Poundstretcher owner Instore has enjoyed an uplift in trade with the sunny weather but warned that the positive trend does not yet signal a turnaround for the retailer.

In an interim management statement this morning, Instore said its gardening and outdoor living ranges performed well in the UK, but margins have come under pressure as it strives to maintain its competitive edge.

The retailer, which also operates the Instore chain, expects margin pressure to continue for the coming months.

The retailer said: “Although welcoming this recent positive sales trend, the board does not regard this as indicative of a turnaround in the company’s overall situation and believes that it will be some time before the effectiveness of the actions taken to address fundamental issues within the business can be judged with reasonable certainty.”