Discount retailer Matalan has driven annual turnover above the £1 billion barrier after opening 20 new stores in the last financial year.

Pre-tax profits for the 53 weeks to March 1 also lifted nine per cent to £117.4 million, despite the impact of tougher retail trading conditions.

The figures, which were within a range of market forecasts, come a month after Matalan, based in Lancashire, surprised the City by announcing the second abrupt departure of a chief executive in two years.

Paul Mason followed Angus Monro out of the top job after the company reported a difference of opinions with the rest of the board.

John King, chief executive of Matalan's Lee Cooper business, took the helm with the company insisting there had been no change of strategy.

It said yesterday its commitment to the value end of the market had helped it become the UK's fifth largest clothing retailer.

Chairman John Hargreaves said: "In a more value conscious market, we believe Matalan's strong combination of price and quality will be increasingly attractive to our members."