Updates

Poundland

September 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Poundland announced a strong update for the year ended 30 March. Full year sales grew 13% to Â£998m while pretax profit increased 23.5% to Â£36.8m (Shore Capital forecasts: Â£35.5m) delivering 25% increase in eps to 10.9p. Gross margins rose 0.19% to 36.9% benefiting from growing buying power, increased numbers of larger stores in retail parks to 85 (from 35) and store mix migrating to the higher margin Dealz range. It opened 70 stores in the year. Year end net debt was Â£4.7m, lower than Shoreâ€™s forecast of Â£13.3m, leaving net debt / ebitda of less than 0.1 times. Separately, Poundland also announced its first quarter update with sales rising 18% to Â£262.6m. This was put down to â€œits every day good value,â€ the late Easter, ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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