Poundland’s former owner Pepco Group delivered “record revenues” in its first set of results after offloading the ailing discount chain.
Group sales, excluding Poundland, increased 7.7% to £929m (€1.01bn) in the quarter to 30 June, up 2.6% on a like-for-like basis.
Pepco sales were up 7.4% to £859m (€997m), boosted by the 44 net new stores that opened during the period. Dealz revenues were up 11.2% to £68.9m (€80m).
Meanwhile, Poundland revenues dropped another 10.3% to £299m (€347m) in the group’s third quarter to its sale to Gordon Brothers on 12 June. On a like-for-like basis, sales fell 7.1%.
Around 19 of the chain’s stores were shuttered during the period and around a hundred more have been earmarked for closure under its new restructuring plan that’s awaiting court approval.
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Pepco Group said the sale of Poundland “improves the group’s revenue growth and drives higher profitability and margins, with stronger cash generation”.
Looking ahead, it expects to deliver an underlying EBITDA growth in the high single digits for its Pepco business and an EBITDA of around £25.8m (€30m) for its Dealz fascia.
Pepco Group chief executive Stephan Borchert said: “Our results in Q3 reflect our continued strategic execution across ‘New Pepco Group’ and actions we have taken to drive more consistent performance.
“This outstanding performance at Pepco – the engine of the Group’s earnings potential – was driven by improved availability, a focus on price leadership of its best-selling items and improved product ranges, which supported our continuous improvement of LFL sales and volume growth in the period.
“The group’s continued momentum, its compelling underlying earnings potential, strong cash generation and the board’s belief that the current share price materially undervalues its future prospects underpins today’s decision to commence a share buyback programme of up to €50m, to further enhance shareholder returns.
“Having completed the sale of Poundland in June 2025, New Pepco Group now has a simpler structure and we look forward with confidence to capitalising on the numerous growth opportunities for the Pepco brand, as part of our ambition to become one of Europe’s most successful discount retailers.”
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