Value retailer Home Bargains plans further growth after pre-tax profit rocketed 42% to £84.2m last year.

The variety chain delivered a 27% surge in turnover to £915m for the year to June 30 due to new store openings and further store growth is planned. The sales increase was also boosted by relocating some stores and like-for-like growth in existing stores.

The company said operating profit rose to £84m from £50m in the period, in documents filed at Companies House under its registered TJ Morris name.

Home Bargains said: “Further additions to retail outlets are planned during 2013 which should show further growth in turnover and profitability.”

The retailer has previously stated it wants to have opened 350 stores by June 2014.

Shore Capital analyst Clive Black said Home Bargains will hit £1bn turnover by 2014.

In a report on the value sector released in August, Black said: “This is a business of considerable robustness. Far from mature, TJ Morris is a prized retail asset and business and we suggest alongside B&M Stores and Poundland to be the most high quality businesses in the sub-sector.”

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