Sales grow 10.6pc to £2.75bn for Poundland owner

For the final quarter of the year it was up 12.9 per cent to £706 million.

The number of stores across the continent rose 12.6 per cent to 2,360 in the year.

The underlying growth in sales was partially offset by the closure in the UK of around 60 poorly performing former 99p stores.

There was strong like-for-like growth in Poundland, which has its headquarters in Willenhall, driven primarily by the successful introduction of Pep &Co budget clothing ‘shop-in-shops’ in more than 300 stores

Andy Bond, chief executive of Pepkor Europe, said: “We ended the financial year very strongly, as our key brands focused uncompromisingly on the delivery of their respective business plans. Poundland’s return to like-for-like growth is encouraging and the continued growth of PEPCO clearly evidences the broad appeal of their value for money proposition in existing and new markets.

“Although relatively small, the performance of our Dealz businesses in both Spain and Poland are particularly pleasing.

“Each of the Group’s brands sit within a core discount segment that is attractive to customers and growing at levels similar to that experienced online. Our established businesses are also financially strong, being profitable and cash generative. With a clear strategy in place, we are excited about our prospects for continued growth across Europe.”

The £1-for-everything chain Poundland was bought by South African conglomerate Steinhoff in a £610m deal in 2016. Pepkor is the general merchandising arm of Steinhoff.

The chain was originally founded in 1990 by south Shropshire-based businessman Steve Smith, a former market trader, and his father Keith. The Smiths sold up for £50m in 2002

It now employs about 18,000 people at its stores in the UK, Ireland and Spain, with about 750 of them at its headquarters in Willenhall and a major warehouse at Bilston.

The budget store chain snapped up 20 former sites following the collapse of rival Poundworld in September and has been opening in former large Poundworld stores in cities and towns which have not had a Poundland before.