Discount clothing chain Matalan has increased its sales and profits.

The group's profits were up 9% to �53.6m ($82.8m) in the six months to the end of August.

Although sales rose 4% that represented a slowdown - over the same period last year sales surged by 10%.

But chairman John Hargreaves said that Matalan had delivered record sales and profits "whilst trading in an uncertain economic environment".

Continuing to grow

Mr Hargreaves said the business had succeeded by staying true to its principle of offering outstanding value.

And he said that despite the toughening market conditions Matalan was "well-positioned to grow because of its value for money proposition".

Chief executive Paul Mason said he thought sales would continue to grow at a rate of about 4% during the rest of the financial year.

Matalan also released sales figures that showed sales growing by 8.9% in the seven weeks to 19 October.

Shares rally

Mr Mason said it was a bigger increase than in previous months largely because the sales were compared with sales in October last year, when trading was very weak.

But he said he was pleased with Matalan's performance in September when there was unseasonably warm weather.

That put shoppers off spending on winter clothes in other High Street chains, including Next.

In the City, Matalan shares sopared 19% to 232p in early trade.

At lunchtime, the shares stood 3.25p higher at 198.25p.