Stocks and Shares - Poundland Profits Surge 47%
Can you buy shares in Poundland , the shop where every item costs £1 ? Well, the chain is wholly-owned by Advent International. And given that Advent International is a private equity company, then unfortunately the answer is 'no', which is a pity as Poundland has just posted a 47% increase in operating profits ifor the year ending 29 March 2009.
It also opened 41 new stores over the past year (it now has 212 stores), and saw operating profit increase from £8m to £11.8m. Like-for-like sales rose by 2.2% and CEO Jim McCartney says they want to increase the total number of stores to 250 by the end of 2010.
The closure of Woolworths also undoubtedly helped Poundland.
McCartney also said that Poundland would continue its policy of adding branded products such as Kellogg's, Heinz, and Pampers. Selling brands such as Johnson's baby powder an Toblerone (who eats that stuff !) was a key factor which encourages people to use Poundland. Once in the shop people buy other stuff too - over 40% of its sales are impulse buys.
Jim McCarthy, chief executive, said: “There’s so much to do yet in the UK. As we get further down the track, which will be several years I assume, then we can turn our attention to opportunities elsewhere.
“Continental Europe is probably the place to go, particularly countries like Germany which have a very high retail sale content from discount.”
If you are looking for stocks and shares that may help you profit from the recession then you could take a look at pawnbrokers Albemarle and Bond (ABM) - they have been tipped in the past by newspaper share tipsters and financial experts.
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