Discount retailer Matalan said childrenswear and ladieswear helped its recovery gather pace as it reported an improvement in trading.

In a trading update, the company said like-for-like sales in the 18 weeks to July 3 had improved by four per cent on the same period last year.

Matalan, whose profits nearly halved last year after a series of setbacks, said its ladieswear, childrenswear and home ranges had all done well.

The group said it had begun action to arrest a disappointing performance in menswear and had started refurbishing older stores after successful trials at outlets in Wigan, Wakefield and Reading.

In May, Matalan said like-for-like sales in the nine weeks to May 1 had grown by 3.1 per cent, with profitability maintained across its 178 stores