Poundworld has posted a rise in annual pre-tax profit after two consecutive years of falling profits owing to investment in the business.

The single-price-point retailer recorded pre-tax profit of up to £5m in the year to March 2014 against a £1.9m pre-tax profit the previous year, while it posted a 31% jump in operating profits before exceptionals to £6.2m. EBITDA surged 16% to £11.9m.

Poundworld’s turnover advanced 18% to £345.3m, while like-for-like sales jumped 2.6%.

Poundworld said that since year-end like-for-like growth has accelerated and in the three months to June 30, it recorded more than 10% like-for-like growth.

Poundworld Retail founder and chief executive Chris Edwards said: “Approaching our 40th anniversary, we’re extremely pleased with the positive progress that Poundworld has made in the past financial year.

“It’s been a year of significant developments for the company that will help us to meet the strong consumer appetite for our value goods and attractive single-priced proposition. As a result we are in a strong position to build on the growth achieved and fully expect profits for the coming year to comfortably exceed those announced today.”

Poundworld opened 32 new stores in the year, totalling 242. It also rebranded its multiprice format stores from Discount UK to Bargain Buys. Poundworld plans to open 150 stores in the next three years after it secured funding from Santander Corporate & Commercial. The money will also be used to boost its warehouse, distribution capability and overseas supply chain.

Poundworld reveals its financials days after newly-floated rival Poundland revealed underlying pre-tax profits jumped 23.5% to £36.8m in the year to March 30.