TJ Morris, which trades as Home Bargains, has reported record financial results, with operating profit up 24% to £59.5m for the year to June 2011.
The discount retailer, which operates from more than 250 stores across the UK, also made a turnover of £721m.
Operations director Joe Morris said: "We're delighted with the year's results. While the discount sector has seen continued growth, competition has increased dramatically. The sector as a whole has seen a drop in margins, but we've managed to maintain our position. This has been achieved through continuous improvement in everything we do, significant re-investment and hard work."
TJ Morris opened 30 new stores in the year, and also launched its e-commerce website in July.
Over the next five years, the company says it plans to open a further 250 stores, boosting staff numbers to 12,000 across its stores, head office and distribution centre in Gilmoss, Liverpool.