Poundland piles on the profits

The firm – which sells everything for 1 – said like-for-like sales were up 2.1 per cent in the year to 29 March, while operating profits rose to 11.8 million from 8m the previous year.

Poundland opened 41 stores in the 12-month period and said it plans to continue at a similar rate, with the total estate forecast to reach 250 outlets this year.

The company, which is based in Willenhall, West Midlands, employs 6,500 staff and currently has 212 stores nationwide. The firm expects the expansion to create 1,200 posts.

Chief executive Jim McCarthy said the firm had also stepped in following the collapse of high street rival Woolworths.

"We have also helped to mitigate some of the Woolworth closures this year, taking on 150 former Woolworth staff, and plan to open a significant number of ex-Woolworths retail units during the coming year," McCarthy said.

"Consumers are having a tough time at the moment. Having a single price strategy is a big benefit, as it means they can budget easily as they shop."

He said the chain was adding top brands including Maxwell House, Kellogg's, Heinz, Pampers and Mr Muscle.

"We will continue to add to these fantastic lines, offering amazing value at 1," he added.

Poundland opened its first store in Burton-upon-Trent in December 1990. It has been owned by private equity firm Advent International since 2002.