DIYWEEK.net

Poundworld says difficult trading conditions on the high street are giving the retailer the chance to snap up stores cheaply, as it continues its ambitious store expansion programme.
The company underlined its commitment to growing its estate as it announced that its annual sales leapt by 55% to £206.5m in the year to March 31 2012. Operating profit at the discount retailer was up 14% to £4.7m but pre-tax profit fell from £3.9m to £2.8m - performance being hit by stores opening "outside of the peak trading period".

Poundworld opened its 200th outlet in Newbury in August, and has said it wants to grow this number to 260 by 2014 and 350 by the following year.

The company also trades as Discount UK and has been trialling a smaller, convenience format Poundworld Express.

Releasing its results, Poundworld said in a statement: "Against a backdrop of continuing economic uncertainty the retailing environment in the UK remains challenging, but also presents an opportunity to acquire individual sites or bundles of stores on favourable terms.

"Management is confident that the ongoing store expansion programme will deliver significant cash and profit benefits to the business, but in the short term, performance has been adversely affected as stores have opened outside of the peak trading period.

"The benefit from these stores should be seen in next year's results."