Quids in: Poundland share price up 5% as sales rise 18%

Relief for investors as the ever-expanding retailer heads to Spain.

by Emma Haslett
Last Updated: 06 Feb 2015

Anyone with half an eye on the IPO market will have noticed that while prices have been decidedly frothy, investor demand hasn't always met companies' optimistic ambitions.

Poundland, though, was one of the few IPO successes of the past few months: when it floated in March, shares jumped 17% more or less immediately.

Naturally, new shareholders will have anxiously watched the stock market for its first post-IPO quarterly results this morning. They weren't disappointed: sales rose 18% to £262.6m in the three months to the end of June, up from an 11.4% rise to £222.6m during the same quarter last year. Although it's worth noting that in full year results posted in March, profits fell 19% to £21.5m

The company opened 9 new stores in the UK (down from 17 last year) during the quarter. At the moment it has 500 and is ultimately aiming for 1,000, although CEO Jim McCarthy said on this morning's Today programme that 'our research shows we could have 1,400'. Just imagine...

The other good news for Poundland fans is that its first Spanish store opened yesterday in the exotic climes of Torremolinos. 'How many Spanish people will actually shop there?' asked John Humphrys. 'Er, it'll be a mix,' admitted McCarthy. Marmite for a quid while you're on holiday? Finally, globalisation is working for us...

Finance Retail

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