Poundland reports 12% rise in profits

Poundland has reported a 12% increase in half-year profits to £9.3m.

The company had some hefty one-off charges during the first-half, including £1.2m related to a new distribution centre and costs to launch pilot stores in Spain.

First-half like-for-like sales, which strip out new stores, rose 4.7%.

Chief executive Jim McCarthy said that success this year depends on trading over Christmas but is "confident of further progress".

"In addition to strong trading in the UK, our international expansion plans are well underway with three multi-price Dealz stores now open and trading well in Spain," he said.

Poundland's positive results come as discount retailers grow in popularity in the UK.

Cut-price supermarkets Aldi and Lidl have seen their sales increase by 26% and 17% in the third quarter.

Poundland launched its first celebrity-endorsed product range, Jane Asher's Kitchen, this year.

The company has plans to expand further in Spain under the brand name Dealz.

Poundland says they are on track to open ten Dealz stores in Spain by the end of the 2016 financial year.

They currently have four, including one in Madrid.