Poundland confirms flotation plans
Poundland, the Willenhall-based £1-for-everything chain, has finally gone public with its plans to float on the London Stock Exchange.
It follows intense speculation at the weekend, but today's announcement offers no clues on share price or valuation. However, it is understood Poundland is aiming to launch itself on the stock market some time in March.
It has been suggested the company aims to raise £300 million to £400 million to fund expansion, valuing the business at around £700m.
At the same time it unveiled new recruits to its boardroom, including former Carpetright boss Darren Shapland, Merlin Entertainment's Italian HR director Tea Colaianni, former Travelodge chief Grant Hearn and Trevor Bond, one-time UK boss of Cadbury and now chief customer officer of Mondelez, the former sweets and snacks arm of Kraft which bought Cadbury in 2010 for £11.9bn.
Close links between Mondelez and Poundland have seen many of its brands on sale in the budget chain's stores in special £1 packs.
Founded by former Willenhall market trader Steve Smith, Poundland opened its first store in 1990. He later sold the business for £50 million, while Poundland has gone on to become the largest single price value general merchandise retailer in Europe by both sales and number of stores.
With more than 500 stores, the company aims to expand to 1,000 including more stores overseas. It successfully launched in Ireland in 2011 under the Dealz brand, selling most of its products for 1.49 euros and now plans to open 10 Dealz stores in Spain over the next two years.
Poundland chief executive Jim McCarthy said today: "The value retail sector has been through a period of profound change in scale, customer perception and financial performance. The sector is now a mainstream feature of the UK retail market and Poundland has been a central architect of that change. Our single price point and our amazing value are appealing to an increasingly broad section of shoppers with 22% of our UK customers now coming from the AB demographic.
"We have built a track record of delivering strong, profitable growth and I believe we have many more opportunities ahead, underpinned by our trusted brand, strong supplier relationships, differentiated value proposition and our well-invested and scalable infrastructure. Our success in Ireland - where we trade under the Dealz fascia - demonstrates that we have the capability to generate positive financial returns in new geographies quickly and underlines the potential in the business for further international growth in addition to our plans for continued rapid growth in the UK."
Company chairman Andy Higginson added: "I am delighted to welcome Darren, Trevor, Tea and Grant to the board. 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."
Based at its headquarters in Willenhall, beside the Black Country Route, the company also has a major distribution warehouse in Bilston and employs more than 700 people across the two sites.
