By Daniel Hunter

Poundland's annual sales have broken the £1 billion barrier in 2014.

The budget retailer said total sales were up 11.8% to £1.1bn for the year.

Like-for-like sales, which exclude the effect of new stores, were up 2.4%. Poundland opened 60 new stores in 2014, which were credited as the driver of its sales growth.

Chief executive Jim McCarthy said: "Despite tough trading conditions, Poundland continues to perform well and we served an average of 5.3 million shoppers a week during the quarter."

The retailer also said that it "to carefully consider" a competition inquiry into its proposed takeover of the 99p Stores.