Pepco Group, the owner of discount retailer Dealz and Poundland, has today reported a 16.3% fall in first-half profit to €89m, hurt by the dent to sales from Covid-19.
The retailer, which is part of troubled South African conglomerate Steinhoff, said revenue rose 9.7% in the six months to March, having been up 14.4% in the five months to February.
Pepco, which trades from 2,844 stores, said revenue had returned to pre-Covid levels with 99% of group stores now trading, although like-for-like sales remained negative.
It said its financial position was strong with positive cash resources in excess of €400m at June 13.
"Looking forward, the consumer outlook remains uncertain and our plans reflect our expectation of a 'new normal' trading environment once we all emerge from the Covid virus," its chief executive Andy Bond said.
"However, it is likely that consumer demand for discount retailing will increase in a period of prolonged economic uncertainty and we are extremely well placed to take advantage of this trend," he added.
Bond had said in February that it was "almost inevitable" Pepco would be sold by Steinhoff.
