Frozen food retailer Iceland's full-year earnings have been weighed down by a disappointing performance in the first half of the year, amid expansion plans.

Iceland, which has stores in Stroud, Gloucester and Cheltenham, saw earnings before tax slip 8.7 per cent to £140.1 million in the year to 29th March, as reported by Retail Gazette.

Iceland blames the fall on increased staffing costs due to the rise in the national living wage, higher distribution costs and its sales performance during the first six months of the year.

Despite this, Iceland said plans to open 50 more stores in the current financial year, of which 34 will be under its Food Warehouse brand. There are currently Food Warehouse stores in Cheltenham and Gloucester.

Iceland aims to expand at a similar rate to rival discounters, Aldi and Lidl, having opened 43 new shops in the year to March.