Pre-tax profits at value retailer Matalan rose 8.5 per cent to £28.1 million in the 52 weeks to February 24.

Revenues fell 2.6 per cent to£1.03 billion and gross profit was flat at£114.2 million.

The results include Matalan’s first two months under private ownership after founder John Hargreaves bought back the business in December last year in a deal worth£187 million.

The retailer, which earlier this year rebuffed speculation that it was heading for a financial crunch and said it had paid back£47 million of debt ahead of schedule, said it was still ahead of delivering its plan.

Matalan chief executive Alistair McGeorge said costs and cash flow are “under far better control” and the retailer has invested “significantly” in its stores.

The retailer has overhauled 13 stores and opened 11 new-format stores, which are delivering strong like-for-like growth according to McGeorge.

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