Frozen food specialist Iceland's profits have stalled.

The retailer, which has stores in Gloucester, Cheltenham, Stroud and Dursley, as well as Food Warehouse stores in Cheltenham and Gloucester, posted a 0.6% increase in underlying profits to £317.6m in the year to the end of March, as reported by Retail Gazette.

In contrast, it reported a 24% rise in underlying profits in 2024.

Sales were flat at £4.2bn, although adjusting for an extra trading week in 2024, they rose by 3%.

Iceland has been stepping up its efforts to fight off competition from Aldi and Lidl using aggressive price promotions and multibuy deals - at the cost of its margins.

The number of items sold was up by 5.3%, but the total value of sales remained the same.

Asda and Tesco have both cut prices this year at the expense of profits - with Tesco investing £400m in competitive pricing.

Iceland has maintained a stable market share of around 2.3% to 2.4% over the past five years.