UNITED Wholesale Grocers has praised the dedication and performance of its workforce as profits edged up 1.27% at the cash and carry and grocery distribution company last year.

The Glasgow-based business, which operates cash and carry depots in Springburn and Polmadie, has reported pre-tax profits of £1.295 million for the year ended December 31, 2012, up from £1.279m in 2011.

The profit rise at United, which supplies independent retailers trading under the Shopsmart fascia it launched in 2005, was more modest compared with the progress it made in turnover. It rose by 5.1% to £131.5m.

United said gross profit had increased by 1.31% to £6.02m, which the directors noted in the accounts was lower than expected because of a reduced gross margin of 4.58%, compared with 4.75% in 2011. They attributed the lower margin to a "change in sales mix and increase in sales price competition".

United's directors over the year, Mohammad Ramzan, Nabeel Ramzan and Waqas Badar, also reported "a number" of the company's Shopsmart retailers had seen sales increase by 11.1% compared with 2011.

The directors said: "We are pleased to report [an] increase in both sales and earnings for 2012.

"In a highly competitive marketplace, these results reflect the dedication and performance of all employees."

According to the latest annual return for United Wholesale Grocers, filed in June this year, shares in the company are wholly owned by United Holdings UK. That company is also headquartered in Springburn, north Glasgow.

United Wholesale Grocers' latest accounts show its average headcount remained static at 146 over the period, with its overall staff costs rising to £2.79m. This compared with £2.68m in 2011.

The accounts also show there was a significant leap in directors' remuneration, rising to £159,708 in 2012 from £95,127 the year before. Directors' pay for the year broke down into remuneration of £84,708, down from £95,127, with the value of company pension contributions to money purchase schemes coming in at £75,000. Two directors accrued benefits under company pension schemes.

Dividends paid on equity shares during the year came in at £203,500, up from £200,000 in 2011.

The accounts also confirm that Amaan Ramzan was appointed a director on January 1, 2013.

The directors expressed their optimism about the current year. The directors added: "In spite of economic pressure and increase in competitive intensity in our market, we are expecting continued progress in 2013 underpinned by our expanding range of products and services and incentives offered to our customers."