Poundland, which owns the Dealz brand in Ireland, has said that the success of its Irish retail venture "demonstrates that we are not only capable of generating attractive financial returns but also of rapidly establishing a successful brand in a new geography."
Poundland posted record total sales in the year to 30 March 2014, according to accounts just filed, of £997.8 million, a 13.3% rise on the previous year (£880.5 million), while like-for-like sales were up 1.9%.
Gross profits increased by 13.9% to £368.5 million (2013: £323.5 million), while gross margins increased by 19 basis points to 36.93 % (2013: 36.74%).
Poundland ended the year with a total of 31 Dealz outlets in Ireland, and opened a total of 70 (net) new stores across the financial year, in Ireland, the UK and Spain, where it is set to roll out the Dealz concept, opening 10 stores over the next two years.
"Our strong sales and volume increases demonstrate the relevance of our proposition to consumers from all socio economic groups," said chief executive Jim McCarthy.
"Manufacturers recognise the increased demand for value and are working hard to deliver products that meet these requirements. Many forward thinking suppliers are also changing their sales, account structures and supply chains to adapt to these changes. We will continue to work with our supplier partners to bring amazing value, brands, new products and innovation to our customers."
Commenting on the group's performance, Shore Capital Stockbrokers said that it was upgrading its FY2015 EPS estimate for the company, saying: "Poundland is a leader in a fast-growing segment of the British retail market. The group also has good potential in Ireland whilst it has opened a first Spanish store; online will come too in FY2015. We believe this excellent company merits a premium rating, with the share price expected to follow the annual EPS progress."
© 2014 - Checkout Magazine by Stephen Wynne-Jones
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