Saghir Ahmad, managing director of Tyne Tees cash and carry, is a busy man. He routinely clocks in workdays of 12 hours or more at his depot in Gateshead, while brother Zahir does the same at the smaller Middlesbrough depot. "I have been in the business for 33 years," says Ahmad. "I was one of the youngest Asian retailers to focus on English products, so I have been around for a while and I know it's a tough business."

Ahmad devotes what little free time he has to his family, as well as to his many charitable interests. He is a member of the Pakistan Cultural Society of Newcastle, which raises funds for good causes locally. He has also funded the construction and endowment of a secondary school for boys in his native Pakistan - the Munir Ahmad Memorial Government School - in honour of his brother, a founding partner of Tyne Tees who died five years ago.

Ahmad's charitable feelings however, do not extend to the rogue traders who are putting a dampener on Tyne Tees' otherwise impressive performance this year. Tyne Tees is on course to record full-year turnover of £50m. That would be a 10% increase on last year, when the company was 35th in the Bubbling Under section of our Big 30 Wholesaler rankings, with turnover of £45m. Ahmad says: "It would be even more, but bootleggers are a problem in this area and it is hitting our alcohol sales. HM Revenue & Customs know this, but they are doing little about it."

Ahmad says that Tyne Tees's Gateshead flagship depot should generate £35m, or 70%, of company turnover this year. Some 400 customers shop at the depot every day, served by a staff of 65 full and part-time workers. The depot has a full range of 16,000 lines, with products in all categories. Alcohol accounts for a relatively small number of the lines available, but Ahmad says: "It does generate a large percentage of our profits."

Tyne Tees recently concluded trade promotions at the Gateshead depot in the beers, wine and spirits category. He notes: "Some suppliers were reluctant to participate, but the ones that did recorded sales increases of up to 23%."

While sales have grown rapidly at the depot, so have expenses, driven by the surge in transportation and energy costs that is affecting businesses across the country. Energy costs at Tyne Tees's 89,000 sq ft Gateshead depot have risen by 25% and Ahmad says he is unable to pass the cost increases on.

If he can't pass the energy costs on, how about investing in energy-saving technology? Ahmad says he cannot reduce energy usage without significant investment, which is simply not economically viable. He adds: "It is a significant issue for all of us. I think we as a group in Landmark should negotiate a group price for energy as well."

The company has identified catering as an under-served group. Ahmad is reviewing candidates for the new position of catering manager to oversee an overhaul of its fresh food and butchery sections. The selling areas will be renovated and the range of lines vastly expanded. "The customer base is there," says Ahmad. "We just need to improve our offer for them."