Poundworld, the Yorkshire-based single-price retailer, reported a 40% surge in sales in its last financial year owing to new store openings and the VAT reduction.

The chain, which has more than 90 stores, reported turnover rose from £67m to £93m over the year to March 31, although pre-tax profits fell from £1.4m to £1.2m due to increased supply chain costs.

It opened 16 stores over the year and plans to open a further 37 by the end of the next financial year.

In documents filed at Companies House, Poundworld reported a “promising start” to the new financial year and said improved profit margins and turnover would help it to continue its strong performance.