The Bestway Group has announced an increase in annual turnover, although its wholesale business suffered a 6.9% drop in pre-tax profits after taking a margin hit to support its retailers.

The group’s turnover increased by 1.2% to £2.52bn in the year ending 30 June 2013, while pre-tax profit rose by 6.6% to £184.6m.

However, pre-tax profit in its wholesale business fell by 6.9% to £54.3m due to the group “consciously reducing its margins to support its customers, who are facing increased competition from high street retailers”. Turnover increased slightly from £2.33bn to £2.34bn.

Chief executive Zameer Choudrey (pictured) said: “In the past 12 months, the business environment in the UK and globally has faced many challenges.

“Despite the adverse economic environment the group has been able to increase profitability and I am pleased to say that the inherent strength of the group has ensured that all our businesses maintained their respective market shares during the year under review.”

He added that Bestway Wholesale continued to be the UK’s largest trade only wholesaler.