Poundland Group PLC Q4 Trading Statement (0759K)

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RNS Number : 0759K

Poundland Group PLC

14 April 2015

14 April 2015

POUNDLAND GROUP PLC

FOURTH QUARTER TRADING STATEMENT

Solid fourth quarter trading; full year in line with market expectations

Poundland Group plc ("Poundland" or "the Group"), Europe's leading single price retailer, today announces its fourth quarter trading statement for the 13 week period to 29 March 2015.

Headlines for the 2015 financial year

   --     Total sales, excluding Spain, increased by 11.8% (2014: 12.7%) on a constant currency basis 
   --     Like-for-like sales increased by 2.4% (2014: 1.9%) 
   --     60 net new stores opened in the UK & Ireland, as planned 
   --     Spanish trial is proceeding to plan 
   --     Underlying pretax profits expected to be in line with market expectations* 

Revenue for the 12 months to 29 March 2015

For the 12 months ending 29 March 2015 total revenue, excluding Spain, increased by 11.8% on a constant currency basis (2014: 12.7%) and by 2.4% on a like-for-like basis (2014: 1.9%). On an actual currency basis, total revenue, excluding Spain, increased by 11.4% (2014: 13.3%) to GBP1,111.5 million (2014: GBP997.8 million).

During the fourth quarter, total revenue, excluding Spain, increased by 7.1% on a constant currency basis (2014: 13.9%). On an actual currency basis, total revenue, excluding Spain, increased by 6.5% (2014: 14.4%) to GBP255.0 million (2014: GBP239.5 million). This represents a solid performance against a strong trading period in the previous financial year. As we have previously highlighted, due to the timing of store openings, the contribution from new store trading weeks this year has been lower than last year and this continued to be the case in the fourth quarter. As planned, we opened ten fewer stores in the year as a whole than in the previous year and this was also a factor in a lower contribution to sales growth from new stores in the quarter.

Quarterly sales FY 2014 and FY 2015

 
                        Q1      Q2      Q3      Q4    2014      Q1      Q2      Q3      Q4      2015 
------------------  ------  ------  ------  ------  ------  ------  ------  ------  ------  -------- 
 Sales (GBPm)        222.9   236.4   299.1   239.5   997.8   262.3   265.9   328.4   255.0   1,111.5 
------------------  ------  ------  ------  ------  ------  ------  ------  ------  ------  -------- 
 Growth (constant 
  currency) (%)       11.2    13.9    12.1    13.9    12.7    17.9    12.9    10.2     7.1      11.8 
------------------  ------  ------  ------  ------  ------  ------  ------  ------  ------  -------- 
 Growth (actual 
  rates) (%)          11.6    14.7    12.7    14.4    13.3    17.7    12.5     9.8     6.5      11.4 
------------------  ------  ------  ------  ------  ------  ------  ------  ------  ------  -------- 
 

Strategy Progress

Quarterly UK & Ireland store opening programme FY 2014 and FY 2015 (net)

 
               Q1   Q2   Q3   Q4   2014   Q1   Q2   Q3   Q4   2015 
------------  ---  ---  ---  ---  -----  ---  ---  ---  ---  ----- 
 Number 
  of stores    17   15   26   12     70    9   19   17   15     60 
------------  ---  ---  ---  ---  -----  ---  ---  ---  ---  ----- 
 

We opened a net 15 new stores in the UK and Ireland during the fourth quarter, taking the total to a net 60 stores during the 2015 financial year, in line with our target. The Group ended the financial year with 547 stores in the UK and 41 stores in Ireland (2014: 497 and 31 respectively) and has a strong pipeline of stores for the current financial year.

We have continued to develop our trial in Spain and are pleased with the initial progress. At the end of the quarter we had five stores and have since opened our third store in Madrid. We will give a further update on the trial's progress at the time of the Group's preliminary results.

Further to our announcement on 9 April 2015, we continue to carefully consider the UK Competition and Markets Authority's announcement in relation to its Phase 1 review of the Group's proposed acquisition of 99p Stores Ltd, together with the full detail behind it and will make a further announcement in due course.

Financial Position

The Group generated strong cash flow during the period and ended the 2015 financial year with net cash of GBP13.9 million (2014: net debt of GBP4.7 million).

Commenting on Poundland's performance, Chief Executive Jim McCarthy, said:

"After a solid quarter of sales growth, Poundland's revenue for the 2015 financial year was over GBP1 billion for the first time. Despite tough trading conditions, Poundland continues to perform well and we served an average of 5.3 million shoppers a week during the quarter.

"We have managed our costs and cash well, and we expect underlying pretax profits to be in line with market expectations* for the year as a whole. We achieved our target of 60 net new stores in the UK and Ireland and have a very strong pipeline of store openings for the current financial year.

"We expect to continue to deliver our growth strategy in the new financial year, notwithstanding some headwinds from a weaker Euro and a tough comparable in the first half."

* Market expectations for underlying pretax profit for FY2015 range between GBP42.0m and GBP44.6m, with the mean for consensus being GBP43.8 million

Poundland will report its preliminary results for the 12 months to 29 March 2015 on 18 June.

A call for analysts and investors will be held today at 9am. Please use the following conference call details:

Dial in: [phone]

Password: Poundland

For further information please contact

 
 Investor Enquiries: 
 Nick Hateley, Chief Financial 
  Officer                         0121 568 7000 
 Philip Dorgan, Head of 
  Investor Relations              0121 568 7000 
 
 Media Enquiries: 
 Citigate Dewe Rogerson 
                                  [phone] 
 Simon Rigby                       2847 
                                  [phone] 
 Angharad Couch                    2941 
 

About Poundland

Poundland plc joined the premium segment of the London Stock Market in March 2014.

Poundland is Europe's largest single price value general merchandise retailer and winner of the 2014 Grocer Awards for Variety Discount Retailer of the Year. Nearly 600 stores have been opened in the UK, the Republic of Ireland and Spain since 1990. In the Republic of Ireland and Spain, Poundland trades under the Dealz brand. Poundland sells top brands and own brand products all for the single price point of GBP1, providing customers with amazing value every day.

Serving over 5 million customers every week, Poundland offers an irresistible shopping experience where shoppers are guaranteed to find approximately 3,500 quality products per store, including over 1,000 well-known brands and around 2,500 own label products. Our offer includes 17 different shopping categories including food and drink, health and beauty, household, gardening, DIY, pet, stationery, books, DVDs and toys. Poundland stocks over 50 own label families, with recent launches including Jane Asher's Kitchen range, Purple Ivy Jewellery and Make Up Gallery.

For more information about Poundland, please visit:

www.poundland.co.uk

www.Facebook.com/Poundland

www.twitter.com/poundland

This information is provided by RNS

The company news service from the London Stock Exchange

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