The retailer, which owns Iceland Foods and Cooltrader, said profits rose by 19 per cent in the year to March 26, following the opening of 74 new stores, including 51 former Woolworths sites.

Pre-tax profit had increased from £113.4m in 2009 to £135.4m in 2010, while sales were up 10.4% to £2.256bn this year from £2.043bn in 2009 and like-for-like sales were up 4.3%. Iceland said net debt had reduced to £7.6m from £85.4m in 2009. EBITDA was up 11.2% to £184.2m in 2010 from £165.6m in 2009.

Malcolm Walker, Iceland chief executive, said: "This is the fifth year of strong growth my colleagues and I have delivered since we returned to manage the business in February 2005, and yet another record result for Iceland. The Group remains strongly cash generative and we ended the year virtually free of debt, despite funding increased capital expenditure of £54.5m (2009: £30.5m) as we stepped up our expansion programme with the opening of a record 74 new stores, our fastest rate of growth in any year since we acquired Bejam in 1989. All these openings took place on schedule, bringing new life to 51 town centres where we took over redundant Woolworths stores, and creating more than 2,500 new jobs.