Poundland wants to buy competitor 99p Stores Getty

Budget retailer Poundland announced it broke through the £1bn sales milestone in the year to 29 March but it warned of a slow first half of its 2016 financial year.

Because of a weak Euro, the company said on 18 June that sales slowed down in the second half of the financial year but it still reported a £1,11bn ($1.58bn, €1.39bn), an 11.4% growth.

Chief executive of Poundland Jim McCarthy said in a statement he was very pleased with the record sales and profit growth in the financial year. "We saw strong trading in the UK and Ireland and our international expansion plans in Spain are proceeding well with seven multi-price Dealz stores now open."

The retailer reported an 18.6% rise in profit to £43.7m.

Poundland has kicked off its expansion into Spain in its 2015 financial year by opening five stores and it said it wants to open another five in the 2016 financial year.

The Conduct and Market Authority launched an investigation after Poundland announced it wanted to buy competitor 99p store, but the company said it is working together with CMA to make the acquisition happen, which could result in in adding 250 stores the Poundland brand.