Iceland is on track to post its best profits to date this year, driven by soaring sales and delivery of greater efficiencies.

Speaking exclusively to Retail Week at Iceland’s store managers’ conference at Euro Disney Paris this week, Iceland managing director Andy Pritchard said: “This continued sales growth combined with tight cost and margin control has resulted in Iceland being more profitable now than it has ever been.”

For the year to the end of March, the 680-store chain is confident of beating its record pre-tax net profits of£73 million achieved in 1995, when it had 100 more stores. It is understood that the retailer also expects to post a substantial improvement on the£95 million EBITDA it delivered in March.

Chief executive Malcolm Walker said like-for-like sales are up by more than 10 per cent since the end of March, following 15 per cent growth last year.

This week, Iceland gave its store managers a£1,000 pay increase, taking the average salary to£30,000. Walker said he wanted to raise the average to£35,000 by April 2009.

Iceland is to sponsor reality TV show I’m a Celebrity, Get Me Out of Here for the second year running, with former Neighbours actor Jason Donovan appearing alongside Iceland regular Kerry Katona.

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