Scottish wholesaler JW Filshill has increased its pre-tax profits by 7% to £2m, despite a sales growth of just 1% to £163m.

The increased profitability in the year to January 2009 was brought about by driving unnecessary cost out of the business and comes after a difficult year for the wholesaler.

When the Key Lekkerland buying group closed down in August 2008, Filshill lost a number of ­national ­contracts, which accounted for about 2% of its turnover.

In addition, some 5% of Filshill's 1,000 retailer customers had gone under in the past year as a result of the recession. However, Filshill has balanced out the losses by extending its delivered business into the north of England. The 160 Key fascia stores had also continued to perform well, the company said. "The past year has been tough and we are still having to work hard," said finance director Fraser Harrison.