Poundland underlying EBITDA surged 34% to £31.7m in the year to March 27 as the retailer continues to pull in cash strapped shoppers in the downturn.

Turnover grew 25.8% to £642m as the retailer extended its store base, opening 64 shops in the period, taking its portfolio to 327.

The value retailer said it has a “strong new store pipeline” and is targeting more than 50 new stores in the current financial year.

Poundland will also expand into Europe with the opening of six “Dealz” stores in the Republic of Ireland, and its owner Warburg Pincus is reportedly in talks to buy the retailer’s Nordic counterpart Europris for between €400m and €500m (£345m to £430m).

Chief Executive Jim McCarthy said: “Poundland offers amazing value to customers every day.  We continue to modify and expand our product range to ensure our offer meets customer requirements.  

Our latest results show we are continuing to offer consumers the products they want at the amazing fixed price of just £1. 

 “It is clear that the challenging economic climate is set to continue for some time yet and that an increasing number of consumers will continue to seek exceptional value for money. 

“Poundland is perfectly positioned to serve the needs of consumers who place value for money at the heart of their purchasing decisions.”