Value fashion and homewares retailer Matalan has posted a 30% increase in annual profits.

The retailer notched up operating profit before exceptionals of £132.9m in the year to February 27. Like-for-like sales advanced 6.7% in the period, when total revenues rose 8% to £1.12bn.

The 205-store retailer plans as many as 100 more shops over the next few years and will improve its etail offer.

Chief executive Alistair McGeorge said: “This has been an exciting year for us, delivering very strong sales growth in what remains a challenging market.

“We remain convinced of the continuing relevance of Matalan’s offer to consumers and have recommenced our store opening programme and increased our investment in our online business to reach out to new customers.”

Matalan founder John Hargreaves attempted unsuccessfully to sell the retailer last year. A £525m refinancing package was subsequently put in place to fund growth and pay Hargreaves a £250m dividend.