DISCOUNT chain Poundland is creating 1,000 jobs and opening 60 stores after revealing £1bn annual sales.

The business, which has 528 UK and Ireland stores, believes it can target another 750,000 shoppers through the expansion, which also includes Spain.

its annual results showed total sales increased 13.3 per cent to £997.8m, with like-for-like sales up 1.9 per cent in the year to March 30.

Underlying pre-tax profits rose 23.5 per cent to a record £36.8m.

The retailer, which sells goods such as Cadbury's chocolate and Fairy washing-up liquid for £1, opened its first store in 1990.

It operates more than 30 shops under the Dealz brand in Ireland and has extended the format to Spain with a store opening in Torremolinos.

Bosses added sales in the first quarter of the new financial year, covering the period to June 29, jumped by 18 per cent to £262.6m, helped by the later Easter and stronger like-for-like sales.

Jim McCarthy, chief executive, said: "We believe the shopping behaviours adopted during the last six years will continue as the economy and consumer confidence improve.

"We are well placed to benefit further from increased footfall and discretionary spending."