Discount retailer Poundstretcher overall profits for the financial year ending 31 March 2018 fell to £1.7m compared with the previous year’s figure of £2.1m.
Its profit before tax dropped from £2.7m to £2.1m over the same period. The company’s turnover dipped to £387.4m compared with the previous year’s figure of £397.3m. Its EBITDA was down to £107m from £11.2m the year before.
Poundstretcher had 394 stores at the end of the financial year, with 44 new outlets opened and 35 closed. It said it had focused on closing stores in “less attractive” locations and opening larger ones in prominent out of town and retail park sites.
The company said it faced a number of “risks and difficulties” and its activities were affected by the “underlying economic climate”.
Hemant Patel, financial director of Poundstretcher, said: “The trading environment in which the company operates is an increasingly competitive and challenging one. However management remain fully confident that the strategy that is in place is the correct one and will continue to deliver sustained growth in turnover and ultimately profitability.
“The company intends to increase the number outlets as well as exiting smaller, older ones.”