Discount Retailer Struggles Amidst Economic Challenges

  • Poundstretcher’s overall profits declined from £2.1m to £1.7m
  • Profit before tax dropped from £2.7m to £2.1m
  • Turnover decreased to £387.4m from £397.3m
  • EBITDA fell to £107m from £11.2m
  • Poundstretcher had 394 stores, with 44 opened and 35 closed
  • Company focused on closing less attractive locations and opening larger ones in prominent sites
  • Management remains confident in the strategy for growth and profitability

Discount retailer Poundstretcher has reported a decline in overall profits for the financial year ending 31 March 2018, with figures dropping from £2.1m to £1.7m compared to the previous year. Profit before tax also decreased from £2.7m to £2.1m over the same period. The company’s turnover dipped to £387.4m, down from £397.3m. EBITDA fell to £107m from £11.2m in the year before. Poundstretcher currently has 394 stores, with 44 new outlets opened and 35 closed, focusing on closing less attractive locations and opening larger ones in prominent out of town and retail park sites. The company acknowledges facing risks and difficulties due to the underlying economic climate. Financial director Hemant Patel remains confident in their strategy for sustained growth and profitability, intending to increase outlets while exiting smaller, older ones.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Poundstretcher’s financial performance, including profits, turnover, and store numbers, and quotes from a company representative discussing their strategy for growth.
Noise Level: 3
Noise Justification: The article provides relevant information about Poundstretcher’s financial performance and the company’s strategy, but it lacks in-depth analysis or exploration of long-term trends or possibilities. It also does not hold powerful people accountable or explore consequences on those who bear risks. The language used is straightforward without exaggeration or irrelevance.
Financial Relevance: Yes
Financial Markets Impacted: Poundstretcher’s financial performance affects its stock price and may impact other discount retailers
Financial Rating Justification: The article discusses the company’s financial performance, including profit, turnover, and EBITDA, as well as its strategy for store expansion and closure. This directly pertains to financial topics and can have an impact on the company’s stock price and the overall discount retail market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no mention of an extreme event in the text.

Reported publicly: www.retailsector.co.uk