Poundland has announced its intention to float on the London Stock Exchange. The retailer first opened in 1990 and operates over 500 stores across the UK and Ireland.
It is among the discount stores that have been doing battle with established grocers like Sainsbury’s, Morrisons and Tesco, as squeezed household incomes see shoppers go after the cheapest prices.
Poundland is 76% owned by US equity institution Warburg Pincus, which acquired the retailer in 2010, while the balance is held by management, including chief executive Jim McCarthy.
Poundland’s revenue for the nine months ended December 31 was £750m while underlying earnings were £45m.
The group expanded into Ireland under the name Dealz in 2011 in what is described as a “low cost, low risk” expansion strategy. Dealz has been profitable since its first year.
Joining the board as non executive directors are Darren Shapland, Trevor Bond, Tea Colaianni and Grant Hearn.
The chief executive, Jim McCarthy, commented:
“That Poundland has attracted Non-Executive Directors of their calibre is a testament to the strength of the business. Their combined experience and retail insight will be invaluable to the Board. I believe we now have an excellent Board to take the Company into its next phase as a public company.”
At first shares will be offered to institutional investors and Poundland is expected to be valued between £700m and £800m.
This year we’re expecting to see a whole host of retailers joining the London Stock Exchange as hopes of an economy recovery cheer consumer confidence.
