Poundworld profits more than double following takeover

Published on: 15th September 2015

US private equity group TPG Capital has seen the discount retailer growing fast since taking over this year.

poundworldThe discount retailer said operating profits rose 130% to £14.6m last year, following 12 months of record trading.

Poundworld also opened 38 new stores, boosting turnover by just over a fifth to £442.4m. Also, like-for-like sales growth averaged 5.6% in the 12 months leading up to March 31st 2015.

The year also culminated in its takeover by TPG Capital in May for £150m in cash, as Poundworld’s founder, Chris Edwards and his son Chris Edwards Junior are both believed to have kept a minority stake in the business.

Chris Edwards, chief executive as well as founder of Poundworld Retail said: “We have seen a record financial year and one of landmark progress for the company. We expect the year ahead to be one of development and consolidation that includes investment into a new 500,000 square foot warehousing facility next to our current head office and the replacement of our existing retail data system.”

The takeover will also see a store expansion programme to more than 60 stores a year from 2016. Poundworld’s debt pile is also shrinking, falling by one third to £10.6m in the year.

Poundworld is the UK’s second biggest single-price discount retailer and serves more than two million customers every week.


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