The proprietor of Pepco, Poundland and Dealz, the European low cost retail manufacturers, has pledged to “shield costs” after reporting a 17.5 per cent rise in first-half income pushed by new retailer openings.

Pepco Group, which was listed on the Warsaw inventory market final Could with a valuation of €5 billion, mentioned it could proceed to pursue development whereas slicing the prices of doing enterprise.

“It will allow us to offset the vast majority of our enter inflation, permitting us to guard costs for our cost-conscious prospects,” Trevor Masters, its interim chief govt, mentioned.

Masters mentioned the market Pepco operated in was more likely to keep risky due to inflationary pressures and the warfare in Ukraine, which borders three of its largest working territories.

Inflation in Britain hit a 30-year excessive of seven per cent in March, with individuals going through the most important cost-of-living squeeze since data started within the Nineteen Fifties. Within the eurozone it rose to 7.5 per cent final month, one other document.

Pepco mentioned it was working with key suppliers to safe higher phrases, whereas inventory effectivity programmes have been lowering required inventory ranges and enhancing working capital.

The corporate, which opened its first retailer in Poland in 2004, mentioned that income had risen to €2.37 billion within the six months to the top of March because it opened a web 192 new shops, taking the whole to three,696 in 17 international locations.

Poundland opened a web 33 new shops within the half-year to convey its whole within the British Isles to almost 850. Inside the UK it has rolled out its Pep & Co trend model to about 400 of its bigger shops.

Pepco mentioned that like-for-like gross sales development was 5.3 per cent, pushed by development of 12.1 per cent within the second quarter.