Poundland has reported underlying pre-tax profits up 34.2% to £12.6m in its interim results as it ploughs ahead with its expansion plans.

Poundland's profits have risen

For the 26 weeks to September 28, total sales were up 15% to £528.2m and like-for-like sales were up 4.7%. Underlying EBITDA was up 17.5% to £20.7m.

In the period, Poundland opened 28 new stores, taking its estate to 556. It will open 60 new stores in the full 2015 year.

The first Dealz store opened in Spain and it now has three in the country, with a target of 10 by the end of the 2016 financial year.

Poundland also opened a 350,000 sq ft warehouse in Harlow to replace a temporary shed at Hoddesdon.

Jim McCarthy, chief executive of Poundland, said:

“I am pleased to report further growth in both sales and profits in the first half of the year. In addition to strong trading in the UK, our international expansion plans are well underway with three multi-price Dealz stores now open and trading well in Spain.

“As the structural changes in UK retail continue to redraw the landscape, we are building our reputation for offering amazing value every day to our customers and substantially broadening our appeal.

“While our full-year outcome, as always, is dependent on delivering a good Christmas for our customers, I remain confident of further progress throughout the year.”

Poundland profits up over 30% as it continues expansion