The value retailer recorded pre-tax profit of £34.8m in the 52 weeks to February 2, 2019, up from a loss of £65m the previous year, Retail Week can reveal.

The retailer reported a 2.3% fall in turnover year on year to £1.6bn.

Wilko slashed its debt pile and ended the financial year with positive free cash flow of £26.9m, a rise of £52.1m on the previous year.

Wilko did not offer specifics on the costs cut to deliver its return to profitability, but a spokeswoman for the retailer said: “Cost and cash discipline has played a significant role in our improved financial position. This has been accomplished through embedding more robust financial controls and challenge across all areas of the business.”