B&M, the bargain retailer, saw its share price rise almost 3% in early morning trading on the back of record Christmas trading numbers.
The company which has seen enormous UK store expansion of late, reported a sharp rise in third quarter sales, helped in the large part by Christmas trading.
B&M posted a 22.7% rise in sales to £969.8m in the 13 weeks to December 23, with like-for-like sales growing 3.9%.
The group said that the stellar performance reflects its new store opening programme, with 19 outlets added in the quarter.
Rising inflation caused by the collapse of the Brexit-hit pound has pushed up the price of household essentials for hard-pressed consumers and, in these conditions, B&M has thrived.
Commenting on the latest numbers, CEO Simon Arora said: “B&M continues to go from strength to strength.
“Despite the demanding comparatives from the very strong Christmas in 2016, our buying, supply chain and retail teams achieved another outstanding performance this year by doing what we do best, which is delivering great value for customers week-in, week-out.”
B&M expects to meet market expectations for earnings in the year to March.
Last year B&M, which is chaired by former Tesco boss Sir Terry Leahy and mainly sells general merchandise, splashed out £152m to take over Heron Food Group.
B&M has expressed its intention to expand the 250-plus convenience store chain, predominantly found in northern England, by between 10 and 20 new sites per year.
The company’s share price has been strong throughout the year particularly in the summer when rumours abounded that Asda parent company Walmart was planning a £4.4bn bid for B&M.
Given the moves by Sainsbury to take over Argos and Tesco's swoop on Booker, it was perhaps not surprising that speculation would focus on B&M. Talk of acquisition has all gone quiet - for now at least.
Brokers remain firmly positive on B&M with Liberum Capital, Peel Hunt, Jeffries International and Deutsche Bank all retaining the stock as a ‘buy’.