A retailer is eyeing up expansion after another bumper year of trading.

The Original Factory Shop, based at Steeton's Millennium Business Park, near Keighley, boosted profits by 28 per cent in the year ended March 31 - its strongest year to date.

The budget retailer of clothes, toiletries and electrical goods, grew its turnover by 14.4 per cent to £60.5 million and has pledged to invest £10 million into a three year expansion programme for the chain.

The Original Factory Shop opens outlets in smaller towns with limited retail markets.

It offers discounted goods and lines which have been discontinued by other retailers.

Chief executive George Foster said: "We operate in a niche market. We go into little towns where other retailers have given up and steer away from big towns, although we do not mind going up against supermarkets. Increasing traffic congestion helps us a lot with people opting to stay in their towns to shop rather than face long queues to get into bigger places."

The Original Factory Shop operates from 72 stores nationwide and intends to open at least a further ten this year.

It employs 1,200 people, including 100 at its Steeton base.

The chain has enjoyed success for the past few years and underwent a management buyout from its top executives in 2004 as part of a multi-million deal.

Mr Foster said: "The company had been doing very well up to that point and what we are seeing now is essentially a continuation of a four year period of really good trading."

With the UK retail climate remaining uncertain in the face of internet shopping and increased supermarket dominance, the Original Factory Shop has continued its progress smoothly.

"The retail trade has changed a great deal compared with three or four years ago.

"It has become more polarised with less middle ground between the winners and losers.

"On one hand the likes of Tesco and us are continuing to do well but there seems to have been more profit warnings this year than there has been for years.

"We have not seen any real impact from internet competition but there may come a time when it comes under consideration from us."