BETTYS and Taylors has increased its turnover by 14 per cent, to £117.3 million in its results for the year ended October 31, 2011.

The Harrogate-based family business, which owns Bettys Tea Rooms and Taylors of Harrogate, recorded profit before tax of £7.8 million, down from £9.4 million in 2010, when it recorded a turnover of £102.8 million.

The business said the lower profit figure was expected, reflecting investment in advertising and infrastructure.

The business, which employs 1,238 people, invested £5.3 million on new plant and machinery and property, it said.

It also includes all staff, regardless of seniority or length of service, in a quarterly profit sharing scheme, which paid out £2.1 million during 2011, adding 11.1 per cent to employees’ basic earnings.

The business donated 5 per cent of its profits after tax to charity - a total of £248,000 in cash and in kind, including donating £199,000 to overseas communities, particularly countries where it sources tea and coffee and mainly through its Yorkshire Rainforest Project with the Ashaninka people of Peru. It also donated £43,000 to charities, educational and environmental purposes in Yorkshire.

In its results, filed on Companies House, the business said it had bolstered its approach to risk management, appointing non-executive directors with particular expertise, and appointing a new head of risk and audit and risk committee.

But it said it was confident its activities were sufficiently integrated and focused to be effected.

It said: “The group is famous for the uniqueness of its quality and service. The directors are determined to preserve and develop this reputation, whilst acknowledging consumer spending uncertainties.

“The directors believe that ‘good value’ for the consumer begins with good quality, good values and the efficient, effective use of resources. The directors will not erode quality, integrity of product or put suppliers under pressure.”