Klondyke Group has reported a rise in profit before tax of 22.3% to £4.8m for the year to September 30, 2010.
The company, which trades from 25 centres across the UK, also saw turnover increase 4% to £44.3m.

Klondyke's annual report said: "Despite a more difficult economic climate and challenging weather in the main gardening season, like-for-like sales increased by a creditable 1.9%, boosted by encouraging sales of craft, indoor furniture and gift product. Our strategy of offering selective promotional product at promotional prices also contributed to growth in sales."

Gross margin declined by 1% to 48.9%, "largely due to the closure of our plant nursery at Greatham in 2009" and the harsh winter weather causing higher plant waste.

In October 2010 the company acquired Byrkley Park Garden Centre in Staffordshire. This year, extensions and refurbishments are planned for the Northallerton and High Legh centres, with improved restaurant facilities to be installed at Astbury Meadow and Wilmslow.

Commenting on Klondyke's future outlook, the report said: "The economic climate will continue to be a challenge. However, our low customer spend and experience of previous downturns lead us to believe that the business will be relatively resilient.

"Looking further ahead, we will continue our strategy of combining the redevelopment of existing centres with the selective acquisition of additional garden centres which meet with our financial criteria."

Dorothy Gault is now chairman at the company after founder Bob Gault died, aged 65, last month.