Value variety retailer Poundworld has suffered a mammoth fall in profit after incurring £10.8m of exceptional costs - most relating to property.

Full-year pre-tax losses came in at £17.1m compared with a £5.4m loss the previous year, according to the latest accounts posted at Companies House. The TPG Capital-owned retailer’s turnover climbed 5.6% from £462.7m to £488.9m for the year ended 31 March 2017.

Poundworld opened 36 new shops during the period. It closed five outlets that traded under licence, leaving a total of 355 stores by the end of its financial year.

The strategic report stated that the company was looking to open “a substantial” number of stores in each of the next three years.

Poundworld said it remained highly cost-conscious but had made significant investments for future growth, including on senior management, logistics and IT systems.

It said the devaluation of the pound against the US dollar had made certain products more expensive in local currency terms, while the risk of further currency fluctuation remained.

The business was managing the risk by entering into hedging contracts that fixed the purchase price of a proportion of its goods for the next 12 months.

It was also continually working to diversify its supply chain to help mitigate potential cost inflation.

During the period, Poundworld commissioned the construction of a new purpose-built 500,000 sq ft distribution centre in Normanton, West Yorkshire, which was now fully operational. This had delivered efficiency throughout its supply chain, the company said.