Key facts
- Poundland's pre-tax loss widened to £85.2m in the year to September 2025, up from £45.4m the previous year.
- Sales for the retailer fell 12% to £1.5bn in the same period.
- The company underwent a significant restructuring, shedding 11% of its staff and 22% of its stores.
- Gordon Brothers acquired Poundland for £1 in July 2025 and is now preparing to sell it.
- Poundland claims to have returned to profitability since the period covered by the latest filings.
Poundland's pre-tax loss nearly doubled to £85.2m in the financial year ending September 2025, a period described by directors as a "challenging set of numbers" due to difficult trading conditions and a significant restructuring program. Sales slipped 12% to £1.5bn, with the gross margin narrowing to 31.4%.
The retailer shed 11% of its staff, reducing its average headcount to 14,417, primarily from its stores and distribution network. Its store portfolio was also reduced by 22%, leaving 642 sites in January 2026 compared to 820 a year earlier.
These financial results were released shortly after it emerged that Poundland's current owner, investment firm Gordon Brothers, is preparing to sell the discount retailer. Gordon Brothers, which acquired Poundland for £1 from Pepco Group in July 2025, has appointed advisers to manage an auction of the business.
Poundland's directors stated that 2025 was a "reset moment" that positioned the company for its turnaround. The group's accounts also noted a £61.1m reduction in revenue and cost of sales for the previous year due to an accounting error, which had no impact on profits.
Despite the challenging figures, Poundland reports regaining momentum under Gordon Brothers' ownership, citing a revamped product offering and a return to its £1 price point for half of its grocery items. Managing director Barry Williams expressed confidence in rebuilding customer trust. A spokesperson added that since the filing period, Poundland has made significant progress under new leadership and has returned to profitability.