Foodservice wholesaler 3663 has negated the loss of a major distribution contract with Compass to post a 7.7% increase in full-year sales.

Turnover grew to £1.1bn in the year to 30 June, while trading profits increased 2.3% to £35.1m, 3663’s parent company Bidvest said.

The loss of the Compass contract was offset by business gains as free trade volumes rose and profits from its catering equipment and fresh food businesses exceeded expectations.

Sales at Seafood Holdings, the fresh fish supplier bought by Bidvest in 2010 for £45m, increased, but profits fell below expectations after customer spend declined and collapsing salmon prices hit margins.