POUNDLAND LIMITED - Annual Accounts

Form: AA - Annual Accounts

FULL ACCOUNTS MADE UP TO 27/03/11

Filed on: 17 Oct 2011

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Poundland Limited
Directors’ report and financial
statements
Registered number #######
For the period ended ## March ### #
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Poundland Lxmned
D#rectors` report and GDHHCIBI statements
For the ported ended ## March ##i I
Contents
Buslness Descrtptlon I
Key Hlghllghts #
Chtef Execuuve review #
Fmance Director’s renew #
DITCCIOFS' report #
Statement of directors’ responsibility m respect of the directors’ report and the financial statements I#
Independent auditor’s report to the members of Poundland Ltmtted l I
Profit and loss account I#
Balance sheet I#
Notes I#

Poundland Limited
Directors report and financial statements
For the period ended ## March ### #
Business Description
Poundland is Europe‘s largest single price value retailer, offering for sale throughout England, Scotland, Wales
and Northem Ireland a wide variety of general merchandise from over ### high street, city centre and retail park
stores The company trades under the ‘Poundland’ fascia All items of merchandise have a single selling price of
£# which is a highly compelling value proposition
We have operated at the single selling price of £# since #### and our Goal provides the framework upon which
we have built our business success
“At Poundland we deliver amazing value to our customers every day We will be famous for our wide
range of great products and top brands, offering many new lines every week Poundland will always be
fun and friendly with something for everyone "
Poundland’s retail proposition ta very robust, with over three and a half-marathon customer transactions undertaken
in our stores every week We are a single price driven, product led business that delvers amazing value across
seventeen categories, #,### product lines (including over #,### famous brands) and numerous one off ‘wow”
purchases that are simply irresistible
Our seventeen categories ensure a wide choice for our customers and they benefit from a product offer that
includes food and drink, health and beauty, household, DIY, homewards, clothing, stationery toys, entertainment
and gardening Our seasonal product range is also an important part of our offer We provide our customers
amazing value products for key seasons, include Charvestman, Easter and Halloween The vast majority of
famous brands that we offer are sourced directly from major manufacturers including, l-lemur, Kellogg`s, Reckitt
Benckiser, Kraft, Walkers, Brttvtc, Coca Cola, GSK, Unilever and Proctor & Gamble
Warburg Pincus is the majority shareholder in Poundland Group Holdings Limited, the company’s ultimate
parent, and is one of the world’s leading private equity investors Stephen Coates and Paul Best are the Warburg
Ptncus executives who both serve as board directors Management are also significant minority investors in
Poundland Group Holdings

Key Highlights
Htstortc Performance - ## week comparable periods
Poundland Ltmtted
Directors report and financial statements
For the period ended ## March ### #
Stot entremets s fin Sales
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#### #### #### #### #### #### #### ####
° ## net new stores , growing estate by ##% to ### stores
# Revenue growth of ## #% to £### Melton
# Underlying EBITDA growth of ## #% to £## # Melton
# Successful multimegaton of VAT increase to ##%
# Acqutsttton of group by Warburg Pincus and management
# Successful restructuring of banking facilities t Agust ####
Notes
# Underlymg EBITDA ta calculated after adjusting for an estimate of the postnatal impact of the temporary reduction t the VAT rate to ##% for the period #
December #### to #i December #### More detail on this ta contravened t the Fmnncc Dtrector‘s review
# Operating Cash Flow ta shown before payments for exceptional totems,capita# expenditure, interest and taxation No attempt has been made to adjust the cash
low for the postdate impact of the temporary reduction in the VAT rate to ##% for the period # December #### t ## December ####
#

Poundland Lrmttcd
Directors’ report and financial statements
For the ported ended ## March ##i I
Chief Executive review
l am pleased to report another year of significant achievement for Poundland, against a background of
continuing turbulent economic conditions and I would like to thank all of my colleagues throughout the company
for their skills and dedication t devermore our strong growth throughout a very difficult year for the UK
COITSUITICI'
We have delivered a good performance in a year when we also had to manage a number of key events
Key Events
The first of these occurred t Jrune #### when Warburg Pincus and Management acquired Poundland Holdings
Ltmtted from Advent Intemattonal it was our strong belted that Warburg Pincus were the most appropriate
partners to work with the company through the next stage t tta excretion growth strategy It was clear from the
earliest meetings that the strategic objectives of both panted were fully aligned I would like to thank the team at
Advent Intemattonal for their eight year involvement with the company and their support in helping grow the
business from ## stores to ### stores during their ported of tenure
The second key event occurred t Agust #### when the group refinanced loan notes that had orientally part-
funded the acquisition I am pleased that our previous banking relationship with the Bank of Scotland, who are
now part of Lloyds Banking Group, has been maintained in the new arrangement and that a further four banks
(The Govemor and Company of Bank of Ireland, Soctete Générale, UntCred#t Bank AG and ING Bank NV)
have also provided funding It ta clear that the company has adequate facilitates t place to support our strategic
ambrosial
Performance
Market conditions remain depressed with household income falling and high street footfall under pressure
However, our goal remains clear, to offer amazing value to our customers every day We serve over three and a
half Melton ccustomers every week and we continue to invest t cconsumer research to ensure that our offer meets
their requirements In response to research results we have continued to carefully tailor our product ranges,
increasable the availability of essential every day products
We absolutely believe that provident our customers amazing value every day ta key to our success and this is
reflected t oUr financial results Our trading performance over the past year has been strong with sales and
underlying EBITDA at record levels The results are even more pleasing when other factors are taken into
account During the financial year we experienced the worst winter weather for thirty years and managed
significant input cost pressures, especially t oUr food and drink category There was also an increase in the
VAT rate by # #% to IIS new rate of ##% t the final quarter of the year Managing challenging cost pressures as
a fixed single price retailer ta part of our DNA and Poundland has over ## years experience of successfully
managing tits gross margin during a variety of economic circumstances and challenges We have mitigated these
margin pressures and our achieved margin in Quaner # of the new financial year ta ahead of that t Qquarter #
FYIO
Ltke for Ltke sales and volumes were broadly flat against a background of reduced high street footfall and the
exceptionally poor weather over Christmas Despite the challenging weather conditions t DDecember, we
enjoyed record Christmas sales, serving over four and a half Melton ccustomers during the peak Christmas week
Our central distribution team, include warehouses and transport, delivered t jus oen week a record breaking
I # Melton cass to ensure that our store teams could satisfy ourselves customers
I have mentioned t pprevious years that cost control ta a critical component t dovertness our goal of offering
amazing value every day to our customers I am pleased to report that once again we have reduced our operating
costs as a percentage to sales when compared to the prior year


Poundland Ltmrted
Dtrectors' report and financial statements
For the ported ended ## March ####
Chief' Executive review (continued)
Sourcing
Poundland has the ability to source and develop products globally We are proud that nearly ##% of our
products are sourced through UK companies However, our Far and Near East operations based in Hong Kong
and New Delht continue to be a very important part of our sourcing strategy Accordingly we have strengthened
our teams t boh tthese locations
Poundland’s good UK vendor relationships have continued to improve during the ported and an increasable
number of primary manufacturers supply Poundland direct It ta pleasing that major manufacturers of branded
products recognise the significance of Poundland to consumers and the outstanding growth opportunity that we
offer them We know from our market research that brands are very important to our customers and securing
continuity of supply through these direct channels allows us to differentiate our offer from other single price
competitors
Corporate and Social Responsrbrlrty
Poundland customers always require amazing value, but they also need to be assured that we trade fatly aNd
take our corporate and octal rresponsibility sseriously Durtng the year we have strengthened our supplier code
of conduct and social accountability processes We have joined Sedex, the largest organisation of tits kind that
shares ethical trade information with tits members We have commissioned independent audits on non-UK
factories to ensure that there ta compliance with our supplier code of conduct We intend to continuously
improve our ethical, moral and octal pprocesses as the busyness expands
We also recognise that our operations impact the environment and this ta also an resonant tissue for our
customers We actively pursue pollutes that help us to reduce our carbon footprint We focus on four key areas,
stung less electricity, recycling as much as we can, improvisation fuel efficiency, and reducing our packaging waste
To support our energy management process, we have Invested in SMART electricity meters These well allow us
to actively manage energy usage in our stores
We continue to trial tentativeness on waste management The results are encouraging, t the past year we have
recycled over #,### tonnes of cardboard and ### tonnes of plastic We also have programmes t place to
manage and recycle other products such as electrical totems, printer cartridges and batteries
Fuel usage across our transport fleet has the second largest impact on our carbon gemstones and we continue to
make efficiency improvements t this area We are rolling out an alternative fuel strategy t ### #
We continue to review our own brand packaging and have a target to reduce packaging through improved design
and appropriate use of materials
Our Colleagues
I am proud that once agate our colleagues have demonstrated that they operate at the heart oftener communicates
Over the past two years our colleagues and our customers have raised over £###,### for our nominated charity,
Macmillan They have achieved this through a whole host of different events, include runetting t the London
Marathon, dressing up as bears and cats t stires, egg and spoon races and even a competitor to see who could
eat the most cream crackers'
Following the acquisition, the Board decided that rt was important to increase the share ownership amongst our
team We introduced “My Share”, and have awarded shares to over ### of our colleagues, an increase of around
## when compared to the previous scheme This means for the first time that our retail area managers and buyers
Winthrop our trading team have a stake t the future success of the busyness I believe this creates a real sense of
ownership of performance aNd will be a key driver of future pref`ordnance
Recogntstng and celebrating success ta one of our core values and I am pleased to report that our financial
performance has enabled us to award a bonus of£# #m, include asassociated employers national insurance costs
Thts year #,### colleagues well receive a bonus, an increase of ##% on the prior ported

Poundland Lrmtted
Directors’ report and financial statements
For the period ended ## March ### I
Chief Executive review (continuer
Store portfolio
The UK retail property market remains depressed with around ##% of retail space t hif strees aNd shopping
centres unoccupied Lartdlords continue to offer attractive incentives that allow us to open new stores l am
pleased that the scale of these incentives enabled us to accelerate growth t oUr store estate, opening a net ##
stores t the ported Thts represents a record number of new store openings for our busyness I am delighted that
in the process we have created almost #,### new jobs throughout the Unrted Ktngdom
At the ported end the group operated firm ### locations, include I# stores on short term leases Thts
compares to the trading group’s ### stores at last year’s ported end
Outlook
It is clear that the challenging economic climate is set to continue for some time yet and that an increaser
number of consumers well continue to seek exceptional value for money Poundland ta t my vtew perfectly
postponed to serve the needs of consumers who place value for money at the heart of their purchasing
decathlons
Central to our future success is our store growth plan We have a strong new store pipeline and expect to open
over fifty new stores this year We have already opened over thirty stores since the Stan of the new financial
year We have successfully trialled stores on Retatl Parks and the board ta pleased with the results
The new financial year has started well with sales, EBITDA and operating profit ahead of budget Whtlst the
trading and economic environments well remain difficult I expect the company to perform robustly, deliverance
value to all odour stakeholders, especially our valued customers
On behalf of the Poundland Board I thank all of our colleagues throughout the company that work so hard and
tirelessly to help provide the unique Poundland shopping experience that helps to deliver amazing value to our
customers every day
I take this opportunity to thank all of our supplier partners in the UK and abroad for their invaluable help t
providing products and services that are essential t marctangent our reputation for creating amazing value
every day We also appreciate their endeavours to help us mitigate the recent VAT increase to ##%
Poundland has been transformed over the last five years and ta well postponed to benefit when the UK economy
recovers Poundland has the dual qualities of being a very robust busyness during recession, but t fact ta an
even better busyness when the economy ta strong, with consumers benefiting from more disposable income and
our high streets operating a full assortment of retailers that attract greater numbers of shoppers
The company continues to seek to improve tits performance t all areas of the busyness
The Board looks forward to the future with confidence
Jtm McCarthy # October ### l
Chujlixeculrve

Poundland Ltmrted
Directors’ report and financial statements
For the ported ended ## March ### I
Finance Director’s review
Results
The tu mover net of VAT was £### # Melton (#### £### # Melton), which represents a growth on prior year of
## #% Thts improvement incorporates the impact of new stores opened during the ported and the full ported
effect of new stores opened during the previous ported
The operating costs were £## I # Melton (#### £### # Melton) Thts increase in the cost base t the ported was
principally as a result of an increase t the number of stores t the portfolio, and investment t ccentral costs to
effectively manage our growth programme Operating costs now represent ## #% of tu mover (#### ## #%)
The operating profit before exceptional deal related costs of £# # Melton (#### £Ntl), was £## # Melton for the
ported (#### £## # Melton)
The EBITDA before exceptional costs of the busyness was £## # Melton, after adding back depreciation of
£# # Melton (#### £# # Melton) The pre bonus EBITDA before exceptional costs was £## # Melton (####
£## # Melton)
The £## # Melton psot bonus EBITDA (before exceptional costs) compares to the #### result of £## # Melton
(an increase of # #%) However, as described t lsat year’s Chief Executive Review, the company benefited
during nine months of the FYIO ported from the reduced ##% rate of value added tax (VAT)
As a consequence of the lower rate, and similarly to other single price retailers, during this ported our overall
gross margin improved from tits underlying level
Alter taking into account the reinvestments we made t the offer, an estimate has been made of the underlying
FY## EBITDA performance, after adjusting for the positive impact of the temporary reduction t the VAT rate
to ##% Thts estimate has resulted t an underlying EBITDA for FY## of £## # Melton
Therefore, on an underlying bast the year on year EBITDA has grown from £## # Melton to £## # Melton, an
increase of## #%
Af`tee taking account of net interest payable of£# # Melton (#### £Ntl), and a tax charge of £# # Melton (####
£## Melton), the group delivered a net profit for the ported of £## # Melton (#### £### Melton) before
exceptional charges
Finances
Durtng August #### the group negotiated a substantial new debt factuality with a syndicate of banks, which
included Lloyds TSB Bank PLC, The Govemor and Company of Bank of Ireland, Société Générale, UntCredtt
Bank AG and ING Bank N V Thts enabled the repayment of the group’s outstanding loan notes, together with
the rolled-up interest thereon and cleared the Bank of Scotland Revolving Credit Factlrty The main components
of the new bank factuality include a £## Melton tmet loan repayable semi-annually over # years, a £## Melton
tern lpan repayable t oen instalment at the end of # years, and a revolving credit and working capital factuality of
£## Melton whitch is available for # years allowing a number of loan draw downs for various periods of up to #
months Thts new bank factuality provides adequate headroom for the group’s current and future anticipated cash
requirements As part of the new banking arrangements, the group also entered tonal# an interest rate swap and cap
arrangement to hedge a significant part of the interest rate risk
The financial covenants include annual bellybuttons on capital expenditure and require the maintenance of certain
momentum ratios of gleams before interest, taxes, depreciation and amortised (EBITDA) to both net debt and
interest payable There ta also a requirement to marathon a ratio of rent adjusted indebtedness to EBITDAR In
addition, there ta a requirement that the net operating cash flows generated are not less than the group’s ongoing
cost of funding tits bank debt

Poundland Ltmrted
Directors’ report and financial statements
For the period ended ## March ####
Finance Director’s review (continued)
Durtng the year the group remained well wtthtn tits banking covenants and expects to remain so throughout
FYl#
The group uses foreign exchange forward contracts and options only to hedge the cost of unfulfilled orders
placed on foreign suppliers for product denominated t fOregon currency The group does not speculate with
foreign currency transactions
NR Hateley # October ####
F mane Drector
#

Poundland Ltmtted
Directors’ report and financial statements
For the ported ended ## March ### I
Directors’ report
The directors present their annual report and the audited financial statements for the ## weeks ended ## March
### I, (## weeks ended ## March ####)
Principal activity and busyness review
The principal activity of the company ta that of a single price value retailer The Chief Executive Review on
pages # to # gives a full review of the busyness for the ported
On ## June ####, Poundland Retail Ltmtted acquired the entire issued share capital of Poundland Holdings
Ltmtted and IIS substandard undertakings Thts was funded vat an tissue of share capital and a £## Melton
intercommunicate loan from Poundland Value Retatltng Ltmtted
On ## August ####, the group entered into new banking factorials Poundland Holdings Ltmtted entered into a
term debt agreement and revolving credit and working capital factuality with a number of banks Further details are
included wtthtn the accounts of Poundland Group Holdings Ltmtted
Prtnctpal risks and uncertainties
In commotion with many other retail businesses, the principal risks t the current ported of economic uncertainty
include a potential reduction t ccustomer demand Other significant risks include the potential threats from
competitors and from changes t cconsumer spending patterns The group has managed these material risks by
ensuring that tits customers are provided with a range of products which setts their needs, ta competitively priced,
offers amazing value, and ta supported by excellent customer service, t order to enhance tits marketability
positron
The group sources products from a variety of locations include tntetragonal markets It ta exposed to
movement t the price and supply of key raw materials and foreign currency fluctuations on certain purchases
sourced from overseas Both raw material prices and currency rates have been subject to increased volatility in
the prevailing economic climate These risks are managed by spreading the source of supply and hedging
pollutes for currency
The group’s operations are also exposed to the risk of movements t tinterest rates with a resulting impact on the
cost of finance These risks are managed by hedging pollutes which include the use of interest rate swaps and
caps
The group ta also subject to an increasing burden of compliance t many of tits actresses fROM regulatory and
other authoresses and ta subject to regulatory risk with potential for significant financial impact The group has
consciously managed this risk by taking steps to ensure rt complies with all relevant legislation and guidelines
include treating tits customers fatly
Results and dividends
The results for the ported are set out t the group profit and loss account on page ## The directors do not
recommend the payment oaf dividend (#### £Ntl)
Directors
The directors who held office during the ported were as follows
JJ McCarthy
NR Hateley
T McDonnell
C Bales
D Coxon
A Monk
G Oldrtdge (resigned ## June ####)
CD Smith (resigned ## August ####)
RF Sheldon (resigned ## June ####)
TR Franks (resigned ## June ####)
There have been no changes in directors after the ported end

ii-z.;-_

Poundland Ltmtted
Directors’ report and financial statements
For the period ended ## March ### I
Directors’ report (continued)
Policy and practice on payment of creditors
Provided that a suppler rs complying with the relevant tens aNd conditions, include propt aNd complete
submission of all specified documentation, payment well be made in accordance with these agreed tens Gpour
policy ta to ensure that suppliers know the terms on which payment well take place at the time of entering a
transaction The group does not follow any code or standard on payment practice
Trade creditors, expressed as the number of days of purchases, represented ## days at the ported end (####
restated ## days)
Employees
The group ta an equal opportunity employer and makes every effort to ensure disabled people are not
discriminated against on the ground of their sabre-toothed In the event of staff becoming disabled, every effort is
made to ensure that their employment continues and that appropriate training ta arranged
Employees are kept informed regarding the group’s affairs and are consulted on a regular bast though
meetings wherever feasible and appropriate
Financial instruments
The group ta exposed to foreign currency risk on purchases from abroad and uses forward contracts to hedge
against these foreign currency risks The group uses interest rate swaps and caps to manage tits interest rate risk
Disclosure informational to auditors
The directors who held office at the date of approval of this directors’ report confirm that, so far as they are
each aware, there ta no relevant audit information of which the company’s auditors are unaware, and each
director has taken all the steps that he ought to have taken as a director to make himself aware of any relevant
audit information and to establish that the company’s auditors are aware of that information
Auditors
Pursuant to Sectton ### of the Companies Act ####, the auditors well be deemed to be reappointed and KPMG
LLP well therefore continue t ooffice
By order of the board
NR Hateley Wellmans Road
Company secretary Wlllelthall
West Midlands
WV## #QT
# October ### I

Poundland Ltmtted
Directors’ respond and financial statements
For the ported ended ## March ### #
Statement of directors’ responsibilities in respect of the directors’ report and the
financial statements
The directors are responsible for preparing the directors’ report and the financial statements t aaccordance with
applicable law and regulations
Company law requires the directors to prepare financial statements for each financial year Under that law they have
elected to prepare the financial statements t aaccordance with UK Accounttng Standards and applicable law (UK
Generally Accepted Accounttng Practice)
Under company law the directors must not approve the financial statements unless they are satisfied that they give a
true and fatr vtew of the state of affairs of the company and of the profit or loss of the company for that ported
In preparing these financial statements, the directors are required to
» select suitable accounting pollutes and then apply them consistently,
# judgement-seat and estimates that are reasonable and prudent,
~ state whether applicable UK Accounttng Standards have been followed, subject to any material departures
disclosed and explained t the financial statements, and
# prepare the financial statements on the going concept bast ubless rt is inappropriate to presume that the
company well continue t bjustness
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
company’s transactions and disclose with reasonable accuracy at any time the financial positron of the company and
enable them to ensure that the financial statements comply with the Companies Act #### They have general
responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to
prevent and detect fraud and other irregular
The directors are responsible for the maintenance and integrity of the corporate and financial information included
on the company's website Legtslatton t the UK government the preparation and dissemination of financial statements
may differ from legislation t othcrjurrsdtcttons
##

l<Pl\/IG LLP
One Snowhtll
Snow Htll Oueensway
Btrmtngham
B# #GH
Independent auditor’s report to the members of Poundland Limited
We have audited the financial statements of Poundland Ltmtted for the ported ended ## March ### # set out on pages
I# to ## The financial reporting framework that has been applied t ther preparation ta applicable law and UK
Accounttng Standards (UK Generally Accepted Accounttng Practice)
Thts report ta made solely to the company’s members, as a body, t aaccordance with Chapter # of Part ## of the
Companies Act #### Our audit work has been undertaken so that we might state to the company’s members those
matters we are required to state to them t an auditor’s report and for no other purpose To the fullest extent
petticoated by law, we do not accept or assume responsibility to anyone other than the company and the company’s
members, as a body, for our audit work, for this report, or for the options we have footed
Respecttve responsibility of directors and auditor
As explained more fully in the directors' responsibility stpavement set out on page ##, the directors are responsible
for the preparation of the financial statements and for being satisfied that they give a true and fatr vtew Our
responsibility ta to audit, and express an option on, the financial statements t aaccordance with applicable law and
Intemattonal Standards on Audtttng (UK and Ireland) Those standards require us to comply with the Audtttng
Practices Board's (APB's) Ethical Standards for Auditors
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements ta provided on the APB's web~stet at
WWW fr ogr UK/ape/scope/private cm
Optnron on financial statements
In our option the financial statements
» give a true and fair vtew of the state of the company's affairs as at## March ### I and of tits profit for the ported
then ended,
# have been properly prepared t aaccordance with UK Generally Accepted Accounttng Practice, and
# have been prepared t aaccordance with the requirements of the Companies Act####
Optnron on other matters prescribed by the Companies Act ####
In our Thornton the tnfomratton given in the directors' report for the financial year for which the financial statements
are prepared ta consistent with the financial statements
ll

Independent auditor’s report to the members of Poundland Limited (continuer
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act #### requires us to report to
you if, t oUr opinion
# adequate accounting records have not been kept, or rectums adequate for our audit have not been received from
branches not visited by us, or
° the financial statements are not t aagreement with tie accounting records and rectums, or
# certain disclosures of directors' remuneration specified by law are not made, or
~ we have not received all the fomentation and explanations we require for our audit
lauder
G Neale (Senior Statutory Auditor) # October ### #
for and on behalf of KPMG LLP, Statutory Auditor
Chartered A coagulants
##

Profit and loss account
for Ilte period ended # # Marc/t ### I
Turnover
Cost of sales
Gross profit
Dtstrtbutton costs
Admtntstrattve expenses
Operating profit
Interest recant able
Interest payable
Profit on ordinary activates
'I taxation on profit on ordinary activates
Profit for the financial ported
Note P
#
#
J
#
I#
Poundland Ltmtted
Dircctors` report and financial statements
For the ported ended ## March ####
erred ended Period ended
## March ## March
#### ####
Underlytng Non- Total Total
underlying
£### £### £### £###
###,### - ###.### ###,###
(###,###) (###,###) (###,###)
###,### ###,### ###,###
(###,###) - (###,###) (###,###)
(##,###) (#,###) (##,###) (##,###)
##,### (#,###) ##,### ##,###
## - ## ##
(###) (###) <
##,### (#,###) ##.### ##,###
(#,###) ### (#,###) (#,###)
##,### (#,###) ##,### ##,###
The notes on pages ## to ## form part of these financial statements
There were no recognised gnats and losses t the ported other than those reported t the profit and loss account
All activates were contribute throughout the current and preceding ported
Non-underlying Items include non recurring exceptional costs(see note #)
##

Balance sheet
at ## Mare/# ####
Fixed assets
Tangible assets
Investments
Current assets
Stocks
Debtors
Cash at bank and in hand
Creditors Amounts falling due wtthtn one year
Net current assets
Total assets less current respectable
Creditors Amounts falling due after more than
one year
Provrsrons for Irabrlrtres and charges
Net assets
Capital and reserves
Called up share capital
Profit and loss account
Shareholders’ funds
Note
#
#
/#
ll
I#
##
##
I#
I#
I#
####
£###
##,###
##,###
##,###
# ##,###
(##,###)
The notes on pages ## to ## front part of these financial statements
Poundland Ltmtted
Directors’ report and financial statements
For the ported ended ## March ### l
soon
##,###
##,###
##,###
##,###
(#,###)
(#,###)
##,###
##
##,###
##,###
####
£###
##,###
##,###
#,###
##,###
(##,###)
Restated
£###
##,###
##,###
##,###
##,###
(#,###)
(#,###)
##,###
##
##,###
##,###
These financial statements were approved by the board of directors on # October ### # and were signed on tits behalf
by
NR Hateley
Dtrector
Registered number #######
##

Poundland Ltmtted
Dtrectors report and financial statements
For the ported ended ## March ### #
Notes
(forming part of (Ire financial stalemate)
# Accounttng pollutes
The following accounting pollutes have been applied consistently t dwaling with totems which are considered
material t relation to the company’s financial statements
Busts of preparation
The financial statements have been prepared t aaccordance with all applicable accounting standards and under the
historical cost convention
Restatement
'le drectors have reconsidered the accounting policy for stock t ttransit and concluded that a fatter presentation ta
to include such amounts on the balance sheet The prior year comparative figures have been restated to reflect a
consistent policy Accruals and deferred income have increased by the same amount, £#,###,### (####
£#,###, ###) There IS no profit impact oftener change
Going concern
The company's busyness activates, together with the factors likely to affect tits future development, performance and
p#SlIlOn are set out t the Chtef Executive Revtcw on pages # to # The directors have a reasonable expectation that
the company has adequate resources to continue t ooperational existence for the foreseeable future Thus they
continue to adopt the gong conce basst of accounting in preparing the annual financial statements
Turno over
Turnover, which excludes value added tax, comprises sales to extremal customers All sales are made Waltham the
Untted Ktngdom There ta only one class augustness
F end assets and leprechaun
The cost of fixed assets ta purchase cost together with any incidental costs of acquisition Deprectatton on fixed
assets ta calculated on a straight-lent bast so as to write off the cost less the estimated residual value of each asset
over the term of tits estimated useful life The principal annual rates used for this purpose are
Short leasehold property ##% per annum or the unexpired portion of the lease
Property improvements ##% to ##% per annum
Plant and equipment ##% to ##% per annum
Motor vehicles ##% per annum
Ftxtures and fittings ##% per annum
Smcks
Stocks are valued at the lower of cost and net realisable value
Taxation
The charge for taxation ta based on the profit or loss for the ported and takes into account deferred tax balances
Deferred taxation ta recognised, without discount, rn respect of all ttmtng differences between the treatment of
certain totems for taxation and accounting purposes which have arisen but not reversed by the balance sheet date,
except where otherwise required by FRS ## “Deferred Tax”
F aren't Lurrenctes
Transactions t forergn currencies are recorded t ssterling stung the rate of exchange ruling at the date of the
transaction or at the contracted rate tithe transaction ta covered by a forward exchange contract Monetary assets and
leatherettes denominated t fOregon currencies are translated into sterling stung the rate of exchange ruling at the
balance sheet date, or, if appropriate, at the forward contract rate, and the gnats and losses on translation are included
t the profit and loss account
##

Poundland Ltmtted
Directors’ report and financial statements
For THC ported ended ## March ### I
Notes (continued)
# Accounttng pollutes (continued
Operating leases
Amounts payable under operating leases are charged to the profit and loss account on a straight-lent bast oover the
lease ported Where incentives are received as part of operating lease arrangements, the amounts are credited to the
balance sheet and released over the lease tern or the ported until the first rent review whichever ta the shorter The
same treatment applets to incentives payable
Pettstanx
The company operates a defined contribution pension scheme for centenayr of IIS employees The assets of the scheme
are held separately from those of the company in an independently administered fund The amount charged against
profits represents the contributions payable to the scheme in respect of the accounting ported
Inverlmenls
Shares t ssubstandard undertakings are stated at cost less any provision for impairment where t the option of the
directors there has been a muttonchops t vslue of the investment
Store development coals
New store opening costs are charged to the profit and loss account as incurred No interest ta capitalised on new store
developments
Cashflow
Under FRS # (revised ####) the company ta exempt from the requirement to prepare a cash flow statement on the
grounds that a parent undertaking includes the company in tits own published financial statements
Classqicarton financial utinstrumental tsued by #/re company
Ftnancral instruments issued by the Company are treated as equity (# c fortuning part of shareholders’ funds) only to
the extent that they meet the following two conditions
a) they include no contractual obligation upin the Company to delver cash or other financial assets or to
exchange financial assets or financial leatherettes with another party under conditions that are potentially
unfavourable to the Company, and
b) where the instrument well or may be settled t the Company’s own equity instruments, rt is tether a non-
derivative that includes no obligation to delver a variable number of the company’s own equity instruments or
IS a derivative that well be settled by the Company exchanging a fixed amount of cash or other financial assets
for a fixed number of tits own equity instruments
To the extent that this cottontail ta not met, the proceeds of tissue are classified as a financial ltabrltty Where the
instrument so classified takes the legal form of the Company’s own shares, the amounts presented t tthese financial
statements for called up share capital and share premium account exclude amounts t relation to those shares
Dtvtdends' on slendereSt prevented Waltham stallholders ’ funds
Dtvtdends unpaid at the balance sheet date are only recognised as a ltabrltty at that date to the extent that they are
appropriately authorised and are no longer at the discretion of the company Unpard dividends that do not meet these
critter are disclosed in the notes to the financial statements
##

Poundland Ltmtted
Directors’ report and financial statements
For the ported ended ## March ### I
Notes (continued)
# Operating profit and non-underlying totem
##i #
£###
Operalurg profile er stared abler charging
Payments under operating leases
Other #,###
Land and buildings ##,###
Deprectatron and other amounts written off tangible fixed assets
Owned #,###
Loss on disposal of fixed assets #
Audttar .Y YEIHIIIIZFIUIUYI
Audit of these financial statements ##
####
£###
#,###
##,###
#,###
##
##
The non-underlying Item of £#,###,### relates to employers national insurance ltabrltty on share payments to
directors and employees that arose as a result of the acquisition of Poundland Holdtngs Ltmtted and substandard
undertakings by Poundland Retail Ltmtted
Amounts receivable by the Company’s auditor t rrespect of services to the Company and tits associates, other than
the audit of the Company’s financial statements, have not been disclosed as the informational ta required instead to be
disclosed on a consolidated bast tn the consolidated financial statements of the Company’s ultimate parent,
Poundland Group Holdings Ltmtted
# Interest receivable and similar income
####
£###
Bank interest receivable ##
# Interest payable and similar charges
###i
£###
Amounts owed to group companies ###
# Staff numbers and costs
The average number of persons employed by the group (include dtrectors) during the year was as follows
####
£###
##
####
£###
Number of employees
### I
Admtntstratton ###
Selling and distribution #,###
#,###
####
###
#,# ##
#,###
##


Notes (continued)
S Staff numbers and costs (con##nu¢#
The aggregate payroll costs of these persons were as follows
Wages and salaries
Soctal security costs
Other pension costs
# Remuneration of directors
Remunerutton
The remuneration of the directors was as follows
Emoluments
Company contribution to defined contribution pension scheme
Four directors (#### Iwo) were members of defined contribution pension schemes
Htg/test stud foreclose
Poundland Ltmtted
Dtrcctors’ report and financial statements
For the ported ended ## March ### #
### #
£###
##,###
#,###
###
##,###
### I
£###
#,###
###
#,###
The amounts for remuneration include the following t rrespect of the highest paid director
Emoluments
Company contribution to defined contribution pension scheme
### #
£###
###
##
###
####
£###
##,###
#,###
###
##,###
####
£###
#,###
###
#,###
####
£###
###
##
###
##

Poundland Ltmtted
Directors’ report and financial statements
For the ported ended ## March ####
Notes (continued#
# Tax on profit on ordinary activates
Anab/sir of target for the year
#### ####
£### £### £### £###
UK corporation tax
Current tax on income for the ported #,### #,###
Adjustments t rrespect of prior periods ### (###)
Total current tax #,### #,###
Dekrred lax
Ortgtnatton and reversal oft-times differences # ###
Adjustment t rrespect of prior years (##) ##
Effect of change t ta rate (##) -
Total deferred tax (###) ###
Tax on profit on ordinate activates #,### #,###
Factors age-long tire tax chargeable the year
The current tax charge for the year IS higher (#### higher) than the standard rate of corporation tax t the UK of
##% (#### ##%) The differences are explained below
#### ####
£### £###
Current tax recalcitrance
Profit on ordinary activates bbefore tax ##,### ##,###
Current tax at ##% (#### ##%) #,### #,###
Ejécls of
Expenses not deductible for tax purposes #,### ###
Capttal allowances for ported less than depreciation and other ttmtng differences (#) (###)
Adjustments to tax charge t rrespect of previous year ### (###)
Total current tax charge (see above) #,### #,###
F actors that may respectfulness current and total tax charges
The ### # Budget on ## March ### I announced that the UK corporation tax rate well reduce to ##% over a ported of
# years from #### The first reduction t the UK corporation tax rate from ##% to ##% (effective from # Aprtl
####) was substantively enacted on ## .lily ####, and further reductions to ##% (effective from # Aprtl ####) and
##% (effective from # Aprtl ####) were substantively enacted on ## March ### # and # July ### # respectively
Thts well reduce the company’s future current tax charge accordingly and further reduce the deferred tax ltabrltty at
## March ### # (which has been calculated based on the rate of ##% substantively enacted at the balance sheet date)
by £##,###
It has not yet been possible to quantify the full anticipated effect of the announced further #% rate reduction,
although this well further reduce the company’s future current tax charge and reduce the company’s deferred tax
ltabrltty accordingly
##

Notes (concluded)
# Tangible fixed assets
Cas!
At beginning offend
Additions
Dlsposals
At end offend
Depreciation
A# beginning overload
Charge for the period
On d#Sp#S#i
A# end offend
Net book value
At ## March ###i
A### March ####
# Investments
Shares nm subsidiary undeniable, at Lost
Less Impalrment provision
Poundland Llmlted
Directors’ report and financial statements
#`or the period ended ## March ### #
The company’s subs#diary undertakings are
M & O Busmcss Systems
Bargam Llmned
Homes & More Lxmned
Poundland Far East Lxmltcd
Poundland Stores Lumned
Poundland unemotional
ShCpl#l'pelvic\V Llmxtcd
Short Flxtures Plant Motor Total
leasehold and and vehicles
property tungsten equipment
£### £### £### £### £###
##,### ## ### ## ### #,### ##,###
#.### #,### #,### - ##,###
(###) (###) (###) (###)
##,### ##,### ## ### #,### ##,###
## ### ##,### ## ### # ### ## ###
#,### #,### #,### - #,###
(###) (###) (###) (###)
##,### ##,### ## ### #,### ##,###
#,### ##,### ##,### ##,###
#,### #,### ##,### ##,###
#### ####
£### £###
### ###
(###) (###)
Prlnclpal activity Country of incorporated Proportlon
ordinary
shares held
%
Dorman! England i##
Dormanl England i##
Dorrnam England i##
Product sourcing Hong Kong i##
Donnant England i##
Dcnnant England i##
Dnrmant England i##
##

Notes (continued)
Poundland L#m#Ted
Dxrectors’ report and financial statements
For the ported ended ## March ####
## Stocks
#### ####
Restated
£### £###
Goods purchased for resale ##,### ##,###
Goods nm transom #,### #,###
##,### ##,###
Goods #n transit relates to imported stock on water not yet received into distribution centres and not yet available for
sale
## Debtors
#### ####
£### £###
# dare debtors #,### #,###
Amounts owed by group undertakings ##,### ##,###
Prepayments and accrued Income ##,### # #,###
##,### ##,###
## Cred#rots: Amounts #'al##mg due w#Th#n one year
### # ####
Restated
£### £###
lade credactors ##,### ##,###
Corporauon ta\ #,### #,###
Other #a~<at#on and social security #,### #,###
Amounts owed to group undertakings ### ###
Group reflate payable #,### ###
Other creditors #,### #,###
Accruals and deferred income ##,### ##,###
##,### ##,###
## Credntorsz Amounts fall#mg due after more than one year
#### ####
£### £###
Accruals and deferred income #,### #,###
Amounts owed to group undeniable #,### -
#,### #,###
The amounts owed to group undertakings are interest bearing at base rate plus #%, and are due for repayment #n one
instalment on ## June ####
##


Poundland L#m#Ted
D#rectors` report and t#financial statements
For the period ended ## March ### #
Notes (continued)
## Prov#s#ons foil#an###t#es and charges
Deferred YILWIIIDII
Full provisional without discoloUr###I#mg has been made under the lib#l#Ty method for taxation deferred by accelerated
capital allowances and other ##m#mg differences The amounts involved are as follows
Deferred tax iamb#ii#y at beginning offend
/\r#s#mg #n the period
Deferred tax l#ability at end of period
Accelerated capital allowances
Other ttmtng duftcrcnccs
Deferred tax ##an#l#Ty
## Called up share capital
Allotted, culled up and full pard.
##,### ordinary shares OT`£# each
## Reserves
Retamcd profit at bcglnmng offend
Profit tor the financial ported
Retamed prolate at end of period
## Reconclllatton of movements #n shareholders’ funds
Profit for the financial period
Net addition to shareholders funds
Opemng shareholders funds
Closmg shareholders’ funds
####
£###
###
###
#,###
### #
£###
##
####
£###
##,###
##,###
##,###
##,###
£###
#,###
(###)
#,###
####
£###
###
###
#,###
####
£###
##
Prollt and
loss account
£###
##,###
##.###
##,###
####
£###
##,###
##,###
##,###
##,###
##

Poundland L#m#Ted
D#rectors’ report and financial statements
Draft- For the period ended ## March ####
Notes (cont#nu¢#
## Operating lease commitments
The company has annual commitments under cancellation opmoderatimg leases as follows
Land and build#nags Other
#### #### #### ####
£### £### £### £###
Operating leases eh#k esceptre
W#Th#n one year ### ### ### ###
In the second to tilth years exclusive #,### # ### #,### I ###
in over five years ##,### ##,### - -
##,### ##,### z,#zs #,###
## Capltal commitments
Capttal commitments for eh#k no pro#s#on has been made t the financial statements of the company were as
follows
### # ####
£### £###
Contracted #,### #,###
## Pensuon scheme
The company operates a defined contribution pension scheme The pension cost charge for the year represents
contributions payable by the company to the scheme and amounted to £###,### (#### £###, ###) Contnbuttons
amounting to £##,### (#### £##, ###) were payable to the scheme and are #included m creditors
## Transactlons with related patters
Under FRS # 'Related Party D#closures', the company ## exempt from the requirement to disclose transact#ons with
substantives that are part of the group on the grounds that all companies w#Th#n the group are wholly owned by a
parent undertaking and the consolidated financial statements of the parent company are publicly available
## Fmanctal instruments
The fatr value of forward contracts outstanding as at ## March #### IS a i#an###Ty of £# # m#ii#on (#### asset of
£# # Melton) The fa#r value has not been recognised as forward contracts mature over varying periods from the
balance sheet date and the exchange rate IS expected to fluctuate #n the penal up to maturity
## Contmgent l#an#l#t#es
The company IS party to cross guarantees given for bank loans and overdrafts of Poundland Holdmgs L#m#Ted and
certain fellow group companies amounting to £##,###,##(##l# £N#D
## Ultlmate parent company
The company IS a direct subs#d#ray undertaking of Poundland Wtllenhall L#m#Ted and an #Nd#cert subs#d#ray of
Poundland Group Holdmgs L#m#Ted eh#k are registered #n England and Wales The cult#mate controlling party,
being the ma_or#ty shareholder #n Poundland Group #-Ioldmgs L#m#Ted, IS Warburg Pmcus Prtvate Equtty X, L P
eh#k lS registered #n the Untted States
##