Poundland enjoys bumper profits haul

The West Midlands-based chain is expecting to sell around 1.4 million advent calenders by December 1 and is stocking its shelves with exclusive ranges from the likes of Haribo, Paynes Just Brazils, Dairly Box and Belgian chocolate maker Guylian.

The Willenhall-based company has also enjoyed huge success with its newly launched Make Up Gallery beauty range of eyeshadows, foundations and lipsticks. Launched last month, the range was initially trialled at Poundland's Wolverhampton store. Chief executive Jim McCarthy said it was because: "It's the nearest to the office so we could keep a close eye on it."

He said the store sold 1,600 items from the range in the first week and its popularity was such that its launch had to be restricted to 300 of the chain's 500 UK stores.

Yesterday chief executive Jim McCarthy unveiled pre-tax profits for the six months to the end of September up 34.2 per cent to £12.6 million, while sales were up 15 per cent to £528.2 million.

As a result Poundland, which floated on the stock market in March, will pay shareholders a maiden interim dividend of 1.5p per share.

Mr McCarthy said: "I am pleased to report further growth in both sales and profits in the first half of the year. In addition to strong UK trading, our international expansion plans are well underway with three Dealz stores now open and trading well in Spain. "

"As the structural changes in UK retail continue to redraw the landscape, we are building our reputation for offering amazing value every day to our customers and substantially broadening our appeal."

"While our full year outcome, as always, is dependent on delivering a good Christmas for our customers, I remain confident of further progress throughout the year."

The fourth Spanish store, in Malaga, was opened yesterday and Mr McCarthy said management were being updated every hour on its progress.

A fifth will be opened by Christmas and two more early next year.

Back in the UK and Ireland Poundland has another 28 new stores, giving it 556 in all serving 5 million customers a week. It plans another 60 next year and Mr McCarthy said Poundland was now half way towards its target of 1,000 stores in the UK.

He also revealed that Poundland was planning its next celebrity endorsment for next year following the success of its tie-in with actress and cake maker Jane Asher. The chain has sold five million items of her branded bakeware and ingredients so far, including 100,000 packets of sprinkles.

"Jane has worked incredibly closely with us," said Mr McCarthy. "She has really helped us with the quality side and the design side."

Meanwhile Poundland has also launched its own jewellery range, called Purple Ivy.

But there is still no launch date in sight for Poundland's online store. Despite two years' development work Mr McCarthy said he was 'not putting a timeline' on its launch, as the group focused on its stores growth in the UK and in Spain.