CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Poundland eyeing 99p Stores purchase

Article By: ,  Financial Analyst
February 9, 2015 10:26 AM

Budget retailer Poundland is eyeing significant expansion by confirming it is interested in buying 99p Stores.

The company explained that it has reached an agreement with its rival which will see the signing of a conditional deal for £47.5 million in cash and £7.5 million in shares. Poundland is hoping to complete the acquisition in the coming weeks but it still needs to gain approval from competition authorities.

Should Poundland be given the green light it will see it continue its goal of creating a 1,000-strong chain of stores across the UK. Under the agreement, all 99p Stores will be rebranded as Poundland and will help to build on the company's portfolio of around 600 outlets nationwide.

Jim McCarthy, Poundland chief executive, said: "People are ever-more price conscious, shopping around for bargains. Through working together, Poundland will improve choice, value and service for 99p Stores’ customers, bringing Poundland’s proven knowhow and range to 99p Stores."

Rise in the discount store

Consumers across the UK are becoming savvier than ever before when it comes to shopping. This has had a major knock-on effect in the retail world with companies like Poundland coming to the fore. In the supermarket sector, traditional names such as Tesco, Asda, Sainsbury's and Morrisons have all come under increased pressure due to the rise of discounters Aldi and Lidl.

It has allowed the likes of Poundland to grow in confidence. The company floated on the stock exchange in March 2014 at 300p per share. A 12 per cent boost in profits announced on Friday (February 6th) led to a spike in share price which soared by 15.4 per cent at close of trading last week, valuing the company at £970 million.

Poundland first launched in 1990 and has enjoyed considerable growth in the UK, Ireland and Spain. It has already outlined plans to open 16 new shops in the coming year.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024