poundland group plc
registered office wellmans road 
willenhall west midlands wv13 2qt
registered in england
company no 08861243
poundland group plc
annual report 
 financial statements
for period ended 30 march 2014
stock code plnd
every week
 every month
 every year
poundland group plc annual report  financial statements for period ended 30 march 2014  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 exciting new lines every week 
poundland will always be fun and friendly with 
something for everyone
our values
our goal poundland group plc annual report and financial statements for pe 30 march 2014  1
introduction strategy governance financials
contents
introduction
our goal and values i
poundland at a glance 1
operational highlights 2
financial highlights 3
market overview 4
our business model 6
strategic report
our group strategy 7
chairman’s statement 8
chief executive officer’s review 10
chief financial officer’s report 14
risks and uncertainties 20
corporate and social responsibility report 22
governance
our directors 26
our executive team 28
directors’ report 29
corporate governance 32
audit and risk committee report 35
directors’ remuneration report 38
financials
statement of directors’ responsibilities 
in respect of the annual report and the 
financial statements 54
independent auditor’s report to 
the members of poundland group plc 56
consolidated income statement 58
consolidated statement of other 
comprehensive income 59
consolidated statement of financial position 60
consolidated statement of changes in equity 61
consolidated cash flow statement 62
notes to the consolidated financial statements 63
company balance sheet 96
notes to the company financial statements 97
poundland at a glance
who we are
poundland is the largest single price value general merchandise retailer in 
europe by both sales and by number of stores poundland operates a network 
of 528 stores across the uk and ireland stores are sited in convenient 
locations typically with high footfall across a mixture of high streets 
shopping centres and retail parks and are all operated on a leasehold basis
what we do
poundland is a price driven volumeled business offering an extensive range 
of products across 17 categories with the average poundland store carrying 
approximately 3000 core range skus including over 1000 branded products 
these branded products account for the majority of sales with popular brand 
names such as cadbury mars heinz nestle and colgate representing an 
important footfall driver
how we do it
poundland is headquartered in willenhall west midlands and we employed 
on average 12829 colleagues in the 2014 financial year of which 
approximately 70 were employed on a parttime basis we operate three 
distribution centres a new warehouse is expected to open in 2014 in harlow 
in the south east of england to replace the existing temporary facility at 
hoddesdon 
1990 – opened first store in  
burtonupontrent
2002 – company acquired 
by funds advised by 
advent international plc
2005 – opened second 
distribution centre in 
bilston
2006 – jim mccarthy joined the 
company as ceo
1996 – opened hong kong 
office to provide direct 
support operations
2010 – company acquired 
by funds advised by 
warburg pincus
2011 – 2011 launched new 
dealz format into 
republic of ireland
our history 2  poundland group plc annual report and financial statements for pe 30 march 2014
operational highlights
awarded grocer variety 
discounter of the year
clear evidence of 
universal appeal of the 
poundland and dealz 
brands with over 22 
of customers now from 
the ab demographic
group sales area 
189 to 280msqft 
2013 235msqft
over 1000 net new  
jobs created
70 net new stores 
growing the estate by 
153 to 528 stores 
2013 458
announced spanish 
trial of dealz with a 
plan to open an initial 
10 stores over 2 year 
period
nearly five million 
customers served each 
week including over 
200000 in ireland 
working together
poundland and macmillan cancer care 
have been working together since 
2009  our customers and colleagues 
have worked hard to raise money by 
giving donations running marathons 
climbing mountains and various other 
fundraising events
together we’ve raised over £1000000
the money raised will fund vital macmillan support services to 
help ensure that no one faces cancer alone for example £158159 
could pay for a macmillan nurse for three years helping people 
living with cancer and their families receive essential medical 
practical and emotional support  thank you to everyone involved
corporate and social 
responsibilities
in addition to delivering amazing value to our customers every day 
we put our customers first and fully understand and recognise our 
responsibilty to demonstrate to them that we trade fairly and take our 
corporate and social responsibilities seriously we recognise our duty to 
operate our business in an ethical and responsible manner 
opening of our 500th store 
in corporation street 
birmingham
new 350000 square 
foot warehouse in 
harlow will open in late 
august poundland group plc annual report and financial statements for pe 30 march 2014  3
introduction strategy governance financials
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revenue  
133 £m
underlying adjusted eps  
251 p
net debt £m
underlying ebitda  
189 £m
financial highlights
kpi performance
2014 2013 change
number of stores 528 458 70
number of new stores net 70 69
sales £m 9978 8805 133
gross margin  3693 3674 19 bp
underlying ebitda £m 540 455 189
underlying ebitda margin  541 516 25 bp
underlying profit for the period £m 273 218 251
operating cash flow less maintenance capex £m 668 376 777
cash conversion  1237 827
operating cash flow less maintenance and expansion capex £m 522 232 1254
net debt £m 47 92 483 4  poundland group plc annual report and financial statements for pe 30 march 2014
market overview
although we operate in an attractive subsector of the overall uk 
retail market the value general merchandise retail market this 
does not tell the whole story because we offer our customers 
a broad range of products across 17 different retail categories 
we compete against a very wide range of retailers including wh 
smith in stationery holland  barrett in healthy snacks claire’s 
accessories in hair accessories and boots in health and beauty in 
2013 the total retail market in the uk was worth £360 billion of 
which our share was less than 03
this low share of the total retail market and the growing appeal of 
the discount sector to uk shoppers underpins our belief that we 
can double our store base in the uk 
the key trends and features of the uk value general merchandise 
market are listed below
• one of the fastest growing sectors within uk retail having 
grown at a cagr of approximately 15 since 2007 
predominantly driven by rapid store roll out
• an established sector that continues to benefit from a structural 
shift in consumer behaviour towards value retailing
• significant longterm growth potential with the market forecast 
by pwc to grow at a cagr of approximately 93 per year 
between 2012 and 2017 driven by a combination of supply and 
demand factors and also supported by evidence in the more 
mature us value general merchandise market and
• while the value general merchandise market has primarily 
been targeted towards less affluent consumers there is an 
increasing penetration of more affluent consumers 
while many new consumers entered the discount retail market 
during difficult economic times research suggests that the majority 
of these consumers will continue to use value retailers even as 
the economy improves  research suggests that a number of these 
customers are from the higher socio demographic groups source 
pwc ‘‘the uk value general merchandising market’’ november 
2013 we think that this will benefit us and the discount market as 
a whole as its addressable market increases
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poundland’s market share of the total retail market 
uk value general merchandise market £bn
uk value general merchandise sector’s share of 
addressable market 
estimated figures shown for 2013 – 2017 
source – pwc the uk value general merchandising market november 2013 poundland group plc annual report and financial statements for pe 30 march 2014  5
introduction strategy governance financials 6  poundland group plc annual report and financial statements for pe 30 march 2014
our business model
supply
how we source products
we source from nearly 1000 suppliers across the world and have an office in hong kong and an exclusive 
sourcing arrangement in india which together provide a key competitor advantage in our sourcing of 
general merchandise products no one supplier has more than 5 of our turnover we aim to buy and 
sell our products responsibly – so our customers know that everything they buy is produced under fair 
conditions we have a clear social and ethical accountability policy that we ask all our suppliers to comply 
with
our customer proposition is enhanced by our strong track record of product innovation and range 
development we work closely with suppliers in developing exclusive products and pack sizes  we also 
have strong inhouse product development capabilities offering over 50 own label brand families 
we believe that poundland’s own label offering in fast moving consumer goods “fmcg” categories as well as its strength in developing 
new product ranges typically nonconsumable general merchandise products are key differentiators versus other single price value 
general merchandise retailers in the uk
distribution
how we manage our distribution across uk and ireland
we operate from three distribution centres including two regional distribution centres located in the 
midlands and south east england springvale and hoddesdon respectively and one national distribution 
centre located in the midlands willenhall all products are taken to one of our distribution centres 
before onwards distribution to our stores with the exception of fresh products which are delivered 
direct to stores by the supplier or a thirdparty the springvale hoddesdon and willenhall distribution 
centres have capacities of approximately 300000 square feet 200000 square feet and 200000 square 
feet respectively the regional distribution centres cater mostly for fmcg products and the national 
distribution centre caters predominantly for other products in the  financial year 96 of product sales in 
ireland were supplied via our uk distribution centres
the hoddesdon distribution centre was opened as a temporary facility in 2012 and marked our first major distribution expansion outside 
the west midlands it enabled the company to reduce the distance travelled to deliver inventory to our stores and help reduce our carbon 
footprint in 2014 we plan to replace the hoddesdon distribution centre with a 350000 square foot purposebuilt warehouse in harlow 
which will serve as our main depot for south east england and will also provide initial support to the business as we look to expand into 
continental europe the adjacency of the new site enables us to transfer the majority of existing experienced colleagues to the new 
operation the harlow distribution centre will increase our total distribution capacity to be able to operate approximately 750 stores in 
the uk ireland and europe by opening the harlow facility we expect to achieve gains in efficiency including enhanced route efficiency 
and productivity through increased use of doubledecker trailers
we also have four crossdocking facilities located in scotland in coatbridge the north east of england in spennymoor ireland in 
dublin and northern ireland in larne the crossdocking facilities in scotland and the north east of england are operated by our 
logistics partner dhl northern ireland and ireland are serviced by am nexday a transportation services company based in belfast we 
provide our own transportation services for our hoddesdon springvale and willenhall distribution centres
retail
our stores and product range
we have established our marketleading position as poundland in the uk by focusing on delivering 
amazing value to our customers every day we believe that this is achieved by selling a wide range of great 
products and top brands offering many new exciting lines each week at a clear consistent price point 
which offers our customers amazing value for money the same commitment to delivering amazing value 
is met in ireland under our dealz brand
we sell a wide range of products across 17 product categories including household goods grocery 
impulse and health and beauty with all products in our stores in the uk selling for £1 some of the most 
recognised consumer brands in the world are sold in our stores including cadbury mars heinz nestlé and 
colgate this branded product offering drives footfall to stores and of the approximately 3000 core range 
skus in our average poundland store over 1000 skus are thirdparty branded our own label typically 
higher margin brands provide our customers with even greater choice and better value 
over the course of the year our product offer is refreshed continuously with around 200 new products introduced each week this 
drives footfall to the stores as our customers in the uk and ireland love this treasure trove appeal
we believe that the single price point in the uk provides us with a competitive advantage to other retailers as it sets a clear and 
consistent base for price comparison customers are able to compare prices on identical products across retailers knowing that at 
poundland product will be on sale for £1 introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  7
1 continued focus on delivering 
amazing value to our customers 
every day 
we have through our long track record of profitable growth 
demonstrated our ability to maintain and strengthen our position 
as the marketleading single price value general merchandise 
retailer in the uk to continue to drive our business performance 
we will remain true to our goal of delivering amazing value to our 
customers every day 
we believe that product innovation and exclusive product ranges 
are key competitive advantages and therefore we remain 
committed to refreshing and developing our product range to meet 
consumer demands we will where appropriate continue to focus 
on increasing store marketing with tailored offers and thirdparty 
promotions vouchers and marketing activity
2 continued store roll out 
we have a track record of rapid store roll out in the uk with a 
proven ability to identify strongly performing locations  the value 
general merchandise market is forecast to continue its exciting 
growth  we expect to remain as one of the winners in this sector  
we generate pay backs from our new stores in around one year 
so it makes sense to continue to add to our store base but only in 
sustainable shopping venues we believe supported by external 
research conducted by the javelin group that there is potential for 
more than 1000 poundland stores in the uk making it possible to 
more than double our existing uk portfolio in addition we believe 
that there is potential for more than 70 dealz stores in ireland we 
plan therefore to continue opening stores at similar rates as the 
last three years adding approximately 60 net new stores per year 
of which approximately 10 are expected to be in ireland we 
believe that there are opportunities to add stores throughout the uk 
and in ireland as the poundland business model is robust across 
a wide variety of store sizes between 1700 and 12000 square 
feet formats high street shopping centre retail park and market 
demographics 22 of poundland’s uk customers are from the 
affluent ab sociodemographic group based on a survey conducted 
by poundland in 2013 we are increasingly focused on retail park 
stores as part of the overall new store mix as they tend to be more 
profitable and have a higher average transaction value
3 optimisation of existing store 
portfolio
we will continue to seek to drive growth in both average transaction 
value and in number of transactions we see opportunities to drive 
this through
• continued innovation and development of our exclusive product 
range
• better category management
• improved micro marketing
we also expect over the long term as the consumer recovery 
builds to sell more general merchandise products and will continue 
to improve our product range in these categories
around 120 of our stores are smaller than 4000 square feet while 
some of these stores are appropriately sized for their location and 
competitor set we see opportunities to resite andor expand around 
half of these stores which should enhance both their performance 
and their long term sustainability
4 planned expansion into 
continental europe
we have carried out a detailed assessment of the expansion 
prospects in continental europe including market size price 
differentials brand overlap with the uk supplier considerations 
logistics and site availability it is our belief that spain presents a 
highly attractive opportunity for expansion under our dealz brand in 
addition to favourable market conditions for dealz in spain we have 
identified high interest in the concept through consumer surveys 
pricing analysis has also illustrated that dealz pricing is competitive 
and sustainable property research has identified good levels of 
site availability and favourable property costs including favourable 
rental terms with typical leases of ten years with short break 
periods eg twoyear break periods
we expect to open up to ten stores over a twoyear period 
which will initially be supplied from our uk distribution centres 
the spanish operations will be staffed by a core local team with 
extensive spanish retail experience and will be supported by a 
ukbased senior management team we expect that there will be 
significant brand and supplier overlap with the poundland and dealz 
roi product base the pilot stores’ performance will be assessed 
carefully ahead of any further roll out in spain or elsewhere in 
continental europe the cost of this trial will be low and we believe 
that it represents a low cost and low risk strategy to test market 
opportunity
5 format and channel development
we will continue to explore new growth opportunities such as 
the potential development of a transactional website to access 
new customers and fulfil different shopping missions as well as 
developing new store formats such as a city centre format which 
is a smaller store designed to operate in high footfall city centre 
locations with a focus on impulse and convenience purchases 
in addition there may be opportunities within the value and general 
merchandise retail market for further consolidation which we will 
explore as and when they arise
our group strategy 8  poundland group plc annual report and financial statements for pe 30 march 2014
“
we have achieved another record profit 
performance across the group with our store 
opening programme on track underlying profits 
in line with market consensus and good cash 
generation
”
chairman’s statement
2014 was a very important year for poundland  we 
opened our 500th store in november listed on the london 
stock exchange in march and achieved sales of nearly £1 
billion demand for shares in poundland was high and the 
offer was more than 15 times oversubscribed the flotation 
has been well received  
against a backdrop of continuing difficulties in the 
economy for consumers and retailers in particular 
poundland has stood firm in offering its customers 
amazing value  we believe as the economy begins its 
turnaround our future prospects are even brighter with 
poundland having become a retailer of choice 
our successful international expansion into the republic 
of ireland under the dealz brand has continued our sales 
are growing strongly expansion of the dealz brand into 
continental europe is an exciting prospect and we are 
planning a small number of trial stores in spain in the year 
ahead
andrew higginson 
chairman 
2 july 2014
trading performance
this has been another record year for poundland with total sales 
just short of £1 billion up 133 on the previous year and the total 
number of 70 net new stores opened during the year bringing the 
total estate to 528 at the year end between the end of the year and 
the date of this report we have opened a further 12 stores
further details of the trading performance are given in the chief 
financial officer’s report beginning on page 14
stock exchange listing
poundland group plc completed its premium listing on the london 
stock exchange and was admitted to the main market on 17 
march 2014 the ipo was very successful being many times 
oversubscribed and the shares continue to trade at a level above 
the initial issue price of 300p
the board and corporate governance 
i firmly believe that we have a high calibre and experienced board 
of directors who will continue to drive the company to an even 
more successful future in addition to chief executive officer jim 
mccarthy chief financial officer nick hateley and trading and 
marketing director richard lancaster i was delighted to announce 
earlier in the year that we had four new independent non
executives joining the team  all four nonexecutives bring a wealth 
of experience to the board darren shapland as senior independent 
nonexecutive director  trevor bond as chair of the audit and risk 
committee tea colaianni as chair of the remuneration committee 
and grant hearn  as chair of the governance and nominations 
committee
full details of the committees and their duties are contained in the 
corporate governance report beginning on page 32 and the reports 
from the audit and risk committee and remuneration committee 
beginning on pages 35 and 38 respectively we believe these 
non executives will enhance the diversity of the board and bring 
independent judgements on issues of strategy and performance as 
we go forward as a plc 
andrew higginson  chairman introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  9
we also have the benefit of the considerable expertise of paul best 
and stephen coates who continue on the board as the appointed 
representatives of warburg pincus the combined experience and 
the insight of the executive directors the nonexecutive directors 
and highly talented and experienced executive team will be 
invaluable to the board
full details of the directors and their memberships of the board’s 
standing committees can be seen on pages 26 to 27
our people
i know that i speak for the whole board when i say that i am 
immensely proud of our management teams and colleagues across 
the business whether in our stores distribution centres or the 
customer support centre for the dedication that they have shown 
and continue to show to the company and the great service that 
they give to our customers it has been their hard work which has 
enabled the company to successfully list on the stock market and it 
is their continued hard work which will ensure our future success
outlook
poundland delivers amazing value to our customers every day and 
as a result of the support from our customers we have achieved 
another record profit performance across the group with our store 
opening programme on track underlying profits in line with market 
consensus and good cash generation looking ahead we will 
continue to manage the business tightly while investing in clear 
opportunities for future growth and are confident in making further 
progress in the new financial year
with regard to dividend as noted in the prospectus issued to 
prospective shareholders prior to listing subject to sufficient 
distributable reserves being available the directors intend that the 
first dividend to be declared by the company will be the interim 
dividend in respect of the first half of the 2015 financial year which 
is expected to be paid in january 2015
our customers
average customer spend per transaction
£455 25
average of
49m  114 transactions per week
average store serves circa
10000 customers per week 10  poundland group plc annual report and financial statements for pe 30 march 2014
“
shopping in the value sector is 
now worn as a badge of honour with a 
sense of pride for those who realise it is 
sensible to save money
”
chief executive officer’s review
overview
poundland started trading from its first store at burtonupon
trent in 1990 since then the business has expanded rapidly and 
now serves approximately 5 million value conscious customers 
every week from over 500 stores across the uk and ireland the 
poundland retail proposition is simple and compelling based on 
selling over 2000 general merchandise products and over 1000 
mainly branded fmcg goods at the single price point of just £1 
our admission to the main market of the london stock exchange 
in march 2014 marked a significant milestone in the company’s 
development and is testament to the growth and performance of 
the business that has been providing amazing value to shoppers for 
nearly a quarter of a century
we have a track record of delivering strong profitable growth and 
believe we have significant future opportunities through the delivery 
of amazing value every day to millions of discerning customers 
this is underpinned by our trusted brands differentiated value 
proposition strong supplier relationships and our wellinvested and 
scalable infrastructure
in recent years there has been significant structural change in the 
uk’s retail market with the value sector becoming a mainstream 
feature  as the uk’s single price market leader poundland has been 
instrumental in that change our £1 price point and our amazing 
value appeal to an increasingly broad section of shoppers with 
nearly a quarter of our uk customers now coming from the more 
affluent ab demographic
i am pleased to report another record year for poundland with 
significant sales and profit growth together with a strong new 
store opening programme i thank all of our colleagues throughout 
the company for their commitment hard work and dedication in 
delivering our strong performance we are also indebted to our large 
and loyal customer base who continue to find poundland’s amazing 
value and single £1 price point helpful in providing certainty in their 
household budgeting this has been especially important in the 
purchase of everyday essential products that have become even 
more important to consumers during the economic turbulence of 
recent years
in september 2011 poundland successfully entered the republic of 
ireland under the “dealz” brand where we sell the vast majority of 
products for a149 our dealz stores in ireland became profitable 
in their first full year and at the 2014 year end we were operating 
from 31 dealz stores in ireland and 2 further stores on the isle 
of man and orkney we intend to further strengthen our market 
presence with additional openings during the coming year the 
republic of ireland and isle of man delivered sales of £596 million 
during the year representing 6 of our group sales 
we have continued to expand our presence in the uk and republic 
of ireland with the opening of 70 net new stores taking our overall 
estate to 528 stores with our total trading space expanding by 
189
our entry into ireland under the dealz brand demonstrates that we 
are not only capable of generating attractive financial returns but 
also of rapidly establishing a successful brand in a new geography 
consequently as previously advised poundland will following 
extensive market research later this year trial the dealz format 
in spain with preparations well advanced for our low cost low 
risk entry once this is successfully established we will continue 
to research the opportunities to extend into additional european 
countries and will tailor our offer appropriately to local markets 
what is clear to us is that consumers across the globe increasingly 
appreciate and understand value for money and we are confident 
that continental europe offers the group substantial future growth 
opportunities 
the continuing expansion of our retail estate within the united 
kingdom the republic of ireland and shortly in spain has led us 
to invest in a third purpose built 350000 square foot distribution 
centre at harlow which will open later in the year replacing 
the 200000 square foot temporary facility at hoddesdon  the 
adjacency of the new site enables us to transfer the majority of 
existing experienced colleagues to the new operation  
jim mccarthy  chief executive officer introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  11
performance
poundland’s goal remains clear to offer amazing value to our 
customers every day this has never been more relevant with 
poundland perfectly positioned to continue to meet the needs of 
value conscious consumers throughout the uk and ireland
over the year our trading performance has been strong with 
sales and underlying ebitda at record levels we continue to 
tailor our broad offer based on consumer research innovation 
and creativity we now serve around five million customers each 
week with research demonstrating that poundland customers are 
from an increasingly broad spectrum of socioeconomic groups 
we believe that the poundland brand has universal appeal and it is 
likely that more and more consumers will use the value sector as 
an increasingly important part of their shopping repertoire clearly 
shopping in the value sector is now worn as a badge of honour with 
a sense of pride for those who realise it is sensible to save money
managing cost pressures as a fixed single price retailer is a key 
element in our dna and is a critical component in delivering 
our goal of offering amazing value every day to our customers 
poundland has for nearly a quarter of a century successfully 
managed its gross margin through a wide variety of economic 
circumstances competition and many other challenges including 
significant vat increases i am pleased to report that the gross 
margin percentage we achieved in the financial year to 30 march 
2014 was 3693 broadly in line with the previous year
furthermore our business continues to remain well invested and 
i am delighted to report that once again through sales growth 
and careful cost control we have reduced our operating costs as 
a percentage of sales when compared to the prior year whilst 
continuing to invest in growth
the continuing appeal of our unique fixed single price point retail 
proposition remains strong we enjoyed record christmas sales 
in both the uk and republic of ireland serving over 7 million 
customers during the peak christmas week our central supply 
chain team including distribution centres and transport delivered 
a record breaking 2 million cases to poundland and dealz stores 
in the same week ensuring that our store teams could satisfy the 
purchasing requirements of our value savvy customers
the poundland and dealz brands continue to strengthen and are 
recognised and well regarded our strong growth in new store 
openings has once again increased the visibility of our brand 
which has been further enhanced by our growing number of social 
media followers on sites including facebook twitter pinterest 
and the poundland blog we continue to develop the soon to be 
transactional poundland website wwwpoundlandcouk
sourcing
we are proud that on a value basis over 80 of our products are 
sourced through uk suppliers however wherever necessary we 
have the ability to source and develop products on a global basis 
therefore our far and near east operations based in hong kong 
and new delhi continue to be an important part of our sourcing 
strategy we continue to strengthen our teams in both these 
locations especially in the areas of new product development 
quality assurance and quality control we aim to buy and sell our 
products responsibly and ask all our suppliers to comply with 
our clear social and ethical accountability policy this gives our 
customers confidence that everything they buy from us is produced 
under fair conditions
our already good uk vendor relationships continue to improve and 
an overwhelming number of primary manufacturers supply us on a 
direct basis major manufacturers of branded products increasingly 
recognise the significance of poundland and the wider value sector 
to consumers together with the outstanding growth opportunity that 
is offered to them to expand their brand reach and increase profits 
top brands are naturally very important to our customers and 
securing continuity of supply through these direct channels allows 
us to increase sales through improved availability and differentiate 
our offer from other single price competitors we continue to 
recognise the relevance of secondary and tertiary suppliers who 
enjoy longterm relationships with the growing poundland brand  
all of our supplier partners remain important to the delivery of our 
overall offer in addition we have continued to develop our own label 
ranges and the year saw the launch of healthy snack and indulgent 
nut ranges which delivered stellar numbers we shall continue to 
take advantage of gaps in the market for own label ranges that 
deliver value through quality and value at the amazing £1 price 
point
colleagues
our achievements would not be possible without our colleagues 
and i am immensely proud of their commitment and passion 
in delivering amazing value every day we are proud of our  12  poundland group plc annual report and financial statements for pe 30 march 2014
diverse colleague base and support the investment in meeting the 
development and training needs of our 12000 plus colleagues 
through a detailed training programme more details of which are set 
out on page 25 having progressed personally from the shop floor to 
the board there is nothing quite like the pride i feel when colleagues 
choose poundland for their career development and successfully 
progress through the company
i am also proud that our colleagues have once again demonstrated 
that they operate at the heart of their local communities macmillan 
cancer care has for the fifth consecutive year been voted by our 
colleagues as their chosen charity this partnership has worked 
well and has provided an easy way for our caring customers and 
colleagues to support macmillan donations have now exceeded £1 
million with money being raised through a number of different events 
including the london marathon product sample sales and numerous 
themed fundraising events including dress down days and coffee 
mornings in poundland stores distribution centres and our customer 
support centre 
in our republic of ireland dealz stores we support “makeawish” 
as our chosen charity makeawish has one simple aim to grant 
the wishes of children and young people living with lifethreatening 
medical conditions
following admission in march 2014 poundland has introduced three 
new employee share plans the poundland performance share plan 
the poundland restricted share plan and the poundland company 
share option plan we will also be introducing the poundland save as 
you earn plan for eligible colleagues later this year details of the plans 
are contained in the directors’ remuneration report starting on page 
38 of this report
store portfolio
we commenced the year operating from 458 stores the group 
opened a net 70 stores during the year and at the yearend we 
operated from 495 poundland locations 31 dealz stores in the 
republic of ireland and 2 dealz stores on the isle of man and orkney 
making the yearend total 528 i am delighted that our store growth 
programme over the last 2 years has created even more opportunities 
for new colleagues to join us which in time has enabled us to 
bring the poundland and dealz retail proposition to thousands more 
customers every day
our new store selection process includes detailed internal 
analysis and input from various consultants to help determine site 
longevity and thus the long term profit opportunity by location the 
overwhelming number of new stores are acquired under normal 
commercial arrangements with property landlords typically ten 
year leases with monthly rent payments however under certain 
opportunistic circumstances we are prepared to enter into short term 
lease arrangements with landlords that deliver attractive returns 
without longterm liabilities at the end of the period we operated 26 
stores on such shortterm leases 
outlook
clearly there are two types of consumer those who need to shop 
for value and increasingly those who choose to shop for value our 
goal is to provide amazing value every day and we are therefore 
perfectly positioned to meet demand from both types of consumer our 
strong sales and volume increases demonstrate the relevance of our 
proposition to consumers from all socio economic groups
manufacturers recognise the increased demand for value and are 
working hard to deliver products that meet these requirements 
many forward thinking suppliers are also changing their sales 
account structures and supply chains to adapt to these changes this 
complements poundland and the discount sector as a whole and 
more importantly is in the best interests of the consumer we will 
continue to work with our supplier partners to bring amazing value 
brands new products and innovation to our customers 
poundland remains fully committed to our single price point in the uk 
we will continue to develop our multiprice dealz format outside the 
uk
due to our strong pipeline of new stores we expect to deliver the 
unique poundland retail proposition to circa three quarters of a million 
consumers each week by the end of the current financial year we are 
planning to open at least 60 net new stores during the next financial 
year including a number of new dealz stores in ireland and spain  as 
a result we estimate that we will create a net 1000 new jobs
trading in the first three months of the new fiscal year has been 
strong as our retail proposition continues to gain traction through 
offering amazing value to savvy consumers our single price point 
continues to help consumers plan their household budgets with 
certainty and confidence our programme of new store openings 
international expansion and continuing productivity improvements 
are all key drivers of growth additionally while the economy and 
thus consumer confidence is improving we believe the shopping 
behaviours adopted during the last five or six years will remain and 
that consequently we will further benefit from increased footfall and 
discretionary spending  we expect the poundland group to continue to 
perform well over the forthcoming year
on behalf of the poundland board i thank all of our colleagues 
throughout the company that work so hard and tirelessly to deliver the 
unique shopping experience that allows us to deliver amazing value to 
our customers every day every week every month and every year
we also take this opportunity to thank all of our supplier partners in 
the uk and abroad for their invaluable help in providing products and 
services that are essential in maintaining our reputation for creating 
the unique poundland and dealz shopping experience 
i look forward to the future with confidence
jim mccarthy
chief executive officer
2 july 2014
chief executive officer’s review continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  13 14  poundland group plc annual report and financial statements for pe 30 march 2014
chief financial officer’s report
results summary
key performance indicators
2014 2013 growth 
sales £m 9978 8805 133
likeforlike sales growth 19 17
gross margin  3693 3674 up 19 bp
underlying ebitda  540 455 189
underlying pre tax profits  368 298 235
underlying adjusted eps p 109 87 251
net debt £m 47 92 483
2014 2013 change
number of stores 528 458 70
number of new stores net 70 69 1
sales £m 9978 8805 133
gross margin  3693 3674 up 19 bp
underlying ebitda £m 540 455 189
underlying ebitda margin  541 516 25 bp
underlying profit for the period £m 273 218 251
operating cash flow less maintenance capex 668 376 777
cash conversion  1237 827
operating cash flow less maintenance and expansion capex 522 232 1254
net debt £m 47 92 483
derived as underlying ebitda plus changes in working capital minus maintenance capex divided by underlying ebitda
we performed strongly across all of the key performance indicators kpis set out in our ipo prospectus especially in the growth of our store 
estate and in our strong cash flow
nick hateley  chief financial officer
the 2014 financial year was a good one for poundland sales grew by 133 and due to strong margin management and cost control this 
translated into an 189 increase in underlying ebitda and a 251 increase in underlying eps and we managed our cash well net debt 
almost halved despite costs related to our successful stock market flotation and the redemption of preference shares £20
“
group revenue net of vat was £9978 million 
which represents growth on the prior year of 133 
this improvement was driven by both the impact of a 
strong store opening programme and a return to like
forlike sales growth
” introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  15
other operating metrics
the ipo prospectus also identified a number of other key operating metrics and as the table above shows our performance was strong in the 
2014 financial year
revenue
group revenue net of vat was £9978m 2013 £8805m which represents growth on the prior year of 133 this improvement was driven by 
both the impact of a strong store opening programme and a return to likeforlike sales growth we grew likeforlike sales during the year by 
19 2013 17 which was driven by our continued focus on providing our customers with amazing value every day and a return to more 
normal competitor opening activity 
gross margin
gross profits increased by 139 to £3685m 2013 £3235m and gross margins increased by 19 basis points to 3693 2013 3674 this 
increase was driven by a combination of our improved buying power and the greater mix within our store base of dealz and retail parks the 
number of dealz and retail park stores increased by 35 to 85 these positive factors offset the negative impact of inflation and an increase within 
our sales mix of branded goods consumer price inflation during our financial year was 16 2013 28 source ons and the proportion of 
branded goods within our sales mix increased by 30 basis points to 634 2013 631
2014 2013 growth 
average net store size square feet 5233  5143 17
average number of transactions per week millions 49  44 114
average transaction value £ 455  444 25
gross sales £m 1160  1024 133 16  poundland group plc annual report and financial statements for pe 30 march 2014
underlying operating costs
underlying operating costs in the financial year increased by 133 to £3285m 2013 £2900m this increase in the cost base in the period 
was primarily a result of the increase in the number of stores in the portfolio operating costs now account for 3292 of sales 2013 3294 
the fact that this was flat year on year reflects continued investment in the business
stripping out depreciation and amortisation costs as a proportion of sales fell by 5 basis points to 3152 2013 3157 
ebitda and ebit
reconciliation to underlying ebitda
2014 
£m
2013 
£m
reported ebitda 428 431
adjustments
 costs in respect of the ipo 100 –
 distribution centre set up – 14
 new store format trial – 05
 strategic initiatives 13 05
underlying ebitda 540 455
2014
£m
2013 
£m
distribution expenses 2970 2613
administration expenses 315 287
total overheads 3285 2900
wages 1445 1271
underlying depreciation and amortisation 140 120
operating leases 785 687
other including rates 915 822
total overheads 3285 2900
 of sales
wages 1448 1443
underlying depreciation and amortisation 140 136
operating leases 787 780
other including rates 917 935
total overheads 3292 3294
total overheads excluding depreciation and amortisation £m 3145 2780
 of sales 3152 3157
chief financial officer’s report continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  17
we report nonunderlying items in our income statement to show oneoff items and to allow investors to better understand the underlying 
performance of the business in relation to the 2014 financial year these included costs in respect of our ipo £100m and costs related to 
strategic initiatives in ecommerce and in international development £13m in the previous financial year we incurred costs related to strategic 
initiatives in ecommerce and in international development costs resulting from the opening of a new temporary distribution centre and costs 
relating to a new store format trial and brand amortisation 
underlying ebitda grew by 189 to £540m 2013 £455m driven by the strong trading margin performance of the group
the table above shows underlying ebit and movement in underlying margins underlying ebit is calculated after stripping out brand 
amortisation of £11m 2013 £11m from depreciation and amortisation expenses as we regard this charge as nonunderlying  underlying 
ebit grew by 196 to £400m group margins increased at both the underlying ebitda and the underlying ebit level by 25 basis points to 
541 in the case of the former 2013 516 and by 21 basis points to 401 in the case of the latter 2013 380
net finance costs
2014 
£’000
2013 
£’000
financial income
interest income on unimpaired financial assets 252  279 
ineffective portion of changes in fair value of cash flow hedges – 92 
total 252  371 
financial expense
total interest expense on financial liabilities measured at amortised cost 3432 3865 
nonunderlying fees associated with refinancing 2981 –
net change in fair value of interest rate swap cash flow hedges recycled from equity 56 80 
ineffective portion of changes in fair value of cash flow hedges 1 –
total 6470 3945 
total net financing expense 6218 3574 
underlying net finance costs 3236 3666 
in the 2014 financial year the group incurred a nonunderlying charge of £29m relating to the renegotiation of its debt facility which included 
the write off of unamortised fees associated with the debt facility agreed in august 2010 underlying finance expense reduced by 117 
£04m at £32m this was a consequence of the group’s strong trading performance and high cash conversion rates
2014 2013 growth 
underlying ebitda £m 540 455 189
underlying depreciation and amortisation £m 140 120 167
underlying ebit £m 400 335 196
underlying ebitda margin  541 516 25 bp
underlying ebit margin  401 380 21 bp 18  poundland group plc annual report and financial statements for pe 30 march 2014
statutory profit before tax
underlying profit before tax was £368m which represented an increase of 235 on last year 2013 £298m statutory profit before tax fell by 
189 to £215m 2013 £265m due to an increase in net nonunderlying charges primarily costs associated with the group’s stock market 
flotation 
taxation
the underlying tax charge for the period was £96m 2013 £80m the full year underlying effective tax rate was 260 2013 270 there 
was a nonunderlying adjustment to the tax charge in the 2013 financial year of £49m principally relating to a oneoff corporation tax refund 
£40m  
statutory profit after tax
underlying profit after tax was £273m which represented an increase of 251 on last year 2013 £218m statutory profit after tax fell by 
407 to £139m 2013 £234m due to an increase in net nonunderlying charges primarily costs associated with the group’s stock market 
flotation
adjusted earnings per share
underlying basic and fully diluted earnings per share increased by 251 to 1090p per share 2013 871p per share  nonunderlying basic 
and diluted earnings per share fell by 407 to 554p per share 2013 935p per share the weighted average number of shares in issue during 
the period was 250m 
capital expenditure
reconciliation to underlying profit before tax
2014
£m
2013 
£m
reported total profit before tax 215 265
adjustments
 costs in respect of the ipo 100 –
 amortisation 11 11
 distribution centre set up – 14
 new store format trial – 04
 strategic initiatives 13 05
 net financing expense 29 01
underlying profit before tax 368 298
reconciliation to underlying profit after tax 2014 
£m
2013 
£m
reported total profit after tax 139 234
adjustments
 costs in respect of the ipo 100 –
 amortisation 11 11
 distribution centre set up – 14
 new store format trial – 04
 strategic initiatives 13 05
 net financing expense 30 01
 taxation 19 49
underlying profit after tax 273 218
2014 
£m
2013 
£m
new stores 130 124
existing stores 30 20
other 16 20
total 176 164
 of sales 18 19
chief financial officer’s report continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  19
capital expenditure continued
during the 2014 financial year we invested £176 million in capital expenditure primarily related to the opening of new stores  we continued 
to roll out the poundland format in the uk and the dealz format in ireland we opened a total of 82 stores in the 2014 financial year or 70 net of 
closures and resites
we ended the year with 528 stores 2013 458 including 495 poundland stores in the uk and 33 dealz stores including 31 stores in ireland and 
2 in the isle of man and orkney and have a longterm target of 1000 stores in the uk and 70 in ireland we plan to open 60 net new stores a 
year in the uk and ireland and our pipeline is strong for the current year
we continue to invest in our infrastructure to support our planned growth and we will open our new purposebuilt 350000 square feet 
distribution centre in harlow in august 
net debt and cashflow
net debt at the end of the year was £47m 2013 £92m this is after paying £20m redeeming preference shares and the payment of £49m 
in costs associated with our successful stock market flotation we received no cash benefit from the ipo as all proceeds went to selling 
shareholders operating cash flow of £586m represented an increase of 572 on last year 2013 £373m this reflects poundland’s strong 
trading performance and our continued focus on daytoday cash management 
working capital was well managed with a £158m inflow in the year 2013 outflow of £58m cash conversion was strong at 1237 2013 
827
new debt facility
on 17 march 2014 we entered into a new banking facility consisting of a revolving credit and a working capital facility of £55m we utilised 
£30m of the revolving credit facility together with cash generated from operating activities to repay our term debt
dividend
we intend to adopt a dividend policy which reflects our longterm earnings and cashflow potential targeting a level of annual dividend cover of 
25 to 35 times based on earnings we intend that the first dividend to be declared will be the interim dividend in respect of the first half of the 
2015 financial year payable in january 2015
2014 
£m
2013 
£m
ebitda 428 431
change in net working capital 158 58
operating cashflow 586 373
tax paid 104 39
net cash from operating activities 482 334
capital expenditure 166 152
acquisition of intangible assets 10 13
net cash from investing activities 176 165
proceeds from new loan 293 –
repayment of borrowings 549 72
redemption of preference shares 200 –
net financial expense paid 25 28
net cash from financing activities 481 100
net decreaseincrease in cash 176 69
net debt 47 92
cash conversion 1237 827 20  poundland group plc annual report and financial statements for pe 30 march 2014
risks and uncertainties
the group operates in the 
highly competitive  
retail market
the retail industry including the value general 
merchandise retail market is highly competitive 
particularly with respect to price product selection 
and quality store location and design inventory 
customer service and advertising the group 
competes at national and local levels with a diverse 
group of retailers of varying sizes and covering 
different product categories and geographic markets 
these competitors include other single price value 
general merchandise retailers multiprice value 
general merchandise retailers supermarkets and 
certain high street retailers in particular categories 
such as health and beauty
poundland works extremely hard to ensure that it 
responds adequately to these multiple sources and 
types of competition including online competition 
whether from existing retailers or new entrants to 
ensure that competition does not have a material 
adverse effect on the group’s business results of 
operations and financial condition
the group’s cash flows 
from operations may be 
negatively affected if it is not 
successful in managing its 
inventory balances or level 
of inventory shrinkage
to be successful poundland must maintain sufficient 
inventory levels to meet its customers’ demands 
without allowing those levels to increase to an extent 
such that the costs to store and hold the goods 
unduly impact its financial results if poundland is 
not successful in managing its inventory balances 
its cash flows from operations may be negatively 
affected
poundland has been successfully maintaining 
sufficient inventory levels throughout its 24 year 
history and continues to employ the good habits that 
it has gained through this extensive experience
poundland like other retailers experiences inventory 
shrinkage and employs measures that will reduce the 
problem although some level of inventory shrinkage 
is an unavoidable cost of doing business 
the group’s success 
is dependent on its 
logistics and distribution 
infrastructure
the success of poundland’s business depends on its 
ability to transport goods from its three distribution 
centres to its stores throughout the uk and ireland in 
a timely and costeffective manner  any unexpected 
delivery delays such as due to severe weather 
or disruptions to the national or international 
transportation infrastructure or increases in 
transportation costs such as due to increased fuel 
costs could materially adversely affect the group’s 
business
poundland operates from three distribution centres 
including two regional distribution centres located 
in the midlands and south east england and one 
national distribution centre located in the midlands all 
products are taken to one of poundland’s distribution 
centres before onwards distribution to poundland’s 
stores with the exception of fresh products which 
are delivered direct to stores by the supplier or a 
thirdparty
in late 2014 poundland plans to replace the 
hoddesdon distribution centre with a 350000 square 
foot purposebuilt warehouse in harlow which will 
serve as poundland’s main depot for south east 
england and will also provide initial support to the 
business as it looks to expand into continental 
europe the harlow distribution centre will increase 
poundland’s total distribution capacity to be able 
to operate approximately 750 stores in the uk and 
ireland by opening the harlow facility poundland 
expects to achieve gains in efficiency including 
enhanced route efficiency and productivity through 
increased use of doubledecker trailers
the group may not be able  
to increase sales in  
existing stores
poundland’s growth from existing stores is dependent 
upon its ability to increase sales manage costs 
and improve the efficiencies and effectiveness of 
its operations increases in sales in existing stores 
are dependent on factors such as competition 
merchandise sourcing and selection store operations 
and customer satisfaction
once open our retailing colleagues ensure that they 
gain experience of the new market and develop name 
recognition and identify customer demand with a view 
to successfully competing against local competition 
on a storebystore basis the group seeks to hire 
train and retain qualified store management and other 
high quality personnel at the same time colleagues 
within our distribution centres and customer 
support centre look to maintain or improve sourcing 
and distribution capacity information systems and 
other operational system capabilities and manage 
additional expenses and costs
operational risks
the tables below summarise the material financial and operational risks to the group and how the group seeks to 
mitigate them in the daytoday running of the business
the group may not be able to 
open profitable new stores 
on a timely basis or at all
part of the group’s growth strategy is to open new 
stores across the uk and ireland and the group 
is also developing plans to trial dealz stores in 
continental europe with a lowcost pilot launch 
planned for spain in the 2015 financial year if 
poundland does not open new stores on a timely or 
profitable basis it may not realise its growth strategy
the group’s highly motivated and experienced 
property department are constantly working to 
identify and secure attractive locations for new stores 
including selecting the right store formats
explanation mitigation introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  21
inflation or other factors may 
affect poundland’s ability to 
keep pricing at £1 in  
the uk and a149 for the 
majority of its products in 
ireland
poundland’s current pricing strategy is predicated 
on providing a wide range of merchandise for 
profitable resale at a single price point of £1 in the 
uk or a149 for the vast majority of products in 
ireland
poundland relies on third
party suppliers and needs 
to identify develop and 
maintain relationships with 
a significant number of 
qualified suppliers
like many retailers poundland is dependent on being 
able to source suitable products from suppliers in 
sufficient quantities at sufficiently low cost and in a 
timely manner but may not be able to do so in such a 
way as to meet our needs
poundland is proud that on a value basis over 80 
of our products are sourced from uk suppliers 
however whenever necessary we have the ability to 
source and develop product on a global basis
poundland has good longterm relationships 
with most of its suppliers which are continuing to 
improve as an overwhelming number of primary 
manufacturers supply us on a direct basis major 
manufacturers and suppliers are increasingly 
recognising the significant opportunity that poundland 
is offering them to expand their brand reach
poundland has been able to profitably maintain 
its current uk £1 single price strategy for 24 
years by managing its product range such as 
by introducing new higher margin branded and 
own label products or discontinuing low margin 
products reengineering pack sizes moving 
sources of supply to lower cost economies and 
renegotiating with suppliers and it will continue to 
apply this strategy whilst closely monitoring any 
factors which may affect the group’s single price 
point strategy
the group depends on the 
executive team and other 
highly qualified employees 
to manage its business and 
brands
the success of poundland’s strategy depends on 
the continuing services of the executive team and 
the group’s ability to continue to attract motivate 
and retain other highly qualified employees 
retention of the executive team and other highly 
qualified employees is especially important in the 
group’s business due to the limited availability of 
experienced and talented retail executives
the group operates a remuneration policy the aim 
of which is to attract retain and motivate high 
calibre senior management and to focus them on 
the delivery of the group’s strategic and business 
objectives to promote a strong and sustainable 
performance culture to incentivise high growth 
and to align the interests of executive directors 
and members of the executive committee with 
those of shareholders through encouraging equity 
ownership in promoting these objectives the policy 
aims to ensure that no more than is necessary is 
paid and has been structured so as to adhere to 
the principles of good corporate governance and 
appropriate risk management
the group’s business may 
be adversely affected by 
economic conditions and 
other factors in the uk 
ireland and globally
poor economic conditions in the uk ireland and 
globally as well as economic factors such as 
unemployment levels consumer debt levels lack 
of available credit fuel costs inflation interest 
and tax rates may adversely affect the disposable 
income of poundland’s customers which could 
result in lower sales
poundland has established its marketleading 
position in the uk by continuously focusing on 
delivering amazing value to its customers every 
day and it is this focus that has allowed poundland 
not only to survive but to grow significantly during 
the recent period of severe economic downturn 
we believe that this was achieved by selling a 
wide range of great products and top brands 
offering many new exciting lines each week at a 
price point intended to offer customers amazing 
value for money and it will continue this strategy 
into the future in a 2013 study prepared for 
the group comparing prices on a range of 106 
comparable products to uk grocery chains asda 
tesco and sainsbury poundland was the cheapest 
or joint cheapest 90 of the time
the group may be subject 
to adverse fluctuations in 
currency exchange rates
the group pays certain suppliers overseas in us 
dollars however poundland’s customers pay 
for products in sterling in the uk and euros in 
ireland consequently the group bears the risk of 
disadvantageous changes in exchange rates
the group’s policy allows these exposures to be 
hedged for up to 18 months forward in order to fix 
the cost in pounds sterling hedging is performed 
through the use of foreign currency bank accounts 
and forward foreign exchange contracts these 
contracts are put in place as part of the group’s 
gross margin strategy it enables buyers to be 
given targeted buying rates for products which are 
set lower than the hedged rate
economic risks explanation mitigation
employment risks explanation mitigation 22  poundland group plc annual report and financial statements for pe 30 march 2014
corporate and social responsibility report
our goal
at poundland we deliver amazing value to our customers every day 
we are famous for our wide range of great products and top brands 
offering many exciting new lines every week poundland will always 
be fun and friendly with something for everyone
our values that underpin our goal are as follows
• we put customers first
• keep it simple
• individual responsibility team delivery
• treat every £ as your own
• respect each other
• recognise and celebrate success
the values are representative of the way we aspire to operate our 
business and our colleagues are encouraged to live these values 
during everyday interaction with our customers and each other
we put our customers first and fully understand and recognise our 
responsibility to demonstrate to them that we trade fairly and take 
our corporate and social responsibilities seriously 
we recognise our duty to operate our business in an ethical and 
responsible manner
our csr strategy focuses on 3 key areas
• environment
• social responsibility
• employee responsibility
health and safety
we are aware and take very seriously our responsibility for the 
health and safety of our customers colleagues and anyone else 
who comes into contact with our business or visits one of our 
sites we are constantly seeking ways to improve health and safety 
practices to ensure the safety of all
environment
we recognise that our operations impact the environment and that 
this is an increasingly important issue for consumers we actively 
pursue policies that help us to reduce our carbon footprint and 
costs we focus on four key areas using less electricity maximising 
recycling opportunities improving fuel efficiency and reducing 
packaging waste we consider this key to the ongoing success of 
our business 
we continually investigate and test new solutions to reduce the 
environmental impact of our operations and constantly seek to 
reduce our energy consumption to deliver efficiencies and meet 
the exacting environmental requirements of our socially aware 
customers during 201314 we reduced our same store emissions 
by 1064 tonnes co
2
 and 1836 tonnes co
2
 overall
our focus on waste management this year has resulted in the 
recycling of 1259624 tonnes of cardboard an improvement of 
101 on the prior year we also recycled 80188 tonnes of plastic 
a 164 increase year on year
we have invested significantly in fuel efficient vehicles we have 
improved vehicle aerodynamics used low energy tyres and trained 
our transport colleagues in more fuel efficient driving techniques
this year we have set challenging targets for further reductions in 
our energy consumption
packaging 
as the largest uk national retailer of single price amazing value 
products we recognise the need to conserve natural resources 
and to protect the environment therefore we have adopted a 
policy that will reduce the environmental impacts associated with 
our product primary packaging and as a minimum comply with 
all relevant legislation where possible the objective is to fit the 
packaging around the product to reduce consumer waste recycling 
costs comply with the packaging and packaging waste directive 
and reduce supply chain transport costs by utilising container space 
more affectively
packaging policy statement
primary packaging at its most fundamental level protects 
and contains the contents and communicates safety and legal 
requirements 
poundland will  
• meet all legislative requirements as a minimum 
• work toward a continuous reduction in the use of packaging 
materials reducing size and weight through improved design 
and appropriate use of materials 
• always view packaging from our customers’ perspective ie 
can i recycle it can i reuse it does it have an alternative use 
• wherever possible provide information to customers 
concerning which packaging has a recycled content andor 
can be recycled ensure all environmental claims are simple 
meaningful relevant accurate used in the appropriate context 
and can be substantiated 
• require suppliers to provide information on the size weight 
design and materials content of packaging on all own brand 
products sold 
• monitor developments in packaging technologies for 
opportunities to reduce environmental impacts 
• encourage suppliers of proprietary brands to adopt best 
environmental practice in the design of packaging used for their 
products 
• comply with all rules licences copyrights codes of practice 
and official guidance concerning environmental labelling and 
claims  introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  23
electricity and gas 
progress so far
 • in 201314 poundland consumed 753 gwh of electricity and 
gas across its trading portfolio and associated warehousing this 
equates to emissions of 39478 tonnes of co
2
 
• in 201213 poundland’s committed to an energy efficiency 
campaign aimed at reducing our emissions and their associated 
costs the campaign focused on giving stores energy information 
that allows them to manage their energy use primarily by good 
housekeeping 
• in the first 12 months of this campaign we reduced our like for 
like consumption by 62 in our smart metered stores 
• we will endeavour to maintain good housekeeping standards and 
add to them with targeted investment in energy projects that give 
a suitable return on investment for example we have invested in 
a low energy lighting scheme for our willenhall warehouse 
• we will maintain focus on lowering carbon emissions to minimize 
annual costs under the crc energy efficiency scheme 
waste initiatives 
we are fully focused and compliant on all areas of waste 
• budget pack the packaging consultants focused on compliance 
with uk packaging waste regulations are working in partnership 
with poundland to provide battery collection facilities throughout 
all of our stores this means that customers can deposit any type 
of portable battery into collection containers when visiting a store 
these batteries are collected sorted and recycled ensuring that 
the constituent parts are used again 
• waste electrical weee  we currently operate a take back 
system via helpdesk for the uk  ni 
• packaging waste prn’s  we provide the government with 
data on the weight of packaging waste materials paper glass 
aluminium steel plastic wood mixed recycling
recycling  waste 
• we recognise the potential impact on the community of waste 
generated from our activities we therefore seek to reduce 
volumes of waste by recycling wherever possible 
• all our stores and distribution depots recycle cardboard and soft 
plastics generated in their daily operation 
• our customer support centre collects and recycles all of its waste 
paper and packaging 
• in 201314 we recycled 106 more cardboard and soft plastics 
than in the previous year 
• we continue to investigate other sources of waste and 
opportunities to recycle 
• waste generated at our hoddesdon depot is taken for incineration 
meaning none of its waste is passed to landfill  24  poundland group plc annual report and financial statements for pe 30 march 2014
corporate and social responsibility report continued
social responsibility 
sourcing 
during the last few years we have strengthened our supplier code of 
conduct and social accountability processes in 2011 an independent 
audit of all processes and procedures was undertaken we have 
implemented in full the recommendations arising out of the audit 
increasing the number and quality of audits of our suppliers we have 
joined sedex the largest organisation of its kind that shares ethical 
trade information with its members during 2013 and 2014 further 
independent audits of factories have been commissioned to ensure 
compliance with poundland’s supplier code of conduct continuous 
improvement of our ethical moral and social processes remains one 
of our key priorities 
we are proud that on a value basis over 80 of our products 
are sourced through uk companies however where necessary 
poundland has the ability to source and develop products on a global 
basis therefore our far east and near east operations based in hong 
kong and new delhi continue to be an important part of our sourcing 
strategy accordingly we have strengthened our teams in both these 
locations especially in the areas of new product development quality 
assurance and control 
our good uk vendor relationships have continued to improve during 
the period and virtually all primary manufacturers supply us direct it is 
pleasing that major manufacturers of branded products recognise the 
significance of poundland to consumers and the outstanding growth 
opportunity that we offer them to expand their brand reach top 
brands are very important to our customers and securing continuity 
of supply through these direct channels allows us to increase sales 
through improved availability and differentiate our offer from other 
single price competitors during the year we have once again been 
able to add a number of important new branded suppliers to our 
existing large portfolio of primary manufacturers we continue to 
recognise the relevance of secondary and tertiary suppliers who enjoy 
long term relationships with our growing poundland brand these 
suppliers remain important to the delivery of our overall offer 
code of conduct – social accountability policy
all suppliers commit to achieving the standards outlined the policy 
based on international labour organisation core ilo conventions 
covers topics including 
• childforced labour 
• health  safety 
• freedom of association  collective bargaining 
• nondiscrimination 
• hours worked 
• wage compliance 
charity 
poundland supports macmillan cancer care’s aim to reach everyone 
affected by cancer since the partnership began in 2009 poundland 
colleagues and customers have raised over a million pounds helping 
macmillan to make sure people living with cancer have the best team 
in their corner every step of the way 
we have built and strengthened the partnership engagement with 
both colleagues and customers and created awareness in the media 
providing an easy and desirable way for people to support macmillan
poundland supports macmillan with a number of fundraising activities 
in store distribution depots and at our customer support centre 
colleagues have participated in sponsored runs such as the london 
marathon land’s end to john o’groats cycle ride and held samples 
sales 
in our republic of ireland dealz stores our charity of the year is 
“makeawish” who grant magical wishes to children and young 
people fighting life threatening illnesses
employee responsibility 
our colleagues
we recognise and celebrate success through various initiatives in the 
business for example we offer seasonal incentives where our store 
colleagues can receive vouchers to spend at their leisure eligible 
colleagues are also rewarded for meeting objectives which impact 
business performance and show evidence of living the company 
values via an annual bonus scheme in addition we offer at 5 year 
intervals long service awards to our colleagues 
all colleagues have access to a wide range of benefits via our benefits 
platform offering discounts for colleagues and their families to enjoy 
from childcare vouchers and improved healthcare through to special 
discounts in leisure and lifestyle we offer something for everyone
our colleagues’ welfare and wellbeing is important to us and we 
work in partnership with the retail trust who offer our colleagues 
an employee assistance program which is a free confidential and 
independent service to support colleagues at times of need this 
service is offered 7 days a week and 365 days a year 
we are interested in what our colleagues have to say and use various 
means of communicating with them on a regular basis our colleagues 
are represented at the biannual jcc meetings held between the 
company and our union usdaw in addition the company has a 
whistleblowing policy which allows colleagues to raise any concerns 
in confidence we also use colleague surveys as a way of gaining 
feedback on matters that are important to our colleagues and 
encourage their engagement in company projects
local community support 
our new store opening programme and expansion plans means that 
we are creating jobs and opportunities for over 1000 new colleagues 
annually we work closely with local job centres and the dwp in 
helping the unemployed gain long term employment and skills and 
qualifications to improve their employability we take our corporate 
responsibility seriously and the role we play is having a positive 
impact on local communities introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  25
training
all new colleagues receive an induction programme tailored to the 
role they will perform we review our training regularly to update and 
improve practice a recent update has seen training taken out of the 
classroom and onto the shop floor brand new materials have been 
introduced called ‘conversation cards’ these cards are relaxed 
informal and help managers to train their colleagues on all aspects of 
their job colleagues love this new approach as it is easy simple and 
practical to understand 
managers now receive a ‘management organiser’ on day one when 
they join us which tells them everything they need to know about our 
business and their induction the new induction is a structured three 
month programme that they take responsibility for supported by a 
training manager 
we want all our people to have the right knowledge and skills so they 
can be brilliant at their jobs we have launched a number of training 
programmes for our managers these modules run every three months 
and support our managers to understand how we manage and lead 
‘the poundland way’ 
sharing our knowledge
poundland once again supported igd’s ‘feeding britain’s future’ event 
in which workshops were offered around the uk to young people who 
want to pursue a career in retail they visited poundland stores and 
were given a flavour of what life in retail is all about with additional 
support provided on how to write their cvs and deliver a great 
interview we’ve also supported the charity “think forward” who work 
with at risk youths at school poundland has run a number of talent 
days to help young people understand what a career in retail is like  26  poundland group plc annual report and financial statements for pe 30 march 2014
our directors
andrew joined the board as 
independent nonexecutive 
chairman in july 2012 
having started his career 
in fmcg with unilever and 
guinness andrew has spent 
the last 22 years in retail 
his roles have included 
group finance director of 
laura ashley holdings the 
burton group and 15 years 
as an executive director of 
tesco plc including 11 years 
as finance and strategy 
director and four years 
running their retail services 
division tescocom tesco 
bank tesco telecoms and 
dunnhumby
andrew retired from tesco plc 
and is now chairman of both 
n brown plc and poundland 
he is also a nonexecutive 
director of bskyb woolworths 
south africa mccurrach uk 
and the rugby football union 
nick is a fellow of the 
chartered institute of 
management accountants 
and holds an mba
nick joined poundland as 
chief financial officer in 
october 2006 he joined 
from j sainsbury plc where 
he was the finance director 
of sainsbury’s convenience 
stores 
nick has 25 years’ experience 
in finance and business 
improvement which he gained 
at pricewaterhousecoopers 
accenture and lucas 
industries plc
steve joined poundland as 
a nonexecutive director in 
april 2010 having joined 
warburg pincus in 2003 
steve focuses on the firm’s 
european investment 
activities in consumer and 
industrial markets previously 
steve worked at permira 3i 
and arthur andersen
he is also a director of 
survitec finance 1 limited 
and clondalkin group 
holdings bv 
jim joined poundland as 
chief executive officer 
in august 2006 prior to 
joining poundland jim 
was managing director of 
convenience j sainsbury 
plc and was a member of 
the operating retail and 
investment boards
jim’s experience extends 
to over 40 years in retail 
including ten years as chief 
executive of ts stores 
plc operated over 1200 
stores and sold to tesco 
plc managing director of 
neighbourhood retailing part 
of next plc and managing 
director of birmingham post 
 mail limited’s retail estate 
jim is also nonexecutive 
chairman at aim listed 
wynnstay group plc
richard joined poundland 
as trading director in july 
2012 and is responsible for 
trading  marketing he 
was appointed an executive 
director in 2014 richard 
joined the industry from 
cambridge university in 
1986 developing the family 
chain of convenience stores 
which was subsequently sold 
to jacksons convenience 
stores richard became 
trading director for j 
sainsbury local convenience 
format he then became 
managing director of netto 
food stores followed by his 
appointment at wm morrison 
supermarkets plc firstly 
as senior trading director 
 ambient then marketing 
director
andrew thomas 
higginson 
independent non
executive chairman
james john 
mccarthy 
chief executive officer
nicholas roger 
hateley 
chief financial officer 
richard lancaster 
trading director
stephen coates 
nonexecutive director 
company secretary
company information
registered  head office
wellmans road willenhall west midlands wv13 2qt
registered in england no 8861243
financial calendar
19 september 2014 – annual general meeting
november 2014 – interim results
each shareholder is entitled to attend and vote at the 
annual general meeting
website wwwpoundlandcorporatecom
we encourage our shareholders to visit our website to 
keep up to date on information specifically for them
jinder jhuti introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  27
paul joined poundland as a 
nonexecutive director in 
april 2010 having joined 
warburg pincus in 2002  paul  
is responsible for investments 
in the european consumer 
and healthcare sectors prior 
to joining warburg pincus 
paul worked at morgan 
stanley in the investment 
banking and fixed income 
divisions and has also been 
involved in cable investing 
activities in europe he served 
as a director of ziggo nv
paul is currently a director of 
inea sa 
darren joined the board as 
senior independent director 
in 2014 he brings extensive 
retail knowledge and broad 
public company experience 
gained throughout his 
career most recently as 
chief executive officer of 
carpetright plc prior to this 
darren spent six years at 
j sainsbury plc initially as 
chief financial officer and 
subsequently as the group 
development director
darren is chair of the 
audit committee and a 
non executive director at 
ladbrokes plc and non 
executive director of wolseley 
plc 
trevor joined the board in 
2014 and chairs the audit 
and risk committee  he 
is president and chief 
customer officer at mondelez 
international formerly kraft 
foods inc from 2010 to 
2012 trevor was president 
markets and sales for 
kraft foods europe with 
responsibility for the country 
commercial units he has 
spent most of his career 
with cadbury acquired by 
mondelez international in 
2010 joining the company 
in 1986 he built a strong 
track record as he assumed 
increasingly senior general 
management and finance roles 
across europe the americas 
and asia prior to his role at 
kraft foods europe trevor 
led the cadbury business in 
britain and ireland delivering 
impressive growth in these 
mature markets
grant joined the board 
in 2014 and chairs the 
governance and nominations 
committee he is the former 
chief executive officer of 
travelodge during his 10 
year career with the hotel 
business grant also served 
as executive chairman he 
has a wealth of experience in 
the hotel and travel industry 
having previously held senior 
positions at hilton group and 
whitbread
tea joined the board in 2014 
and chairs the remuneration 
committee  she is group 
hr director for merlin 
entertainments plc which 
floated on the london stock 
exchange in november 2013 
having begun her career 
as a european employment 
lawyer in brussels advising 
multinational companies 
on eu related affairs she 
moved into human resources 
and subsequently re
located to london tea has 
worked across a number of 
industries recently heading 
up the human resources 
function in europe for hilton 
hotels corporation
paul best 
nonexecutive director 
darren shapland  
independent 
nonexecutive director
trevor bond  
independent  
nonexecutive director 
teresa colaianni 
independent  
nonexecutive director 
grant hearn 
independent  
nonexecutive director 
advisors
auditors kpmg llp  one snowhill snowhill queensway birmingham b4 6gh
bankers lloyds bank plc 
 barclays bank plc
 the royal bank of scotland plc
 santander uk plc
joint brokers jp  morgan securities plc 25 bank street london e14 5jp
 shore capital stockbrokers limited bond street house 14 clifford street london w1s 4ju
corporate solicitors freshfields bruckhaus deringer llp  65 fleet street london ec4y 1hs
registrars computershare investor services plc the pavilions bridgwater road bristol bs13 8ae 28  poundland group plc annual report and financial statements for pe 30 march 2014
our executive team
david joined poundland in 
october 2005 as buying  
merchandising director and 
now focuses on international 
development david has 
over 25 years’ commercial 
retailing experience in buying 
marketing retail operations 
and supply chain both uk and 
international having worked 
at kwik save allied domecq 
minit group and more 
recently somerfield stores 
ltd david will be retiring from 
poundland in july 2014
jinder joined poundland 
in 2006 as sole counsel 
and assistant company 
secretary and was appointed 
to the board in january 
2014  jinder is responsible 
for managing legal risk 
corporate compliance 
insurance customer relations 
and health and safety she 
has over 24 years’ experience 
in the legal sector prior to 
joining poundland jinder 
worked inhouse at alliance 
 leicester now santander 
bank and barclays bank 
plc in addition to having 
worked in private practice at 
martineau johnson
andy joined poundland 
in 2009 as supply chain 
director he now has 
responsibility for the entire 
supply chain where his 
priorities are managing the 
distribution of stock around 
the group optimising the 
level of stock holding through 
the supply chain whilst 
improving the availability of 
stock on the shelf in stores 
prior to joining poundland 
andy was distribution director 
for somerfield stores ltd 
where he rationalised their 
network by consolidating 
the former kwik save and 
somerfield networks and 
latterly the sale of kwik save 
he has 30 years’ experience 
in distribution and has held a 
wide number of development 
and operational roles within 
ownaccount and thirdparty 
logistics companies he 
also gained international 
experience whilst working for 
tibbett and britten in north 
america
tim joined poundland in 
august 2006 as regional 
manager with responsibility 
for retail operations in the 
north of the country prior 
to that tim worked for 
kwik save and somerfield 
stores ltd for over 20 years 
holding a number of roles 
in both retail operations 
and human resources  he 
was a regional director at 
somerfield prior to joining 
poundland
craig joined poundland in 
december 2004 as property 
director with responsibility 
for the effective management 
and development of 
the poundland property 
portfolio craig has 20 years’ 
experience in commercial 
property specialising in retail 
agency he spent ten years as 
partner at johnson fellows 
and then created niche retail 
agency businesscraig bales 
 company which was 
subsequently sold to lambert 
smith hampton prior to 
joining poundland he sat on 
the board of lambert smith 
hampton
mark joined poundland in 
2011 as human resources 
director and was appointed 
to the board of poundland 
limited in march 2012  
his responsibilities include 
looking after the group’s 
people and continuous 
improvement strategies 
mark has over 20 years of 
human resources experience 
spanning the aerospace food 
manufacturing supply chain 
and retail sectors prior to 
joining poundland mark was 
people director at fat face 
limited
mike joined poundland in 
2003 as a senior controller 
with responsibility for 
developing it capability 
appointed to the board of 
poundland limited in march 
2012 mike is responsible 
for it strategy and the 
ongoing development and 
management of all aspects 
of it mike has over 25 years’ 
it experience spanning travel 
and retail sectors prior to 
joining poundland mike was 
head of it services for tui uk 
limited
tim mcdonnell 
retail operations 
director
craig bales  
property director
andy monk  
supply chain director
mike gray  
it director
mark powell  
human resources 
director
david coxon 
international 
development director
jinder jhuti 
company secretary and 
general counsel introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  29
directors’ report
the directors present their annual report and financial statements for 
the year ended 30 march 2014 which were approved by the board of 
directors on 2 july 2014
strategic report
the directors have presented their strategic report which was 
approved by the board of directors on 2 july 2014 on page 7 to 28 
and which contains a a fair review of the group’s business and b a 
description of the principal risks and uncertainties facing the group 
the review is intended to be a balanced and comprehensive analysis 
of the development and performance of the group’s business during 
the financial year and the position of the group’s business at the 
end of that year the report includes to the extent necessary for an 
understanding of the development performance or position of the 
group’s business analysis using financial key performance indicators 
as the company is now a quoted company the strategic report also 
to the extent necessary for an understanding of the development 
performance or position of the group’s business includes the main 
trends and factors likely to affect the future development performance 
and position of the group’s business it also includes information 
about environmental matters the group’s employees and social and 
community issues and the policies that the group has in place to deal 
with these issues and their effectiveness 
the report of the directors should be read in conjunction with the 
strategic report and contains details of the principal activities of the 
group during the year
going concern
the board is of the opinion that there is a reasonable expectation 
that the company and the group has adequate resources to continue 
in operational existence for the foreseeable future in arriving at this 
conclusion the board has taken account of current and anticipated 
trading performance current and anticipated levels of borrowings 
and the availability of borrowing facilities and exposures to and 
management of the financial risks detailed on pages 20 and 21 
consequently the going concern basis has been used in the 
preparation of the company and group financial statements
 
results and dividend
the group’s consolidated profit for the year attributable to 
shareholders of the company is £139 million
the directors intend subject to sufficient distributable reserves 
being available as noted in the prospectus issued to prospective 
shareholders prior to admission to listing that the first dividend to 
be declared by the group following admission to listing will be the 
interim dividend in respect of the first half of the 2015 financial year 
which is expected to be paid in january 2015
political donations
the group has not made in the past nor does it intend to make in the 
future any political donations
employees
at the date of this report the group employed 13973 colleagues 
5981 male and 7992 female colleagues
the directors believe that the group’s relations with its employees 
have been and continue to be good the directors also believe that 
relations with its trade unions are also good poundland limited is 
party to a recognition agreement with the union of shop distributive 
and allied workers which applies on a companywide basis across 
all offices distribution centres and retail stores there has been no 
industrial action that has affected the group in recent years 
the group communicates with its colleagues both uk based and 
elsewhere on matters of concern to them and on more general 
matters by way of notice boards the circulation of emails monthly 
updates in person and a series of annual conferences covering all 
geographical areas in which the group operates the executive 
directors and executive team also visit retail and distribution sites on 
a regular basis throughout the year and colleagues are encouraged to 
raise matters of concern with them during these visits 
the group has a policy of giving full and fair consideration to 
applications for employment made by disabled persons having 
regard to their particular aptitudes and abilities for continuing the 
employment of and for arranging appropriate training for employees 
who have become disabled persons during the period when they were 
employed by the group and for their training career development and 
promotion
directors
the directors of the company as at 30 march 2014 and their interests 
in the shares of the company are shown on page 49
the company has customary directors’ and officers’ indemnity 
insurance in place in respect of each of the executive directors the 
company has entered into a qualifying thirdparty indemnity the 
terms of which are in accordance with the companies act 2006 with 
each of the executive directors
there have been no changes in the makeup of the board between the 
end of the financial year and the date of this report
as detailed in the articles at every annual general meeting other than 
the first annual general meeting due this year  all directors at the 
date of any subsequent notice of annual general meeting shall retire 
from office consequently the directors currently holding office will 
not be required to seek reelection until the annual general meeting to 
be held in 2015
share capital and shareholders
details of the company’s share capital including changes in the 
issued share capital in the year under review and since the yearend 
up to the date of this report are set out in note 21 to the consolidated 
financial statements which form part of this report on page 85
the rights and obligations attaching to the ordinary share capital 
of the company are contained within the company’s articles of 
association which were adopted on 11 march 2014 30  poundland group plc annual report and financial statements for pe 30 march 2014
details of awards outstanding under sharebased incentive schemes 
are given in note 22 to the consolidated financial statements 
which form part of this report on page 86 details of the share
based incentive schemes in place are provided in the directors’ 
remuneration report on pages 40 to 41
on a show of hands at a general meeting of the company every 
holder of ordinary shares present in person or by proxy and entitled to 
vote shall have one vote and on a poll every holder of ordinary shares 
present in person or by proxy and entitled to vote shall have one vote 
for every ordinary share held
the notice of the annual general meeting specifies deadlines for 
exercising voting rights and appointing a proxy or proxies to vote 
in relation to resolutions to be put to the annual general meeting 
all proxies are counted and the numbers for against or withheld 
in relation to each resolution are announced and published on the 
group’s website after the meeting
there are no restrictions on the transfer of ordinary shares in the 
company other than in relation to certain restrictions that are imposed 
from time to time by laws and regulations for example insider trading 
laws in addition pursuant to the listing rules of the financial 
conduct authority directors and certain officers and employees of 
the group require the approval of the company to deal in the ordinary 
shares of the company in pursuant to the underwriting agreement 
the company and the warburg pincus funds have each agreed 
subject to certain customary exceptions during the period of 180 days 
from the date of admission not without the prior written consent of 
our current joint brokers to issue in the case of the company only 
offer lend sell or contract to sell grant any option right or warrant to 
subscribe or purchase or allow any encumbrance to be created over 
or otherwise dispose of directly or indirectly or announce an offer of 
any ordinary shares or any interest therein or in respect thereof or 
enter into any transaction with the same economic effect as or agree 
to do any of such things or publicly announce any intention to do any 
of the foregoing
pursuant to the underwriting agreement the directors the exective 
team and certain other shareholders have agreed that subject to 
certain customary exceptions during the period of 365 days from 
the date of admission not without the prior written consent of the 
our current joint broker to offer lend sell or contract to sell grant 
any option right or warrant to subscribe or purchase or allow any 
encumbrance to be created over or otherwise dispose of directly 
or indirectly or announce an offer of any ordinary shares or any 
interest therein or in respect thereof or enter into any transaction with 
the same economic effect as or agree to do any of such things or 
publicly announce any intention to do any of the foregoing
the company is not aware of any other agreements between 
shareholders that restrict the transfer of shares or voting rights 
attached to the shares
greenhouse gases
a summary of how the group recognises its responsibility to colleagues 
customers environment including greenhouse gas emissions and 
community is contained with the corporate and social responsibility 
report on pages 22 to 25 which forms part of this report
substantial shareholders
at 2 july 2014 the following interests exceeding the 3 disclosure 
threshold were recorded in the register of the company kept in 
accordance with section 808 of the companies act 2006
additional information for shareholders
with regard to the appointment and replacement of directors the 
company is governed by its articles of association the uk corporate 
governance code and the companies act 2006 and related legislation 
the articles of association themselves may be amended by special 
resolution of the shareholders
the powers of the directors are detailed in the corporate governance 
report on pages 32 to 34
the directors will at the 2014 annual general meeting seek authority 
to purchase the company’s own shares within certain limits although 
no such purchases are planned at this time details are given in the 
notice of the annual general meeting
change of control
a number of agreements take effect alter or terminate upon a change 
of control of the group such as bank loan agreements and employee 
sharebased incentive schemes 
the company’s main credit facilities including the committed bank 
facilities dated 17 march 2014 contain a provision such that in the 
event of a change of control the facilities will be cancelled and all 
outstanding amounts together with accrued interest will become 
repayable on the date falling 30 days following written notice being 
given by the lenders that the facilities have been cancelled
annual general meeting “agm”
a notice convening the company’s first agm will be issued to 
shareholders separately in addition to the ordinary business of an 
agm the directors are seeking certain other authorities details of 
which are set out in the notice 
corporate governance
the statement of compliance with the uk corporate governance code 
and description of the group’s corporate governance framework with 
the corporate governance report are included on pages 32 to 34 
which form part of this report
disclosure of information to auditors
as at the date of this report as far as each director is aware there 
is no relevant audit information of which the group’s auditors are 
unaware and each director has taken all the steps that ought to 
have been taken as a director in order to make himself aware of 
any relevant audit information and to establish that the company’s 
auditors were aware of that information
name

warburg pincus llc 3040
fil limitedfmr llc 1022
kensico capital management corp 569
axa investment management 461
j p morgan asset management 420
james john mccarthy 387
axa framlington 327
directors’ report continued
1 includes shares owned by connected persons introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  31
auditor
resolutions to reappoint kpmg llp as auditor and to authorise the 
directors to determine its remuneration will be proposed at the annual 
general meeting 
information regarding forwardlooking statements
these reports and financial statements include forwardlooking 
statements these forwardlooking statements involve known and 
unknown risks and uncertainties many of which are beyond the 
company’s control and all of which are based on the directors’ 
current beliefs and expectations about future events forwardlooking 
statements are sometimes identified by the use of forwardlooking 
terminology such as ‘‘believe’’ ‘‘expects’’ ‘‘may’’ ‘‘will’’ ‘‘could’’ 
‘‘should’’ ‘‘shall’’ ‘‘risk’’ ‘‘intends’’  ‘‘estimates’’ ‘‘aims’’ ‘‘plans’’ 
‘‘predicts’’ ‘‘continues’’ ‘‘assumes’’ ‘‘positioned’’ or ‘‘anticipates’’ 
or the negative thereof other variations thereon or comparable 
terminology 
these forwardlooking statements include all matters that are not 
historical facts they appear in a number of places throughout these 
reports and financial statements and include statements regarding 
the intentions beliefs or current expectations of the directors or the 
company concerning among other things the results of operations 
financial condition prospects growth strategies including continued 
store roll out plans and dividend policy of the company and the 
industry in which it operates in particular the statements regarding 
the company’s strategy and other future events or prospects are 
forwardlooking statements
responsibility statement of the directors in respect of 
the annual report and financial statements
the board of directors confirm that to the best of their knowledge 
the consolidated financial statements prepared in accordance 
with ifrs as adopted by the eu give a true and fair view of the 
assets liabilities financial position and profit of the group and the 
undertakings included in the consolidation taken as a whole and the 
strategic report shown on page 7 and this directors’ report include 
a fair review of the development and performance of the business 
and the position of the company and the undertakings included in 
the consolidation taken as a whole together with a description of 
the principal risks and uncertainties that they face as shown in the 
strategic report on pages 7 to 28
we confirm that to the best of our knowledge
• the financial statements prepared in accordance with the 
applicable set of accounting standards give a true and fair view 
of the assets liabilities financial position and profit or loss of 
the company and the undertakings included in the consolidation 
taken as a whole
• the annual report and financial statements taken as a whole is 
fair balanced and understandable and provides the information 
necessary for shareholders to assess the group’s performance 
business model and strategy and
• the annual report and financial statements includes a fair 
review of the development and performance of the business and 
the group taken as a whole together with a description of the 
principal risks and uncertainties that they face
by order of the board
jinder jhuti
company secretary
2 july 2014 32  poundland group plc annual report and financial statements for pe 30 march 2014
corporate governance
the board and its role
the board is committed to the highest standards of corporate 
governance other than as set out below the company has complied 
and intends to continue to comply with the requirements of the uk 
corporate governance code
the board has a schedule of matters which are reserved for its own 
consideration which includes
• the overall management of the company and the group and the 
approval of longterm objectives and commercial strategy
• changes relating to the capital structure of the company
• approval of financial reporting dividend policy and significant 
changes in accounting policies and practices
• ensuring the maintenance of a sound system of internal control 
and risk management
• major capital projects and corporate actions acquisitions 
disposals or material joint ventures
• ensuring a satisfactory dialogue with shareholders based on a 
mutual understanding of objectives
• board membership and senior appointments within the group
• remuneration of board members and executive team and
• approval of the group’s principal professional advisors
the board has delegated a number of these responsibilities to 
standing committees of the board as detailed below and also to 
the executive management of the group having first approved the 
terms of reference of those committees and the authority limits of 
management and receives regular reports in respect of all delegated 
authorities
the board comprises ten members including three executive 
directors and seven nonexecutive directors including the chairman 
for the purposes of the uk corporate governance code the board 
regards andrew higginson the chairman as independent on his 
appointment and regards darren shapland trevor bond tea colaianni 
and grant hearn as independent nonexecutive directors darren 
shapland is the company’s senior independent director paul best 
and stephen coates as nonexecutive directors nominated by the 
warburg pincus funds are not regarded as independent for the 
purposes of the uk corporate governance code
in addition to his chairmanship of poundland group plc andrew 
higginson is also chairman of n brown plc and a nonexecutive 
director of bskyb woolworths south africa mccurrach uk and the 
rugby football union 
independence is determined by ensuring that apart from receiving 
their fees for acting as directors nonexecutive directors do not have 
any other material pecuniary relationship or transactions with the 
company its promoters its management or its subsidiaries which 
in the judgement of the board may affect their independence of 
judgement
the uk corporate governance code recommends that at least 
half the board of directors of a uklisted company excluding the 
chairman should comprise nonexecutive directors determined by 
the board to be independent in character and judgement and free from 
relationships or circumstances which may affect or could appear to 
affect the directors’ judgement 
the company does not comply with this recommendation of the uk 
corporate governance code as mentioned above messrs best and 
coates are not independent as they have been nominated to act 
as nonexecutive directors by poundland’s principal shareholder 
warburg pincus funds who have entered into a relationship 
agreement with the company under the terms of which for as long as 
they and their associates control in excess of 30 of the votes able 
to be cast they are entitled to appoint two nonexecutive directors 
when they control between 15 and 30 of votes they will be 
entitled to appoint one nonexecutive director they currently control 
304 of votes
the directors believe that the terms of the relationship agreement 
will enable poundland to carry on its business independently of 
warburg pincus funds
conflicts of interest 
paul best and stephen coates are principals at warburg pincus 
warburg pincus wholly owns the warburg pincus funds which control 
304 of the voting rights in the company 
save as set out in the paragraph above there are no potential 
conflicts of interest between any duties owed by the directors or 
senior management to the company and their private interests or 
other duties
committees of the board
as envisaged by the uk corporate governance code the board 
has established an audit and risk committee a governance and 
nomination committee and a remuneration committee if the need 
should arise the board may set up additional committees
audit and risk committee 
the audit and risk committee’s role is to assist the board with the 
discharge of its responsibilities in relation to financial reporting 
including reviewing the group’s annual and half year financial 
statements and accounting policies internal and external audits and 
controls reviewing and monitoring the scope of the annual audit and 
the extent of the nonaudit work undertaken by external auditors 
advising on the appointment of external auditors and reviewing the 
effectiveness of the internal audit internal controls whistleblowing 
and fraud systems in place within the group the audit and risk 
committee will normally meet not less than three times a year
the audit and risk committee is chaired by trevor bond and its other 
members are darren shapland tea colaianni and grant hearn the 
uk corporate governance code recommends that all members of the 
audit and risk committee be nonexecutive directors independent 
in character and judgement and free from any relationship or 
circumstance which may could or would be likely to or appear to 
affect their judgement and that one 
such member has recent and 
relevant financial experience 
the board considers that 
the company complies with 
the requirements of the uk 
corporate governance code in 
this respect introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  33
governance and nominations committee
the governance and nominations committee assists the board in 
reviewing the structure size and composition of the board reviewing 
succession plans for the directors including the chairman and chief 
executive officer and other senior executives and ensuring legal 
and regulatory compliance in respect of corporate governance the 
governance and nomination committee will normally meet not less 
than twice a year
the governance and nominations committee is chaired by grant 
hearn and its other members are darren shapland trevor bond 
tea colaianni and paul best the uk corporate governance code 
recommends that a majority of the governance and nomination 
committee be nonexecutive directors independent in character and 
judgement and free from any relationship or circumstance which may 
could or would be likely to or appear to affect their judgement the 
board considers that the company complies with the requirements of 
the uk corporate governance code in this respect
when the board wishes to appoint a director the committee will take 
the lead in the process and after taking due account of the balance 
of skills knowledge experience independence and diversity on the 
board will prepare a description of the role required capabilities 
and expected time commitment and using external agencies if 
appropriate will identify suitable candidates for consideration by the 
board as a whole
the committee will also make recommendations to the board 
regarding the makeup of board committees whether to reappoint 
directors at the end of their term of office and make recommendations 
about the reelection of directors put forward for retirement by 
rotation the committee will also consider the diversity of the board
in addition the committee will be responsible for ensuring that the 
company complies with and where possible exceeds all laws and 
regulations to do with the good and ethical governance of corporate 
entities and that all such matters are kept under constant review and 
relevant mitigating actions are taken if required
remuneration committee
the remuneration committee recommends the group’s policy on 
executive remuneration determines the levels of remuneration for 
executive directors and the chairman and other senior executives 
and prepares an annual remuneration report for approval by the 
shareholders at the annual general meeting the remuneration 
committee will normally meet not less than three times a year
the remuneration committee is chaired by tea colaianni and its 
other members are andrew higginson darren shapland trevor bond 
and grant hearn the uk corporate governance code recommends 
that all members of the remuneration committee be nonexecutive 
directors independent in character and judgement and free from any 
relationship or circumstance which may could or would be likely to or 
appear to affect their judgement the board considers that the group 
complies with the requirements of the uk corporate governance code 
in this respect
since the time of its inauguration the committee has employed 
external advisors new bridge street a consulting agency which 
specialises in executive remuneration to advise and assist in 
formulating and introducing a sustainable remuneration policy
director’s attendance chart
the schedule below details meetings from the date of incorporation 
up to 30 march 2014
audit and risk committee and governance and nominations 
committee meetings have been held since the year end
board performance evaluation
due to the relatively short time that it has been in existence the 
board has not yet completed a performance evaluation however a 
performance evaluation to assess the effectiveness of the chairman 
individual directors the standing committees of the board and the 
board as a whole will be undertaken on an annual basis and will 
every third year as required by the uk corporate governance code 
engage with an external agency to assist in the process
shareholder communication
the board believes that it is important to explain business 
developments and financial results to all of the company’s 
stakeholders including shareholders and also to understand any 
concerns that shareholders may have the principal communication 
media used to impart information including financial results are news 
releases investor presentations and visits and company publications
the company will also communicate with its shareholders through 
the annual general meeting at which the board will give an account 
of the progress during the preceding year review current issues and 
provide shareholders the opportunity to ask questions of the chairman 
and the chairs of the board’s standing committees who will all be in 
attendance
in addition the company will consult with its larger shareholders on 
any issue on which it considers it appropriate to do so or where it 
needs to canvass views before taking any particular course of action
director
board meetings
4 meetings
remuneration 
committee
2 meetings
audit and risk 
committee
governance and 
nominations 
committee
andrew 
higginson 4 2  
jim mccarthy 4 1  
nick hateley 4   
richard 
lancaster 3   
stephen 
coates 4   
paul best 4   
darren 
shapland 4 2  
trevor bond 3 1  
tea colaianni 4 2  
grant hearn 4 2   34  poundland group plc annual report and financial statements for pe 30 march 2014
internal controls and risk management
overall responsibility for the system of internal control reviewing its 
effectiveness and ensuring that there is a process to identify evaluate 
and manage any significant risks that may affect the achievement of 
the company’s strategic objectives lies with the board
the board and the audit committee have reviewed the effectiveness 
of the group’s internal control and risk management systems in 
accordance with the uk corporate governance code for the period 
ended 30 march 2014 and up to the date of approving the annual 
report and financial statements the internal control and risk 
management system is designed to manage rather than eliminate 
the risk of failing to achieve business objectives and can provide 
only reasonable and not absolute assurance against material 
misstatement or loss
the group’s executive team principally reviews the effectiveness 
of controls operating within the business the audit committee is 
reviewing and assessing whether or not an independent standalone 
internal audit function would be more appropriate to the needs of the 
business
the assessment and control of risk are considered by the board to be 
fundamental to achieving corporate objectives an ongoing process of 
identifying and evaluating the significant risks faced by the group and 
the effectiveness of related controls has been established the key 
elements are
• a comprehensive system of reporting from executives identifying 
performance against budget analysis of variances major 
business issues key performance indicators and regular 
forecasting
• well defined policies governing appraisal and approval of capital 
expenditure and treasury operations and
• reviews of key business risks and of management’s controls and 
plans to mitigate these risks
during the financial period to 30 march 2014 and up to the date 
of this report the audit committee and management considered 
the company’s risk register and its alignment with the company’s 
strategic objectives reporting the findings to the board the board 
considered the key risks and relevant mitigating actions and 
determind that they were acceptable for a retail business of the size 
and complexity as that operated by the company more information on 
the key risks and uncertainties faced by the company are shown on 
pages 20 to 21
whistleblowing policy
unfortunately from time to time all companies face the risk of 
things going wrong or of malpractice taking place poundland is no 
exception
the company has a duty to conduct its affairs in an open and 
responsible way we are committed to high standards of corporate 
governance and compliance with legislation and appropriate codes 
of practice by knowing about any wrong doing or malpractice at an  
early stage we stand a good chance of taking the necessary steps 
to stop it we have a policy in place which is designed to encourage 
colleagues to identify such situations and report them without fear of 
repercussions or recriminations provided that they are acting in good 
faith
the policy sets out how any concerns may be raised and response 
can be expected from the company and in what timescales
external auditors’ independence statement
professional ethical standards require kpmg llp “kpmg” to 
communicate to the company as part of planning all significant facts 
and matters including those related to the provision of nonaudit 
services and the safeguards put in place that in their professional 
judgement may reasonably be thought to bear on kpmg’s 
independence and the objectivity of the audit partner and audit team
kpmg have confirmed that they are satisfied that their general 
procedures support their independence and objectivity
uk corporate governance code 
– compliance statement
the uk corporate governance code published by the financial 
reporting council in september 2012 “the code” applies to the 
company and is available on the frc website at wwwfrcorg
ukourworkpublicationscorporategovernanceukcorporate
governancecodeseptember2012pdf in addition the financial 
conduct authority has yet to change the listing rules and therefore 
requires that certain compliance statements are made in relation to 
the predecessor edition of the code issued in june 2010 this report 
addresses the requirements of both editions of the code for the 
period from 17 march 2014 to 30 march 2014 the company complied 
with the provisions of both editions of the code as applicable except 
where stated
corporate governance continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  35
dear shareholder
i am pleased to present to you on behalf of the board the first report 
of the audit and risk committee
the committee was inaugurated by resolution of the board of 
directors on 27 february 2014 in readiness for the company’s 
admission to listing in march 2014
as you are no doubt aware the uk corporate governance code “the 
code” recommends that all members of the committee be non
executive directors independent in character and judgement and 
free from any relationship or circumstance which may could or would 
be likely to or appear to affect their judgement and that one such 
member has recent and relevant financial experience consequently 
with this in mind the committee is comprised of the independent 
nonexecutive directors of the plc board the makeup of the 
committee is given in the report below
the committee was set up by the board to assist it with its 
responsibilities in respect of financial reporting including reviewing 
annual and halfyear results external auditing internal controls 
and advising on the independence and appointment of the external 
auditors 
the committee will be routinely looking at the significant accounting 
treatments facing the group and at the yearend will focus on the 
matters raised by kpmg which they consider to be of significant audit 
risk
based on their performance during 201314 the committee will be 
recommending kpmg be reappointed at the agm 
201314 has been an unusual and very busy year for colleagues 
across the business who have succeeded in coping with all the extra 
work associated with becoming a public listed company whilst still 
maintaining adequate controls and “business as usual” as far as 
the world at large in particular our customers were concerned we 
look forward to continuing to learn from our experiences in the listed 
company environment as well as continuing to provide amazing value 
to our customers every day
trevor bond
chairman of the audit and risk committee
2 july 2014
listing onto the london stock exchange
the audit and risk committee “the committee” is a standing 
committee of the board of directors of the company established by 
a resolution of the board at its meeting held on 27 february 2014 
the committee became effective from listing on the london stock 
exchange on 17 march 2014 
role of the committee
the committee has received delegated authority from the board 
to assist it in its responsibilities in respect of financial controls 
and reporting as set out in its written terms of reference which 
are available to shareholders on the company’s website under 
“corporate investors corporate governance” the primary purposes 
of the committee are
• reviewing the group’s annual and halfyear financial statements 
and accounting policies
• ensuring that the annual report is fair balanced and 
understandable
• reviewing external audits and internal controls and ensuring their 
effectiveness
• reviewing the external auditor’s management letter on internal 
financial controls 
• reviewing and monitoring the scope of the annual audit and the 
extent of the nonaudit work undertaken by the external auditors 
and
• advising on the independence and appointment of external 
auditors
in addition going forward the committee will review whether there 
is a need to establish an internal audit function and will also review 
the whistleblowing and fraud policies to measure their effectiveness 
in addition whilst the board has retained overall responsibility for the 
risk register it has delegated to the committee the review of the 
risks contained therein
audit and risk committee report 36  poundland group plc annual report and financial statements for pe 30 march 2014
composition of the audit and risk committee
the committee is comprised exclusively of independent nonexecutive 
directors of the plc board the committee is chaired by trevor bond 
and its other members are darren shapland tea colaianni and grant 
hearn the secretary of the committee is the company secretary 
jinder jhuti 
the board is satisfied that trevor bond has recent and relevant 
financial experience appropriate to his position as chairman of the 
audit and risk committee in addition darren shapland is also a 
qualified accountant
although not a member of the committee there is a standing 
invitation to the company chairman andrew higginson to attend 
meetings the committee also invites to attend on a regular basis 
nick hateley in his capacity as chief financial officer along with the 
external auditor  also the committee intends to meet regularly with 
the external auditor with no members of management present
number of audit and risk committee meetings and 
attendance
the committee will meet a minimum of three times per year and all 
members expect to be available for all meetings 
no meetings of the committee were held in the year under review 
but two meetings have been held between the start of the current 
financial year and the publication of this annual report and financial 
statements
work undertaken by the committee in relation to 2014 
financial statements
although the committee did not come into operation until 17 march 
2014 a number of significant matters have been discussed and 
considered
• approved 2014 audit plan audit fee proposal and set performance 
expectations for the auditors
• reviewed the integrity of the draft financial statements for the 
year ended 30 march 2014 appropriateness of accounting 
policies and going concern assumption
• considered the auditors’ report regarding their findings on the 
2014 annual results
• reviewed and recommended approval of the 2014 annual report 
and financial statements
• confirmed compliance or explained deviation from the uk 
corporate governance code
• reviewed audit and nonaudit expenditure with the external 
auditors during the year and
• having reviewed the performance effectiveness and qualifications 
of the auditors recommended their reappointment at the agm 
significant issues considered by the audit and risk 
committee
following discussion with both management and the external auditors 
the committee determined that the area of significant risk that could 
give rise to misstatement of the group’s financial statements included 
but were not limited to
• valuation of inventory
this item was considered by the committee at the time they reviewed 
and agreed the external auditor’s group audit plan to ensure that 
due consideration was given at that point as well as at the time of 
reviewing the external auditor’s final audit findings
with regard to the valuation of inventory the committee reviewed the 
inventory balances and the related provisions against carrying values 
having considered the appropriateness of such provisions and taking 
into account the results of the external audit the committee concurred 
with management’s judgement on this issue
another area of audit focus which was considered at the time of the 
committee review and agreed with its external auditors for inclusion 
in the group’s audit plan was intangible assets  goodwill and brand 
value the committee reviewed the assumptions used to justify that 
there was no impairment to goodwill and brand value and were 
comfortable with them significant headroom was identified so it was 
concluded that this was not a significant risk that could give rise to 
misstatement of the group’s financial statements
management have reported to the committee that they were not 
aware of any material misstatements made intentionally to achieve a 
particular presentation the auditors reported to the committee any 
misstatements that they had found in the course of their work and no 
material adjustments were required
after reviewing the presentations and reports from management and 
consulting where necessary with the auditors the committee was 
satisfied that the financial statements appropriately addressed the 
critical judgements and key estimates both in respect of the amounts 
reported and the disclosures the committee was also satisfied that 
the significant assumptions used for determining the value of assets 
and liabilities had been appropriately scrutinised and challenged and 
were sufficiently robust
the committee confirmed that it was satisfied that the auditors had 
fulfilled their responsibilities with due diligence and professionalism
internal audit
the company does not have a standalone internal audit department 
its internal controls are currently maintained by the group’s 
management whilst the committee is happy that the current system 
is adequate it will as part of its remit evaluate the effectiveness and 
robustness of the current system of control as the group grows before 
deciding whether or not it should remain in place or to recommend 
changes to the way it operates or to recommend to management that 
a new and independent internal audit department would be more 
appropriate and to set down the guidelines for the operation of such a 
department
internal controls
the company operates various levels of control against which 
the risks of the business are managed as with any business the 
company faces risk in all its activities management is responsible for 
inter alia establishing and maintaining adequate internal controls over 
financial reporting including over the group’s consolidation processes 
the board is responsible for the group’s systems of internal 
control and risk management and for reviewing their effectiveness 
the committee has considered the process by which the group 
approaches risk management and is satisfied that the group has 
systems and procedures in place to identify evaluate and manage 
all material risks to the business in accordance with the turnbull 
guidance
audit and risk committee report continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  37
these systems and procedures are designed to manage rather than 
eliminate risk of failure to achieve business objectives they can only 
provide reasonable and not absolute assurance against material 
misstatement or loss specifically the committee has reviewed the 
financial risk category and the internal controls in place similarly the 
committee is satisfied that this process has been in place for the year 
under review and up to the date of approval of the annual report and 
financial statements and that the process will be regularly reviewed 
by the board
assessing external audit effectiveness
the committee oversees the group’s relationship with the external 
auditor the committee holds meetings with the auditor without 
management present with the purpose of understanding the auditor’s 
views on the control and governance environment and management’s 
effectiveness within it
to fulfil its responsibilities in respect of the independence and 
effectiveness of the external auditor the committee reviewed
• the terms areas of responsibility duties and scope of work of the 
external auditor as set out in the engagement letter
• the audit work plan for the group
• the detailed findings of the audit including a discussion of any 
major issues that arose during the audit
• the letter from kpmg confirming its independence and objectivity 
• the audit fee and the extent of nonaudit services provided during 
the year and
• the committee specifically challenged and sought comfort from 
kpmg in respect of its work in the areas that drive audit quality
appointing the auditor and safeguards on nonaudit 
services
the external auditors are appointed by shareholders to provide an 
opinion on the financial statements and certain other disclosures 
prepared by the directors kpmg llp “kpmg” acted as the external 
auditors to poundland throughout the year
under normal circumstances nonaudit services are subject to market 
tender or tests and are awarded to the most appropriate provider 
but because of their extensive working knowledge of the poundland 
group the board at the time that the ipo was under consideration 
were of the opinion that kpmg were uniquely placed to undertake 
the considerable amount of work that was required to complete that 
process within the timescales required
the committee is responsible for the oversight of the external 
auditors including approving the annual work plan and on behalf 
of the board approving the audit fee the auditors are eligible 
for selection to provide nonaudit services only to the extent that 
their skills and experience make them a competitive and the most 
appropriate supplier of these services nonaudit services are normally 
limited to assignments that are closely related to the annual audit or 
where the work is of such a nature that a detailed understanding of 
the group is necessary 
the principle followed with regard to nonaudit services is that the 
auditors may not provide a service which
• places them in a position to audit their own work
• creates a mutuality of interest
• results in the auditors developing close personal relationships 
with poundland employees
• results in the auditors functioning as a manager or employee of 
poundland
• puts the auditors in the role of advocate for poundland
management will regularly provide the committee with reports 
on audit auditrelated and nonaudit expenditure together with 
proposals of any material nonaudit related assignments the 
committee will regularly review and where necessary challenge 
management to ensure that auditor objectivity and independence is 
not impaired the committee will be formulating a formal policy with 
built in levels of authority to control the awarding of nonaudit work to 
the company’s external auditor
during the year under review the nonaudit fees were 12 times 
the audit fee this figure is distorted by the large amount of work 
undertaken by kpmg in respect of the ipo full details are given in 
note 7 to the financial statements on page 74
on balance the committee is satisfied that the overall levels of audit
related and nonaudit fees and the nature of services provided are 
not such as to compromise the objectivity and independence of the 
external auditors
kpmg has been appointed as auditors of poundland group plc for 1 
year being the period ended 30 march 2014 the group will be giving 
consideration to the timing of the next formal tender in light of the 
code the recent competition commission and eu recommendations 
on audit tendering and rotation 
the group has no contractual arrangements for example within 
borrowing arrangements that restrict its choice of auditor
trevor bond
chairman of the audit and risk committee
2 july 2014 38  poundland group plc annual report and financial statements for pe 30 march 2014
dear shareholder
i am pleased to present on behalf of the board the first remuneration 
report of the remuneration committee the ‘committee’ following the 
initial public offering ipo on 17 march 2014
the work of the remuneration committee
the year ended 30 march 2014 was a major milestone in poundland’s 
history the committee was formally constituted at ipo but the 
majority of its work took place prior to that event with a full review of 
the company’s remuneration policy undertaken 
a key objective of this review was to ensure an appropriate 
remuneration policy was in place for a listed company whilst also 
ensuring that it continued to drive the core behaviours and values that 
have been fundamental to the company’s success to date  the policy 
is designed to closely align variable pay with future company success 
with rigorous and stretching targets in place for performancerelated 
elements to be paid out  
additionally since its formation the committee has adopted a range 
of new employee share plans reviewed the bonus awards for the last 
financial year and considered broader allemployee pay review for the 
current year 
objectives of the remuneration policy
in setting the remuneration policy the committee focused on simple 
and transparent market competitive remuneration and incentive 
schemes the proposed policy is designed to
• attract retain and motivate high calibre senior management and 
to focus them on the delivery of the company’s strategic and 
business objectives
• promote a strong and sustainable performance culture
• incentivise high growth 
• align the interests of executive directors and members of 
the executive committee with those of shareholders through 
encouraging equity ownership 
• be simple and constructed taking into account best practice 
guidelines for  uk listed companies and
• encourage widespread equity ownership by colleagues  through 
the operation of several tailored share plans including an all
employee saye plan
the key components of remuneration are set out in detail within the 
remuneration policy report which will be subject to a binding vote at 
our agm 
performance and reward for 201314
financial performance in 201314 was very strong representing a 
record year in poundland’s profits  however despite the financial 
success the executive directors together with the remainder of the 
executive team indicated that for this year they did not wish to be 
considered for a bonus and agreed to spread the bonus pool more 
widely in celebration of the landmark ipo event 
on listing the executive directors received their first awards under the 
company’s new performance share plan psp which was adopted at 
ipo  these awards will vest after three years provided that stretching 
performance targets are met  no further awards will be made until 
the financial year beginning 30 march 2015
shareholder feedback
the committee recognises that building a close relationship with 
shareholders can complement the work of the committee in 
developing the remuneration policy prior to the publication of our first 
directors’ remuneration report we consulted with a number of our 
major shareholders and leading investor representative bodies one 
of our overarching aims has been to develop a remuneration policy 
which closely aligns the interests of our senior executives and our 
shareholders and with this in mind we have adopted share ownership 
guidelines and included clawback provisions in both our annual bonus 
and longterm incentive plans
as this is the first time we are reporting to you and the first time we 
will be asking you to approve the remuneration policy we appreciate 
any feedback you may have
tea colaianni
chairman of the remuneration committee
2 july 2014
directors’ remuneration report
annual statement by the chairman of the remuneration committee introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  39
what is in this report
the directors’ remuneration report sets out the remuneration policy 
for the company describes the implementation of that policy and 
discloses the amounts paid relating to the year ended 30 march 2014  
it has been prepared in accordance with the large and mediumsized 
companies and groups accounts and reports regulations 2008 
as amended the policy has been developed taking into account the 
principles of the uk corporate governance code 2013 the listing 
rules and shareholders’ executive remuneration guidelines
the remuneration policy report for the executive and nonexecutive 
directors will be put to a binding shareholder vote at the annual 
general meeting on 19 september 2014 the policy will take formal 
effect from that date
the annual statement from the chairman of the remuneration 
committee and the annual report on remuneration will be subject to 
an advisory vote at the agm
as explained in the basis of consolidation accounting policy the 
group’s financial statements reflect the continuation of the pre
existing group headed by poundland group holdings limited in 
keeping with that accounting the company has chosen to also include 
the remuneration of these directors when they were directors of 
poundland group holdings limited or any of its subsidiaries 
remuneration policy report
policy overview
the remuneration committee has responsibility for determining 
remuneration for the chairman executive directors and other senior 
executives the committee’s terms of reference are available on the 
company’s website
on admission in march 2014 a new remuneration policy was adopted 
by the remuneration committee  the committee designed this policy 
with close regard to market practice in other uk listed companies 
and the retail sector so as to ensure that the arrangements are 
appropriately competitive and structured in line with best practice  
however the policy also retains some of the key elements which 
helped to drive the company’s success prior to ipo such as effective 
cost control and simplicity in pay structures  
the aim of the remuneration policy is to attract retain and motivate 
high calibre senior management and to focus them on the delivery 
of the company’s strategic and business objectives to promote a 
strong and sustainable performance culture incentivise high growth 
and to align the interests of executive directors and executive team 
with those of shareholders through encouraging equity ownership 
with shareholding guidelines in promoting these objectives the policy 
aims to be simple in design transparent and understandable both to 
participants and shareholders ensure that no more than is necessary 
is paid and has been structured so as to adhere to the principles of 
good corporate governance and appropriate risk management  
a further aim of the remuneration policy is to encourage widespread 
share ownership by colleagues throughout the company and in 
support of this objective we have adopted several new share plans 
which are designed with close regard to the various recipient groups 
to ensure optimal benefit delivery
how the views of shareholders and employees are 
taken into account
the committee does not formally consult directly with employees on 
executive pay but does receive periodic updates from the group hr 
director in relation to salary and bonus reviews across the company  
as set out in the policy table overleaf in setting remuneration for the 
executive directors the committee takes note of the overall approach 
to reward for employees in the company and salary increases will 
ordinarily be in percentage of salary terms in line with those of the 
wider workforce  thus the committee is satisfied that the decisions 
made in relation to executive directors’ pay are made with an 
appropriate understanding of the wider workforce 
the committee is conscious that this is the first time that 
shareholders will vote on the remuneration policy since the 
company’s ipo and with this in mind we offered our largest 
shareholders the opportunity to discuss our remuneration policy in 
advance of publication  in addition we will consider any shareholder 
feedback received in relation to the agm  
this plus any additional feedback received from time to time will be 
considered as part of the committee’s annual review of remuneration 
policy  
the committee will seek to engage with shareholders and their 
representative bodies when it is proposed that any material changes 
are to be made to the remuneration policy  as poundland has not held 
an agm since listing no voting outcomes are available and we will 
publish details of remuneration related voting outcomes in next year’s 
directors’ remuneration report
the remuneration policy for executive directors
the total remuneration package is structured so that variable 
elements annual bonus and longterm incentives make up a 
significant proportion of the package with the emphasis on variable 
pay focused on longterm incentives  the table summarises the key 
aspects of the company’s remuneration policy for executive directors 40  poundland group plc annual report and financial statements for pe 30 march 2014
element purpose and link to strategy
salary to recruit and reward executives of a suitable calibre for the role and duties required
recognises individual’s experience responsibility and performance
benefits to provide market competitive benefits to ensure the well being of employees
pension to provide retirement planning to employees
annual bonus to incentivise and reward individuals for the achievement of predefined committee approved 
annual financial and operational objectives which are closely linked to the corporate strategy
poundland performance share plan psp to incentivise and recognise execution of the business strategy over the longer term
rewards strong financial performance over a sustained period
poundland sharesave plan saye all employees including executive directors are encouraged to become shareholders through 
the operation of an allemployee share plan
share ownership guidelines to increase alignment between executives and shareholders
notes
a description of how the company intends to implement the policy set out in this table for 201415 is set out in the annual report on remuneration
directors’ remuneration report continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  41
operation and performance conditions maximum
salaries are normally reviewed annually with changes effective from 1st april taking 
into account
• personal performance
• company performance
• individual’s experience 
• increases elsewhere in the company
hence whilst there are no performance conditions conditional on salaries being paid 
personal and company performance is one factor considered by the committee when 
determining annual increases
salaries are set with reference to similar roles in ftse 250 companies of a similar size 
and complexity
the committee considers the impact of any salary increase on the total remuneration 
package
there is no prescribed maximum annual increase the 
committee is guided by the average annual increase of 
the workforce  higher increases may be awarded at the 
discretion of the remuneration committee for example 
but not limited to in response to acute retention issues 
following the appointment of a new executive to bring that 
executive’s package in line with market over a number of 
years or in response to market factors
the company currently provides
• car allowance 
• family medical insurance
• life assurance
• dependent pension insurance
• income protection insurance
• medical health check
• other ancillary benefits including relocation expenses as required
executive directors are also entitled to 30 days’ leave per annum plus bank and public 
holidays
total cost of benefits capped at £25000 for the chief 
executive and £17500 for the other executive directors 
which may be exceeded in exceptional circumstances if the 
cost of a particular benefit were to significantly increase 
this cap excludes any relocation costs which may be 
required for a new hire
directors may participate in a defined contribution plan or elect to receive cash in lieu 
of all or some of such benefit
15 of salary
the annual bonus is based predominantly on stretching financial and operational 
objectives as set and assessed by the committee on an annual basis
a bonus pool is to be determined by financial measures eg profit after tax this 
pool will then be divided among participants using a mix of financial measures and 
strategicpersonal objectives  financial measures will represent the majority of the 
bonus  
details of the performance targets set for the year under review and performance 
against them is provided in the annual remuneration report
any bonus paid up to 100 of salary is paid entirely in cash any bonus in excess of 
100 of salary will be paid in shares and deferred for three years clawbackmalus 
provisions apply in the event of material misstatement of results an error in the 
calculation of bonus outcome or in instances of individual gross misconduct
the maximum bonus opportunity will not exceed 150 of 
salary although a lower maximum may be operated 
at a threshold level of performance no more than 20 of 
bonus will become payable rising to 100 of bonus being 
payable for meeting all financial and strategic targets in 
full
psp awards may take the form of nilcost options or conditional share awards awards 
normally vest after three years subject to performance and continued service
awards vest based on three year performance against a range of challenging eps 
targets set and assessed by the committee the targets for each award will be set out 
in the annual report on remuneration
the awards can be reduced via clawback andor malus at the discretion of the 
committee within three years of vesting in the event of a misstatement of the results 
an error in determining the extent to which performance targets were met or in 
instances of individual gross misconduct
a dividend equivalent provision allows the committee to pay dividends on vested 
shares in cash or shares at the time of vesting and may assume the reinvestment of 
dividends
plan limits
200 of salary normal limit
300 of salary exceptional limit – eg recruitment or 
retention
25 of the award vests for achieving threshold 
performance
100 of the award vests for achieving maximum 
performance
hmrc approved plan under which regular monthly savings are made over a 3 or 5 year 
period and can be used to fund the exercise of an option where the exercise price is 
discounted by up to 20  provides tax advantages to uk employees with executive 
directors eligible to participate on a similar basis to other employees  
a similar plan is also available to irish employees
maximum permitted savings based on hmrc limits from 
time to time
executive directors are required to retain 50 of the net of tax vested psp shares until 
the guideline level is met
at least 150 of salary for the chief executive and at least 
100 of salary for other executive directors or such higher 
level as the committee may determine from time to time 42  poundland group plc annual report and financial statements for pe 30 march 2014
directors’ remuneration report continued
how the remuneration committee operates the 
variable pay policy
the committee operates the share plans in accordance with their 
respective rules the listing rules and hmrc requirements where 
relevant the committee consistent with market practice retains 
discretion over a number of areas relating to the operation and 
administration of certain plans including
• who participates in the plans
• when to make awards and payments
• how to determine the size of an award a payment or when and 
how much of an award should vest
• the testing of a performance condition over a shortened 
performance period
• how to deal with a change of control or restructuring of the group
• whether a participant is a goodbad leaver for incentive plan 
purposes what proportion of an award vests at the original 
vesting date or whether and what proportion of an award may 
vest at the time of leaving
• how and whether an award may be adjusted in certain 
circumstances eg for a rights issue a corporate restructuring or 
for special dividends 
• whether to enforce an additional 2 year holding period on psp 
awards post vesting and
• what the weighting measures and targets should be for the 
annual bonus plan and psp from year to year
the committee also retains the discretion within the policy to adjust 
existing targets andor set different measures for the annual bonus 
and for the psp if events happen that cause it to determine that the 
targets are no longer appropriate and amendment is required so they 
can achieve their original intended purpose and provided the new 
targets are not materially less difficult to satisfy 
any use of the above discretions would where relevant be explained 
in the annual report on remuneration and may as appropriate be the 
subject of consultation with the company’s major shareholders
choice of performance measures for executive 
directors’ awards
the choice of the performance conditions applicable to the annual 
bonus plan being a primary financial performance target with 
additional strategic metrics specific to each executive director reflect 
the principle that the bonus plan should be selffunding appropriately 
challenging and tied to both the delivery of profit growth and strategic
personal objectives
eps was selected by the committee as the sole performance condition 
applicable to the psp on the basis that it rewards the delivery of the 
company’s objective of delivering significant growth in profits the 
committee will review the performance scales applying to each award 
prior to each grant
the company’s ethos of ensuring that costs are carefully controlled is 
reflected in both the annual bonus and psp  which are designed to be 
selffunding 
in line with hmrc regulations for such schemes the saye does not 
operate performance conditions 
awards granted prior to the effective date
in approving this directors’ remuneration policy authority is given to 
the company to honour any commitments entered into with directors  
details of any such payments will be set out in the annual report on 
remuneration as they arise
remuneration policy for other employees
the policy described above applies specifically to the company’s 
executive directors and is designed with regard to the policy for 
employees across the company as a whole  overall there is more 
emphasis on variable pay for the executive directors however the 
company is committed to promoting widespread share ownership  on 
ipo it made a number of awards under the poundland company share 
option plan csop and the poundland restricted share plan rsp to 
selected managers executive directors are not eligible to participate 
in these plans
the rsp provides for the grant of share awards which vest after three 
years subject only to continued employment  under the csop  the 
board may grant eligible employees share options at a price not less 
than the market value of a share on the date of grant in the uk the 
first £30000 of csop share options held at any time by an individual 
will be granted as an hmrc approved option the share options 
normally vest after three years subject to continued employment but 
without further performance conditions 
more specifically on ipo awards were made to 55 senior managers 
under the rsp and around 550 management grade employees 
including approximately 400 store managers under the csop   
awards may be made in future at the committee’s discretion but there 
is no proposal for regular annual grants  in general differences arise 
in quantum and structure of remuneration for various categories of 
employees in the company from the development of remuneration 
arrangements that are market competitive however our underlying 
remuneration philosophy is consistent across the whole company introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  43
notes
• value of benefits assumed at the overall aggregate cap 
• the ontarget bonus is taken to be 40 of the current operating maximum bonus opportunity of 100 of salary 
• the ontarget level of vesting under the psp is taken to be 50 of the face value of the award at grant
• the maximum value of the psp is taken to be 100 of the face value of the award at grant using the current grant policy of 150 for  
 mr mccarthy and 125 for messrs hateley and lancaster
• no share price appreciation has been assumed for the psp award
illustrations of application of remuneration policy
the chart below illustrates how the composition of the executive directors’ remuneration packages varies at different levels of performance 
under the 2014 policy both as a percentage of total remuneration opportunity and as a total value
service contracts and payments for loss of office
the service contracts for the executive directors are terminable by either the company or the executive director on twelve months’ notice and 
make provision for early termination by way of payment of a cash sum payment in lieu of notice can be paid either as a lump sum or in equal 
monthly instalments over the notice period  the company may also pay reasonable legal costs in respect of any compromise settlement
there has been no payment for loss of office in the year ended 30 march 2014 31 march 2013 nil
provision detailed terms
notice period 12 months
termination payments 118 of salary comprising
• 100 of salary
• 15 in respect of pension contributions
• 3 in respect of other benefits
change of control there are no enhanced provisions on a change of control 44  poundland group plc annual report and financial statements for pe 30 march 2014
directors’ remuneration report continued
annual bonus on termination
there is no automatic or contractual right to bonus payment at the 
discretion of the committee in certain circumstances a prorata 
bonus may become payable at the normal payment date for the 
period of employment and based on full year performance  where 
the committee decides to make a payment the rationale will be fully 
disclosed in the annual report on remuneration
psp on termination
sharebased awards are outside of service contracts the default 
treatment is that any outstanding awards would lapse on termination 
however under the rules of the psp  in certain prescribed 
circumstances such as death disability injury redundancy or other 
circumstances at the discretion of the committee ‘good leaver’ status 
can be applied  in determining whether an executive director should 
be treated as a good leaver the committee will take into account the 
performance of the individual and the reasons for their departure and 
in the event of this determination being made will set out its rationale 
in the following annual report on remuneration
in circumstances where an executive director is treated as a good 
leaver awards will ordinarily vest on a time prorata basis subject to 
the satisfaction of the relevant performance criteria with the balance 
of the awards lapsing  the committee retains discretion to decide 
not to prorate to alter the basis of time prorating and to alter the 
date on which performance is calculated if it feels such decisions 
are appropriate in particular circumstances  however if the time 
prorating is varied from the default position under the psp rules 
an explanation will be set out in the following annual report on 
remuneration  performance conditions will always apply to awards 
for good leavers although the committee may determine that it is 
appropriate to assess performance over a different period than the 
default three year period
service contracts are available for inspection at the company’s 
registered office
approach to recruitment and promotions
the recruitment package for a new director would be set in 
accordance with the terms of the company’s approved remuneration 
policy  currently this would facilitate an annual bonus payment of 
no more than 150 of salary and policy psp award of up to 200 of 
salary other than in exceptional circumstances where up to 300 of 
salary may be made
on recruitment salary policy may but need not necessarily be to set 
below the normal market rate with phased increases as the executive 
gains experience  the rate of salary should be set so as to reflect the 
individual’s experience and skills
in addition on recruitment the company may compensate for amounts 
foregone from a previous employer using listing rule 942 taking 
into account the quantum foregone the extent to which performance 
conditions apply the form of award and the time left to vesting 
for an internal appointment any variable pay element awarded 
in respect of their prior role should be allowed to pay out broadly 
according to its terms  any other ongoing remuneration obligations 
existing prior to appointment may continue provided that they are put 
to shareholders for approval at the earliest opportunity
for all appointments the committee may agree that the company will 
meet certain appropriate relocation costs
policy on external appointments
subject to board approval executive directors are permitted to take 
on nonexecutive positions with other companies and to retain their 
fees in respect of such positions details of outside directorships 
held by the executive directors and any fees that they received are 
provided in the annual report on remuneration  introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  45
element purpose and link to strategy operation maximum opportunity
fees to attract and retain the highcalibre 
chairman and nonexecutive 
directors by offering a market 
competitive fee level
fees are reviewed annually  and approved by the 
board upon a recommendation from the chairman 
and executive directors in the case of the non
executives and from the remuneration committee 
in the case of the chairman with reference to 
market levels in comparably sized ftse companies 
and reflect time commitments and responsibilities 
for each role
fees are paid in cash and are not performance 
related  
there are no benefits other than a contribution 
of up to £15000 to the chairman for secretarial 
support or incentive schemes in operation for the 
nonexecutives
there is no prescribed maximum 
annual increase the committee 
is guided by the general increase 
in the nonexecutive market 
but on occasions may need to 
recognise for example change 
in responsibility andor time 
commitments
the remuneration policy for the chairman and nonexecutive directors
the company chairman’s fee is determined by the committee other than the company chairman himself  
the fees for the nonexecutive directors are reviewed by the board excluding the nonexecutive directors  
the table summarises the key aspects of the remuneration policy for the chairman and nonexecutive directors
letters of appointment
all nonexecutive directors have letters of appointment with the company for an initial period of three years subject to annual reappointment 
at the agm  the appointment letters for the nonexecutive directors provide that no compensation is payable on termination  the chairman is 
entitled to a notice period of 3 months
letters of appointment are available for inspection at the company’s registered office
approach to recruitment
for the appointment of a new chairman or nonexecutive director the fee arrangement would be set in accordance with the approved 
remuneration policy in force at that time 46  poundland group plc annual report and financial statements for pe 30 march 2014
directors’ remuneration report continued
implementation of the remuneration policy for the year 
ending 29 march 2015
a summary of how the directors’ remuneration policy will be applied 
during the year ending 29 march 2015 is set out below
base salary
the executive directors’ salaries were reviewed during early 2014 
and set on ipo  salaries will be reviewed again in early 2015 and any 
increases will take effect from 1 april 2015
the current salaries are as follows
jim mccarthy £440000
nick hateley £325000
richard lancaster £325000
pension and benefits
the committee intends that the implementation of its policy in 
relation to pension and benefits will be in line with the disclosed 
policy on page 39 of this report  jim mccarthy has elected to receive 
a 15 cash payment in lieu of pension contributions rather than a 
contribution into a pension plan  
annual bonus
the maximum annual bonus for the year ending 29 march 2015 will 
be 100 of salary for all executive directors  awards are determined 
based on a combination of both financial results being underlying 
company profit after tax pat and strategicpersonal performance  
a bonus pool is to be determined by reference to pat achievement 
with a sliding scale of performance to be set around budget as 
follows 
80 of the pool will be distributed based on the pat result the 
remaining 20 available for the performance against strategic targets 
so that only for full achievement of the strategic objectives would the 
whole pool pay out 
the strategic bonus elements for the executive directors are
any bonus payment will be selffunding and clawback provisions 
apply 
the specific targets for the 201415 year are considered commercially 
sensitive  however the committee intends to disclose these 
retrospectively in next year’s directors’ remuneration report to the 
extent that they do not remain commercially sensitive
performance share plan
psp awards were made on admission and accordingly other than for 
any new appointments or promotions it is intended that no further 
awards will be made until the financial year ending 27 march 2016  
fees for chairman and nonexecutive directors
the company’s approach to nonexecutive directors’ remuneration 
is set by the board with account taken of the time and responsibility 
involved in each role including where applicable the chairmanship of 
board committees a summary of current fees is shown below
chairman £200000
nonexecutive director base fee £45000
additional fees
senior independent director £10000
audit committee chairman £5000
remuneration committee chairman £5000
governance  nominations committee chairman £5000
paul best and stephen coates will not be entitled to an annual fee
underlying pat performance provisional bonus pool as a  of 
maximum entitlement with straight 
line between
less than threshold 0
threshold 20
budget 40
stretch and above 100
underlying pat performance jim 
mccarthy
nick 
hateley
richard 
lancaster
successful delivery of the 
international trial in spain p p p
opening of the third distribution 
centre in harlow p o o
launch and trial of an ecommerce 
trading site p p p
ensure that overall business costs 
are delivered in line with 2015  
budget  to sales basis o p o
delivery of budgeted company 
sales growth uk  roi and gross 
margin o o p introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  47
£000 salary  fees benefits 1 pension 2 annual bonus
longterm 
incentives total
executive
j mccarthy 2014 400 22 59 nil nil 482
2013 395 22 59 nil nil 476
n hateley 2014 233 16 36 nil nil 284
2013 225 16 34 nil nil 275
r lancaster 3 2014 320 17 48 nil nil 386
2013 236 10 35 nil nil 282
nonexecutive
a higginson 3 2014 128 nil nil 128
2013 94 nil nil 94
p best 2014 nil nil nil nil
2013 nil nil nil
s coates 2014 nil nil nil nil
2013 nil nil nil
d shapland 4 2014 6 nil nil 6
t bond 4 2014 6 nil nil 6
t colaianni 4 2014 6 nil nil 6
g hearn 4 2014 6 nil nil 6
remuneration received by directors for the year ended 30 march 2014  audited
directors’ remuneration for the year ended 30 march 2014 was as follows
notes
1 benefits include car allowancecar medical insurance fuel
2 this comprises a 15 of salary contribution to the company’s money purchase pension  cash equivalent for j mccarthy
3 the director was appointed in july 2012 and therefore the salary presented is for a 9 month period
4 no comparision is presented as the director was appointed in february 2014 48  poundland group plc annual report and financial statements for pe 30 march 2014
executive
type of 
award basis of award granted
share price at 
date of grant 
1
number of 
shares over 
which award 
was granted
face value of 
award £000
 of face value 
that would vest 
at threshold 
performance
vesting determined by 
performance over
j mccarthy
nil cost 
option
150 of salary of 
£440000 based on 
admission share price £375 220000 £825000 25
three financial 
years to march 
2017
n hateley
nil cost 
option
125 of salary of 
£325000 based on 
admission price £375 135417 £507813 25
three financial 
years to march 
2017
r lancaster
nil cost 
option
125 of salary of 
£325000 based on 
admission price £375 135417 £507813 25
three financial 
years to march 
2017
performance condition
 of award subject 
to condition
compound annual 
growth in eps
 of psp award 
which will vest
compound annual growth in underlying earnings per share eps 100 19 0
19 25
26 50
30 or above 100
prorata vesting between the above 
points
annual bonus for the year ended 30 march 2014
financial performance in 201314 was very strong representing a record year in poundland’s profits  however the executive directors together 
with the remainder of the executive team indicated that for this year they did not wish to be considered for a bonus and agreed to spread the 
bonus pool more widely in celebration of the landmark ipo event 
performance share awards made during the year – audited 
on 17th march 2014 the first day of admission to trading the following awards were granted to executive directors
the number of shares comprising the ipo awards was determined based on the admission share price of £300 on the first day of unconditional 
trading the close price was £375 resulting in a higher face value the performance condition for these awards is set out below
directors’ remuneration report continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  49
director beneficially owned shares
1
number of awards held under the 
psp conditional on performance 
target shareholding guideline  
as a  of salary
percentage of salary held in 
shares as at 30 march 2014
j mccarthy 9668249 220000 150 8350
n hateley 4207378 135417 100 4919
r lancaster 1111413 135417 100 1675
a higginson 1432234  na na
d shapland   na na
t bond   na na
t colaianni   na na
g hearn   na na
p best   na na
s coates   na na
total pension entitlements – audited 
during the year under review the executive directors received pension contributions of 15 of salary into defined contribution arrangements 
or cash equivalent  details of the value of pension contributions received in the year under review are provided in the ‘pensions’ column of the 
‘remuneration received by directors’ table
performance graph
the graph below illustrates the company’s total shareholder return tsr performance relative to the constituents of the ftse 250 index 
excluding investment companies of which the company is a constituent from the start of conditional share dealing on 11 march 2014  the 
graph shows performance of a hypothetical £100 invested and its performance over that period
directors’ shareholding and share interests – audited 
share ownership plays a key role in the alignment of our executives with the interests of shareholders  our executive directors are expected to 
build up and maintain a 100 150 for the ceo of salary shareholding in poundland  where an executive does not meet this guideline then 
they are required to retain at least 50 of the net of tax vested shares under the company’s share plans until the guideline is met  the current 
ownership of the executive directors significantly exceeds the requirement 
the table below sets out the number of shares held or potentially held by directors including their connected persons where relevant as at 30 
march 2014 
1 includes shares owned by connected persons  only beneficially owned shares count towards the shareholding guideline
30 march 2014
30 50  poundland group plc annual report and financial statements for pe 30 march 2014
change in chief executive officer’s remuneration
the table below sets out total chief executive officer remuneration for 201314 together with the percentage of maximum annual bonus 
awarded in that year no share awards were held by the chief executive officer prior to admission
as the company listed in 2014 the comparative for 2013 only is provided
relative importance of the spend on pay
the following table shows the company’s actual spend on pay for all employees compared to distributions to shareholders and underlying profit 
after tax pat performance which is shown as it is considered to be the key indicator of the company’s growth and is the primary metric used to 
measure performance under the bonus plan
notes
1 please see note on 2014 bonus payment
2 no longterm incentive plan in place
directors’ remuneration report continued
2014 2013 
ceo total remuneration £481655 £476374
annual bonus  of maximum  nil  nil
share award  of maximum na
2
na
total spend on pay 2014 2013  change
distributions to shareholders by way  
of dividend and share buyback £200m zero na
revenue £9978m £8805m 133
underlying profit after tax £273m £218m 251
percentage increase in the remuneration of the chief executive officer
the table below shows the percentage change in the chief executive officer’s salary benefits and annual bonus between the financial year 
ended 31 march 2013 and 30 march 2014 compared to that of the total amounts for all group employees of the group for each of these 
elements of pay
element of remuneration  change
salary chief executive officer 
average per employee
13 
214
benefits chief executive officer 
average per employee
11 
385
annual bonus chief executive officer 
average per employee
0 
1216
1     the above were calculated on a like for like employee basis due to the number of temporary and part time colleagues employed by the  
 group and excludes promotions
2     the above change in ceo benefits 11 is not visible in the remuneration table page 50 due to rounding introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  51
in 2014 the meetings of the committee covered the following key areas
• detailed remuneration considerations prior to ipo and adoption of the new remuneration policy 
• consideration of structures and measures for 201415 annual bonus and
• consideration and adoption of 2014 psp  rsp  csop and saye plans and approval of grants on admission under psp  rsp and csop 
external advisors
the remuneration committee has access to independent advice where it considers it appropriate  the committee seeks advice relating to 
executive remuneration from new bridge street nbs part of aon plc  neither nbs nor aon provide any other services to the company 
the committee is satisfied that the advice received from nbs in relation to executive remuneration matters during the year was objective and 
independent  nbs is a member of the remuneration consultants group and abides by the remuneration consultants group code of conduct 
which requires its advice to be objective and impartial  the fees paid to nbs for providing advice in relation to executive remuneration over 
the financial year under review was £163k  this advice primarily related to the development and rollout of the postadmission remuneration 
structures
statement of shareholder voting
as mentioned previously poundland has not held an agm since listing and therefore no voting outcomes are available  we will publish details of 
remuneration related voting outcomes in next year’s directors’ remuneration report
approval
this directors’ remuneration report including both the policy and annual remuneration report has been approved by the board of directors
signed on behalf of the board of directors
tea colaianni
chairman of the remuneration committee
2 july 2014
external directorships
jim mccarthy is the non executive chairman of wynnstay group plc  he was paid fees of £33000 in the year to 31 october 2013 and his total 
fee for the year to 31 october 2014 will be £49000
membership of the remuneration committee
the remuneration committee comprises 4 independent nonexecutive directors together with the company chairman
the committee was formally constituted on the date of admission  however in advance of admission two meetings were held with the 
members of the committee present in order to ensure that the committee was able to fully debate the remuneration policy  accordingly the 
meeting attendance shown below is based on these meetings
name role
number of meetings attended out of 
maximum number 
tea colaianni committee chair 2 out of 2
andrew higginson committee member 2 out of 2
trevor bond committee member 1 out of 2
darren shapland committee member 2 out of 2
grant hearn committee member 2 out of 2 52  poundland group plc annual report and financial statements for pe 30 march 2014
poundland group plc
consolidated financial statements
registered number 08861243 introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  53
contents
statement of directors’ responsibilities in respect of the annual report and the financial statements 54
independent auditor’s report to the members of poundland group plc 56
consolidated income statement 58
consolidated statement of other comprehensive income 59
consolidated statement of financial position 60
consolidated statement of changes in equity 61
consolidated cash flow statement 62
notes to the consolidated financial statements 63
company balance sheet 96
notes to the company financial statements 97 54  poundland group plc annual report and financial statements for pe 30 march 2014
the directors are responsible for preparing the annual report and the group and parent company financial statements in accordance with 
applicable law and regulations
company law requires the directors to prepare group and parent company financial statements for each financial year under that law they 
are required to prepare the group financial statements in accordance with ifrss as adopted by the eu and applicable law and have elected 
to prepare the parent company financial statements in accordance with uk accounting standards and applicable law uk generally accepted 
accounting practice
under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the 
state of affairs of the group and parent company and of their profit or loss for that period in preparing each of the group and parent company 
financial statements the directors are required to
• select suitable accounting policies and then apply them consistently
• make judgements and estimates that are reasonable and prudent
• for the group financial statements state whether they have been prepared in accordance with ifrss as adopted by the eu
• for the parent company financial statements state whether applicable uk accounting standards have been followed subject to any material 
departures disclosed and explained in the parent company financial statements and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and the parent company 
will continue in business
the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the parent company and enable them to ensure that 
its financial statements comply with the companies act 2006 they have general responsibility for taking such steps as are reasonably open to 
them to safeguard the assets of the group and to prevent and detect fraud and other irregularities
under applicable law and regulations the directors are also responsible for preparing a strategic report a directors’ report a directors’ 
remuneration report and a corporate governance statement that comply with that law and those regulations
the directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website 
legislation in the uk governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions
we confirm that to the best of our knowledge
• the financial statements prepared in accordance with the applicable set of accounting standards give a true and fair view of the assets 
liabilities financial position and profit or loss of the company and the undertakings included in the consolidation taken as a whole
• the annual report and financial statements taken as a whole is fair balanced and understandable and provides the information necessary 
for shareholders to assess the company’s performance business model and strategy and
• the annual report and financial statements includes a fair review of the development and performance of the business and the group taken 
as a whole together with a description of the principal risks and uncertainties that they face
approved by order of the board
andrew higginson
chairman
2 july 2014
statement of directors’ responsibilities in respect 
of the annual report and the financial statements introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  55 56  poundland group plc annual report and financial statements for pe 30 march 2014
opinions and conclusions arising from our audit
1 our opinion on the financial statements is unmodified
we have audited the financial statements of poundland group plc for the year ended 30 march 2014 set out on pages 58 to 100 in our opinion 
• the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 30 march 2014 and 
of the group’s profit for the year then ended 
• the group financial statements have been properly prepared in accordance with international financial reporting standards as adopted by 
the european union 
• the parent company financial statements have been properly prepared in accordance with uk accounting standards and
• the financial statements have been prepared in accordance with the requirements of the companies act 2006 and as regards the group 
financial statements article 4 of the ias regulation 
2 our assessment of risks of material misstatement
in arriving at our audit opinion above on the financial statements the risk of material misstatement that had the greatest effect on our audit was 
as follows  
carrying value of inventory £896 million
refer to page 36 audit and risk committee report page 66 accounting policy page 82 financial disclosures and page 95 accounting 
estimates and judgements
• the risk – the group holds a significant amount of inventory across a broad and diverse product range changes in consumer tastes and 
demands may mean that it cannot be sold or that sales prices are discounted to less than the current inventory carrying value estimating 
the future demand for and hence the net realisable value of these products is inherently subjective
• our response – our audit procedures in this area included among others testing the design and effectiveness of the group’s controls over 
the identification of slow moving or obsolete products and obtaining an understanding of the group’s process for measuring the amount of 
provision required we critically assessed the group’s provision for those identified slow moving and obsolete products by assessing the 
ageing of inventory product lines with a cost in excess of expected net selling price the level of expected price discounting the historical 
accuracy of sales plans and the level of discounting activity in previous years furthermore we performed analysis over the stock provision 
held at the year end as a percentage of stock and compared this to our expectations based on our knowledge of the business 
we also considered the adequacy of the group’s disclosures see note 29 about the degree of estimation involved in arriving at the 
provision 
3 our application of materiality and an overview of the scope of our audit
the materiality for the group financial statements as a whole was set at £5 million this has been determined with reference to a benchmark of 
group total revenue of which it represents 05 which we consider to be one of the principal considerations for members of the company in 
assessing the financial performance of the group 
we agreed with the audit and risk committee to report to it all corrected and uncorrected misstatements we identified through our audit with a 
value in excess of £025 million in addition to other audit misstatements below that threshold that we believe warranted reporting on qualitative 
grounds
the group audit team performed the audit of the group as if it was a single aggregated set of financial information the audit was performed 
using the materiality levels set out above at the group’s head office in willenhall 
4 our opinion on other matters prescribed by the companies act 2006 is unmodified
in our opinion 
• the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the companies act 2006 and
• the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared 
is consistent with the financial statements
independent auditor’s report to the members of 
poundland group plc only introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  57
5 we have nothing to report in respect of the matters on which we are required to report by exception 
under isas uk and ireland we are required to report to you if based on the knowledge we acquired during our audit we have identified other 
information in the annual report that contains a material inconsistency with either that knowledge or the financial statements a material misstatement of 
fact or that is otherwise misleading 
in particular we are required to report to you if 
• we have identified material inconsistencies between the knowledge we acquired during our audit and the directors’ statement that they consider 
that the annual report and financial statements taken as a whole is fair balanced and understandable and provides the information necessary for 
shareholders to assess the group’s performance business model and strategy or
• the audit and risk committee report does not appropriately address matters communicated by us to the audit and risk committee
under the companies act 2006 we are required to report to you if in our opinion 
• adequate accounting records have not been kept by the parent company or returns adequate for our audit have not been received from branches 
not visited by us or 
• the parent company financial statements and the part of the directors’ remuneration report to be audited are not in agreement with the accounting 
records and returns or 
• certain disclosures of directors’ remuneration specified by law are not made or 
• we have not received all the information and explanations we require for our audit
under the listing rules we are required to review 
• the directors’ statement set out on page 29 in relation to going concern and
• the part of the corporate governance statement on page 34 relating to the company’s compliance with the nine provisions of the 2010 uk 
corporate governance code specified for our review
we have nothing to report in respect of the above responsibilities
scope of report and responsibilities
as explained more fully in the directors’ responsibilities statement set out on page 54 the directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view  a description of the scope of an audit of financial statements is provided on the 
financial reporting council’s website at wwwfrcorgukauditscopeukprivate this report is made solely to the company’s members as a body and is 
subject to important explanations and disclaimers regarding our responsibilities published on our website at wwwkpmgcomukauditscopeukco2013a 
which are incorporated into this report as if set out in full and should be read to provide an understanding of the purpose of this report the work we have 
undertaken and the basis of our opinions
graham neale senior statutory auditor
for and on behalf of kpmg llp  statutory auditor 
chartered accountants
one snowhill 
snow hill queensway
birmingham 
2 july 2014 58  poundland group plc annual report and financial statements for pe 30 march 2014
all activities were continuing throughout the current and the preceding period 
nonunderlying items include brand amortisation and nonrecurring exceptional costs and income see note 6
the notes on pages 63 to 95 form part of these financial statements
consolidated income statement
for the period ended 30 march 2014 
52 weeks 2014 52 weeks 2013
note
underlying
£’000
non
underlying
note 6
£’000
total
£’000
underlying
£’000
non
underlying 
note 6
£’000
total
£’000
revenue 5 997803 – 997803 880491 – 880491
cost of sales 629279 – 629279 556980 – 556980
gross profit 368524 – 368524 323511 – 323511
distribution costs 296979 – 296979 261337 1859 263196
administrative expenses 31500 12343 43843 28693 1571 30264
operating profit 78 40045 12343 27702 33481 3430 30051
financial income 9 252 – 252 279 92 371
financial expenses 9 3488 2982 6470 3945 – 3945
net financing expense 3236 2982 6218 3666 92 3574
profit before tax 36809 15325 21484 29815 3338 26477
taxation 10 9556 1932 7624 8034 4942 3092
profit for the period 27253 13393 13860 21781 1604 23385
earnings per share  basic 3 520p 182p 233p 319p
 diluted 3 520p 182p 233p 319p
adjusted earnings per share  basic 3 1090 554p 871p 935p
 diluted 3 1090 554p 871p 935p introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  59
consolidated statement of other comprehensive income
for the period ended 30 march 2014 
52 weeks 2014 52 weeks 2013
note
underlying
£’000
non
underlying
£’000
total
£’000
underlying
£’000
non
underlying 
£’000
total
£’000
profit for the period 27253 13393 13860 21781 1604 23385
other comprehensive income
items that are or may be recycled
 subsequently to the income  
 statement
foreign currency translation
 differences – foreign operations – 47 47 – 26 26
effective portion of changes in
 fair value of cash flow hedges – 14154 14154 – 5182 5182
net change in fair value of cash
 flow hedges recycled to the  
 income statement – 3791 3791 – 421 421
income tax on items that are or
 may be recycled subsequently to
 the income statement 10 – 2203 2203 – 1100 1100
– 8207 8207 – 3687 3687
other comprehensive income
  for the period net of income
  tax – 8207 8207 – 3687 3687
total comprehensive income 
  attributable to equity holders
  of the parent 27253 21600 5653 21781 5291 27072 60  poundland group plc annual report and financial statements for pe 30 march 2014
consolidated statement of financial position
at 30 march 2014
note
30 march 2014 
£’000
31 march 2013 
£’000
noncurrent assets
property plant and equipment 11 41607 38283
intangible assets and goodwill 12 183711 184506
trade and other receivables 17 425 792
other financial assets 13 – 403
deferred tax asset 15 645 –
total noncurrent assets 226388 223984
current assets
inventories 16 89561 81004
other financial assets 13 519 4212
tax receivable 365 –
trade and other receivables 17 24960 20734
cash and cash equivalents 25268 42861
total current assets 140673 148811
total assets 367061 372795
current liabilities
other interestbearing loans and borrowings 18 – 1532
trade and other payables 19 120571 94576
tax payable 3807 4295
provisions 20 787 366
other financial liabilities 14 5110 397
total current liabilities 130275 101166
noncurrent liabilities
other interestbearing loans and borrowings 18 30000 50486
other payables 19 18617 16931
provisions 20 138 138
other financial liabilities 14 1556 –
deferred tax liabilities 15 – 3491
total noncurrent liabilities 50311 71046
total liabilities 180586 172212
net assets 186475 200583
equity attributable to equity holders of the parent
share capital 21 425050 152474
merger reserve 259642 –
reserves 4849 16097
retained earnings 25916 32012
total equity 186475 200583
the notes on pages 63 to 95 form part of these financial statements
these financial statements were approved by the board of directors on 2 july 2014 and were signed on its behalf by
nr hateley
director
registered number 08861243 introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  61
consolidated statement of changes in equity
for the period ended 31 march 2013 
consolidated statement of changes in equity
for the period ended 30 march 2014 
share
capital
£’000
share
premium
£’000
merger
reserve
£’000
capital
redemption
reserve
£’000
translation
reserve
£’000
cash flow
hedge 
reserve
£’000
retained
earnings
£’000
total
equity
£’000
balance at 2 april 2012 152341 – – 12739 17 312 8627 173378
total comprehensive income for  
 the period
profit for the period – – – – – – 23385 23385
other comprehensive income – – – – 26 3661 – 3687
total comprehensive income for 
the period – – – – 26 3661 23385 27072
transactions with owners
 recorded directly in equity
issue of shares 133 – – – – – – 133
total transactions with owners 133 – – – – – – 133
balance at 31 march 2013 152474 – – 12739 9 3349 32012 200583
share
capital
£’000
share
premium
£’000
merger
reserve
£’000
capital
redemption
reserve
£’000
translation
reserve
£’000
cash flow
hedge 
reserve
£’000
retained
earnings
£’000
total
equity
£’000
balance at 1 april 2013 152474 – – 12739 9 3349 32012 200583
total comprehensive income for  
 the period
profit for the period – – – – – – 13860 13860
other comprehensive income – – – – 47 8160 – 8207
total comprehensive income for  
 the period – – – – 47 8160 13860 5653
transactions with owners 
 recorded directly in equity
redemption of preference share  
 capital – subsidiary 14564 – – 14564 – – 20000 20000
issue of shares – subsidiary 97 48 – – – – – 145
capital transaction – subsidiary  
 share capital restructure and  
 share for share exchange 286993 48 259642 27303 – – – –
issue of shares –  
 poundland group plc 50 – – – – – – 50
share based payment transactions – – – – – – 44 44
total transactions with owners 272576 – 259642 12739 – – 19956 19761
balance at 30 march 2014 425050 – 259642 – 38 4811 25916 186475 62  poundland group plc annual report and financial statements for pe 30 march 2014
consolidated cash flow statement
for the period ended 30 march 2014
note
52 weeks 2014 
£’000
52 weeks 2013 
£’000
cash flows from operating activities
profit for the year before nonunderlying items 27253 21781
costs in respect of ipo 6 9954 –
other nonunderlying items 6 3439 1604
profit for the year 13860 23385
adjustments for
depreciation and amortisation 1112 15096 13080
financial income 9 252 371
financial expense 9 6470 3945
equity settled share based payment transactions 22 44 –
taxation 10 7624 3092
42842 43131
increase in trade and other receivables 3645 627
increase in inventories 8557 11450
increase in trade and other payables excluding ipo costs 22537 7168
increasedecrease in provisions 422 953
increase in payable in respect of ipo costs 5012 –
58611 37269
tax paid 10409 3852
net cash from operating activities 48202 33417
costs in respect of ipo 4942 –
net cash from operating activities before ipo costs 53144 33417
cash flows from investing activities
acquisition of property plant and equipment 11 16563 15181
acquisition of other intangible assets 12 1062 1257
net cash from investing activities 17625 16438
cash flows from financing activities
proceeds from new loan 29268 –
repayment of borrowings 18 54914 7200
redemption of preference shares – subsidiary 20000 –
net financial expense paid 2524 2834
net cash from financing activities 48170 10034
net decreaseincrease in cash and cash equivalents 17593 6945
cash and cash equivalents at start of period 42861 35916
effects of exchange rate changes on cash held – –
cash and cash equivalents at end of period 25268 42861
net debt 4732 9157 introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  63
notes to the consolidated financial statements
1 basis of preparation and significant accounting policies
poundland group plc the “company” is a company incorporated and domiciled in the united kingdom the company was incorporated on 24 
january 2014
the group financial statements consolidate those of the company and its subsidiaries together referred to as the “group”
the group financial statements have been prepared and approved by the directors in accordance with international financial reporting 
standards as adopted by the eu “adopted ifrss”  
the accounting policies set out below have unless otherwise stated been applied consistently to all periods presented in these group financial 
statements
judgements made by the directors in the application of these accounting policies that have a significant effect on the financial statements and 
estimates with a significant risk of material adjustment in the next period are discussed in note 29
11 measurement convention
the financial statements are prepared on the historical cost basis except where adopted ifrss require an alternative treatment the principal 
variations relate to financial instruments
12 going concern
the group financial statements are prepared on a going concern basis as the directors have a reasonable expectation that the group has 
adequate resources to continue in operational existence for the foreseeable future the group has considerable financial resources together 
with a strong ongoing trading performance on 17 march 2014 the group entered into a new revolving credit and working capital facility of £55 
million with a syndicate of banks the former and new borrowing facilities contain financial covenants which have been met throughout both 
periods the group’s forecasts and projections show that the new facility provides adequate headroom for its current and future anticipated cash 
requirements
13 basis of consolidation
on 17 march 2014 the company obtained control of the entire share capital of poundland group holdings limited via a share for share 
exchange there were no changes in rights or proportion of control exercised as a result of this transaction
although the share for share exchange resulted in a change of legal ownership in substance these financial statements reflect the continuation 
of the preexisting group headed by poundland group holdings limited
as a result the comparatives presented in these financial statements are the consolidated results of poundland group holdings limited for 
details of the impact on the earnings per share calculation see 119
the prior period statement of financial position reflects the share capital structure of poundland group holdings limited the current period 
statement of financial position presents the legal change in ownership of the group including the share capital of poundland group plc and the 
merger reserve arising as a result of the share for share exchange transaction the consolidated statement of changes in equity on page 61 
explains the impact of the share for share exchange in more detail
subsidiaries
subsidiaries are entities controlled by the group control exists when the group has the power to govern the financial and operating policies 
of an entity so as to obtain benefits from its activities in assessing control the group takes into consideration potential voting rights that are 
currently exercisable the acquisition date is the date on which control is transferred to the acquirer the financial statements of subsidiaries are 
included in the consolidated financial statements from the date that control commences until the date that control ceases 64  poundland group plc annual report and financial statements for pe 30 march 2014
1 basis of preparation and significant accounting policies continued
14 foreign currency
transactions in foreign currencies are translated to the functional currency of the group at the foreign exchange rate ruling at the date of the 
transaction monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency 
at the foreign exchange rate ruling at that date foreign exchange differences arising on translation are recognised in the consolidated income 
statement with the exception of differences on transactions that are subject to effective cashflow hedges which are recognised in other 
comprehensive income nonmonetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated 
using the exchange rate at the date of the transaction except for differences arising on qualifying cash flow hedges which are recognised in 
other comprehensive income
the assets and liabilities of foreign operations including goodwill and fair value adjustments arising on consolidation are translated to the 
group’s presentational currency sterling at foreign exchange rates ruling at the reporting date the revenues and expenses of foreign operations 
are translated at an average rate for the period where this rate approximates to the foreign exchange rate ruling at the dates of the transactions
exchange differences arising from the translation of foreign operations are reported as an item of other comprehensive income and accumulated 
in the translation reserve
15 classification of financial instruments issued by the group
financial instruments issued by the group are treated as equity only to the extent that they meet the following two conditions 
a they include no contractual obligations upon the group to deliver cash or other financial assets or to exchange financial assets or 
financial liabilities with another party under conditions that are potentially unfavourable to the group and 
b where the instrument will or may be settled in the company’s own equity instruments it is either a nonderivative that includes no 
obligation to deliver a variable number of the company’s own equity instruments or is a derivative that will be settled by the company’s 
exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments
to the extent that this definition is not met the proceeds of issue are classified as a financial liability where the instrument so classified takes 
the legal form of the company’s own shares the amounts presented in these financial statements for called up share capital exclude amounts in 
relation to those shares  
16 financial instruments
financial assets
the group’s financial assets include cash and cash equivalents and trade and other receivables all financial assets are recognised when the 
group becomes party to the contractual provisions of the instrument
i trade receivables
trade receivables are recognised and carried at original invoice amount less provision for impairment
a provision for impairment of trade receivables is established when there is objective evidence that the group will not be able to collect all 
amounts due according to the original terms of receivables the amount of the provision is determined as the difference between the asset’s 
carrying amount and the present value of estimated future cash flows and is recognised in the income statement in administrative expenses
ii cash and cash equivalents
cash and cash equivalents includes cash in hand and deposits held at call with banks for the purpose of the consolidated cash flow statement 
cash and cash equivalents includes bank overdrafts in addition to the definition above
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  65
1 basis of preparation and significant accounting policies continued
16 financial instruments continued
financial liabilities 
financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into an equity 
instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities
the group’s financial liabilities comprise trade and other payables and borrowings all financial liabilities are recognised initially at their fair value 
and subsequently measured at amortised cost using the effective interest method
i bank borrowings
term loans are initially recognised at the fair value of the consideration received net of issue costs associated with the borrowing borrowings 
are subsequently stated at amortised cost any difference between the proceeds net of transaction costs and the redemption value is 
recognised in the income statement over the period of the borrowings using the effective interest method
financial expenses comprise interest expense on borrowings and the ineffective portion of the changes in the fair value of cashflow hedges
ii trade payables
trade payables are initially measured at fair value and are subsequently measured at amortised cost using the effective interest rate method
iii derivative financial instruments and hedge accounting
derivative financial instruments comprising foreign currency forward contracts interest rate swaps and caps and commodity hedges are used 
to manage risks arising from changes in foreign currency exchange rates relating to the purchase of overseas sourced products interest rates 
and fuel price fluctuations the group does not hold or issue derivative financial instruments for speculative trading purposes the group uses 
the derivatives to hedge highly probable forecast transactions and therefore the instruments are designated as cash flow hedges
derivatives are recognised at fair value on the date a contract is entered into and are subsequently remeasured at their fair value the effective 
element of any gain or loss from remeasuring the derivative instrument is recognised directly in the cash flow hedge reserve
the associated cumulative gain or loss is reclassified from the statement of changes in equity and recognised in the income statement in the 
same period or periods during which the hedged transaction affects the income statement any element of the remeasurement of the derivative 
instrument that does not meet the criteria for an effective hedge is recognised immediately in the income statement within financial income or 
financial expenses
when a hedging instrument expires or is sold or when a hedge no longer meets the criteria for hedge accounting any cumulative gain or loss 
existing in other comprehensive income at that time remains in other comprehensive income and is recognised when the forecast transaction is 
ultimately recognised in the income statement when a forecast transaction is no longer expected to occur the cumulative gain or loss that was 
reported in other comprehensive income is recognised immediately in the income statement
the full fair value of a hedging derivative is classified as a noncurrent asset or liability if the remaining maturity of the hedged item is more than 
twelve months or as a current asset or liability if the remaining maturity of the hedged item is less than twelve months from the reporting date 66  poundland group plc annual report and financial statements for pe 30 march 2014
1 basis of preparation and significant accounting policies continued
17 property plant and equipment
property plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses
where parts of an item of property plant and equipment have different useful lives they are accounted for as separate items of property plant 
and equipment
depreciation is charged to the consolidated income statement on a straightline basis over the estimated useful lives of each part of an item of 
property plant and equipment the estimated useful lives are as follows
short leasehold property over the term of the lease
property improvements 6  7 years
plant and equipment 6  7 years
fixtures and fittings 6  7 years
depreciation methods useful lives and residual values are reviewed at each reporting date
18 business combinations
business combinations are accounted for using the acquisition method at the acquisition date which is the date on which control is transferred 
to the group 
the group measures goodwill at the acquisition date as the fair value of the consideration transferred plus the fair value of the existing equity 
interest in the acquiree less the net recognised amount generally fair value of the identifiable assets acquired and liabilities assumed 
costs relating to the acquisition other than those associated with the issue of debt or equity securities are expensed as incurred
19 intangible assets and goodwill
goodwill 
goodwill is stated at cost less any accumulated impairment losses goodwill is allocated to cashgenerating units and is not amortised but tested 
annually for impairment 
other intangible assets
expenditure on internally generated goodwill and brands is recognised in the income statement as an expense as incurred
other intangible assets that are acquired by the group are stated at cost less accumulated amortisation and accumulated impairment losses
amortisation 
amortisation is charged to the income statement on a straightline basis over the estimated useful lives of intangible assets unless such lives 
are indefinite intangible assets with an indefinite useful life and goodwill are systematically tested for impairment at each reporting date other 
intangible assets are amortised from the date they are available for use the estimated useful lives are as follows
brand 20 years
trademarks  5 years
software 3 years
110 inventories
inventories are stated at the lower of cost and net realisable value cost is based on the weighted average principle and includes expenditure 
incurred in acquiring the inventories and other costs in bringing them to their existing location and condition 
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  67
1 basis of preparation and significant accounting policies continued
111 impairment excluding inventories and deferred tax assets
financial assets including receivables
a financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective 
evidence that it is impaired a financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition 
of the asset and that the loss event has a negative effect on the estimated future cash flows of that asset that can be estimated reliably
an impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and 
the present value of the estimated future cash flows discounted at the asset’s original effective interest rate interest on the impaired asset 
continues to be recognised through the unwinding of the discount when a subsequent event causes the amount of impairment loss to decrease 
the decrease in impairment loss is reversed through the income statement
nonfinancial assets
the carrying amounts of the group’s nonfinancial assets other than inventories and deferred tax assets are reviewed at each reporting date 
to determine whether there is any indication of impairment if any such indication exists then the asset’s recoverable amount is estimated for 
goodwill and intangible assets that have indefinite useful lives or that are not yet available for use the recoverable amount is estimated each 
year at the same time
the recoverable amount of an asset or cashgenerating unit is the greater of its value in use and its fair value less costs to sell in assessing 
value in use the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects current market 
assessments of the time value of money and the risks specific to the asset for the purpose of impairment testing assets that cannot be tested 
individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent 
of the cash inflows of other assets or groups of assets the “cashgenerating unit” the goodwill acquired in a business combination for the 
purpose of impairment testing is allocated to cashgenerating units “cgu” subject to an operating segment ceiling test for the purposes of 
goodwill impairment testing cgus to which goodwill has been allocated are aggregated so that the level at which impairment is tested reflects 
the lowest level at which goodwill is monitored for internal reporting purposes goodwill acquired in a business combination is allocated to 
groups of cgus that are expected to benefit from the synergies of the combination
an impairment loss is recognised if the carrying amount of an asset or its cgu exceeds its estimated recoverable amount impairment losses are 
recognised in the income statement impairment losses recognised in respect of cgus are allocated first to reduce the carrying amount of any 
goodwill allocated to the units and then to reduce the carrying amounts of the other assets in the units on a pro rata basis
an impairment loss in respect of goodwill is not reversed in respect of other assets impairment losses recognised in prior periods are assessed 
at each reporting date for any indications that the loss has decreased or no longer exists an impairment loss is reversed if there has been a 
change in the estimates used to determine the recoverable amount an impairment loss is reversed only to the extent that the asset’s carrying 
amount does not exceed the carrying amount that would have been determined net of depreciation or amortisation if no impairment loss had 
been recognised
112 employee benefits
defined contribution plans
a defined contribution plan is a postemployment benefit plan under which the group pays fixed contributions into a separate entity and 
will have no legal or constructive obligation to pay further amounts obligations for contributions to defined contribution pension plans are 
recognised as an expense in the income statement in the periods during which services are rendered by employees 68  poundland group plc annual report and financial statements for pe 30 march 2014
1 basis of preparation and significant accounting policies continued
112 employee benefits continued
shortterm benefits
shortterm employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided a liability 
is recognised for the amount expected to be paid under shortterm cash bonus or profitsharing plans if the group has a present legal or 
constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably
sharebased payment transactions
the group operates a number of equity settled share based compensation plans
the grant date fair value of sharebased payment awards made to employees is recognised as an employee expense with a corresponding 
increase in equity over the period that the employees become unconditionally entitled to the awards the fair value of the options granted is 
measured using an option valuation model taking into account the terms and conditions upon which the options were granted 
the amount recognised as an expense is adjusted to reflect the actual number of awards for which the related service and nonmarket vesting 
conditions are expected to be met such that the amount ultimately recognised as an expense is based on the number of awards that meet the 
related service and non market performance conditions at the vesting date measured at the grant date fair value of the award
at each reporting date the group revises its estimates of the number of share incentives which are expected to vest the impact of the revision 
of original estimates is recognised in the income statement with a corresponding adjustment to equity
113 provisions
a provision is recognised when the group has a present legal or constructive obligation as a result of a past event that can be reliably measured 
and it is probable that an outflow of economic benefits will be required to settle the obligation 
114 revenue recognition
revenue comprises the fair value of goods sold to external customers net of value added tax and promotional discounts revenue is recognised 
on the sale of goods when the significant risks and rewards of ownership of the goods have passed to the customer and the amount of revenue 
can be measured reliably
115 operating lease payments
payments made under operating leases are recognised in the income statement on a straightline basis over the term of the lease lease 
incentives received are recognised in the income statement as an integral part of the total lease expense 
116 financial income and expenses
financial expenses comprise interest payable and the ineffective portion of changes in the fair value of cash flow hedges that are recognised in 
the income statement financial income comprises interest receivable on funds invested and the ineffective portion of changes in the fair value 
of cash flow hedges
interest income and interest payable is recognised in the income statement as it accrues using the effective interest method 
117 taxation
tax on the profit or loss for the period comprises current and deferred tax tax is recognised in the income statement and statement of other 
comprehensive income except to the extent that it relates to items recognised directly in equity in which case it is recognised in equity
current tax is the expected tax payable or receivable on the taxable income or loss for the period using tax rates enacted or substantively 
enacted at the reporting date and any adjustment to tax payable in respect of previous periods
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  69
1 basis of preparation and significant accounting policies continued
117 taxation continued
deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes 
and the amounts used for taxation purposes the following temporary differences are not provided for the initial recognition of goodwill the 
initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination and differences 
relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future the amount of deferred tax 
provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities using tax rates enacted or 
substantively enacted at the reporting date
a deferred tax asset is recognised only to the extent that it is probable that future profits will be available against which the temporary difference 
can be utilised 
118 non underlying items
non underlying items are those items that are unusual because of their size nature or incidence  the directors consider that these items should 
be separately identified within their relevant income statement category to enable a full understanding of the group’s results
119 earnings per share
the group presents basic and diluted earnings per share eps data for its ordinary shares  basic eps is calculated by dividing the profit 
attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period for diluted eps the 
weighted average number of ordinary shares is adjusted to assume conversion of all dilutive potential ordinary shares
as explained in the basis of consolidation accounting policy the group’s financial statements reflect the continuation of the preexisting group 
headed by poundland group holdings limited  that company had preference shares the holders of which were entitled to a cumulative 
dividend at the discretion of the directors  in accordance with ias 33 for the comparative period and for the current period to the date of the 
share restructure the accrued preference share dividend has been deducted from profit for the period to compute the earnings attributable to 
ordinary shareholders  the conversion factor applied in the share reorganisation has been applied to calculate the number of ordinary shares 
of poundland group holdings limited used to compute the weighted average number of ordinary shares for the comparative period and for the 
current period to the date of the share restructure  in this way the impact of the preference shares has been excluded from both earnings and 
the weighted average number of shares
as a precursor to the share for share exchange the preference shares in poundland group holdings limited were converted to ordinary shares 
and any entitlement to a dividend on these shares was forfeited  for the periods reported the group has chosen to present an adjusted eps 
calculation to aid comparability and to provide a consistent measure of performance by excluding the impact of the preference shares from both 
earnings and the weighted average number of shares  for this adjusted measure in both reported periods the weighted average number of 
shares is based on the share capital structure of poundland group plc and assumes that this structure was in place from 2 april 2012 ie the 
beginning of the prior period  
for both eps measures statutory and adjusted the group has also presented an alternative version with profit adjusted for non underlying 
items  
a reconciliation of the adjusted and alternative measure to the statutory measure required by ifrs is given in note 3
120 adopted ifrs not yet applied
the following standards and interpretations have been published endorsed by the eu and are available for early adoption but have not yet been 
applied by the group in these financial statements the group does not believe the adoption of these standards or interpretations would have a 
material impact on the consolidated results or financial position of the group
• ifrs10 ‘consolidated financial statements’ replaces the guidance of control and consolidation in ias 27 and sic 32 consolidation – special 
purpose entities the core principle that a consolidated entity presents a parent and its subsidiaries as if they were a single entity remains 
unchanged as do the mechanics of the consolidation
• ifrs11 ‘joint arrangements’ requires joint arrangements to be accounted for as a joint operation or as a joint venture depending on 
the rights and obligation of each party to the arrangement proportionate consolidation for joint ventures will be eliminated and equity 
accounting will be mandatory
• ifrs12 ‘disclosure of interests in other entities’ requires enhanced disclosures of the nature risks and financial effects associated with the 
group’s interests in subsidiaries associates joint arrangements and unconsolidated structures entities
• ias32 ‘financial instruments – presentation’ amendment – the amendment clarifies the offsetting criteria specifically when an entity 
currently has a legal right of setoff and when gross settlement is equivalent to net settlement 70  poundland group plc annual report and financial statements for pe 30 march 2014
notes to the consolidated financial statements continued
120 adopted ifrs not yet applied continued
• ias34 ‘interim financial reporting’ amendment – the amendment clarifies the requirements of ias34 relating to segment information for 
total assets and liabilities for each reportable segment to enhance consistency with the requirements in ifrs8 ‘operating segments’
• ias36 ‘impairment of assets’ amendment – the amendments reverse the unintended requirement in ifrs13 to disclose the recoverable 
amount of every cashgenerating unit to which significant goodwill or indefinitelifed intangible assets have been allocated under the 
amendments recoverable amount is required to be disclosed only when an impairment loss has been recognised or reversed
in addition to the above amendments to a number of standards under the annual improvements project to ifrs have been endorsed by the eu 
but not yet adopted none of these amendments are expected to have a material impact on the group’s financial statements
121 reserves
cash flow reserve
the cash flow hedge reserve represents the effective portion of cash flow hedges where the contract has not yet expired the reserve is stated 
net of the associated tax on expiry of the contract the effective portion is recycled to the income statement
translation reserve
the translation reserve represents the cumulative translation differences for foreign operations namely poundland far east limited
merger reserve
the merger reserve arises on consolidation as a result of the share for share exchange on 17 march 2014 it represents the difference between 
the nominal value of shares issued by poundland group plc in this transaction and the share capital and reserves of poundland group holdings 
limited
2 operating segment
the group has one reportable segment discount retailing of a variety of products
the chief operating decision maker “codm” is the board of directors internal management reports are reviewed by the codm on a monthly 
basis key measures used to evaluate performance are revenue and ebitda  management believes that these measures are the most relevant 
in evaluating the performance of the segment and for making resource allocation decisions
all material operations of the reportable segment are carried out in the united kingdom and the republic of ireland and all material noncurrent 
assets are located in the united kingdom and the republic of ireland the group’s revenue is driven by the consolidation of individually small 
value transactions and as a result group revenue is not reliant on a major customer or group of customers all revenue is generated from 
external customers
3 earnings per share
basic earnings per share are calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary 
shares for both periods the weighted average number of shares is based on the share capital structure of poundland group plc and assumes 
that this structure was in place from 2 april 2012 ie the beginning of the 52 weeks ending 31 march 2013 this ensures that basic earnings 
per share is calculated on a comparable basis and provides a consistent measure of performance
for diluted earnings per share the weighted average number of ordinary shares is adjusted to assume conversion of all dilutive potential 
ordinary shares
proforma earnings exclude dividend payment of £xx million as part of restructure before floating introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  71
3 earnings per share
statutory earnings per share
earnings per share is calculated as follows
52 weeks
2014
no of shares
52 weeks
2013
no of shares
weighted average number of ordinary shares in issue being weighted average number
 of shares for calculating basic earnings per share 190792314 188599437
effect of share options on issue 917 –
weighted average number of ordinary shares for calculating diluted
 earnings per share 190793231 188599437
52 weeks
2014
£’000
52 weeks
2013
£’000
profit for the period 13860 23385
nonaccrued preference share dividends 11891 17377
premium paid on preference share capital redeemed 5436 –
basic earnings attributable to ordinary equity shareholders 3467 6008
nonunderlying items see note 6
 operating expenses and finance costs 15325 3338
 tax on nonunderlying items 1932 4942
underlying earnings before nonunderlying items 9926 4404
52 weeks
2014
p
52 weeks
2013
p
basic earnings per ordinary share 182 319
diluted earnings per ordinary share 182 319
basic earnings per ordinary share before nonunderlying items 520 233
diluted earnings per ordinary share before nonunderlying items 520 233 72  poundland group plc annual report and financial statements for pe 30 march 2014
notes to the consolidated financial statements continued
3 earnings per share continued
adjusted earnings per share
earnings per share is calculated as follows
52 weeks
2014
no of shares
52 weeks
2013
no of shares
weighted average number of ordinary shares in issue being weighted average number
 of shares for calculating basic earnings per share 250000000 250000000
effect of share options on issue 917 –
weighted average number of ordinary shares for calculating diluted
 earnings per share 250000917 250000000
52 weeks
2014
£’000
52 weeks
2013
£’000
profit for the period being basic earnings attributable to ordinary equity
 shareholders 13860 23385
nonunderlying items see note 6
 operating expenses and finance costs 15325 3338
 tax on nonunderlying items 1932 4942
underlying earnings before nonunderlying items 27253 21781
52 weeks
2014
p
52 weeks
2013
p
basic earnings per ordinary share 554 935
diluted earnings per ordinary share 554 935
basic earnings per ordinary share before nonunderlying items 1090 871
diluted earnings per ordinary share before nonunderlying items 1090 871 introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  73
4 reconciliation of adjusted profit measure ebitda
the directors consider ebitda to be a more consistent measure of operating performance operating profit is adjusted to exclude the impact of 
finance costs taxation amortisation and depreciation
underlying ebitda excludes the impact of those distribution costs and administrative expenses which do not contribute to current trading 
activities the directors consider that this measure more fairly reflects actual operating performance
6 nonunderlying items
in the period ended 30 march 2014 the group incurred fees relating to its listing of £9954000 it has also incurred £2981000 relating to the 
renegotiation of its debt facility which includes the write off of unamortised fees associated with the debt facility agreed in august 2010
the group incurred £1277000 of expenditure related to strategic initiatives ecommerce and international expansion 2013 £459000
in the period ended 31 march 2013 the group incurred £1424000 of oneoff costs relating to the opening of a new distribution facility in the 
south east of england and a further £435000 relating to a new store format trial
on the acquisition of poundland holdings limited in june 2010 the group recognised an intangible asset relating to the poundland brand this is 
being amortised over 20 years and the amortisation expense is presented as a nonunderlying item 2014 £1112000 2013 £1112000
the ineffective portion of foreign exchange hedging contracts is recognised as a financial expense and disclosed as a nonunderlying item 
2014 £1000 expense 2013 £92000 income
the associated tax implications of the above items are presented as a nonunderlying item and are summarised below
52 weeks
2014
£’000
52 weeks
2013
£’000
sale of goods 997803 880491
total revenues 997803 880491
52 weeks
2014
£’000
52 weeks
2013
£’000
operating profit 27702 30051
exclude
 amortisation 1857 1839
 depreciation 13239 11241
ebitda 42798 43131
exclude
 nonunderlying items excluding brand amortisation financial expenses and taxation 11231 2319
underlying ebitda 54029 45450
5 revenue 74  poundland group plc annual report and financial statements for pe 30 march 2014
6 nonunderlying items continued
additionally in the prior period the group received a oneoff corporation tax refund of £3950000 in respect of prior years which has been 
presented as a nonunderlying item
included within other nonaudit services for the period ended 30 march 2014 are corporate finance transaction services fees incurred as part of 
the ipo process and included within audit related assurance services are fees in relation to the nine month period audit undertaken as part of the 
ipo process these are disclosed within nonunderlying items see note 6
7 auditor’s remuneration
52 weeks
 2014
52 weeks
2013
£’000 £’000
administrative expenses
costs in respect of ipo 9954 –
amortisation expense brand 1112 1112
other administrative expenses 1277 459
distribution expenses – 1859
12343 3430
financial income and expenses
bank fees – refinancing 2981 –
financial instruments 1 92
2982 92
taxation
nonunderlying items tax impact 1390 800
intangible assets – change in tax rate 542 192
prior period adjustment – 3950
total nonunderlying items 13393 1604
52 weeks
2014
£’000
52 weeks
2013
£’000
fees payable for the audit of the company’s financial statements 26 26
amounts receivable by the company’s auditor and its associates in respect of
 audit of financial statements of subsidiaries of the company 97 52
 audit related assurance services 198 –
 taxation compliance services 78 42
 taxation advisory services 188 116
 other nonaudit services 1006 15
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  75
full details of directors’ remuneration and interests are set out in the directors’ remuneration report on pages 38 to 51
8 staff numbers and costs
the average number of persons employed by the group including directors during the period analysed by category was as follows
the aggregate payroll costs of these persons were as follows
    number of employees
52 weeks
2014
52 weeks
2013
administration 378 335
selling and distribution 12451 11422
12829 11757
52 weeks
2014
£’000
52 weeks
2013
£’000
wages and salaries 136110 120099
social security costs 7128 6296
equity settled share based payment transactions 44 –
contributions to defined contribution plans 1266 735
144548 127130 76  poundland group plc annual report and financial statements for pe 30 march 2014
9 financial income and expense
10 taxation
recognised in the income statement
52 weeks
2014
£’000
52 weeks
2013
£’000
current taxation
corporation tax charge for the period 9371 8642
adjustments for prior periods 186 3843
9557 4799
deferred tax income
origination and reversal of temporary differences 1766 1566
reduction in tax rate 107 141
adjustment for prior periods 60 –
deferred tax income 1933 1707
total tax charge for the period 7624 3092
52 weeks
2014
£’000
52 weeks
2013
£’000
financial income
interest income on unimpaired financial assets 252 279
ineffective portion of changes in fair value of cash flow hedges – 92
total financial income 252 371
financial expense
total interest expense on financial liabilities measured at amortised cost 3432 3865
nonunderlying fees associated with refinancing note 6 2981 –
net change in fair value of interest rate swap cash flow hedges recycled from equity 56 80
ineffective portion of changes in fair value of cash flow hedges 1 –
total financial expense 6470 3945
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  77
 
10 taxation continued
the tax charge is reconciled with the standard rates of uk corporation tax as follows
recognised in other comprehensive income
52 weeks
2014
£’000
52 weeks
2013
£’000
profit before tax 21484 26477
uk corporation tax at standard rate of 23 52 weeks 2013 24 4941 6354
factors affecting the charge for the period
depreciation on expenditure not eligible for tax relief 316 295
disallowable expenses 2608 434
adjustments in respect of prior periods 126 3843
impact of overseas tax rates 260 7
impact of reduction in tax rate on deferred tax balance 107 141
total tax charge for the period 7624 3092
52 weeks
2014
£’000
52 weeks
2013
£’000
effective portion of changes in fair value of cash flow hedges 3071 1201
net change in fair value of cash flow hedges recycled to profit or loss 868 101
2203 1100
factors that may affect future current and total tax charges
reductions in the uk corporation tax rate from 26 to 24 effective from 1 april 2012 and to 23 effective 1 april 2013 were substantively 
enacted on 26 march 2012 and 3 july 2012 respectively further reductions to 21 effective from 1 april 2014 and 20 effective from 1 april 
2015 were substantively enacted on 2 july 2013 this will reduce the group’s future current tax charge accordingly the deferred tax asset at 
30 march 2014 has been calculated based on the rate of 20 31 march 2013 liability calculated at 21 substantively enacted at the reporting 
date 78  poundland group plc annual report and financial statements for pe 30 march 2014
11 property plant and equipment 
land and 
buildings 
£’000
plant and
equipment
£’000
fixtures and 
fittings 
£’000
total
£’000
cost
balance at 2 april 2012 6365 23380 20129 49874
additions 1966 6512 6703 15181
disposals 191 164 139 494
balance at 31 march 2013 8140 29728 26693 64561
balance at 1 april 2013  8140 29728 26693 64561
additions 825 8781 6957 16563
disposals 129 312 279 462
balance at 30 march 2014 9094 38197 33371 80662
depreciation and impairment 
balance at 2 april 2012 4788 5744 4999 15531
depreciation charge for the period 2422 4684 4135 11241
disposals 191 164 139 494
balance at 31 march 2013 7019 10264 8995 26278
balance at 1 april 2013 7019 10264 8995 26278
depreciation charge for the period 2591 5750 4898 13239
disposals 129 312 279 462
balance at 30 march 2014 9739 15702 13614 39055
net book value
at 2 april 2012 1577 17636 15130 34343
at 31 march 2013 1121 19464 17698 38283
at 30 march 2014 645 22495 19757 41607
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  79
12 intangible assets
 
goodwill 
£’000
trademarks
£’000
software 
£’000
brand 
£’000
total
£’000
cost
balance at 2 april 2012 163856 – 1806 22300 187962
additions – externally purchased – 56 1201 – 1257
disposals – – 1 – 1
balance at 31 march 2013 163856 56 3006 22300 189218
balance at 1 april 2013  163856 56 3006 22300 189218
additions – externally purchased – 31 1031 – 1062
balance at 30 march 2014 163856 87 4037 22300 190280
amortisation
balance at 2 april 2012 – – 873 2001 2874
amortisation for the period – 7 720 1112 1839
disposals – – 1 – 1
balance at 31 march 2013 – 7 1592 3113 4712
balance at 1 april 2013 – 7 1592 3113 4712
amortisation for the period – 15 730 1112 1857
balance at 30 march 2014 – 22 2322 4225 6569
net book value
at 2 april 2012 163856 – 933 20299 185088
at 31 march 2013 163856 49 1414 19187 184506
at 30 march 2014 163856 65 1715 18075 183711
amortisation 
amortisation is recognised in distribution and administrative expenses in the income statement as follows
52 weeks
2014
£’000
52 weeks
2013
£’000
distribution costs 296 362
administrative expenses 1561 1477
1857 1839 80  poundland group plc annual report and financial statements for pe 30 march 2014
12 intangible assets continued
impairment testing
goodwill of £1639 million arising on the acquisition of poundland holdings limited in june 2010 is allocated to the group’s one operating 
segment for impairment testing purposes goodwill has been allocated to a group of cash generating units cgus comprising the group’s one 
operating segment this represents the lowest level within the group at which goodwill is monitored for internal management purposes
goodwill is not amortised but tested annually for impairment on the basis of value in use calculations using discounted cash flows as the value 
in use exceeded the carrying value for the cash generating units no impairment loss was recognised in the period
in assessing the value in use the four year business plan was used to provide cash flow projections to the period ended march 2018 the cash 
flow projections are subject to key assumptions in respect of discount rates expected new store openings achievement of future revenue and 
ebitda growth the directors have reviewed and approved the assumptions inherent in the model as part of the annual budget process using 
historic experience and considering economic and business risks facing the group
in assessing the group’s value in use a pretax discount rate of 137 2013 151 has been applied to the group of cgus 
the calculated value in use significantly exceeded the carrying value of goodwill and no further sensitivity calculations were necessary to 
conclude there was no impairment
13 other financial assets
14 other financial liabilities
 
 
30 march
2014
£’000
31 march
2013
£’000
noncurrent 
derivative financial assets held for trading – 403
current
derivative financial assets held for trading 519 4212
30 march
2014
£’000
31 march
2013
£’000
noncurrent 
derivative financial liabilities held for trading 1556 –
current
derivative financial liabilities held for trading 5110 397
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  81
15 deferred tax assets and liabilities 
recognised deferred tax assets and liabilities 
deferred tax assets and liabilities are attributable to the following
assets
liabilities
30 march
2014
£’000
31 march
2013
£’000
deferred tax assetsliabilities 4364 1982
net of deferred tax liabilitiesassets 3719 1982
net deferred tax assets 645 –
30 march
2014
£’000
31 march
2013
£’000
deferred tax assetsliabilities 3719 5473
net of deferred tax liabilitiesassets 3719 1982
net deferred tax liabilities – 3491
 
2 april 2012  
£’000
recognised in
the income 
statement
creditcharge
£’000
recognised in
other
comprehensive
income
creditcharge
£’000
31 march 2013
£’000
property plant and equipment 870 1075 – 205
intangible assets 4871 459 – 4412
inventories 130 – – 130
other financial assets 5 15 1041 1061
trade and other payables 1348 179 – 1527
tax value of losses carried forward 12 17 – 29
other financial liabilities 158 8 59 91
4098 1707 1100 3491 82  poundland group plc annual report and financial statements for pe 30 march 2014
15 deferred tax assets and liabilities continued 
 
1 april 2013 
£’000
recognised in
the income 
statement
creditcharge
£’000
recognised in
other
comprehensive
income
creditcharge
£’000
30 march 2014
£’000
property plant and equipment 205 1132 – 1337
intangible assets 4412 797 – 3615
inventories 130 30 – 100
other financial assets 1061 20 937 104
trade and other payables 1527 52 – 1579
tax value of losses carried forward 29 14 – 15
other financial liabilities 91 24 1266 1333
3491 1933 2203 645
no deferred tax liability has been recognised in respect of £156000 2013 £113000 of undistributed earnings of overseas subsidiaries since 
such distributions would not be taxable
16 inventories
all inventories are expected to be sold within 12 months of the reporting date
during the period £03 million 2013 £04 million was recognised as an expense in cost of sales in respect of the write down of inventory to net 
realisable value
no unutilised provisions were reversed in the period  inventory purchased in the period recognised as an expense was £6467 million 2013 
£5777 million 
 
30 march
2014
£’000
31 march
2013
£’000
finished goods 82779 72157
goods in transit 6782 8847
89561 81004
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  83
  30 march 2014  31 march 2013
year of
maturity
 
face value
£’000
carrying
amount
£’000
face value
£’000
carrying
amount
£’000
term loan a 2016 – – 20922 19229
term loan b 2017 – – 33992 32789
revolver 2019 30000 30000 – –
total 30000 30000 54914 52018
18 other interestbearing loans and borrowings
the contractual terms of the group’s interestbearing loans and borrowings which are measured at amortised cost are described below for 
more information about the group’s exposure to interest rate and foreign currency risk see note 23
the group’s previous debt facility came into effect in august 2010 it consisted of two term loans and a six year working capital and revolving 
credit facility of £25 million held by one of the company’s subsidiary undertakings poundland holdings limited
term loan a £30 million was repayable in semiannual instalments over a period of six years from inception  during the period the group 
repaid £37 million 2013 £61 million and repaid the outstanding balance of £173 million on 17 march 2014
term loan b £35 million was repayable in one instalment on 10 august 2017 during the period the group repaid £09 million 2013 £10 
million and repaid the outstanding balance of £331 million on 17 march 2014
the facility carried an interest rate at libor plus an agreed margin the facility was denominated in sterling
on 17 march 2014 the group entered into a new banking facility consisting of a revolving credit and working capital facility of £550 million 
this is held by poundland holdings limited the group utilised £30 million of the revolving credit facility together with cash generated from 
operating activities to repay the term debt in full
17 trade and other receivables
 
30 march
2014
£’000
31 march
2013
£’000
other receivables due from related parties 50 145
trade receivables 2872 1699
other taxation and social security 291 
prepayments and accrued income 22172 19412
called up share capital not paid  270
25385 21526
noncurrent 425 792
current 24960 20734 84  poundland group plc annual report and financial statements for pe 30 march 2014
18 other interest bearing loans and borrowings continued
the group had the following undrawn committed borrowing facilities available at the reporting date in respect of which all conditions precedent 
have been met
the facility relates to the group’s revolving credit and working capital facility which incurs commitment fees at market rates
19 trade and other payables
20 provisions
 
 
 
30 march
2014
£’000
31 march
2013
£’000
expiring between two and five years 23500 23500
30 march
2014
£’000
31 march
2013
£’000
current
trade payables 62482 48796
other taxation and social security payable 12498 10052
other payables 4794 1682
accruals and deferred income 40797 34046
120571 94576
noncurrent
accruals and deferred income 18617 16931
139188 111507
  property related
30 march
2014
£’000
31 march
2013
£’000
at beginning of period 504 1457
provisions made during the period 809 169
provisions utilised during the period 62 600
provisions reversed during the period 326 522
at end of period 925 504
noncurrent 138 138
current 787 366
925 504
property related provisions consist of costs associated with vacant properties and outstanding rent reviews
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  85
20 provisions continued
a provision for vacant properties is recognised when the group’s unavoidable costs of meeting its contractual obligations are higher than the 
expected benefits to be derived from it the effect of discounting is not considered material
a rent review provision is recognised when there are additional obligations expected as a result of a rent review the provision is based on the 
directors’ best estimate of the amount at which the review will be settled
21 share capital
 
 
30 march
2014
£’000
31 march
2013
£’000
allotted and called up 
250000000 ordinary shares of £170 each 425000 –
49999 preference shares of £1 each 50 –
7695903 ordinary £1 a shares of £1 each – 7696
474202 ordinary £1 b shares of £1 each – 474
2042746 ordinary £1 c shares of £1 each – 2043
142261140 10 £1 preference shares of £1 each – 142261
425050 152474
poundland group plc was incorporated on 24 january 2014 and issued one ordinary share of £1 at par and 49999 preference shares of £1 each 
at par
on 11 march 2014 the £1 ordinary share was subdivided into 100 1p ordinary shares the company then issued 70 1p ordinary shares  the 
170 1p shares were converted to one ordinary share with a nominal value of £170
on 17 march 2014 the company issued 249999000 ordinary shares of £170 in exchange for all classes of shares of poundland group 
holdings limited
£’000
balance at 1 april 2013 152474
redemption of preference share capital – poundland group holdings limited 14564
issue of shares – poundland group holdings limited 97
issue of shares – poundland group plc 50
balance prior to capital transaction 138057
capital transaction – subsidiary share capital restructure and share for share exchange 286993
balance at 30 march 2014 425050
the comparative share capital represents that of poundland group holdings limited 
the table below sumarises the movements in share capital during the period ended 30 march 2014 86  poundland group plc annual report and financial statements for pe 30 march 2014
21 share capital continued
rights attached to shares
ordinary shares
the rights attaching to the ordinary shares are uniform in all respects and form a single class for all purposes including with respect to voting 
and for all dividends and other distributions thereafter declared made or paid on the ordinary share capital of the company
subject to any rights and restrictions attached to any shares on a show of hands every shareholder who is present in person shall have one vote 
and on a poll every shareholder present in person or by proxy shall have one vote per ordinary share
except as provided by the rights and restrictions attached to any class of shares shareholders are under general law entitled to participate in 
any surplus assets in a winding up in proportion to their shareholdings
subject to the provisions of the act rights attached to any class of shares unless otherwise provided by the terms of allotment of the shares 
of that class may be varied or abrogated with the written consent of the holders of threequarters in nominal value of the issued shares of the 
class or the sanction of a special resolution passed at a separate general meeting of the holders of the shares of the class
preference shares
preference shares entitle their holder to receive notice of and to attend and speak at general meetings of the company preference shares do not 
entitle their holder to vote at general meetings of the company
the rights attached to the preference shares may be waived varied or abrogated with the consent in writing of the holders of at least 50 in 
nominal value of the preference shares in issue to the extent that such a waiver variation or abrogation of any of the rights attached to the 
preference shares adversely affects one group of preference shares such waiver variation or abrogation must be approved by or on behalf of 
the holders of at least 50 in nominal value of the preference shares in each respective group
except as provided by the rights and restrictions attached to any class of shares the holders of the company’s shares are under general law 
entitled to participate in any surplus assets in a winding up in proportion to their shareholdings provided that the assets of the company 
available for distribution among the members shall be applied in paying to the preference shareholders in proportion to the number of 
preference shares held by each of them in priority to any payment to the holders of any ordinary shares in the company the issue price per 
preference share
22 share based payments
the group operates three share award plans all of which are equity settled
the performance share plan psp
the psp was adopted by the directors on 27 february 2014 all employees of the group are eligible to participate in the psp at the discretion of 
the remuneration committee the first issue of awards was made on 17 march 2014  all awards were granted for nil consideration
a summary of the rules for this scheme and the related performance conditions are set out in the directors’ remuneration report
the restricted stock plan rsp
the rsp was adopted by the directors on 27 february 2014 awards over ordinary shares are granted subject only to continued employment 
there are no performance conditions attached to the award
all employees of the group other than executive directors and members of the executive committee are eligible to participate in the rsp at the 
discretion of the remuneration committee
initial rsp awards were made on 17 march 2014 other than these initial awards the intention is that rsp awards will only be made in special 
or unusual circumstances all awards were granted for nil consideration
the rsp awards will usually vest three years after the date of grant vested share awards will be released to participants automatically within 30 
days of the vesting date
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  87
22 share based payments continued
the company share option plan csop
the csop was adopted by the directors on 27 february 2014 under the csop  the directors may grant to eligible employees options to acquire 
ordinary shares at an exercise price which may not be less than the market value of an ordinary share on the date of grant
all employees of the group are eligible to participate in the csop at the discretion of the directors 
the csop options may be subject to performance conditions however the initial award made on 18 march 2014 did not have any related 
performance conditions all awards were granted for nil consideration
a csop option will normally only be exercisable from the third anniversary of the date of grant and when all conditions applying to it have been 
satisfied no dividends are paid on shares awarded
the number and weighted average exercise prices of share based payment awards are as follows
for the period ended 30 march 2014
in the period ended 31 march 2013 the group did not operate any share based payment schemes therefore no comparatives are presented
the fair value of services received in return for share options granted are measured by reference to the fair value of the share options granted 
the psp and rsp awards are valued at 100 of the share price at the date of grant
the fair value of csop awards is measured using the blackscholes valuation model measurement inputs and assumptions are as follows
 
  psp  rsp  csop
weighted
average
exercise
price £
number of
options
‘000
weighted
average
exercise
price £
number of
options
‘000
weighted
average
exercise
price £
number of
options
‘000
outstanding at 1 april 2013      
granted during the period  1248  293 375 946
outstanding at 30 march 2014  1248  293 375 946
 
30 march
2014
31 march
2013
share price at grant date £375 –
fair value at grant date 9248p –
exercise price £375 –
expected volatility 325 –
option life years 10 –
expected life years 4 –
expected dividend yield 109 –
riskfree interest rate based on national government bonds 13 –
as the company has recently listed there is no history of share price movements the expected volatility is therefore a proxy volatility figure 
which has been derived as the average volatility of ftse 250 companies within the general retailers sector over the four years prior to grant 
date ie the period equivalent to the expected term
the risk free rate is equivalent to the prevailing uk gilts rate at grant date which is commensurate with the expected term
csop awards are granted under a service condition this is not taken into account in the grant date fair value measurement of the services 
received the share based payments expense has been calculated using recent employee turnover levels 88  poundland group plc annual report and financial statements for pe 30 march 2014
22 share based payments continued
the total expense for share based payments recognised in the period is as follows
23 financial instruments and related disclosures
financial risk management
the directors have overall responsibility for the oversight of the group’s risk management framework a formal process for reviewing and 
managing risk in the business has been developed a register of strategic and operational risk is maintained and reviewed by the directors who 
also monitor the status of agreed actions to mitigate key risks
credit risk
credit risk is the risk of financial loss to the group if a counterparty to a financial instrument fails to meet its contractual obligation this 
risk arises from the group’s foreign exchange interest rate and commodity hedging agreements with its banking counterparties the group 
only deals with credit with banks in the banking syndicate or with banks who are creditworthy and monitors the creditworthiness of these 
counterparties using publicly available information
as the principal business of the group is cash sales the group trade receivables are small the carrying amount of financial assets recorded in 
the financial statements represents the group’s maximum exposure to credit risk and any associated impairments are immaterial
group policy is that surplus funds are placed on deposit with counterparties who are either party to the group’s banking syndicate or who are 
creditworthy counterparties with a minimum of bbb credit rating
liquidity risk
liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due the group ensures that it has sufficient 
cash or loan facilities to meet all its commitments when they fall due by ensuring that there is sufficient cash or working capital facilities to meet 
the cash requirements of the group for the current business plan 
the risk is measured by review of forecast liquidity each month to determine whether there are sufficient credit facilities to meet forecast 
requirements and by monitoring covenants on a regular basis to ensure there are no expected significant breaches which would lead to an 
“event of default” cash flow forecasts are submitted monthly to the directors these continue to demonstrate the strong cash generating ability 
of the business and its ability to operate within existing agreed banking facilities there have been no breaches of covenants during the reported 
periods
the group has a £550 million revolving credit and working capital facility to support short and medium term liquidity 
market risk
market risk is the risk that changes in the market prices such as foreign exchange rates and interest rates will affect the group’s income the 
group’s exposure to market risk predominantly relates to interest and currency risk although the group does hedge fuel used by its fleet of 
vehicles in the distribution of product to stores
 
52 weeks
2014
£’000
52 weeks
2013
£’000
equity settled share based payment expense 44 –
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  89
23 financial instruments and related disclosures continued
interest rate risk
the group’s revolving credit facility incurs variable interest rate charges linked to libor plus a margin dependent on the group’s net debt ratio 
the group’s policy aims to manage the interest cost of the group within the constraints of its financial covenants and business plan 
the group has hedged interest rate risk by purchasing an interest rate cap to mitigate interest rate risk to the end of october 2014
the group believes that the current interest rate hedge is adequate and is continuing to monitor the interest rate swap market and future cash 
flows to decide on the appropriateness of any further hedges on the expiry of the existing contracts
foreign currency risk
the group has a significant transaction exposure with increasing direct sourced purchases from its suppliers in the far east with most of the 
trade being in us dollars in addition to this the group is exposed to transaction risk on the translation of surplus euro balances generated by 
the republic of ireland branch into sterling the group’s policy allows these exposures to be hedged for up to 18 months forward in order to fix 
the cost in sterling hedging is performed through the use of foreign currency bank accounts and forward foreign exchange contracts
the group does not hedge either economic exposure or the translation exposure arising from the profits assets and liabilities of nonsterling 
businesses whilst they remain immaterial
the carrying amount of the group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date is as follows
pension liability risk
the group has no association with any defined benefit pension scheme and therefore carries no deferred current or future liabilities in respect 
of such a scheme the group operates a number of group personal pension plans for its colleagues
capital risk management
the group’s objectives when managing capital are to safeguard its ability to continue as a going concern in order to optimise returns to its 
shareholders the board’s policy is to retain a strong capital base so as to maintain investor creditor and market confidence and to sustain 
future growth the directors regularly monitor the level of capital in the group to ensure that this can be achieved
 
  30 march 2014  31 march 2013
usd
£’000
euro
£’000
usd
£’000
euro
£’000
cash and cash equivalents 1301 2898 124 2342
trade and other payables 1617 3027 1011 2776
2918 129 1135 434 90  poundland group plc annual report and financial statements for pe 30 march 2014
23 financial instruments and related disclosures continued
fair value disclosures
the fair value of each class of financial assets and liabilities is the carrying amount based on the following assumptions
trade receivables trade payables short term deposits and borrowings the fair value approximates to the carrying value because of the  
 short maturity of these instruments
long term borrowings the fair value of bank loans and other loans approximates to the  
 carrying value reported in the statement of financial position
forward currency contracts the fair value is determined using the market forward rates at the  
 reporting date and the outright contract rate
fair value hierarchy
financial instruments carried at fair value should be measured with reference to the following levels
level 1 quoted prices in active markets for identical assets or liabilities
level 2 inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly ie  
 as prices or indirectly ie derived from prices and
level 3 inputs for the asset or liability that are not based on observable market data unobservable inputs
all financial instruments carried at fair value have been measured using a level 2 valuation method
the fair value and carrying value of financial assets and liabilities are as follows
 
30 march 2014 
£’000
31 march 2013 
£’000
carr ying   
value
fair 
value
carrying  
value
fair 
value
cash and cash equivalents 25268 25268 42861 42861
trade and other receivables 24960 24960 20734 20734
derivative contracts used for hedging assets 519 519 4615 4615
total financial assets 50747 50747 68210 68210
trade and other payables 139188 139188 111507 111507
borrowings at amortised cost 30000 30000 52018 52018
derivative contracts used for hedging liabilities 6666 6666 397 397
total financial liabilities 175854 175854 163922 163922
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  91
23 financial instruments and related disclosures continued
financial instruments sensitivity analysis
in managing interest rate and currency risks the group aims to reduce the impact of shortterm fluctuations on its earnings at the end of each 
reporting period the effect of hypothetical changes in interest and currency rates are as follows
interest rate sensitivity analysis
the table below shows the group’s sensitivity to interest rates on floating rate borrowings ie cash and cash equivalents and bank borrowings 
which attract interest at floating rates if interest rates were to change by  1 the impact on the results in the income statement and 
statement of other comprehensive income and equity would be
foreign exchange rate sensitivity analysis
the table below shows the group’s sensitivity to foreign exchange rates for its us dollar financial instruments the major currency in which the 
group’s derivatives are denominated
a strengtheningweakening of sterling as indicated against the us dollar at the reporting date would have increaseddecreased the cash flow 
hedge reserve and retained earnings by the amounts shown above this analysis is based on foreign currency exchange rate variances that the 
group considered to be reasonably possible at the end of the reporting period the analysis assumes that all other variables in particular interest 
rates remain constant
there are no material movements in the income statement for the period the movement in equity relates to the fair value movements on the 
group’s forward contracts that are used to hedge future inventory purchases
contractual cash flows
the contractual maturity of bank borrowings excluding the impact of netting agreements is shown below
 
 
 
30 march 2014
increasedecrease
in equity
£’000
31 march 2013
increasedecrease
in equity
£’000
1  movement in interest rates 47 121
1  movement in interest rates 47 121
30 march 2014
increasedecrease
in equity
£’000
31 march 2013
increasedecrease
in equity
£’000
10 appreciation of the us dollar 13257 12112
10 depreciation of the us dollar 10847 9924
30 march 2014
increasedecrease
in equity
£’000
31 march 2013
increasedecrease
in equity
£’000
due in less than one year  2322
expiring between one and two years  6750
expiring between two and five years 30000 45842
contractual cash flows 30000 54914
carrying amount 30000 52018 92  poundland group plc annual report and financial statements for pe 30 march 2014
23 financial instruments and related disclosures continued
the following table provides an analysis of the anticipated contractual cash flows for the group’s derivative contracts
usd
euro
interest rate swap and cap
fuel hedge
 
 
 
 
  30 march 2014  31 march 2013
payable
£’000
receivable
£’000
payable
£’000
receivable
£’000
due in less than one year 96036 90160 89040 93205
expiring between one and two years 29876 28852 15479 15864
contractual cash flows 125912 119012 104519 109069
fair value 6574   4615
  30 march 2014  31 march 2013
payable
£’000
receivable
£’000
payable
£’000
receivable
£’000
due in less than one year 19013 19562 18661 18322
contractual cash flows 19013 19562 18661 18322
fair value  519 339 
  30 march 2014  31 march 2013
payable
£’000
receivable
£’000
payable
£’000
receivable
£’000
due in less than one year   58 
contractual cash flows   58 
fair value   58 
  30 march 2014  31 march 2013
payable
£’000
receivable
£’000
payable
£’000
receivable
£’000
due in less than one year 92   
contractual cash flows 92   
fair value 92   
it is not expected that the cash flows included in the maturity analysis could occur significantly earlier or at significantly different amounts
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  93
24 operating leases
noncancellable operating lease rentals are payable as follows
 
other land and buildings
30 march
2014
£’000
31 march
2013
£’000
30 march
2014
£’000
31 march
2013
£’000
less than one year 4285 4244 78278 71110
between one and five years 5894 6705 283338 251081
more than five years   229585 205657
10179 10949 591201 527848
the group leases a number of stores and warehouses under operating leases of varying lengths for which incentivespremia are receivedpaid 
under the relevant lease agreements
during the year £785 million was recognised as an expense in the income statement in respect of operating leases 2013 £687 million
25 commitments
capital commitments for which no provision has been made in the financial statements of the group were as follows
26 contingencies
the company and certain subsidiaries within the group namely poundland holdings limited and poundland limited are party to cross 
guarantees given for bank loans and overdrafts amounting to £31500000 31 march 2013 £56414000 the companies party to the cross 
guarantee were poundland holdings limited poundland retail limited poundland willenhall limited and poundland limited
 
30 march
2014
£’000
31 march
2013
£’000
contracted 1986 1212 94  poundland group plc annual report and financial statements for pe 30 march 2014
27 related parties
transactions with key management personnel
directors of poundland group plc control 657 of the voting shares of the company at 31 march 2013 directors of poundland group holdings 
limited controlled 134 of that company’s voting shares
the compensation of key management personnel including the directors is as follows
 
 
30 march
2014
£’000
31 march
2013
£’000
key management personnel emoluments 2334 2125
company contributions to money purchase pension schemes 228 205
amounts receivable under long term incentive schemes 15 
2577 2330
in march 2012 july 2012 and december 2013 loans were advanced to certain directors of the group’s subsidiary companies no interest was 
payable on these loans at 30 march 2014 £nil 2013 £145000 was outstanding and is included within trade and other receivables all loans 
were repaid during the period on 17 march 2014
at 30 march 2014 £50000 is owed to the company by warburg pincus private equity x lp  in respect of its initial share capital this balance is 
included within trade and other receivables note 17
28 subsidiary undertakings
the company has the following investments in subsidiaries
these subsidiaries are included within these consolidated financial statements
directly held subsidiary  all other subsidiaries are held indirectly
country of incorporation class of
shares held
ownership
30 march
2014

poundland group holdings limited investment company great britain ordinary 100
poundland value retailing limited investment company great britain ordinary 100
poundland retail limited investment company great britain ordinary 100
poundland holdings limited investment company great britain ordinary 100
poundland willenhall limited investment company great britain ordinary 100
poundland trustee limited trustee great britain ordinary 100
poundland limited single price value retailer great britain ordinary 100
mo business systems limited dormant great britain ordinary 100
bargain limited dormant great britain ordinary 100
homes  more limited dormant great britain ordinary 100
poundland stores limited dormant great britain ordinary 100
poundland international limited dormant great britain ordinary 100
sheptonview limited dormant great britain ordinary 100
poundland far east limited product sourcing hong kong ordinary 100
notes to the consolidated financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  95
29 accounting estimates and judgements
the preparation of the consolidated financial statements requires the directors to make judgements estimates and assumptions that affect 
the application of policies and reported amounts of assets and liabilities income and expenses the estimates and associated assumptions are 
based on historical experience and various other factors that are believed to be reasonable under the circumstances actual results may differ 
from these estimates
estimates and underlying assumptions are reviewed on an ongoing basis revisions to accounting estimates are recognised in the period in 
which the estimate is revised and in any future periods impacted
the key judgements and estimates employed in the financial statements are considered below 
allowances against the carrying amount of inventories
the group provides against the carrying amount of inventories for inventory lines based on expected demand for its products to ensure that 
inventory is stated at the lower of cost and net realisable value judgement is required in respect of assessing future demand and promotional 
offers
impairment of goodwill
on an annual basis the group is required to perform an impairment review to assess whether the carrying value of goodwill is less than 
its recoverable amount recoverable amount is based on a calculation of expected future cash flows which include estimates of future 
performance details of assumptions used in the impairment of goodwill are detailed in note 12
provisions
provisions are made using the directors’ best estimates of future cash flows based on the current level of information available to them actual 
cash flows will be dependent on future events for details of assumptions see note 20
depreciation and amortisation
judgement is required in assessing the useful economic lives of tangible fixed assets and intangible assets these assumptions are based on the 
directors’ best estimate of the life of the asset and its residual value at the end of its economic life
valuation of other intangible assets
the assessment of fair value in a business combination requires the recognition and measurement of the identifiable assets liabilities and 
contingent liabilities in the acquired business the key judgements required are the identification of intangible assets meeting the recognition 
criteria of ias 38 and their attributable fair values the key assumptions in relation to the brand valuation are the directors’ best estimate of its 
life and the royalty and discount rate used in its valuation
deferred taxation
the group recognises deferred tax assets and liabilities based upon future taxable income and the expected recoverability of the balance 
the estimate will include assumptions regarding future income streams of the group and the future movement in corporation tax rates in the 
respective jurisdictions
30 events after the reporting date
on 2 april 2014 dealz poundland retail ireland limited was incorporated it is a wholly owned subsidiary of poundland limited 
on 16 april 2014 poundland international limited acquired the entire share capital of brandelirial sl and renamed it dealz espana sl
on 14 may 2014 the company reduced its share capital via a court approved process the nominal value of each share was reduced from 
£170 to 1p following the reduction the nominal value of share capital is £25 million these events were disclosed in the initial public offering 
pathfinder prospectus 96  poundland group plc annual report and financial statements for pe 30 march 2014
company balance sheet
at 30 march 2014
     30 march 2014
note £’000 £’000
fixed assets
investments
4 425044
current assets
debtors 5 917
cash 4480
5397
creditors amounts falling due within one year 6 13836
net current liabilities 8439
total assets less current liabilities being net assets 416605
capital and reserves
called up share capital 7 425050
profit and loss account 8 8445
shareholders’ funds 9 416605
the notes on pages 97 to 100 form part of these financial statements
these financial statements were approved by the board of directors on 2 july 2014 and were signed on its behalf by
nr hateley
director
registered number 08861243 introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  97
notes to the company financial statements
1 accounting policies
the following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial 
statements
the company was incorporated on 24 january 2014 and therefore no comparative information is presented on 14 february 2014 the 
company was registered as a public limited company on 17 march 2014 its shares were listed on the london stock exchange
basis of preparation
the financial statements have been prepared on a going concern basis and in accordance with all uk applicable accounting standards and under 
the historic cost convention
no profit or loss account is presented for the company as permitted by section 408 of the companies act 2006 the company loss for the period 
was £8489000 mainly related to nonunderlying costs in respect of the ipo
going concern
the company financial statements are prepared on a going concern basis the company heads a group which the directors believe has 
adequate resources to continue in operational existence for the foreseeable future new banking facilities were agreed on 17 march 2014 and 
the group’s forecast and projections show this new facility provides adequate headroom for its current and future anticipated cash requirements
share based payments
where the company grants options over its own shares to the employees of its subsidiaries it recognises in its individual financial statements 
an increase in the cost of investment in its subsidiaries equivalent to the equitysettled sharebased payment charge recognised in its 
consolidated financial statements with the corresponding credit being recognised directly in equity
investments
shares in subsidiary undertakings are stated at cost less any provision for impairment where in the opinion of the directors there has been a 
diminution in the value of the investment
cash flow
under frs 1 revised 1996 the company is exempt from the requirement to prepare a cash flow statement as a consolidated cash flow has 
been included in the poundland group plc consolidated financial statements
dividends on shares presented within shareholders’ funds
dividends unpaid at the balance sheet date are only recognised as a liability at that date to the extent that they are appropriately authorised 
and are no longer at the discretion of the company unpaid dividends that do not meet these criteria are disclosed in the notes to the financial 
statements
2 fees payable to the auditors
auditor’s remuneration is detailed in note 7 to the group financial statements
3 staff numbers and costs
the company has no employees other than the directors full details of the directors’ remuneration and interests are set out in the directors’ 
remuneration report on pages 38 to 51 98  poundland group plc annual report and financial statements for pe 30 march 2014
4 investments in subsidiaries
 
 
investment in
subsidiary
undertakings
£’000
at beginning of period 
additions 425000
equity settled share based payments 44
at end of period 425044
30 march
2014
£’000
group relief 3
amounts owed by warburg pincus private equity x lp  50
other taxation and social security 239
amounts owed by group undertakings 625
917
 
the company has the following investments in subsidiaries
 directly owned subsidiary all other subsidiaries are held indirectly
on 17 march 2014 the company acquired 100 of the share capital of poundland group holdings limited in a share for share exchange 
transaction
5 debtors
country of incorporation
class of
shares held
ownership
30 march
2014

poundland group holdings limited investment company great britain ordinary 100
poundland value retailing limited investment company great britain ordinary 100
poundland retail limited investment company great britain ordinary 100
poundland holdings limited investment company great britain ordinary 100
poundland willenhall limited investment company great britain ordinary 100
poundland trustee limited trustee great britain ordinary 100
poundland limited single price value retailer great britain ordinary 100
mo business systems limited dormant great britain ordinary 100
bargain limited dormant great britain ordinary 100
homes  more limited dormant great britain ordinary 100
poundland stores limited dormant great britain ordinary 100
poundland international limited dormant great britain ordinary 100
sheptonview limited dormant great britain ordinary 100
poundland far east limited product sourcing hong kong ordinary 100
notes to the company financial statements continued introduction strategy governance financials
poundland group plc annual report and financial statements for pe 30 march 2014  99
6 creditors amounts falling due within one year
7 called up share capital
 
 
30 march
2014
£’000
accruals and deferred income 4647
amounts owed to group undertakings 9189
13836
30 march
2014
£’000
allotted and called up
250000000 ordinary shares of £170 each 425000
49999 preference shares of £1 each 50
425050
the company was incorporated on 24 january 2014 and issued one ordinary share of £1 at par and 49999 preference shares of £1 at par
on 11 march 2014 the £1 ordinary share was subdivided into 100 1p ordinary shares the company then issued 70 1p ordinary shares  the 
170 1p shares were converted to one ordinary share with a nominal value of £170
on 17 march 2014 the company issued 249999000 ordinary shares of £170 in exchange for all classes of shares of poundland group 
holdings limited
rights attached to shares
ordinary shares
the rights attaching to the ordinary shares are uniform in all respects and form a single class for all purposes including with respect to voting 
and for all dividends and other distributions thereafter declared made or paid on the ordinary share capital of the company
subject to any rights and restrictions attached to any shares on a show of hands every shareholder who is present in person shall have one vote 
and on a poll every shareholder present in person or by proxy shall have one vote per ordinary share
except as provided by the rights and restrictions attached to any class of shares shareholders are under general law entitled to participate in 
any surplus assets in a winding up in proportion to their shareholdings
subject to the provisions of the act rights attached to any class of shares unless otherwise provided by the terms of allotment of the shares 
of that class may be varied or abrogated with the written consent of the holders of threequarters in nominal value of the issued shares of the 
class or the sanction of a special resolution passed at a separate general meeting of the holders of the shares of the class
preference shares
preference shares entitle their holder to receive notice of and to attend and speak at general meetings of the company preference shares do 
not entitle their holder to vote at general meetings of the company
the rights attached to the preference shares may be waived varied or abrogated with the consent in writing of the holders of at least 50 in 
nominal value of the preference shares in issue to the extent that such a waiver variation or abrogation of any of the rights attached to the 
preference shares adversely affects one group of preference shares such waiver variation or abrogation must be approved by or on behalf of 
the holders of at least 50 in nominal value of the preference shares in each respective group 100  poundland group plc annual report and financial statements for pe 30 march 2014
7 called up share capital continued
except as provided by the rights and restrictions attached to any class of shares the holders of the company’s shares will under general law 
be entitled to participate in any surplus assets in a winding up in proportion to their shareholdings provided that the assets of the company 
available for distribution among the members shall be applied in paying to the preference shareholders in proportion to the number of 
preference shares held by each of them in priority to any payment to the holders of any ordinary shares in the company the issue price per 
preference share
8 reserves
10 contingent liabilities
the company is party to cross guarantees given for bank loans overdrafts duty and letter of credit guarantees of poundland holdings limited 
and certain fellow group companies amounting to £31500000
11 transactions with related parties
the company has taken advantage of the exemption conferred by paragraph 3c of frs 8 ‘related party transactions’ not to disclose 
transactions with other group companies
12 events after the balance sheet date
on 14 may 2014 the company reduced its share capital via a court approved process the nominal value of each share was reduced from £170 
to 1p following the reduction the nominal value of share capital is £25 million
these events were disclosed in the initial public offering pathfinder prospectus
9 reconciliation of movements in shareholders’ funds
 
 
profit and 
loss account
£’000
at beginning of period 
loss for the financial period 8489
equity settled share based payments 44
at end of period 8445
30 march
2014
£’000
opening shareholders’ funds 
loss for the financial period 8489
new shares issued 425050
equity settled share based payments 44
closing shareholders’ funds and net addition to shareholders’ funds 416605
notes to the company financial statements continued


Summary:
 poundland group plc annual report and financial statements for pe 30 march 2014  3
introduction strategy governance financials
0
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revenue  
133 £m
underlying adjusted eps  
251 p
net debt £m
underlying ebitda  
189 £m
financial highlights
kpi performance
2014 2013 change
number of stores 528 458 70
number of new stores net 70 69
sales £m 9978 8805 133
gross margin  3693 3674 19 bp
underlying ebitda £m 540 455 189
underlying ebitda margin  541 516 25 bp
underlying profit for the period £m 273 218 251
operating cash flow less maintenance capex £m 668 376 777
cash conversion  1237 827
operating cash flow less maintenance and expansion capex £m 522 232 1254
net debt £m 47 92 483