Pepkor Europe’s sales rose over the last quarter, with growth driven by Pepco and Poundland sales broadly flat.

Pepco sales rocketed 36.7% to €477m, with store numbers up 20.6% to 1,569 in its first quarter, the three months to December 29, 2018.

Poundland sales nudged up 0.6% to €516m, with stores up 0.2% to 882. Overall, group revenues rose 14.6%.

The group said it was pleased with the performance at both divisions given challenging comparatives and the weak UK consumer environment.

More than a third of Poundland stores, around 300, now feature clothing shop-in-shops, which the business said was responsible for driving growth.

In Europe, the Dealz fascia “continued to develop very positively” with the group now opening 35 new stores over the full year based on confidence from initial trading.

Pepkor Europe chief executive Andy Bond said: “A further quarter of strong revenue growth in each of the group’s brands is a reflection of our clear growth strategy, centred currently on Pepco, an unwavering focus on execution and our market-leading positions within a core discount retail segment that’s increasingly attractive to a wide range of customers.

“With a clear strategy in place and a strong financial base we remain excited about our prospects for continued growth across Europe in the balance of the financial year and beyond.”