Home Bargains has recorded a spike in full-year profits as it plots an aggressive store expansion drive.

The retailer, which is owned by TJ Morris, posted a 20% surge in pre-tax profit to £202.7m in the year to June 30, bolstered by a 15% increase in revenue to £2.1bn.

The retailer said its sales increase was driven by new store openings as well as improved like-for-likes.

The value chain ended the financial period with a 480-strong store estate, a number which it plans to increase to over 500 in its current financial year.

Home Bargains said it “intends to eventually have between 800 and 1,000 retail outlets open” in documents filed at Companies House.

Founder Tom Morris is understood to have received a £1m pay day for the financial period.

The value retailer has 17,000 staff, making it the largest employer in Merseyside.