Discount wholesaler Crown Crest, which owns Poundstretcher, has posted a double-digit fall in full-year pre-tax profits.
Profits fell 16.2% to £14.2m on sales down 14.6% to £233.8m in the year to 31 March 2013, according to accounts released at Companies House this week.
Director Shehzad Tayub said that although profits were down, the directors remained confident because of the current growth of discount retailers.
“The company’s activities have been affected by the underlying economic climate, but we believe this presents opportunities given the ‘value’ nature of our offering and we must ensure that the sourcing of our products is robust to take advantage of the current market place,” he said.
Tayub also confirmed that the business had invested heavily in its IT systems over the 12-month trading period.
Last year, Crown Crest announced ambitious plans to expand its Poundstretcher business overseas into countries such as Dubai. Poundstretcher’s turnover rose 11% to £348.4m in the year to 31 March 2012.