Single-price discounter Poundworld's sales hit £422M
The company, which was set up in 1974 on a Wakefield market stall by founder Chris Edwards, is now said to be the UK’s second largest single-price discount retailer after Poundland. Edwards sold a majority stake to US private equity firm TPG Capital last May for £150M.
As well as stocking a variety of household goods, Poundworld sells a range of food and drink, including well-known brands such as Cadbury, Coca-Cola and Heinz. It also offers online shopping.
4,400 jobs
In July, it announced the creation of 4,400 jobs with a Wakefield warehousing development. This will create a distribution hub capable of supplying 200 new stores. It opened 38 new stores during the year.
The company ended the financial year with 280 stores nationwide and TPG has since injected funding into a store expansion programme which plans to develop 60 stores each year from 2016 onwards.
After successfully trialling the conversion of the multi-price Discount UK stores to the new Bargain Buys fascia during the first quarter, this has now been completed. Poundworld’s earnings before interest, tax, depreciation and amortisation were 75% higher at £20.8M, while net debt was reduced by 31% to £10.6M.
‘Record financial year’
“We have seen a record financial year and one of landmark progress for the company,” said Poundworld Retail chief executive Chris Edwards.
“We expect the year ahead to be one of development and consolidation that includes investment into a new [26,452m2] warehousing facility adjacent to our current head office and the replacement of our existing ERP [enterprise resource planning] system.
“We’re confident that these changes will provide a strong platform for rapid growth over the next three years bringing our proposition of convenience and value to even more customers across the UK.”
