Poundland has officially confirmed its intention to float on the London Stock Exchange.

Poundland said it intends to apply for admission of its shares to the premium listing on the Official List. It expects to list in March.

Poundland chief executive Jim McCarthy said: “The value retail sector has been through a period of profound change in scale, customer perception and financial performance. 

“The sector is now a mainstream feature of the UK retail market and Poundland has been a central architect of that change. Our single price point and our amazing value are appealing to an increasingly broad section of shoppers with 22% of our UK customers now coming from the AB demographic. 

“We have built a track record of delivering strong, profitable growth and I believe we have many more opportunities ahead, underpinned by our trusted brand, strong supplier relationships, differentiated value proposition and our well-invested and scalable infrastructure.”

The single-price retailer has more than 500 UK stores and big growth plans over the coming years. Poundland aims to double the store estate to 1,000 in this country and to launch a transactional website. Poundland also intends to open on the Continent and a trial of up to 10 Dealz stores in Spain is planned - they will open over the next two years.

“Our success in Ireland - where we trade under the Dealz fascia - demonstrates that we have the capability to generate positive financial returns in new geographies quickly and underlines the potential in the business for further international growth in addition to our plans for continued rapid growth in the UK,” McCarthy said.

Poundland has also bolstered its board for the float. It has hired the group HR director of Merlin Entertainments, Tea Colaianni, and former Travelodge boss Grant Hearn as independent non-executive directors. Poundland also confirmed yesterday’s reports that former Carpetright boss Darren Shapland and Mondelez exective Trevor Bond have also joined the board.

Poundland chairman Andy Higginson said: “That Poundland has attracted non-executive directors of their calibre is a testament to the strength of the business. Their combined experience and retail insight will be invaluable. I believe we now have an excellent board to take the company into its next phase as a public company.”

Poundland becomes the third retailer to launch an IPO, following c-store group McColls and online electrical appliances specialist Ao.com.

Poundland presses button on Stock Exchange flotation