Poundland shares jump after investors cheer dividend as profits soar

Sales jumped 15% to £528.2 million in the six months to end of September with pre-tax profits soaring 11.7% to £9.3 million.

(PA)

Poundland, which sells all its products at the single price of £1, posted a 34 per cent rise in first-half profit and said it will pay a maiden dividend to investors.

The firm, which listed on the London Stock Exchange in March, made a profit before tax and one off items of £12.6 million pounds in the six months to 28 September. It is paying an interim dividend of 1.5 pence a share.

Poundland said that while its full-year outcome was inevitably dependent on its Christmas performance it was confident of further progress in the balance of the year.

Sales jumped 15 per cent to £528.2 million in the six months to end of September with pre-tax profits soaring 11.7 per cent to £9.3 million.

Chief executive Jim McCarthy revealed: “We take 60 per cent of our profits in Q3, over Christmas, and that’s why we call it the Golden Quarter. All signs suggest it will be a good one.”

The retailer also announced it will open around 60 new stores across the UK and Ireland over the next year, creating 2000 jobs, while its Spanish venture continues to grow successfully.

Its overseas stores, called Dealz, have different price points but McCarthy insisted Poundland’s single price point would remain.

He said discounters were a permanent feature of the high street, adding: “The discounters are performing strongly in the sector. Aldi and Lidl are doing well.”