Poundland accelerates flotation plans
Poundland, the £1 for everything chain, is accelerating its plans to float on the stock market, according to reports.
The Willenhall-based stores group is expected to send out letters this week engaging the services of advisers to lead the float, which is expected to value the business at up to £800 million when its shares go on sale early next year.
Credit Suisse, JP Morgan, Rothschild, and Shore Capital are all believed to be on the list of potential advisers.
It is understood that Warburg Pincus, the private equity group that owns Poundland, is aiming to raise £200m-£300m from the float, which would value the chain at between £700m and £800m.
The extra finance would help fund the expansion of Poundlands stores both in the UK and into Europe, where it will trade under the Dealz brand already launched in Ireland.
Poundland has continued to grow despite tough times on the high street in recent years, as more middle class shoppers go hunting for bargains.
The company is opening its 500th store this year and chief executive Jim McCarthy says he is aiming to double that to 1,000 branches in the UK.
The most successful single-price store chain on the UK high street, it made £23.1 million profit on sales of £880 million in its last financial year as it opened another 69 stores and created 1,700 jobs.
It has a 12,000-strong workforce, with around 750 at its headquarters in Willenhall, beside the Black Country Route, and at its distribution depot at Bilston.
It is also recruiting 2,500 temporary staff for Christmas - 25 per cent more than last year - as it prepares for a festive trading surge.
Poundland would be joining a growing list of firms aiming to list on the stock market, following the successful flotation of Royal Mail, Bargain Booze owner Conviviality Retail and budget fashion chain Bonmarche.
