THE OWNER of Poundland, Pepco said it was cautiously optimistic for the year ahead, as it recorded a 17.1 per cent surge in revenues for the full year to €5.6bn - despite profit problems mounting.

Demand for budget goods has surged amid the cost of living crisis as shoppers seek out cheaper alternatives, according to its preliminary results.

However, Pepco said that since the start of the new financial year trading has been "mixed" - as the brand was hit by unseasonable weather.

Its Poundland arm saw like-for-like sales slightly above the same period last year, as it was bolstered by demand for cheap packaged goods.

It also said there had been a 33.7 per cent drop in underlying profit before tax, with its executive chair Andy Bond, "our overall performance was mixed with a disappointing profit outturn.

"We are acting decisively to address this, reaffirming our strategy to deliver more measured growth - doing less, to achieve more - with a greater focus on improving profitability and cash generation." Pepco took control of 71 Wilko store leases in the UK when the rival store collapsed The firm said it is "cautiously optimistic" about the year ahead. The board said: "While we expect the challenging trading conditions outlined above to continue in the near term, we are cautiously optimistic as we enter 2024".

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