Homebase has returned to profit earlier than expected after its turnaround plan helped deliver strong growth.

The DIY retailer reported earnings before interest, tax, depreciation and amortisation of £3.2m for the year, up from a £114.5m loss in 2018.

Homebase has embarked on a radical turnaround strategy after it was bought by Hilco Capital for just £1 amid huge losses.

The firm said new ranges and improvements to both its in-store and online offering had helped drive like-for-like sales up 2.6 per cent, while its gross margin rate rose 2.8 per cent.]

Homebase last year bought Bathstore out of administration and has now opened 49 concessions in its stores.

The homeware chain said its cost-cutting strategy had helped trim its costs base by more than £180m, and that nearly all of its 164 stores were now profitable.