Sales at Phones 4u rose 11% to £975.8m in the last year.

The mobile phone retailer recorded a 3% fall in EBITDA in 2011 in a “highly competitive market”.

Phones 4U said increased profitability from growth in its store network was offset by higher claims costs in the group’s mobile phone insurance business

Phones 4u opened 84 new stores opened during the year taking the total to 586. The retailer was acquired by BC Partners in April.

Chief executive Tim Whiting said that the retailer achieved “momentum” in 2011 which has carried on in 2012.  

The phone retailer said its in-store partnership with Dixons is expanding with 42 new store-in-store units opened during the year taking the end of year total to 93.

Group chief executive Tim Whiting said: “By focusing on our customers and their needs we have maintained good momentum in the marketplace and we have increased our connection volumes which has driven a significant improvement in market share.

“This increase has delivered us strong growth, which is particularly pleasing as it has been achieved in a highly competitive market.”

He added: “Whilst this strong growth has led to margin improvement in our store network, it has been offset by an increase in claims costs in our insurance business which is principally due to a higher proportion of smartphones in the market.”