The retailer grew profits to £28.1m during the year to February 24, a period which included the first two months of trading as a private company. However, turnover fell 2.6% to £1.03 billion over the same period.
Matalan chief executive Alistair McGeorge told The Daily Telegraph that the group's debt repayments were ahead of schedule.
He added: "Whilst last year remained difficult, currently we are well ahead of delivering our plan."
He said that the retailer's 24 new format stores were delivering strong like-for-like sales and added: "We have invested significantly in our stores and we plan to accelerate our store investment programme in the new year. Costs and cashflow are under far better control."