Poundland, Europe's largest single-price discount retailer, said it expected to meet full-year profit expectations as a rise in fourth quarter sales took annual revenue over the £1 billion mark for the first time.
Poundland trades from 547 UK stores, as well as 41 in Ireland under the Dealz brand. It is also running a trial in Spain.
The company said sales in the 13 weeks to March 29 grew 7.1% at constant currency rates compared to growth of 10.2% in its third quarter.
For the 12 months total revenue, excluding Spain, grew 11.8% at constant currency rates to just over £1.1 billion, the firm said, and rose 2.4% on a same store comparison.
With recession-era shopping habits entrenched, discount retailers, both in general merchandise and food, are taking sales from the main supermarket groups.
Poundland said it had opened 60 net new stores in the UK and Ireland and had a strong pipeline of openings for the new year.
Last week the group learned it would likely have to sell some stores to avoid its proposed £55m takeover ofsmaller rival 99p Stores being referred for an in-depth investigation by British competition regulators.
Britain's Competition and Markets Authority said the deal, which would add 251 stores to Poundland's estate, could result in a substantial cut to competition and would face a further probe unless acceptable undertakings were offered by April 16.
