Insider Media Limited

Both profit and turnover is up at Nuneaton-based Holland & Barrett, Insider can reveal. The health food retailer recorded turnover of £275.5m, an increase of more than £25m on its year-end result in 2009. However, the company's directors admitted the sector was facing "increasing competition" which was restricting growth.

Operating profit grew from £41m to £47.5m over the 12 months, while profit after tax also rose from £32.1m to £34.5m.

Holland & Barrett submitted its results for the year ending 30 September 2010 to Companies House.

The company, which also owns the Julian Graves and Nature's Way brands, operates more than 600 stores across the UK.

The positive figures are welcome news for the British high street, which has taken a battering recently with retailers including Jane Norman and TJ Hughes entering administration and chocolatier Thornton's revealing plans to downsize its operations.

Staff numbers at Holland & Barrett also rose over the year – at the end of the September period, the company employed 3,586 - up 250 on its 2009 figures. The biggest jump was the number of retail staff the company employed, which rose by more than 90 over the year.

In a statement, the directors of Holland & Barrett said that both the company's activity throughout the year and its year-end financial position remains "satisfactory".

They added: "However, the company is experiencing some organic growth restrictions due to the difficult economic trading conditions currently being experienced within the retail sector.

"The healthcare market is highly fragmented. There are estimated to be more than 1,000 independent health stores operating in the UK. Furthermore, there is increasing competition from the national supermarket chains and other retailers such as chemists, drugstores and internet traders."

The statement concluded that the company's "overriding objective" is to achieve attractive and sustainable rates of growth and returns through a combination of strategic acquisition and organic growth.