By Jonathan Davies

Poundland has reported a 12% rise in its half-year profits.

The discount retailer posted profits of £9.3m in the first half of its financial year. Like-for-like sales were up 4.7%.

The rise in profits come despite some one-off costs including £1.2m on a new distribution centre and launching new stores in Spain.

Poundland's improvement come at a time when discount retailers are growing in popularity, particularly in the grocery market. Aldi and Lidl have seen sales increase by 26% and 17% respectively in the third quarter.

Chief executive Jim McCarthy he is "confident of further progress" but stressed that Poundland's success in this financial year hinges on its performance over Christmas.

"In addition to strong trading in the UK, our international expansion plans are well underway with three multi-price Dealz stores now open and trading well in Spain," he added.

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