UPDATE: Pepco Group management board still reviewing options for Poundland spin-off

"Having considered a number of options, the group is actively exploring options to exit the Poundland business. This process is progressing and further information on this will be provided in due course. The group expects the separation of Poundland from the group to be completed in the current financial year," the filing said.

In March, the group announced that it was actively considering all strategic options to separate Poundland from the group in the 2025 financial year, including a potential sale.

The rationale behind this decision was the group's aim to move away from selling the fast-moving consumer goods (FMCG) category and ultimately operate under a single Pepco format, focused on our higher-margin Pepco-branded clothing and everyday products.

"In terms of first half of the financial year 2025 results, Poundland's financial performance remains weakened, reflecting continued weak LFL sales performance (-7.3 percent). The sell-off of slow-moving, older ranges limited sales at regular prices in the first half of the year. The company continues to face problems with the assortment sourced by Pepco," it added.

A targeted programme to rebuild key categories, including a simplified FMCG offering and the reintroduction of a classic general merchandise line, is currently being implemented to fill these gaps, it said. In addition, the simplified offer being tested - focusing on key price tiers and lower prices - is showing promising results in rebuilding Poundland's competitive advantage.

In the first half of the year, there was a net of 18 Poundland shop closures (with 2 new openings), meaning that there are now 818 of the chain's shops in the UK and Ireland.

doa/ nl/