Poundland drafts in former analyst Philip Dorgan as advisor as it eyes IPO

The appointment of Dorgan, who worked as a retail analyst for more than a decade and most recently with Panmure Gordon, will heighten speculation that Poundland will float next year.

During his time as a City broker Dorgan was one of the most high-profile retail analysts, and his black book of contacts is likely to stand Poundland in good stead as it ponders flotation.

At the weekend it emerged that the single price-point specialist has drafted in investment bank Rothschild to assist with a stock market listing. It is thought that the retailer may be valued at as much as £800m.

Poundland is majority-owned by private equity giant Warburg Pincus, which bought it for £200m three years ago. Last year Poundland’s profits soared 29% to £23.1m on sales ahead 15% to £880m.

Poundland’s potential listing comes as a variety of retailers ponder IPOs. Among them is Poundland’s rival B&M Bargains.

Both are chaired by former Tesco bosses – Poundland by ex-finance director Andy Higginson and B&M by former chief executive Sir Terry Leahy.

There is perceived to be a window of opportunity for retail IPOs at the moment.

Earlier this year Bargain Booze owner Conviviality Retail floated on AIM, and value fashion specialist Bonmarche intends to do the same this month.