Poundland profits soar by 80 per cent

Poundland has announced its profits have soared by more than 80 per cent as it enjoys a boom through the recession.

The Black Country-based chain, which employs 700 people in Willenhall, cashed in on a big expansion which has seen 56 new stores and 2,000 jobs created.

The company revealed operating profits in the 12 months to April rose 81.5 per cent to £21.5 million.

Turnover rise by 28.7 per cent to £509.8million, as shoppers rushed to its stores to grab a bargain. Poundland's 260 stores deal with around three million customers every week – with everything in store costing £1.

It plans to open another 50 stores in the next 12 months, creating a further 2,000 jobs.

Chief executive Jim McCarthy has also outlined plans to spend thousands of pounds upgrading existing stores and further boosting its workforce at distribution hubs at Springvale, Bilston, and at its headquarters in Wellmans Road, Willenhall.

He said today: "Our latest results show that consumers from all income brackets are savvy enough to shop with us to save money from their shopping budget."

Mr McCarthy told of how said like-for-like sales, not including those from new stores, rose by 0.7 per cent over the last year.

He said: "With economic uncertainty continuing, we are seeing many more first time shoppers joining our existing loyal customer base."

The first Poundland store was opened in Burton-on-Trent 20 years ago by former Wolverhampton market traders Keith Smith and his son Steve.

It has grown to employ more than 7,000 people since it was bought by investment group Advent for around £50million in 2002.

Earlier this year Poundland, was acquired by US-based private equity firm Warburg Pincus in a deal thought to be worth around £200million.

Poundland's top sellers include Kodak batteries, bags of sugar, Maltesers, reading glasses and butterfly lights.