Credit crunch-hit bargain-hunters have helped discounter Poundland report bumper full-year profits.

Operating profit rose 122% from £3.6m to £8m in the year to 31 March, while EBITDA rose 43% from £11m to £15.7m. Without revealing sales figures, the value retailer said like-for-like growth had been strong in all four quarters as more shoppers from the AB demographic group visited stores.

“In the current economic climate Poundland’s unique single price strategy is providing even greater value to our loyal and expanding customer base,” said chief executive Jim McCarthy. “We are perfectly positioned to take advantage of customers’ flight to value,” he added. “Recently we have seen a 20% year-on-year increase in the number of AB shoppers.”

Poundland opened 14 new stores during the period and now has an estate of 188 across the UK.

“We will continue to grow our estate significantly during the 2008/09 financial year,” added McCarthy. “We have already opened 20 new stores so far this financial year, with a further 10 to be added before Christmas.”

The retailer opened stores last month in Reading, Sutton Coldfield and Feltham, Middlesex.