Poundland has shrugged off economic gloom on the high street by reporting bumper full-year profits.

Operating profit for the year to 31 March rose 122% to £8m from £3.6m a year ago, while EBITDA rose 43% to £15.7m from £11m.

Without revealing figures, the value retailer said like-for-like growth had been strong in all four quarters as more shoppers from the highest AB demographic group visited its stores.

“In the current economic climate, Poundland¹s unique single-price strategy is providing even greater value to our loyal and expanding customer base,” said chief executive officer Jim McCarthy.

“We are perfectly positioned to take advantage of customers¹ flight to value,” he added. “Recently we have seen a significant 20% year-on-year increase in the number of AB shoppers.”