MCCOLL’S says it will continue its expansion to 1,000 convenience stores after posting strong results.

The retailer, which has shops across the North-East, said total sales were 3.6 per cent higher at £444.2m for the 26 week period to May 25.

Bosses added like-for-like sales increased 2.1 per cent, with earnings before interest, depreciation and amortization (EBITDA) lifting 10.9 per cent to £15.9m.

The company, which saw net debt fall to £36.3m from £49.8m, also pointed to its store conversion to introduce post offices into shops, and hailed its 750th convenience outlet, which opened last month.

The firm also has 544 newsagents, with work carried out to introduce more food and wine shops to its range.

It hopes to have 1,000 convenience stores by 2016.

James Lancaster, McColl’s chairman and chief executive, said the firm was winning its battle against rivals in a tough market.

Mr Lancaster, who helped set up the business in 1973, said: “We have delivered solid progress during the first half of the year, and remain on track to deliver the expected results for the full year.

“Our store conversion and expansion is continuing to progress well, and it is underpinned by our strengthened balance sheet and strong cash flow.

“With the opening of our 750th store in June, we are on track to achieve our target of 1,000 convenience stores by the end of 2016.

“In addition to our store transformation, we are also focused on expanding our products and services to provide more convenient ways for customers to shop.

“We have started the roll out of post office locals across our range and have also completed our supply chain transformation, which is helping to increase basket spend.

“Notwithstanding the competitive landscape, I’m encouraged by the strong fundamentals of the convenience retail sector and our ability to capture growth in this market.”

The firm has more than 60 stores in the North-East, including branches in Darlington, Durham City, Middlesbrough and Stockton.