Pepco Group expects exit of Poundland by September
Pepco Group has said it is continuing to explore a sale of Poundland with the exit expected by the end of the group’s current financial year in September.
In its interim results statement, the group said its revenue increased by 4.3% in the six months to 31 March after its Pepco and Dealz businesses delivered growth of 9.3% and 13.8% respectively.
This offset weakness at Poundland where revenue declined by 6.5%.
Stephan Borchert, Pepco Group chief executive, said: “The Pepco brand continues to make good progress, delivering solid high single-digit revenue growth in H1 and a continued positive like-for-like sales trajectory.”
Never Miss a Retail Update!He added: “Our core focus remains on Pepco as the single future format – and driving force – of the group.”
Giving an update on more recent trading, the group said Pepco and Dealz positive performance has continued into the current quarter.
However, it now expects Poundland to deliver underlying FY25 EBITDA of around €0 million to €20 million compared to previous guidance of €50 million to €70 million. The group said this was a result of “highly challenging” trading conditions, which have been further impacted by clearance of old stock and product availability issues.
Borchert said: “At Poundland, trading remains challenging, which is reflected in a profit outturn below expectations for H1 and a weaker outlook for the full year.
“Barry Williams, who was re-appointed as Poundland managing director in March 2025, and his team are actively driving a recovery plan to help turn around the business by refocusing on its traditional core strengths.
“We continue to undertake a process to separate Poundland from the Group, as part of a wider strategy shift away from FMCG, with a divesture expected before the end of FY25.”
Earlier this week, it was reported that Gordon Brothers had emerged as a frontrunner to take control of the discount chain.
