Poundland boss to retire after decade at discount retailer

By James Davey

LONDON (Reuters) - Discount retailer Poundland (PLND.L) said on Wednesday Chief Executive Jim McCarthy was retiring after a decade in the job and be succeeded by Kevin O'Byrne, the former boss of home improvement retailer B&Q (KGF.L).

Under McCarthy, Poundland has grown from 146 stores with sales of 310 million pounds ($433 million) to a business with over 900 shops in Britain, Ireland and Spain, adding 1 billion pounds of sales.

However, sales growth has slowed, profits are expected to fall in its 2015-16 financial year and its purchase of rival 99p Stores for 55 million pounds in 2015 was problematic, raising questions over the durability of its single price model.

The firm, which sells everything at the single price point of 1 pound, said O'Byrne would join the board as chief executive designate on April 4 and become CEO on July 1.

McCarthy, 60, who led Poundland's flotation on the London Stock Exchange in March 2014, will formally step down at the company's annual shareholder meeting in September.

Poundland shares, listed at 300 pence, have slumped 53 percent over the last year. They slipped 3 percent to 176 pence at 0945 GMT, valuing the business at around 471 million pounds.

O'Byrne was finance director of electricals retailer Dixons Retail (DC.L) before joining Kingfisher (KGF.L) in 2008, serving as its finance chief before leading its B&Q and Koçtaş businesses in China, Turkey, Germany and Britain.

He left Kingfisher in May 2015, having lost out to Veronique Laury for the CEO role.

McCarthy, a former Sainsbury's (SBRY.L) executive and 43-year veteran of the retail sector, told Reuters his decision to retire was entirely his own.

"I love my job, I love Poundland and I love customers but I'm not getting any younger. I haven't spent much time over those 43 years with my family and I'm creaking a bit physically," he said.

McCarthy said he was fully involved in the recruitment of O'Byrne, describing him as an "exceptional successor".

McCarthy, who has a 3.5 percent stake in Poundland, said he would consider taking on further non-executive directorships. He is currently non-executive chairman of agricultural supplies business Wynnstay Group (WYWYN.L).

(Reporting by James Davey; editing by Jason Neely)