Pepco's markdown reduced by 0.8 percentage points to a historic low of 0.4 percent to sales, reflecting the initial impact of new improved processes within the supply chain, supported by new enhanced tools. The reduced markdown and flow of goods also served to reduce absolute store labour costs while preserving levels of customer service, the group said. Poundland had also successfully renegotiated 30 store leases, reducing passing rent by an average of 22 percent. Closing net debt on an IFRS16 basis was €1.248 million (R22m), up from €1.174m in the corresponding period in 2021, which Pepco said reflected strong cash Ebitda (earnings before interest, taxes, depreciation, and amortization) and working capital efficiency offsetting increased lease liabilities from a record quarter of store expansion.