Poundstretcher’s losses widened to £49.8m in the 15 months to 28 June 2025, from £14m in the previous 12 months, amid soaring costs and falling like-for-like sales.
Turnover rose by 16.9% to £247.4m thanks to the extended 15-month reporting period, but on a 12-month like-for-like basis sales fell by 7%, according to the accounts.
Administrative expenses climbed by 45% to £100.3m, driven by payroll and property costs, while inflation in fuel prices helped push distribution costs up by 44% to £63.2m.
Losses before tax climbed from £13.9m to £43.8m.
Poundstretcher was saved from the brink of administration in June by the High Court approving a restructure plan which secured rent cuts from landlords.
Read more: Why did Poundstretcher need a restructure and what’s the plan to turn it around?
The variety discounter, which has been owned by US investment firm Fortress since 2024, has about 300 stores and 3,200 employees.
“The accounts cover a 15-month period to 28 June 2025 and precede the restructuring plan,” said a Poundstretcher spokesperson. “They reflect the trading conditions that made the restructuring plan necessary and do not represent the current position of the business.
“The restructuring plan has now been approved, and the business is on sound footing. This is precisely why we implemented the restructuring plan, to secure the long-term future of Poundstretcher and create a platform for sustainable growth.”
Trading since the reporting period ended has “remained challenging”, according to the accounts. Strategic steps have included adding more household names to the range, investing in prices and “raising customer awareness of the brand” through social media activity.
The accounts also state that: “Since the reporting period, the company has continued to make losses (albeit reduced significantly) and has implemented a comprehensive turnaround plan focusing on improving sales performance, strengthening gross margins and maintaining strict cost discipline.”
Forecasts of improved cash flow generation “assume delivery of the turnaround plan, including improvements in sales and margins over time”.
The independent auditor’s report in the accounts warns: “The company’s ability to meet the sales and gross profit margins it has forecast will be critical to the ability of the company to be able to continue as a going concern.”
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