POUNDLAND looks set to be flogged by its current owner in the next six months.
Polish retailer Pepco Group said it plans to unload the struggling budget chain by September.
Struggling Poundland could be sold by its owner within the next six months[/caption]
It said it has received offers for the business but it is considering “all strategic options” for the 825-store chain.
The high street favourite has struggled after its owners moved away from a single price point, when everything in the store was £1.
Pepco’s move to introduce its own clothing and homeware into UK stores also failed to be a success.
AJ Bell investment director Russ Mould said: “Poundland was once the envy of retailers across the UK, attracting significant footfall and customers filling their baskets on every journey.
“Now, Poundland has come to symbolise the forgotten wasteland of UK high streets, full of copycat outlets and sandwiched between charity shops and vape stores.”
Earlier this year Pepco said it would move away from fast-moving consumer goods to concentrate on its more profitable clothing and general merchandise business in Europe.
Once it has banked the money from the Poundland sale, it plans to open 1,800 Pepco clothing and general stores in central and eastern Europe.
Turnover at Poundland hit £1.67billion last year but profits for the year are only expected to be between £41.9million and £58.6million, the company said.
Pepco said the chain was being hit by what it called “the increasingly challenging UK retail landscape”.
It also said that the UK Government’s additional tax changes announced in the Budget will add pressure to Poundland’s cost base from next month.
Former Poundland managing director Barry Williams, who took over as managing director of Pepco in September 2023, will return to his former role at Poundland ahead of a possible sale.
Pepco chief Stephan Borchert said Mr Williams “will play a pivotal role in getting Poundland back on track, given his previous success there”.
But Mr Mould warned: “Finding a buyer won’t be an easy task and any deal will likely lead to store closures and job cuts.
“Poundland needs to be slimmed down and refocused so it has a chance of getting back on top.”
BARCLAYS is expected to pay out as much as £12.5million in compensation to customers hit by system outages.
It could hand out £7.5million for January’s payday problems, plus another £5million for other incidents within the last two years.
GUTS & GLORY FOR ITV
I’M A Celebrity maker ITV’s plan to be less reliant on telly ads is paying off.
Two-thirds of its revenue came from production company ITV Studios and digital activities last year.
The business said pre-tax profits jumped by a fifth to £472million.
Underlying earnings at ITV Studios climbed 5 per cent to a record £299million.
It came as favourites such as Britain’s Got Talent and Love Island continued to draw in viewers.
The studio’s success prompted rumours of a £3billion merger with rival ALL3MEDIA, owned by investment group Redbird IMI.
That sent ITV’s share price shooting up 9.7 per cent. Boss Carolyn McCall refused to rule out a deal.
The business said it saved £60million in costs last year, £10million more than expected, with £30million cuts to come.
Advertising revenue was up by 2 per cent to £1.82billion.
Ms McCall slammed the Government’s junk food advertising ban, saying it would only make the difference of “half a Smartie”.
ENTAIN’S BETTER
PUNTERS betting on the Grand National and the Super Bowl have helped boost earnings at Coral and Ladbrokes owner Entain.
It made £1.1billion profit in 2024, up 12 per cent.
The firm, which also owns Foxy Bingo, Gala and PartyCasino, was hit with a £585million penalty in 2023 for bribery offences.
It also lost customers that year as new UK gambling laws to protect vulnerable customers came into force.
It recovered with net gaming revenues rising by a fifth in the last three months.
PROFITS RECKED
STREPSILS and Dettol-maker Reckitt Benckiser saw profits slump 4.2 per cent to £2.4million last year.
Reckitt plans to flog its Essential Home arm — which makes Cillit Bang.
It may also sell Mead Johnson Nutrition, which paid £47million after a mum said its Enfamil formula caused her baby’s death.
Boss Kris Licht said: “We’re reshaping Reckitt into a more efficient, world-class consumer health and hygiene company.”
Shares hit a ten-year low last April, but they have since climbed 28 per cent.
ABV PLEA OVER ‘NO ALCOHOL’
BREWERS have urged the Government to change alcohol description rules to help British beer firms sell more “no-alcohol” beers.
The British Beer and Pub Association pointed out that some supermarket staples, such as bread and fruit, have more alcohol than the current limit for no-alcohol beers.
And the association said the rules put overseas brewers an unfair advantage.
European and international no-alcohol beers are allowed to be 0.5 per cent ABV but in the UK an alcohol-free beer must be below 0.05 per cent.
BBPA chief Emma McClarkin said: “British brewers want to create more no/low options and cater to booming demand but are at a distinct disadvantage when compared to international neighbours.”
She said changing current “highly restrictive” ABV thresholds would help brewers create more products.
ADMIRAL CHARGES
PROFITS at insurance giant Admiral almost doubled last year after cutting prices helped boost its UK customers by a fifth to 8.8million.
Pre-tax earnings soared by 90 per cent to £839.2million.
Boss Milena Mondini de Focatiis said: “The main driver of our exceptional performance was our UK motor business.”
More than 13,000 staff are set to be handed free shares worth up to £3,600. Shares in the firm climbed 4 per cent.
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