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Staff reductions have helped cash and carry wholesaler Parfetts record a rise in turnover and a stable profit.

The business, which has major operations in Somercotes, Derbyshire, broke through the £300m-turnover mark for the 12 months to 30 June 2011 and said it had "continued to trade successfully".

The business, which trades as AG Parfett & Sons Limited, is family-run with 55 per cent of the company owned by employees.

In 2010/11, it reported turnover of £301.4m - up from £289.1m in the previous year. Pre-tax profit was also steady at £2.81m - slightly up on the £2.78m from a year ago.

Chairman Stephen Parfett said in his directors' report: "I am pleased to say that our company continues to trade successfully in an extremely challenging economic environment.

"As with any prudent management team, we have actively reviewed the business during the year and sadly had to make some staff reductions to ensure we were as fit as possible to face the challenges ahead efficiently and effectively."

Parfett said that more staff left the business than anticipated but it has left the business "well placed to deal with the trading conditions" it faces. Staff numbers dropped from 618 to 593 while wages and salaries fell from £10.3m to £9.7m.

He said the business has been making "major investments" such as improving lighting at its Sheffield depot and boosted security and energy saving. The company said its retail part of the business was making a "worthwhile contribution" to Parfetts.

Sales costs rose from £269.7m to £281.5m. Total profit after tax and other costs came to £1.97m - up from £1.90m. No dividend was paid.

Parfetts also has branches in Stockport in Greater Manchester, Halifax in West Yorkshire, Sheffield and two Merseyside depots in Aintree and Anfield.

The chairman is set to step down from the business in October 2012.