw founder and chief executive Chris Edwards become a multimillionaire.

Mr Edwards founded the business from a market stall in Wakefield in 1974.

Poundworld said as a result of new funding from TPG it will accelerate its store expansion programme to in excess of 60 stores a year from 2016 onwards.

Mr Edwards said: “We have seen a record financial year and one of landmark progress for the company.”

He added that he expected “the year ahead to be one of development and consolidation.”

Mr Edwards said the firm would invest in a new 500,000 square foot warehouse next to its Normanton head office in West Yorkshire, and replace its IT ordering systems.

He said these changes “will provide a strong platform for rapid growth over the next three years.”

The group added that its multi-price discount chain Bargain Buy, which trades from more than 50 outlets, saw like-for-like sales lift by 8% over the year.

Larger rival Poundland, which owns around 500 stores, is in the middle of a £55m acquisition of rival 99p Stores.

The takeover was last month provisionally cleared by the UK's Competition and Markets Authority.