Advent plans to put Poundland up for sale

Pound stores proved resilient during the recession and were boosted by the demise of Woolworths, taking around £60m (€66.1m) in sales from the failed retailer in 2009, the report said.

In a sign that consumers started bargain hunting in the harsh economic climate, the company’s turnover reportedly increased from £329m (€362.3m) to £396m (€435.9m) in the year to March 2009 and is expected to be more than £500m this year. Pre-tax profits more than doubled from £4.2m (€4.6m) to £8.6m (€9.5m).

Advent bought Poundland for around £50m (€55m) in 2002 and was rumoured to be looking at an IPO this year.

The discount chain was established in 1990 and has 254 stores, making it the UK market leader, and will open a further 50 next year.

The company could be valued at about £200m (€220m) - ten times its earnings before interest, tax, depreciation and amortisation, which increased 27 per cent to £20m in the year to March 2009.

Discount retailer Matalan drew interest from private equity bidders including Advent at the end of last year, but the £1.5bn (€1.65bn) asking price is said to have been to steep for any deal to close.

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