Dealz to open 20 new shops in Ireland but profits plunge at parent Poundland
Published 16/06/2016 | 08:36
Discount retailer and owner of Dealz is to open 20 new stores in Ireland in the coming year.
Its owner Poundland said that 300,000 Irish customers visit shops every week.
The retailer is opening 20 to 30 net new stores “primarily in the Republic of Ireland and in retail parks” - it already has 53 shops here.
Poundland is subject to a possible takeover bid from South Africa's Steinhoff, and today reported a 13.5pc fall in underlying full-year profit.
Europe's biggest single price discounter said it was hurt by subdued trading, adverse currency moves and the distraction of integrating the 99p Stores chain it bought last year.
Steinhoff has bought 23 percent of Poundland and is considering a full cash bid. Poundland has told shareholders to take no action.
Under British takeover rules, Steinhoff has until July 13 to announce a firm intention to bid for all of Poundland.
The retailer, which in the UK sells everything for a pound, made an underlying pretax profit of 37.8 million pounds in the year to March 27.
That was below analysts' forecasts which ranged from 39.9 million pounds to 51.8 million pounds and was down from 43.7 million pounds in 2014-15.
Underlying sales increased 9.3 percent to 1.21 billion, while, sales at stores open over a year fell 3.9 percent.
Poundland completed the 55 million pounds purchase of the 251-outlet 99p Stores chain in September and has since converted the entire estate to the Poundland format.
Poundland said underlying sales in the 11 weeks to June 11 increased 28.6 percent.
Thursday's results are the last to be presented by Jim McCarthy, Poundland's chief executive for the past decade. He retires next month and will be succeeded by former Kingfisher executive Jim McCarthy.
Shares in Poundland closed Wednesday at 200 pence, valuing the business at 534 million pounds.